Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's largest private power producer, is in talks with Asean's leading coal miner Banpu Plc to develop a 40-billion-baht coal-fired power plant in Indonesia as part of its strategy to maintain business growth.
The company plans to have half its total power capacity abroad and half in Thailand from the current 73% or 4,600 megawatts produced locally, with the remainder from abroad.
Chief executive Pongdit Potejana said the new coal-fired power project is expected to generate 700 MW.
If the deal can be sealed, it will be a part of Ratch's five-year investment plan announced last month, earmarking total capital expenditures of 12 billion baht from 2014-18.
Its target is to double total capacity to 12,000 MW by 2020 from 6,302 MW at present.
The new possibility in Indonesia is now undergoing a feasibility study for a mine-mouth power plant.
"We've tentatively told Banpu executives that their mine in Indonesia also has great potential to develop a mine-mouth power plant, so we're proceeding with a feasibility study to confirm its viability," said Mr Pongdit.
"If it's worth investing in, we'll venture developing that project."
The study is expected to be completed by this year.
Ratch previously ventured with Banpu in an international project with the 1,878-MW Hongsa Power Co, operator of a coal-fired power plant in Laos that is currently under construction.
The construction of Hongsa is expected to be completed in 2015 or 2016 at a cost of US$3.71 billion.
Ratch is also expanding in other countries.
It is negotiating with Australia's New South Wales government in a bid to acquire 33.3% of the state-owned Macquarie Generation, in line with the local government's plan to privatise state utility projects.
Macquarie's two main coal-fired plants have a combined capacity of 4,640 MW.
The new investment in Australia is expected to cost A$2 billion (58.4 billion baht).
Ratch will join international power developers whom it declined to name in acquiring this project.
Macquarie is one of the largest power producers in New South Wales state.
The local government plans to privatise utilities to raise A$3 billion for developing roads, schools and hospitals, the state government said last year.
Another possibility in Australia is the Brisbane-based power producer ERM Power Co, which has also previously expressed interest in privatisation.
Ratch entered the energy industry in Australia in 2011 after it took 80% of the Transfield Services Infrastructure Fund, later renamed Ratch-Australia Corporation, to operate four gas-fired and three wind farms with a combined capacity of 815 MW.
In Japan, Ratch is conducting a feasibility study of nine solar farm projects with a total capacity of 200 MW. Investment plans for the first three solar farms are expected to be finalised this year, with a combined capacity of 40 MW.
The main targets for international investment are Australia, Indonesia, Laos, Myanmar, the Philippines and Vietnam.
Domestically, the company is negotiating with Gulf Electric Plc, winner of Thailand's independent power producer licence bidding programme for 5,000 MW, with the possibility of co-investing and co-developing the new project under Gulf's licence.
"We have to finalise the deal with Gulf first. After that we'll have to secure a power purchasing agreement with the Electricity Generating Authority of Thailand, the country's single buyer, and then go do environmental and health impact assessments before starting construction," Mr Pongdit said.
Shares of RATCH closed yesterday on the SET at 50 baht, down 75 satang, in trade worth 63.1 million baht.