Gunkul Engineering preps for the development of 17 renewable energy projects in 2024

Construction News
Wind turbines at a wind farm of Gunkul Engineering in Nakhon Ratchasima province.

Gunkul Engineering preps for the development of 17 renewable energy projects in 2024

Plans to raise funds worth up to B25bn

Gunkul Engineering Plc, a renewables developer and construction firm, plans to raise funds worth 20.8-25 billion baht for the development of 17 renewable energy projects this year under the state’s 5.2-gigawatt renewable scheme, says chief financial officer Thitipong Techaratanayuenyong.

The company submitted 27 project proposals in an auction organised by the Energy Regulatory Commission early last year and won the right to develop 17, with combined power generation capacity of 832.4 megawatts.

Last month, Gunkul signed 25-year power purchase agreements with the Electricity Generating Authority of Thailand on eight of the 17 projects.

The company expects to sign power purchase agreements on the remaining nine projects with the government this year.

Mr Thitipong said development of the 17 projects requires 25-30 million baht per megawatt of capacity.

Up to 70% of the money will come from plans to raise funds, including loans from banks, while the rest will come from cash on hand and accumulated net profit, he said.

According to Mr Thitipong, Gunkul’s debt-to-equity ratio is nearly one time, so it can still seek new loans.

The company also plans to allocate part of its 2022-25 investment budget worth 32 billion baht to support the development of 17 renewable projects.

These projects include on-ground solar farms, solar farms with battery energy storage systems and wind farms.

They will be granted a feed-in tariff of between 2.1679 and 3.3331 baht per kilowatt hour over 25 years under the power purchase agreements.

The eight projects which will be first developed have a total contracted capacity of 429.6MW.

They are scheduled to start operation between 2026 and 2030, said Sopacha Dhumrongpiyawut, director of the company.

The new projects will increase Gunkul’s capacity to 1,045.15MW, up from 615.55MW.

“We will gradually sign more power purchase agreements,” said Ms Sopacha.