Banpu will focus more on energy technology businesses through its new firm, Banpu Next, during the ongoing global economic recession caused by the pandemic.
"Energy technology is becoming a global trend. People will have their own power generation system based on cleaner resources," said Banpu chief executive Somruedee Chaimongkol.
Banpu Next, a joint venture between Banpu and its power generation arm Banpu Power (BPP), will serve as an energy solution provider for a range of businesses including electric vehicles (EVs), energy storage systems, energy efficiency management and Banpu's smart city project, which promotes wise use of energy.
Last year Banpu launched a smart city project, covering 80 acres of Rugby School Thailand, a private co-educational British international school in Chon Buri's Bang Lamung district.
The company plans to open more projects in Chon Buri's Sansuk area and Khon Kaen in the Northeast, said Ms Somruedee.
By 2025 Banpu plans to earn more revenue from clean energy businesses, depending less on coal mining and businesses with high pollution.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) from coal are expected to shrink from 70% this year to 40% in 2025. Ebitda in other businesses will also change -- energy technology is expected to grow from 5% to 20% and natural gas to double from 5% to 10% -- with fossil fuel-based power generation expected to stay at 30%.
She said Banpu allocated an investment budget worth US$260 million for clean energy and energy technology during 2018 to 2020.
The funding has been allocated to ownership expansion in Singapore-based Sunseap Group, a solar photovoltaic service provider operation, the 37.6-megawatt El Wind Mui Dinh Wind Farm in Vietnam worth $66 million, and an electricity-powered ferry valued at $1 million.
This year Banpu expects to deliver electric ferries to operators to serve tourists in Phangnga Bay.
The company also plans to scale up its electric tuk tuk project by increasing the number of three-wheel vehicles to 100 this year and 1,000 in 2021. The tuk tuk service, supported by Movmi vehicle-hailing application, targets passengers of mass transit trains in Bangkok.
Despite promising growth in energy technology, the recession has prompted Banpu to adopt careful spending tactics for 2020-21.
This year its capital expenditure was cut to $600 million from an earlier allocation of $930 million. Operation expenditure was cut by 20% this year to more than 1 billion baht, including a 25% salary cut among executives.