The cabinet Tuesday approved PEA Encom International, wholly owned by the Provincial Electricity Authority (PEA), establishing three joint venture companies to produce biogas power plants worth a combined 1.55 billion baht in three deep South provinces: Narathiwat, Pattani and Yala.
Nathporn Chatusripitak, an adviser to the PM's Office Minister, said PEA Encom will hold a 40% stake in each joint venture firm, with the private sector holding the remaining 60%.
The three joint venture companies are Pracha Rat Biogas Narathiwat Co at Muang district; Pracha Rat Biogas Mae Laen Co in Mae Laen district, Pattani; and Pracha Rat Biogas Bannang Sata Co in Bannang Sata district, Yala.
Pracha Rat Biogas Narathiwat Co is expected to produce 9.9 megawatts with 755 million baht worth of investment, while Pracha Rat Biogas Mae Laen is set for 3MW after investment of 410 million baht.
Pracha Rat Biogas Bannang Sata is meant to produce 3MW from investment of 390 million baht.
Mr Nathporn said the three projects, which are fuelled by rubber trees, are scheduled to kick off construction next month and start operation in November 2020.
He said the southern provinces have the potential to produce up to 500MW of biogas power, up from 95MW from 15 power plants.
Existing electricity production is insufficient for power demand in 14 southern provinces, leading the region to rely on power supplied from Malaysia and central Thailand.
PEA Encom develops and invests in renewable energy projects such as wind, solar and biomass.
The company also emphasises installing energy-saving equipment, promoting energy management, and providing professional consultancy to customers. It was founded in 2009 and is based in Bangkok.
PEA Encom International Co operates as a subsidiary of PEA and has registered capital of 557 million baht.
Highlighted projects for the company include four solar farms co-invested with Solar Power Company in Surin, Loei and Khon Kaen provinces, and a municipal solid waste project in Ayutthaya province.
According to the company's annual report, its total revenues amounted to 231 million baht in 2017, up from 99.8 million in 2016.
PEA Encom posted a net profit of 48.3 million baht in 2017, up from 38.3 million in 2016.