Published on 28/06/2013
EGCO buys Australian wind turbines B3.2bn for 113-MW farm south of capital Electricity Generating Plc (Egco), the first independent power producer in Thailand, has paid 3.2 billion baht (Acopy10 million) for full ownership of Boco Rock Wind Farm in New South Wales, Australia. The share purchase agreement signed on Tuesday is part of an expansion plan into renewable energy, said president Sahust Pratuknukul. The purchase was a result of a 100% investment in Asia Pacific Renewable Ltd, principally owned by Continental Wind Partners, the developer of the wind farm. The 113-megawatt wind farm, comprising 67 wind turbines to be supplied by General Electric International Inc and its related subsidiaries, is about 160 kilometres south of Canberra. The wind farm has a 15-year power purchase agreement with EnergyAustralia Pty Ltd and commercial operation is expected to start in February 2015. The project consists of 58 wind turbines of 1.7 MW each and nine turbines of 1.6 MW each. "This investment project is a part of the company's electricity generation expansion plan for future performance. The project will give a quick return as the development will take only a few years," said Mr Sahust. It is the company's first successful investment in Australia and is intended o maintain growth while offering long-term returns for shareholders. Egco plans to shift its power business in the Asia-Pacific region from fossil to renewable energy. It allocated 16.41 billion baht for investment in ongoing projects in addition to new mergers and acquisitions.
The company is also in talks with local power plant operators and transmission line manufacturers in southern China to jointly bid for a 1,800-MW independent power producer (IPP) project in Indonesia. All projects are expected to be finalised in the third quarter. In the domestic market, Egco is ready to redevelop its Khanom power plant in Nakhon Si Thammarat worth 7.5 billion baht to help meet demand for electricity in the South. The plant was the first IPP project in Thailand and its concession is expected to expire in 2016. Egco plans to increase the plant's capacity from 824 to 900 MW from June 2016. Mr Sahust said the company expects its overall capacity will increase by 41% to 6,120 MW in 2019 from 4,510 MW at the end of this year. The Xayaburi hydropower project in Laos and Quezon power plant in the Philippines will add capacity, while new capacity this year will come from solar farms, wind turbines and waste-to-energy projects. Egco's revenue in the first quarter rose 128% to 4.79 billion baht, while net profit increased 21% to 2.09 billion baht. Shares of Egco.