B.Grimm allots B38.5bn for seven Thai power plants until 2022
26 April 2019
SET-listed B.Grimm Power plans to spend 38.5 billion baht during 2019-22 to develop seven power plants with a combined capacity of 800 megawatts.
All seven projects are small power producers (SPP).
President Preeyanart Soontornwata said B.Grimm postponed deciding on the seven projects while awaiting approval.
Five of the seven were renewal contracts approved by the National Energy Policy Council (NEPC) in January. They consist of two projects by Glow SPP 1 Co in Rayong; two projects by Amata B.Grimm Power in Chon Buri; and one project by B.Grimm Power Laem Chabang in Chon Buri.
The total capacity of the five projects is 560MW and the contracts expire in 2022.
B.Grimm had been calling on the government to renew the contracts since 2017.
The remaining two projects, with a combined 240MW, relocated from Ratchaburi to Ang Thong.
She said the company has already started development of all projects, though it has yet to receive approval or sign power purchase agreements with state-run Electricity Generating Authority of Thailand (Egat).
The NEPC’s time frame for the five project renewals is to carry on operation from 2022, but reducing capacity under the agreements from 90MW to 30MW per project.
“The locations of the five power plants are in industrial estates, so B.Grimm can sell excess electricity and steam to other industrial operators,” said Mrs Preeyanart. “For the Egat agreements, B.Grimm plans to submit operating plans by May with the expectation Egat will issue purchase plans in August.”
She said the seven plants are part of B.Grimm’s capacity expansion target, planning to commence operating 3,245MW by 2025.
B.Grimm has combined operating capacity of 2,200MW in Thailand, Laos and Vietnam and expects to reach 2,773MW by the end of this year.
For 2019 revenue, B.Grimm targets a 15% rise to 42 billion baht.
Mrs Preeyanart said the significant growth of power capacity in 2019 comes from the new operation of two solar farms in Vietnam with total capacity of 677MW.
For the first one, B.Grimm entered a joint venture with Dau Tieng Tay Ninh Energy Co for a 420MW site. The other is a joint venture with Phu Yen TTP Joint Stock for 257MW.
The two solar farms are located in Phu Yen province and are expected to be Southeast Asia’s largest capacity solar farms at a single site. They are expected to commence operations by June.
B.Grimm is confident there is room to raise funds for new projects. The target for fundraising stands at 50 billion baht with room yet for 28.6 billion.
“We will consider either debenture issuance or long-term loans for fundraising,” she said.
Mrs Preeyanart said B.Grimm plans to conclude renewable power deals in Malaysia, South Korea and the Philippines in the second half of 2019.