Surin: PEA Encom International, wholly owned by the Provincial Electricity Authority (PEA), has set a five-year capital expenditure budget of 32 billion baht until 2018, mostly for renewable energy projects.
Acting managing director Panya Laochu said the expenditures were already approved by the cabinet since last year but some projects were delayed due to the prolonged political turmoil.
The largest project is Encom's joint venture for the development of four solar farms with Solar Power Co (SPC) in northeastern Thailand at a cost of 2.5 billion baht.
All the farms, with a capacity of 7.46 megawatts each, have been in operation since April this year, with two in Surin and one each in Loei and Khon Kaen.
The company also has a joint venture with Laos state-owned Electricite du Laos in developing a five-MW hydropower plant in Nam Hum for 240 million baht. The project is expected to commence operation in 2017.
It plans to develop a biogas project from waste water at a palm oil crushing plant in Krabi, with operation slated for next year. A feasibility study is also underway for a wind farm project in Phetchabun through a joint venture with a Thai partner.
For the biomass sector, PEA Encom teamed up with Kasetsart University to develop an electricity generator from either napier grass, sponge tree or sweet acacia.
The company is selecting six areas nationwide to develop community waste-to-energy projects with a capacity of two to three MW each.
Mr Panya said PEA Encom has enlarged its business to become an energy services provider and offer energy consulting since the company was established in 2012. Revenue is expected to double to 120 million baht this year thanks to the full operation of the four solar farms in Isan.
Business had not grown much in recent years due to bureaucratic administration, so Encom's executives decided to call for a new government to dilute ownership of PEA to only half of the company's total shares so management can be more flexible and make quicker decisions without having to wait for cabinet approval, he said.
Under the plan, PEA will dilute 50% of its shares in Encom by selling 10% each to the Electricity Generating Authority of Thailand, the Ratchaburi Electricity Generating Holding Plc and Electricity Generating Plc. The remaining 20% would be sold to PEA staff through the utility's cooperatives.
PEA would go through its due diligence before a new government is appointed by the junta, scheduled for later this year, said Mr Panya.
If its proposal to dilute PEA ownership is not approved, Encom may have to reduce its investments in the future, he said.
Over the next five years, the company plans to increase its electricity generating capacity to more than 300 MW from 28 MW now.