SET-listed SPCG, a pioneer in solar farm development in Thailand, continues to expand its solar energy empire by acquiring land to build new renewable power facilities in the Eastern Economic Corridor (EEC).
Pipat Viriyatranon, SPCG's vice-president for financial affairs, said the land purchase covers 23 areas across the EEC zone.
The company allocated 3 billion baht for purchase and land preparation to build solar farms with an estimated electricity generation capacity of 316 megawatts as part of first-phase development.
SPCG will add nearly 200MW in the second phase, he said.
The company was awarded a solar farm development project worth 23 billion baht from the EEC Office in December 2020.
Under the company's original plan, the first-phase development was set to be completed this year, while new solar farms in the second phase were expected to start operation in 2026.
Mr Pipat said the project will be ready for commercial operation when the company's 36 solar farms in Thailand see their adder tariff expire.
The adder tariffs of nine solar farms are scheduled to expire between 2020 and 2022, while the expiry date for the remaining 27 solar farms is between 2023 and 2024.
Last year the company lost revenue from the adder tariff worth 238 million baht in total.
The eight-baht tariff, introduced by the government to encourage investors to build solar farms, is added to the electricity rate, allowing SPCG to sell electricity to the state grid at a higher price for 10 years after the operation dates.
SPCG will also continue its plan to allocate 2.58 billion baht in capital spending to develop the 52-billion-baht Ukujima mega solar project in Japan, he said.
The project is scheduled to start operation in July 2024. The pandemic caused a delay in its investment.
The 480MW Ukujima solar project is being developed under a joint venture between SPCG and eight local industrial conglomerates. SPCG has a 17.9% investment in the joint venture.