SET-listed GPSC, the power generation arm of the national oil and gas conglomerate PTT Plc, expects further growth of its renewable energy business in India after a subsidiary won a 1.4-gigawatt solar power development project.
Avaada Energy, a renewable energy company that is part of the Avaada Group, won an auction held by NHPC, an Indian state energy utility developer, with the aim of supplying the increasing demand for power resulting from economic and population expansion.
The project offers good business prospects for GPSC, which owns a 42.9% share in Avaada Energy through its wholly owned Global Renewable Synergy Co.
“This year is set to see significant growth in the green energy portfolio of both Avaada Group and GPSC in a joint business partnership to expand production capacity so as to meet energy demand in India,” said Worawat Pitayasiri, president and chief executive of GPSC.
Avaada Energy currently operates clean power generation facilities with a total capacity of 7.48GW. It plans to increase its renewable energy capacity to 11GW by 2025 and 30GW by 2030.
The new solar power project will increase its capacity to 8.8GW.
Indian Prime Minister Narendra Modi announced at the 26th UN Climate Change Conference in Glasgow in 2021 that India is determined to achieve a net-zero target, a balance between greenhouse gas emissions and absorption, by 2070.
According to GPSC, Avaada Energy has won roughly one-third of the total production capacity put up for bids under the government’s clean energy programme.
The new solar power generation facility is scheduled to start operating commercially within 24 months, under a 25-year power purchase agreement with Indian authorities.
The project is expected to supply electricity to 1.8 million households. In terms of environmental benefit, it can reduce 2.3 million tonnes of carbon dioxide emissions a year, according to GPSC.
The solar power generation project will be also connected with the Interstate Transmission System of India to provide access to clean energy in every area of the country.
The energy market in India is expanding continuously as the government emphasises more power generation from clean energy, said Mr Worawat.
He said GPSC has set a goal of increasing renewable energy to over 50% of its total by 2030.