Electricity Generating (Egco), a subsidiary of state-run Electricity Generating Authority of Thailand, expects its power generation capacity will rise by 10% this year from 5,422 megawatts as two key projects under its 37-billion-baht capital spending are set to start operations later this year.
The 2021 budget is being spent to support development of power plants, fuelled by fossil fuels and renewable resources, as well as the company's asset acquisition plans.
Egco president Thepparat Theppitak said the new capacity will mainly be added by renewable power generation facilities in Taiwan and Laos, scheduled to start operating by the fourth quarter of this year.
The company has 25% ownership in Yunlin Holding GmbH, which is developing a 640MW Yunlin offshore wind farm project in Taiwan.
Egco also invested in Nam Theun 1 Hydroelectric power plant, with a total contracted capacity of 644.3MW, in Laos's Bolikhamxay Province.
Egco yesterday also announced its first successful investment in a 972MW natural gas-fired cogeneration facility, known as Linden Cogen, which is situated in Linden, New Jersey, the US.
The power plant is owned by Linden Topco.
Mr Thepparat said the acquisition deal, which was made last Friday, will result in Egco owning 28% of shares in Linden Topco.
He declined to unveil the purchase price. The transaction is expected to be completed in the second quarter of this year.
EGCO acquired the shares through wholly-owned EGCO Linden II.
The Linden cogeneration facility sells energy, capacity and ancillary services to the New York System Operator and the PJM PS North power market in New Jersey.
The two are the most congested and capacity-constrained power markets in the US.
The facility also enjoys long-term process steam and electricity sales contracts with large investment-grade industrial off-takers.
Mr Thepparat said this acquisition marks the first investment by Egco in the US, a large market with over 1,100 gigawatts of installed capacity and vast opportunities in renewable and supporting gas-fired power facilities.
The investment will allow Egco to enter the US market and give the company new investment opportunities.
The company's new business in oil pipeline service will start operations in November this year.
Egco previously acquired a 43% stake in Thai Pipeline Network, a provider of oil pipeline transport services to northeastern Thailand and oil depot services, from Biggas Technology for 3 billion baht.