Global Power Synergy Co (GPSC), the SET-listed electricity arm of PTT Plc, will expand its business in Thailand and elsewhere in Asean.
It expects last week's commencement of the Asean Economic Community (AEC) will create room for the power industry to grow.
Chief executive and president Toemchai Bunnag said the company had set aside 18 billion baht for expansion, of which 10 billion was raised from the initial public offering in mid-2015 and loans accounting for the rest.
The investment budget excludes mergers and acquisitions. GPSC has also opted to seek partners in the region to boost its power-generating capacity.
"The power industry will continue to grow, thanks to supportive measures from the government and business links within the AEC," Mr Toemchai said.
He added the company aimed to capitalise on the growing economies of Asean member countries, which will mean a rise in power demand.
Under its five-year plan, the company must increase its power-generating capacity by 17% each year.
GPSC aims to increase production capacity to 2,850 megawatts within five years, of which 10% would derive from alternative energy and 30% from overseas investment.
The company is expected to see a substantial rise in capacity and start selling a large volume of power in 2017-18, when the governments of Asean members are due to expand investment in infrastructure and power facilities to meet rising demand.
"This will be another year the power industry continues to expand, thanks to government measures, especially its alternative energy policy. The government plans to invite the private sector to submit power-selling agreements for solar power, biomass and waste power plants," Mr Toemchai said.
This year, GPSC expects its revenue will continue to grow thanks to rising domestic demand.
Mr Toemchai said some revenue was due to come on line this year including a 125-MW power project for which the commercial operation date (COD) is set to start this year.
The company will also start booking more income from the IRPC Clean Power Phase 1 after the project's COD started last November.
The company places high importance on long-term projects with good returns under the five-year plan, said Mr Toemchai.
GPSC shares closed yesterday on the Stock Exchange of Thailand at 22.30 baht, down 30 satang, in trade worth 55.4 million baht.