SET-listed SPCG, a pioneer in solar farm development, anticipates the smooth development of its much-delayed solar farm project in the Eastern Economic Corridor (EEC), as the construction cost is likely to decrease by 25%.
The company adjusted its cost estimate, including the prices of equipment used for solar panel installation, believing the cost should drop from 20 billion baht to 15 billion baht, said Pipat Viriyatranon, vice-president for finance.
This is a good prospect for the installation work which was delayed for almost three years due to the lengthy process selecting areas suitable for the project and the need to wait for a new secretary-general of the EEC Office to grant a licence.
The company had to wait for the formation of a new coalition government during the second half of last year in order to push ahead with the project.
New solar farms will be built on 61 areas, spanning 3,000 rai of land, in the EEC, which consists of three provinces -- Chon Buri, Rayong and Chachoengsao.
The construction is expected to last around one year, said Mr Pipat.
SPCG earlier said the new solar farms required 12 billion baht for the first phase of development, with a capacity of 300MW and another 8 billion baht for the second phase, adding capacity of 200MW.
The new solar farms could serve as a new source of revenue partly offsetting loss of revenue from its existing 36 solar farms in Thailand, with combined electricity generation capacity of 260MW, because the adder tariff granted to the solar farms will expire next year, said Mr Pipat.
The adder tariff of eight baht per kilowatt-hour has been given to power companies to encourage them to develop renewable energy.
SPCG can also earn revenue from its 36 solar farms once it joins the Renewable Energy Certificate (REC) scheme. The company expects to earn 20 million baht in the first year.
REC is an incentive aimed at encouraging power plant owners to produce electricity from clean fuels. Each REC, which certifies that the bearer generates one megawatt-hour from renewable energy resources, can be traded as an energy commodity.
SPCG also provides a rooftop solar panel installation service. It expects revenue from this business in 2024 to increase to 1.2-1.5 billion baht, up from 1.05 billion baht last year and 512 million baht in 2022.