PTT Group is putting its power business on the fast track, with generation capacity expected to increase by at least 1 gigawatt each year in a bid to achieve a target of 16GW by 2030.
Its power generation arm Global Power Synergy Plc (GPSC) and other subsidiaries are expected to jointly carry out the expansion plan to increase the current capacity of 5.05GW, said PTT president and chief executive Auttapol Rerkpiboon.
The move comes as clean energy is becoming a global trend.
PTT plans to allocate 6% of total capital spending worth 851 billion baht to its power generation business. The money is allotted until 2025.
As of the end of May, renewable power generation made up only 11% of GPSC's 5.05GW portfolio, with solar farms, a waste-to-energy power plant and hydroelectric power among key electricity sources.
The remaining 89% of capacity comes from natural gas, oil and coal.
Mr Auttapol said half of the 16GW capacity goal is projected to come from renewable resources, with the other half from fossil fuels.
PTT is expanding its renewable energy development through subsidiary Global Renewable Power Co, jointly owned by PTT and GPSC.
After 2030, renewable energy and other non-oil businesses should contribute 20% of the group's total revenue, he said.
In the gas-based power generation segment, PTT Exploration and Production Plc (PTTEP) is overseeing a gas-to-power plant development project in Myanmar.
Myanmar's Electricity and Energy Ministry allowed PTTEP to proceed with development in December last year.
This project uses natural gas from PTTEP's fields in the Gulf of Martaban, including the Zawtika and M3 blocks, to generate electricity for Myanmar's state grid.
Investment worth US$2 billion (62.3 billion baht) goes to upstream development projects, including a 600-megawatt combined-cycle power plant located in Kyaiklat in Ayeyarwady region.
In the solar energy segment, last month GPSC launched polymer floating structures called "G Float", part of a floating solar farm as it works to develop an innovation-led solar energy business. The floating solar pontoons are expected to strengthen the company's position as a leader in solar energy development projects.
G Float is specially designed to enhance the capacity of electricity generation by having solar panels installed on high-performing floating structures, said Mr Auttapol.