Global Power Synergy Plc (GPSC), the power generation arm of national oil and gas conglomerate PTT Plc, continues to grow its renewable business in India after its subsidiary Avaada Energy Private (Avaada) won an auction for a 421-megawatt solar farm project in the country.
The project will play a key role in increasing electricity generation capacity from renewable sources in India to more than 5,000MW, helping its government to achieve a goal to have clean energy make up over 50% of fuels used in power generation, according to GPSC.
The company holds a 42.9% share in Avaada, which recently won the bidding, organised by REC Power Development and Consultancy on behalf of Damodar Valley Corporation under the Indian government.
Avaada was declared the winner after quoting a tariff of 2.7 rupee per kilowatt-hour.
The company was awarded a 25-year power purchase agreement by the government.
GPSC did not disclose the development cost of the new solar power generation facility, which is scheduled to be completed within 18 months.
This project is expected to generate about 750 million kilowatt-hours annually, supplying electricity to around 500,000 households.
It will also help the Indian government reduce carbon dioxide emissions equivalent to 698,250 tonnes per year.
"This achievement reaffirms the success of Avaada and GPSC in joint-business partnership with a strategy to expand production capacity to satisfy the renewable energy demand in India," said Worawat Pitayasiri, president and chief executive of GPSC.
The victory is also in line with GPSC's goal to depend more on renewable energy.
GPSC announced late last year it aims to become a renewable energy-driven company by 2030, increasing the proportion of renewable energy to more than 50% of total fuels used in its electricity generation, up from 38%.
GPSC currently depends on gas and other fuels such as coal that release a lot of carbon dioxide.
Vineet Mittal, chairman of Avaada Group, said India is considered the fastest-growing market for renewable energy. The company is confident of being a part of the contribution to the development of clean energy for India.
GPSC entered the energy industry in India last year by first acquiring a 41.6% share -- worth 14.8 billion baht -- in Indian solar power developer Avaada Energy Private.
The firm continued to buy more shares, with the amount increasing to 42.9% at present.