Ratch keen to repower two plants

Ratch keen to repower two plants

Company waiting for latest national PDP

SET-listed Ratchaburi Electricity Generating Holding Plc (Ratch), Thailand's largest private power producer by capacity, says it's ready to repower operations at two gas-fired power plants whose concessions are due to retire in the future.

Ratch proposed repowering the two plants two years ago but received silence from policymakers amid revisions to the national power development plan (PDP).

The two gas-fired plants are Tri Energy Co in Chon Buri with a capacity of 720 megawatts and a concession expiring in 2020, and Ratchaburi Power Co with 3,600MW and a concession expiring in 2027.

Once the tentative PDP is done, Ratch plans to resubmit its intention to repower the two plants with increased capacity.

Policymakers have signalled a preference for bidding over repowering.

Under the revised PDP, auctions for the independent power producer (IPP) scheme will occur during 2020-30 for a combined capacity of 7,600MW from 10 sites nationwide.

The new IPP capacity excludes renewable power, imported power from neighbouring countries and the power quota of the state-run Electricity Generating Authority of Thailand.

Two new IPPs with a combined 1,400MW in western provinces are set to begin operating in 2023-24.

The remaining eight IPPs are to start up during 2030-37 in northeastern, central, eastern and southern provinces.

Chief executive Kijja Sripatthangkura said Ratch is ready for future competition in supplying electricity from many locations where Ratch operates large power plants.

The existing site in Ratchaburi province has many advantages over a newly developed one because of the latter's higher construction costs and longer processing time to grant a licence, Mr Kijja said.

In the East, the plant in Chon Buri has the capability to repower once policymakers give the word, he said.

"Tri Energy Co in Chon Buri has prepared to double up capacity in the future, thanks to adjacent undeveloped land plots there," Mr Kijja said.

He declined to reveal the budget for repowering, but Ratch in 2017 announced the allocation of US$7.2 billion for the Ratchaburi plant and $1.4 billion for the Chon Buri plant.

Ratch expects the 2019 business plan to add 750MW to existing capacity of 6,580MW. The new capacity will come from both fossil fuel-based and renewable power, and includes acquisitions of existing plants.

Ratch announced two completed acquisition deals. The first was a 50% stake purchased in the Asahan 1 hydropower plant from Fareast Green Energy Pte at a cost of $82 million. The second was a takeover of independent power producer Ratch-Australia Corporation, raising its stake from 80% to 100% at a cost of A$53.5 million.

RATCH shares closed on Wednesday on the SET at 48.50 baht, down 25 satang, in trade worth 35.2 million baht.

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