Banpu Power Plc, a power producer, is doubling down on its US-led growth strategy by pledging to invest at least $200 million (6.67 billion baht) in renewable energy projects to add to its existing shale gas and electricity portfolios.
Banpu Power, the electricity generation unit of Banpu Plc, plans to build solar and wind projects totalling about 400 megawatts capacity in Texas next year, according to CEO Kirana Limpaphayom.
By 2025, the Texas facilities may account for 50% of Banpu’s global renewable portfolio, which also includes plants in Australia, China and Japan, he said.
Banpu is the latest Thai company to target the US renewable market, citing the nation’s growing demand for power from clean sources.
Banpu Power, along with a group firm, bought a Texas power producer earlier this year for $430 million with a target to supply natural gas from its own shale gas assets in the US.
"The US has high energy demand and continuous growth, and in Texas alone, the size of demand is comparable to that of Thailand," Mr Kirana said in an interview. "While demand in Thailand is growing each year, supply from power projects is also growing at the same pace, so there are more opportunities elsewhere."
The US focus of Thai companies such as B.Grimm Group and Electricity Generating Plc shows higher growth potential outside of their home country.
According to BloombergNEF, Thailand’s lack of new programmes to spur capacity growth and its high reserve margin in the electricity system is expected to hold back the growth of solar and wind power capacity additions over the next five years.
While Thailand has pledged to reduce all greenhouse-gas emissions to net zero by 2065, it’s still highly reliant on coal and gas for power and electricity generation is still dominated by state-run Electricity Generating Authority of Thailand.
With an oversupply situation and a lack of large-scale opportunities, community biomass and biogas projects will be one of the main drivers of renewable power developments in Thailand, BloombergNEF analysts Allen Tom Abraham and Caroline Chua said in a note on Nov 22.
For Banpu Power, an annual demand growth of 1%-2% and the suitable environment for solar and wind farms make Texas an "attractive destination," Mr Kirana said.
"Texas is a booming place for renewable energy. It has plenty of wind, sunshine and land that’s bigger than Thailand," Mr Kirana said. "Opportunities for renewable power aren’t just limited to the US of course, but in the near-term, the focus will be in the US."