SPGC Plc sought B3.7bn from Provincial Electricity Authority over cancelled solar firm deal – case dismissed
The Central Administrative Court has dropped a lawsuit filed by solar farm developer SPCG Plc which requested compensation of 3.7 billion baht from the state-run Provincial Electricity Authority (PEA) for its subsidiary due to the cancellation of the subsidiary’s right to develop and operate a solar farm to supply power to the PEA.
The judge reasoned that the SPCG subsidiary Set Energy was not a signatory to a power purchase agreement (PPA) in question.
SPCG and PEA Encom International, a PEA subsidiary, jointly set up Set Energy Co, with SPCG being the largest shareholder, to develop and operate the solar farm with a generation capacity of at least 500 megawatts in the Eastern Economic Corridor.
According to SPCG, the PEA established PEA Encom International to work on clean energy development, but because of the large scale of the project that required 23 billion baht, and the PEA’s budget constraints, SPCG was invited to participate.
The PEA, its subsidiary and SPCG later signed a memorandum of understanding to jointly develop the project.
In late 2020, the PEA signed a PPA with PEA Encom International, meaning the latter would produce electricity for the state utility. In 2023, the authority agreed to have its subsidiary transfer the power production rights to Set Energy.
The installation of solar panels is scheduled to be completed by Dec 31, 2026.
A problem emerged when Set Energy was unable to continue its work because it was not considered to be a signatory of the agreement and thus could not obtain a licence to operate the solar farm.
The delay caused the company to ask the PEA to extend the installation period.
Doubts arose as the PEA rejected Set Energy’s request, reasoning that the company is not a PPA signatory that can request changes in contract conditions, Wandee Khunchornyakong Juljarern, chief executive of SPCG, stated earlier.
The PEA also cancelled the transfer of the production rights, she said.
Mrs Wandee accused the PEA of abusing its power and causing damage worth 3.7 billion baht because Set Energy had already spent money on land purchases and development, as well as hiring consultants.
According to the court’s statement, the transfer of the power production rights to Set Energy was not legally valid.
Source: https://www.bangkokpost.com/business/general/3008069/solar-firms-case-against-thai-state-utility-dismissed
