Ratch in discussions covering 2 power acquisitions

Ratch in discussions covering 2 power acquisitions

SET-listed Ratch Group is in talks with two power companies, one local and another overseas, on new acquisition deals to offset revenue lost from the retirement of a power plant in Ratchaburi province during 2025-27.

Ratch has reached the final stage of negotiations, expecting to conclude two deals by December, said chief executive Kijja Sripatthangkura.

“The acquisitions are planned to offset the future retirement of four power generators at Ratch’s gas-fired power plant,” he said.

The power plant in Ratchaburi consists of a thermal plant with 1,400 megawatts and a combined cycle plant with 2,100MW.

Ratch is Thailand’s largest private power firm and a subsidiary of state-run Electricity Generating Authority of Thailand (Egat), which owns a 45% stake.

Ratch has another gas-fired power plant scheduled to retire in 2020. This 700MW project is operated by its wholly owned subsidiary Tri Energy Co (Teco). 

In June, the government granted a renewed power generation licence for Ratch to continue operating this power plant, also in Ratchaburi.

The company’s new subsidiary, Hin Kong Power, will replace Teco in operating the plant. The new project will have additional power generation of 1,400MW.

Ratch allocated a budget of US$700 million (21.6 billion baht) to develop this project, expected to begin operations in 2024-25.

Mr Kijja said Ratch plans to seek two strategic partners to participate and invest in Hin Kong Power before construction starts.

“Ratch is in talks concerning further investment details and plans to be a major shareholder in Hin Kong Power,” he said.

Hin Kong Co signed a 25-year power purchase agreement with Egat as the single buyer in July. Both parties have yet to conclude contract details, such as a gas sale agreement. 

Ratch posted revenue for the first half of 8.4 billion baht, up by 7% year-on-year, largely from the sales and rendering of services worth 4.2 billion baht, up sharply by 33.5%.

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