ACE awaits bidding for power surge
SET-listed Absolute Clean Energy (ACE) expects to meet a power generation target of 1,000 megawatts before 2024, crediting the government's policy to promote community-owned power projects.
Chairwoman Jiratha Songmetta said ACE has confidence in the support scheme, Energy For All, which highlights development of renewable resources.
"The government will begin granting licences for the scheme some time in the first half," Mrs Jiratha said. "There is 1,100MW in combined power generation, with 700MW from previous projects under the Quick Win initiative and 400MW from waste-to-energy projects."
ACE expects to win at least 300MW under Energy For All, she said, due to the company's skill and experience in renewable power projects.
She said ACE's strong capability in raising funds will help win the power projects. The company has roughly 4.4 billion baht in cash remaining from its IPO.
"ACE's debt-to-equity ratio is only 0.5, so there is enough room to obtain loans from banks," Mrs Jiratha said.
ACE has installed power generation of 212.18MW in 13 projects.
Mrs Jiratha said the firm plans to develop a further 20 power projects in the next few years for a total power capacity of 210.2MW.
ACE was founded by the Songmetta family and produces power from renewable resources such as biomass, waste-to-energy and solar. ACE also has one gas-fired power plant.
ACE posted revenue of 3.4 billion baht from January to September 2019, up 4.2% from the same period of 2018. Net profit for the period was 570 million baht, up 33% year-on-year.
Chief executive Tanachai Bunditvorapoom said ACE is waiting on permission from the Energy Regulatory Commission (ERC) to extend signing dates for four power purchase agreements with the state-run Electricity Generating Authority of Thailand.
ACE has four power projects from renewable resources under the hybrid type with a combined capacity of 93MW in the development stage, but the environmental impact assessment (EIA) has been postponed.
The four comprise hybrid projects at Kamphaeng Phet and Ranong, plus two projects in Nakhon Si Thammarat. They are small power producer (SPP) hybrid projects under the ERC.
Mr Tanachai said the ERC granted operating licences for the four projects, but the Office of Natural Resources and Environmental Policy and Planning has yet to approve the EIA reports.
"ACE expects to get approvals within the first quarter of 2020," he said.