SET-listed SPCG Plc, Thailand's largest solar photovoltaic (PV) provider by power capacity, has announced capital spending of more than 70 billion baht on four solar projects in Japan.
All four solar PV projects are part of joint ventures with a Japanese solar panel maker, Kyocera Corporation, and other partners.
According to SPCG chairwoman Wandee Khunchornyakong, opportunities in clean power generation make Japan a favourable destination for investment. For instance, Japanese policymakers have decided to shut down several nuclear power plants and replace them with other sources of power.
"SPCG will form joint ventures expected to be finalised around the fourth quarter of 2018," Mrs Wandee said. "Three projects will be solar PV farms, and the other will be developed as a solar PV rooftop."
Before announcing the 70-billion-baht spending plan, SPCG conducted a feasibility study of raising funds for equity investment in each project. The funds will come from several sources, including debenture issuance and loans.
"But we will not sell our assets to set up infrastructure funds," Mrs Wandee said.
She said the company has a leftover debenture issuance worth 8 billion baht, compared with total issuance of 12 billion baht since 2014.
The first of the four projects is the Kasuga Blue Energy Project in Japan's Fukuoka prefecture.
Kasuga Blue Energy is designed for solar PV rooftops and equipped with an energy storage unit for smart power management, with the goal of cutting peak power demand between daytime and night-time.
The Kasuga project is a pilot project for which peers can theoretically apply the results to Southeast Asian markets, where demand for solar panels is growing fast.
The second project is the 480-megawatt Ukujima Mega Solar Project, located on Ukujima Island in Nagasaki prefecture.
On Ukujima, SPCG has teamed up with seven other firms: Kyocera Corporation, Kyudenko Corporation, Mizuho Bank, Tokyo Century Corporation, Furukawa Electric Company Ltd, Tsuboi Corporation and The Eighteenth Bank Ltd.
The Ukujima project needs total capital spending in the neighbourhood of 60 billion baht and is expected to start operations next year.
The third project is the 65MW Mega Solar Farm in Fukuoka with a total cost of 9.6 billion baht. SPCG is forming a joint venture with two Japanese firms, intending to operate by 2020.
The fourth project is a 100MW solar PV farm in Nagasaki, but the project has yet to confirm partners and details.
In Japan, SPCG already runs the 30MW Tottori Yanago Mega Solar farm, which began operations in April.
In related news, SPCG yesterday announced a new partnership with SMA Solar Technology AG, a German solar equipment supplier.
An SPCG subsidiary, Solar Power Engineering Co, will be the authorised sales and service partner for Frankfurt-based SMA, covering Thailand, Cambodia, Laos, Myanmar and Vietnam.
Mrs Wandee said the four nearby countries are expected to expand with new solar PV projects of a combined five gigawatts in the next five years.
Both SPCG and SMA expect to share purchase orders of PVs and inverters at 30% each after entering the four countries. They also have a partnership with Kyocera Corporation.
SPCG expects revenue to grow by 10% a year and reach 10 billion baht by 2020. In 2018, revenue is projected at 6.7 billion baht, up 9.4%.
SPCG shares closed yesterday on the Stock Exchange of Thailand at 21 baht, up 20 satang, in trade worth 33.6 million baht.