SET-listed Electricity Generating (Egco), the power generation arm of the Electricity Generating Authority of Thailand, has withdrawn all investment in a gas-fired power plant owned by US-based Risec Holdings LLC, to seek new business opportunities in other investment projects.
The company announced last year it decided to sell its entire 49% share in Risec to Shell Energy North America.
The transaction was completed on Jan 24.
Another major shareholder in Risec Holding, Carlyle Group, also sold its 51% share in Risec to Shell Energy North America.
Shell Energy North America will own the entire stake in Risec while Egco and Carlyle will be fully exited from Risec, said Jiraporn Sirikum, president of Egco.
Egco, through its wholly owned Egco Risec II LLC, invested in Risec in early 2023. Risec owns a 609-megawatt power plant on Rhode Island in the US.
The facility uses combined cycle gas turbine technology, enabling it to use both gas and steam turbines to generate electricity.
This facility operates within the New England Power market, also known as "ISO-NE", with 100% of its capacity and black start ancillary services contracted to ISO-NE.
Egco's divestment aligns with the company's strategy emphasising portfolio management for asset recycling to create long-term continuous growth, said Ms Jiraporn.
"The move follows Egco's 'Triple P' strategy which was announced last year," she said.
Under the Triple P strategy, Egco focuses on profitability, power-related businesses as well as portfolio and people management.
Cash from the divestment will allow Egco to seek new investment opportunities in the US to ensure long-term revenue, said Ms Jiraporn.
At present, Egco's total power generation capacity stands at 6,721MW, based on its shareholdings in power development projects, both in operation and under construction, across eight countries in the Asia-Pacific.
Up to 22% of the total, or 1,463MW, is renewable energy.
Egco said earlier it expects a significant growth in revenue in 2025, driven by investments in Thailand and overseas.
The company cannot estimate the precise percentage growth expected this year as parts of the revenue are expected to come from two new asset acquisitions.
There are opportunities to close new power plant merger and acquisition deals for both conventional and renewable energy projects, which will generate immediate revenue recognition, according to Ms Jiraporn.
