Gunkul Engineering negotiating with three operators for Vietnam solar farms worth B5bn

Construction News Vietnam
Gunkul’s solar farm project in Kimitsu, Japan. 2020 marks the firm’s fifth consecutive year of growth, says president and CEO Sopacha Dhumrongpiyawut.

Gunkul Engineering negotiating with three operators for Vietnam solar farms worth B5bn

SET-listed Gunkul Engineering Plc is negotiating asset acquisition deals worth 5 billion baht with three solar farm operators in Vietnam, aiming to expand the company’s renewable energy business.

The deals are expected to conclude no later than early 2021, said Sopacha Dhumrongpiyawut, president and chief executive of Gunkul, a maker of electrical equipment and a provider of engineering, procurement and construction services.

Two of the solar farms have a capacity of 50 megawatts each, while the other has 64MW. All are currently in operation.

The asset purchase plan follows a recent deal for a 30MW solar farm in Malaysia, scheduled to commence operation in October.

Ms Sopacha said 2020 marks the fifth consecutive year of growth for Gunkul, driven by turnkey contracts, new development projects and asset acquisitions.

Turnkey contracts account for 35-40% of total revenue. Power plant projects, which assure long-term revenue, contribute 60-65%.

Sopacha Dhumrongpiyawut, president and chief executive of Gunkul

Ms Sopacha said Gunkul expects revenue growth of 15% this year to nearly 8 billion baht, thanks to power generation and construction.

In the power generation segment, the company plans to expand capacity to 1,000MW from 640MW by 2022.

To catch the trend in distributed power generation technology, Gunkul yesterday launched a pilot project under a peer-to-peer (P2P) power trade arrangement under the Gunkul Spectrum brand.

The project serves as a platform to ease trade of electricity produced by rooftop solar panels and energy storage systems.

The power is sold by Gunkul’s facilities in Bangkok and Phitsanulok to clients in Nakhon Ratchasima.

The project, set to begin at the end of 2020, will last for 12 months. It will be carried out under a sandbox concept overseen by energy authorities.

“This trade platform is special because it is larger than other P2P pilot projects,” Ms Sopacha said.

Siam Commercial Bank and Advanced Info Service are Gunkul’s strategic partners to assist with money issues, the 5G network and Internet of Things technology.

“We believe energy technology will be more accessible for people from all walks of life, as it will not only be operated under the state power grid,” Ms Sopacha said.

Gunkul’s P2P concept is designed to add value to the company’s existing business in solar rooftop products under the GRoof brand, which was launched in 2018.