BCPG Plc, the power generation arm of energy conglomerate Bangchak Corp, plans to buy a new renewable energy asset in Taiwan next year to increase its power generation capacity.
President and chief executive Niwat Adirek did not elaborate on the deal or name the seller, saying only the company believes it will receive a good return on investment because of a high feed-in tariff of between 6 and 7 kilowatt-hours.
Once the transaction is completed, BCPG's capacity should increase by 100 megawatts, up from 2,038MW at present.
Most of the current capacity amounting to 1,263MW comes from power generation facilities in operation, while the remainder comes from projects under development.
In 2024, BCPG plans to allocate 14 billion baht to grow its businesses after spending a large amount buying four gas-fired power plants in the US in 2023.
According to Mr Niwat, the company will spend 60% of the new investment budget supporting its projects in the pipeline and 40% supporting investment in renewable energy in countries where it already expanded.
BCPG is developing on-ground solar farm projects in Taiwan with a combined capacity of 469MW. They are scheduled to operate during 2025 and 2026.
The company's 600MW Monsoon Wind Farm in Laos, which claims to have the largest capacity in Asean, and 13.2MW Wind Power Farm in Nabas city in the Philippines are expected to start commercial operation in the first quarter of 2025.
In the long term, BCPG expects to allocate a budget worth 50 billion baht to further increase its capacity, improve returns on investment and achieve a target to generate 3 billion baht in profit by 2030, up from 2.63 billion baht in 2022.
From January to September, net profit tallied 1.27 billion baht.
"We will continue to seek opportunities in businesses with rapid growth potential, including smart energy, stationary energy storage systems and housing development projects that require renewable energy," he said.
BCPG and its business partner VRB Energy, a Vancouver-based vanadium redox battery manufacturer, aim to increase battery production capacity to serve growing demand for energy storage systems in China and Asia-Pacific.