SET-listed Demco, a contractor and engineering service provider, plans to diversify into digital technology businesses and continue to grow its renewable energy portfolio, although it admits missing an opportunity to join the state renewable development scheme.
A 60MW wind farm operated by Demco generates electricity in Phetchabun's Khao Kho district. (Photo: Wichan Charoenkiatpakul)
Pongsak Sirikupt, chief executive and managing director of Demco, said the company expects to spend 150 million baht to expand its rooftop solar power business by increasing electricity generation capacity to 40 megawatts by 2025, up from around 10MW at present.
Demco is in talks with operators of renewable power plants under its asset acquisition plan, which it expects to conclude early next year.
The company operates wind and solar farms with a combined capacity of 70MW, based on its shareholdings in renewable energy operators.
Demco is keen to diversify into new energy businesses, especially those applying digital technology such as smart grid development, said Mr Pongsak.
The company is also interested in electric vehicles (EVs), which have been promoted by the government after the National EV Policy Committee announced in 2021 it wants EVs to constitute 50% of locally made vehicles by 2030, part of an ambitious plan to make Thailand a regional EV hub.
In the renewable power plant business, Demco plans to join the second phase of the renewables scheme, overseen by the Energy Regulatory Committee (ERC).
The company proposed three projects -- a 90MW solar farm in the small power producer category, an 8MW solar farm in the very small power producer category and a 9MW industrial waste-fired power plant -- in an auction organised by the ERC under its 5.2-gigawatt renewables scheme.
The three projects were not selected, but the ERC encouraged unsuccessful bidders to participate in the second phase, with a total capacity of 3.6GW, covering on-ground solar farms and on-ground solar farms with energy storage systems, wind power, biogas and industrial waste-to-energy projects.
Demco also plans to bid for power transmission and engineering work for the Electricity Generating Authority of Thailand and two state electricity distribution arms: the Metropolitan Electricity Authority and the Provincial Electricity Authority.
The three agencies have a combined investment budget of 400 billion baht for electricity system development.
In the turnkey construction business, Demco expects to earn revenue from backlog projects worth more than 3 billion baht this year, said Mr Pongsak.
The company expects its total revenue in 2023 to increase by 17% to 2.5 billion baht, up from 2.1 billion last year, thanks to renewable energy, electrical engineering and construction projects.