SET-listed BCPG, a renewable power generation arm under Bangchak Corporation, has cut capital expenditures for this year to between 8-15 billion baht, says president and chief executive Bundit Sapianchai.
The amount was initially set at 20 billion baht in February, but because of the impact of lockdown measures, particularly travel restrictions, the reduced spending is more appropriate.
Mr Bundit said the money will be used only for committed development projects after the supply of transport equipment and machines was suspended and travel to construction sites diminished.
One of these projects budgeted at 8 billion baht is the Swan wind power farm in the southern region of Laos, which is being developed to sell electricity to Vietnam's state's utility, Vietnam Electricity (EVN).
The company runs the project through subsidiary Impact Energy Asia Development, which expects to sign a power purchase agreement with EVN for operations in 2023.
The company's 2020 budget is part of total capital expenditures worth 45 billion baht, to be spent from this year to 2024. The spending plan has remained unchanged since the end of last year.
"The planned spending will be delayed only for this year, but our five-year goal will not change," he said.
BCPG has invested in renewable power plants, including those in Asean and Japan, where renewable energy demand is on the rise.
Mr Bundit said the firm will increase investment in renewable energy businesses globally after the pandemic because many countries plan to offset the ensuing economic downturn by creating more jobs in the renewable energy sector.
"People are experiencing better air quality after the outbreak, which has prompted businesses to pivot away from fossil-based energy to clean energy," he said.
Mr Bundit referred to the International Energy Agency's recent report that found clean energy yields economic returns 3-8 times the investment value.
The instability of fossil fuel prices also provides an opportunity to shift to clean energy, the costs of which are continuously declining.
He said the company saw limited impact from the pandemic even though power demand for solar energy declined in Japan. BCPG plans to offset the loss by postponing the shutdown of its geothermal power plant in Indonesia for maintenance until next year so it can continue to gain revenue.
The company has received four licences to develop and operate solar power farms in Japan for a combined capacity of 100 megawatts.