Gunkul standing pat on 1,000MW energy target
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Gunkul standing pat on 1,000MW energy target

A Gunkul technician works on a solar rooftop installation.
A Gunkul technician works on a solar rooftop installation.

SET-listed Gunkul Engineering Plc, an engineering and renewable power operator, still aims to boost its power-generating capacity committed to state utilities to 1,000 megawatts by 2020, despite fierce competition.

Managing director Somboon Aueatchasai said Gunkul's committed capacity currently stands at 488MW, almost half of its goal.

There is still room for Gunkul to increase its renewable power-generating capacity at home, since policymakers are due to open bidding for licences totalling 1,434MW this year.

The company, therefore, expects total revenue in 2017 to grow by 15% from the previous year, he said.

According to the national power development plan, Thailand is due to have 19,630MW of renewable power by 2036, up from 7,490MW at the end of 2015.

Since last year, solar farm projects with 520MW capacity have either been delayed indefinitely or scrapped, while the right to develop solar projects was granted to agricultural cooperatives.

An additional 568MW of development licences will be granted to small power producers, and 269MW will be granted to biogas and biomass power producers.

The remaining capacity stems from delayed licences that were set to be granted to waste-to-energy project developers in metropolitan areas.

Mr Somboon said the company has continued looking for more business opportunities in Japan, Indonesia and Myanmar.

He said Gunkul is ready to comply with a new rule under which state utilities will switch from non-firm power purchasing agreements (PPAs) to firm PPAs.

Gunkul reported a 27% drop in total revenue to 3.36 billion baht, down from 4.6 billion in the previous year.

Net profit last year fell by 8.8% to 615 million baht from 674 million, due to the delay last year of a 60MW wind farm from September to December.

Mr Somboon said Gunkul has been focusing on renewable power for the last several years.

The company's earnings before interest, tax, depreciation and amortisation from power last year made up 55% of total revenue, a figure projected to rise to 70% this year and 80% in 2018.

GUNKUL shares closed yesterday on the Stock Exchange of Thailand at 4.96 baht, unchanged, in trade worth 17.1 million baht.

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