QTC to build solar farm in Myanmar
QTC Energy Plc, a leading MAI-listed transformer producer, plans to develop a solar farm in Myanmar by acquiring Green Earth Power Thailand Co.
The first phase of the planned 220-megawatt solar farm is expected to start commercial operations by the first quarter next year.
QTC’s chief executive, Poonphiphat Tantanasin, said the company’s board of directors had approved the acquisition through its 99.99%-owned subsidiary, QTC Global Power Co.
QTCGP will buy 38,634 shares, or around 15% of the registered capital of Green Earth Power, worth 267 million baht.
“Construction of the first phase of the solar farm with a power-generating capacity of 40MW is due to be completed and begin operating commercially by the first quarter of next year,” said Mr Poonphiphat.
Green Earth Power operates and sells renewable energy and has been granted a build-operate-transfer contract by Myanmar’s Electric Power Enterprise with a power purchase agreement (PPA) for 30 years.
The company’s planned Myanmar solar farm has been divided into four phases of 40MW each.
“The plan to diversify into a renewable power-generating business is part of the company’s strategy to substantially increase its annual revenue as well as to help reduce risks from running the transformer-producing business alone,” Mr Poonphiphat said.
The 30-year PPA with Myanmar’s electricity agency will help secure revenue for QTC in the long run, allowing the firm to strengthen its financial base too, he added.
QTC produces and distributes custom-made transformers for both the domestic and export markets.
The company produces three types of transformers: distribution transformers ranging from 30 to 5,000 kilovolt-amperes, small power transformers from 5-30 megavolt-amperes and special transformers for indoor and restricted areas.
Currently, it produces 3,000-4,000 transformer units a year and also provides installation, maintenance, testing and consultancy services.
QTC posted a net loss of 18 million baht in the first quarter of this year, substantially less than the net loss of 24 million baht in the same period last year.