Thai Solar Energy Pcl (TSE), one of the listed solar companies, has expanded its portfolio by acquiring stakes in two operators of biomass power plants to sustain its revenue growth in the long term, according to the Board of Directors’ resolution last week.
Somphop Prompanapitak, chief operating officer, said that the board has approved the acquisition of a 70 per cent stake in Oscar Save The World Co Ltd and a 49-per-cent stake in Bangsawan Green Co Ltd with total investment including construction cost of 2.5 billion baht (about $72.25 million).
Of the total amount, 1.95 billion baht will go into Oscar Save The World while the remaining 550 million baht into the joint venture Bangsawan Green.
Oscar Save The World owns two 8.8-MW biomass power plant projects in Nakorn Si Thammarat province, both of which have obtained power purchase agreements with Provincial Electricity Authority.
One of the plants is set to commence operations in the first quarter of 2018 and the other in 2019, according to the filing.
At the same time, it has also invested in Bangsawan Green, which is constructing a 4.6-MW biomass power plant in Surat Thani at a cost of 550 million baht. The plant is slated to become operational next year.
“We will initially invest a 49-per-cent interest in Bangsawan and acquire the remaining 51 per cent from Jirat Palm after three years of commercial operations,” he said.
The source of funding will be from working capital and lending from financial institutions without conditions affecting the rights of its shareholders, he added.
Bualang Securities evaluated the internal rate of return of these three plants at 10-15 per cent, while estimating that they will generate the profit of 150-180 million baht per annum.
Established in 2008, TSE is the first company in Southeast Asia that operates the solar thermal power plant. Currently, it has 10 solar farm projects in Thailand with a combined electricity capacity of 80 megawatts and one 0.5-MW solar farm in Japan.