BCPG sets massive wind power goal in Asia-Pacific during 2019-23
1,000MW sought regionwide by 2023
25 January 2019
SET-listed BCPG Plc, the power business arm of Bangchak Corporation Plc, wants to add 1,000 megawatts through wind power projects in Asia-Pacific during 2019-23.
“BCPG’s wind power expansion is set to comprise 70% of its budget allocation for new investment, with the remaining budget of 30% going to asset acquisition plans,” president Bundit Sapianchai said on Thursday at the International Conference on Energy 4.0 held by Asian Development Bank. “BCPG will complete at least one acquisition in 2019, but we cannot disclose further details.”
Mr Bundit said wind power is a good renewable resource with high potential in Vietnam, Taiwan, South Korea and Australia, where policymakers are enthusiastic about renewable power and offer privileges to support new investment.
In addition, power demand in those countries is rising every year, he said.
“Many Asia-Pacific countries have policies to expand renewable power in the long term,” Mr Bundit said.
“For instance, Vietnam plans to generate 27 gigawatts of renewable electricity by 2030. By 2030, Taiwan aims for 10GW and South Korea expects 50GW from all renewable types.
Australia plans to retire several coal-fired power plants and add more renewable power projects at 38GW by 2036, while Laos is positioning itself as “the battery of Asia” by exporting electricity generated from hydropower to Thailand and Vietnam.
BCPG has a wind power farm in Nabas, Visayas Island in the Philippines. The firm acquired a 40% stake in PetroWind Energy Inc, bringing BCPG’s total production capacity to 20MW through ownership.
At home, BCPG has purchased Lom Ligor Co to operate a 10MW wind power project that is under development, located in Pak Phanang, Nakhon Si Thammarat province.
Once the five-year expansion plan for wind power projects is completed, BCPG will double total capacity of renewable power to 2,000MW.
Mr Bundit said BCPG is planning to acquire Glow SPP 1 in Rayong province from SET-listed Glow Energy Plc.
Glow SPP 1 is a co-generation plant licensed by a small power producer at Hemaraj Eastern Industrial Estate in Map Ta Phut. The plant has a capacity of 124MW, with 90 tonnes per hour for steam and 190 cubic metres per hour for demineralised water.
BCPG will take part in the auction together with other SET-listed power peers such as B.Grimm Power Plc, Ratchaburi Electricity Generating Holding Plc, Electricity Generating Plc and WHA Corporation.
The Glow SPP 1 has an estimated value of 5-6 billion baht.
According to Glow, it is considering opening up Glow SPP 1 for acquisition. Should Glow decide to sell the plant, each buyer will be allowed to submit a proposal within five weeks.
Glow expects to disclose a deal to sell the SPP 1 power plant within the first quarter of 2019.
The power plant sale is a condition imposed by the Energy Regulatory Commission (ERC).
On Dec 26, the ERC told Glow it must sell the power plant to a third party before Global Power Synergy can acquire Glow.