Scan Inter moves away from gas via GEP
SET-listed Scan Inter (SCN), a compressed natural gas (CNG) service provider, plans to acquire more assets in the renewable energy sphere via subsidiary Green Earth Power Thailand (GEP), which sees opportunities in Myanmar's growing capital, Naypyidaw.
SCN diversified into cleaner power generation several years ago at a time when demand for CNG was down because motorists turned to diesel after a plunge in global oil prices in 2014.
GEP, which is planning to list on the Stock Exchange of Thailand, wants to add more assets to its renewable energy portfolio.
SCN managing director Littee Kitpipit said GEP will be a "springboard" to help SCN expand its clean energy business domestically and across Southeast Asia.
The company acquired GEP in 2018 with 40% of its shares.
GEP won a licence to develop a 220-megawatt solar farm in Minbu, Myanmar. The project requires 10 billion baht in capital spending.
Located on 3,000 rai, a 50MW facility has been in operation since September 2019. Mr Littee said construction for three other power plants, two with capacity of 50W each and the other with 70W, will begin next year. They are expected to operate in early 2022.
GEP expects to rack up revenue worth 100 million baht in the first year, with the figure rising to 1 billion baht when the other plants are fully operational.
The project is aimed at serving the growth of Naypyidaw, Myanmar's capital since 2006, which requires a huge amount of electricity.
GEP has been granted a build-operate-transfer concession to develop and operate the project under a 30-year power purchase agreement with state-owned Electric Power Generation Enterprise.
Mr Littee said renewable energy businesses, especially solar farms, have high potential in Myanmar. Existing transmission lines and substations are designed to serve a total power capacity of 800MW, so there is room for further power generation expansion.
Founded in 2011, GEP has registered capital of 215.75 million baht and is restructuring and increasing the value to 2 billion baht.
Mr Littee said SCN plans to launch a rooftop solar panel project through subsidiary Scan Advance Power because businesses are increasingly interested in the format, which lets them sell electricity among companies under a private power purchase model.
The company will first install solar panels with capacity of 12MW, increasing to 20MW by the end of this year. Capacity will be extended to 30MW next year.
"People are willing to pay for installations because solar panels are more efficient and their prices are getting lower," Mr Littee said.