BCPG acquiring 4 solar plants
BCPG, a renewable energy business arm of Bangchak Corporation, has announced a takeover deal for four solar power plants in Thailand with a total production capacity of 20 megawatts to further expand its green energy empire.
The firm recently signed a shareholders' agreement with Eternity Power for the acquisition of 99.99% of shares in RPV Energy, the operator of four solar power plants in three provinces.
The photovoltaic power plants, which have already started commercial operations, consist of a 5MW power plant in Lop Buri, a 5MW facility in Prachin Buri, and two others with a total capacity of 10MW in Kanchanaburi.
BCPG president Bundit Sapianchai said the company expects to start gaining revenue from the four plants in the third quarter, based on the government's two electricity purchase schemes: an adder tariff for 15MW of production and a feed-in tariff for a 5MW plant.
The adder tariff, an extra tariff added to electricity prices, and feed-in tariff, a guarantee to buy electricity at fixed prices, are aimed to attract investors to renewable energy development projects, which are usually costly.
"The acquisition is in line with BCPG's five-year plan, which aims to invest in various types of renewable energy businesses and develop the company's existing facilities," Mr Bundit said.
BCPG refused to unveil the value of the latest takeover.
The investment is part of its five-year capital expenditure worth 45 billion baht from this year to 2024.
The spending is set to scale up power generation capacity to 842MW from 452MW by 2024.
He said BCPG is in talks to purchase a solar farm in Laos with a capacity of 100-200MW at a cost of US$100-200 million.
The solar farm is currently under construction.