Global Power Synergy Plc (GPSC), a power generation arm of national oil and gas conglomerate PTT Group, has acquired a 41.6% share -- worth 14.82 billion baht -- in Indian solar power developer Avaada Energy Private Co (Avaada) as part of its move towards sustainability and clean energy development.
PTT president and chief executive, Auttapol Rerkpiboon, said the investment shows PTT's commitment to joining the global campaign of net-zero emissions and striking a balance between greenhouse gas emissions and absorption.
The share purchase, which was made through GPSC's subsidiary Global Renewable Synergy Co (GRSC), will also support the Indian government's policy to promote renewable energy development in the country of over 1.3 billion people.
New Delhi is actively pushing ahead with clean energy projects. It has set a target to have 450 gigawatts (GW) of installed renewable power generation capacity by 2030, up from 73GW at present.
"The investment aligns with the company's growth strategy in the renewable energy business internationally and will enhance the company's expertise in solar power generation," Mr Auttapol said.
The acquisition deal will also help PTT achieve a renewable power target of 8,000 megawatts by 2030.
Avaada plans to build a solar power generation capacity of 3,744MW, with 1,392MW coming from facilities in operation and the remaining 2,352MW to be generated by power plants currently under construction. The plants are scheduled to begin operations between 2021 and 2022.
Once the capacity is increased to 3,744MW, the company will help reduce greenhouse gas emissions amounting to 4.3 million tonnes of carbon dioxide equivalent per year in India.
Avaada also plans to expand its renewable power generation capacity to 11,000MW by 2025.
Mr Auttapol regards the investment as a cooperation between GPSC and Avaada and a significant business move.
In addition to putting PTT on the path to achieve its renewable power target, the deal will enable PTT to accelerate its goal of achieving a low-carbon society and at the same time develop its sustainable energy business.
Worawat Pitayasiri, president and chief executive at GPSC, said the cooperation will increase GPSC's renewable power generation capacity to 2,145MW, making up 32% of the total power generation capacity of 6,613MW.
It will also help Avaada achieve its goal of expanding power generation capacity to 11,000MW.