Egco clinches Indonesia geothermal plants deal
SET-listed Electricity Generating Plc (Egco) has completed its 20.07% share acquisition in two geothermal power plants in Salak and Darajat, Indonesia.
President and chief executive Chanin Chaonirattisai said the deals were done through its subsidiaries, Start Energy Group Holdings Pte. Ltd and AC Energy Holdings Inc, which acquired the stake in the two plants from a Chevron affiliate.
"The deals were done on March 31, 2017. This investment is in line with Egco Group's strategic plan to expand its business in renewable power generation in the Asia Pacific region," said Mr Chanin.
The Salak and Darajat geothermal power plants are located in West Java and are composed of several geothermal steam and electricity generating units. The plants have an aggregate capacity of 402 megawatts from electricity and 235MW equivalent from steam, respectively.
The plants have long-term energy sales contracts with PT PLN, the Indonesian state-owned electricity corporation.
Egco began investing in Indonesia in 2014 by acquiring a 20% indirect ownership interest in Star Energy geothermal power plant, which has total installed capacity of 227MW.
Egco is also moving ahead with plans to develop renewable power projects at home.
Its latest 80MW wind farm in Chaiyaphum province recently began commercial operations, helping to generate more revenue for the company as well as support renewable energy.
The group currently operates 15 renewable power plants with total equity contracted capacity of 746MW, comprising 12 domestic plants with total equity contracted capacity of 213MW and one plant each in Laos, Indonesia and Australia, with total equity contracted capacity of 533MW.
The plants include biomass, waste, water, solar, wind and geothermal power.
The renewable energy portfolio accounts for 18.1% of the company's total equity contracted capacity.
Egco has set aside 30 billion baht in 2017 for expansion in Thailand, two other Asean countries and Australia.
Mr Chanin said 5 billion baht will be allocated for investment at home, while 25 billion will go towards expansion in the Philippines, Indonesia and Australia. That budget is slightly below the 33 billion baht set aside for investment last year.
EGCO shares closed yesterday on the Stock Exchange of Thailand at 209 baht, down five baht, in trade worth 121.1 million baht.