SPCG Plc, a pioneer of solar farm development in Thailand, has announced a 23-billion-baht investment in a new solar farm project in the Eastern Economic Corridor (EEC) to establish a carbon-free industrial zone.
SPCG chief executive Wandee Khunchornyakong Juljarern said the project is designed to generate electricity with no emissions released from the process at a special development zone in the EEC, making it a “clean and low-carbon community”.
This project should also strengthen energy stability, support the economy in the long term and generate income and increase cash flow for SPCG, she said.
The company plans to make the investment through its subsidiary, SET Energy Co.
The move comes after SPCG acquired 40% of shares in SET Energy from Mitsu Power Group. The 1.8-billion-baht share purchase doubles SPCG’s shareholding to 80%.
The remaining 20% stake is owned by PEA Encom International Co, a clean energy arm of state-run Provincial Electricity Authority (PEA).
SET Energy is expected to sign a power purchase agreement for this project with PEA Encom within this month.
Construction of the facilities, which will be divided into different phases, is expected to start early next year. The development should be completed within 2026, said Ms Wandee.
SPCG allocated 81.8 million shares in SPCG to Mitsu Power under the private placement scheme in exchange for the additional shares in SET Energy. SPCG needs to increase its registered capital from 974 million baht to 1.15 billion to support investments in new solar farm projects.
The company is seeking new business opportunities after the adder tariff of 8 baht per kilowatt-hour (unit) given to its 36 solar farms, with a combined capacity of 260 megawatts, is scheduled to expire from this year to 2024. The adder tariff is an incentive allowing companies to sell electricity produced by clean fuels to the state grid at higher prices, introduced in 2008-2009, at a rate of 12 baht per unit. Once adder tariff expires, the power tariff rate will decrease to 4 baht per unit.