The company spearheaded the first-ever SPP replacement project in Thailand.
Energy corporation B.Grimm Power Public Company Limited brought home the Gas Power Project of the Year – Thailand at the recently held Asian Power Awards 2022 for the portfolio financing of its 980 MW seven Small Power Producer (SPP) projects, including the first-ever SPP Replacement projects in Thailand.
The SPP projects consist of seven gas-fired cogeneration power projects with an installed capacity of approximately 140MW each to be developed and operated by six project companies. They will be located in four different industrial estates, namely: Amata City Chonburi Industrial Estate and Laem Chabang Industrial Estate in Chonburi Province, Asia Industrial Estate in Rayong Province, and S Angthong Industrial Estate in Angthong Province.
Each project uses up-to-date technology of gas turbine generators and steam turbine generators manufactured by one of the world-class power equipment manufacturers. The technology and the upgrade to this newest model of equipment have a proven track record of improved efficiency in electricity generation from power producers around the world.
Out of the seven projects, two would sell electricity to the Electricity Generating Authority of Thailand (EGAT) under the 90MW power purchase agreement, or the Old SPP Scheme, whilst the other five projects would sell electricity to EGAT under the 30MW power purchase agreement, also known as the SPP Replacement Scheme.
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The SPP Replacement Scheme is a new concept in Thailand, and there has been no other precedent case of project financing for this scheme before. In addition, with the lower portion of electricity sold to EGAT, compared to the Old SPP Scheme, the SPP Replacement Scheme’s different risk profile has posed a new challenge for project financing arrangements.
Meanwhile, as all projects are expected to be operational within 2022 and 2023, B.Grimm, in collaboration with KASIKORNBANK PUBLIC COMPANY LIMITED (KBank) as its financial advisor for the arrangement of project financing, set the challenging but attainable goal to achieve the financial close for the total loan required from the same group of syndicated lenders.
The total term loan facility of ฿29.585m has been successfully arranged by KBank as a financial advisor to B.Grimm on a project financing basis. With good risk and mitigation, well-planned and executed financing arrangement endeavour of B.Grimm and KBank, all projects have been managed to successfully raise sufficient debt financing in 2020 and 2021.
B.Grimm Power, with the vision of “Empowering the world compassionately”, is one of Thailand’s leading industrial power producers which has been focused on cleaner energy production through its co-generation and renewable energy power plants. The company’s goal is to enlarge the proportion of clean power in its overall energy portfolio, as part of the effort to reduce global warming and take care of the environment in a sustainable way.
B.Grimm Power’s current portfolio includes 56 projects in operation and aims to ramp up its total installed capacity to at least 7,200MW of secured power purchase agreements by 2025, and further to 10,000MW by 2030. More importantly, B.Grimm Power is moving strenuously towards realising net-zero carbon emissions by 2050.
Now in its 18th year, the prestigious awards programme recognised groundbreaking projects and trailblazing initiatives in Asia’s power sector.