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PTT-GPSC established a joint venture with GRP to aggressively compete in the international renewable energy market

PTT Group is restructuring shareholding in GRP to support an expansion of renewable energy internationally, focusing on solar and wind power generation. The move will strengthen PTT Group’s business, boost investors’ confidence, and increase financial efficiency.

On November 19th, 2020 - Mr. Auttapol Rerkpiboon, President and Chief Executive Officer of PTT Public Company Limited (PTT) revealed that on November 18th, 2020, the Board of Directors meetings of PTT approved a purchase of approximately 4.655 million shares which accounts for 50 percent of total shares of GRP, a wholly-owned subsidiary of GPSC, to PTT Global Management or PTTGM, a PTT’s subsidiary. The deal is worth approximately 693 million Baht and is another step in promoting greater cooperation under the stakeholder-centric Powering Thailand’s Transformation initiative and building an operational network among the PTT group of companies. This is in keeping with PTT Group’s strategy in being the leader in the renewable energy or clean energy business, enabling the group’s business and investment expansion, increasing competitive advantage in the renewable energy business and supporting PTT Group’s goal in reaching the renewable power generation capacity of 8,000 MW by 2030. Apart from enhancing PTT Group’s renewable energy capacity, the agreement also brings experienced and skilled personnel in renewable energy from PTT and GPSC together under one roof. Thus, increasing efficiency and enhancing the competitive edge, which will further lead to sustainable development of energy.

Mr. Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company Limited (GPSC) said that the joint venture aims to drive the renewable energy business, which will raise the capability, expertise, and opportunity in expanding new projects globally. It will also increase GPSC’s efficiency in its financial management and allow for more capital for future investments under the company’s growth strategy, which includes increasing its power generating volume from both core and renewable energy in Thailand and abroad as the sustainably innovative power flagship of PTT Group, GRP currently generates and supplies electricity to the Provincial Electricity Authority (PEA)’s power grid distribution system and provides operation and maintenance services to nine solar farms located in Lopburi, Suphan Buri, Phichit, and Khon Kaen, with a total capacity of 39.5 MW under 25-year Power Purchase Agreements (PPA). The PPAs are under two tariff schemes: (i) Adder scheme with 8 Baht per unit Adder (for the first 10 years of the PPA) for 3.6 MW; and (ii) Feed-in Tariff or FiT scheme with 5.66 Baht per unit FiT for the remaining 35.9 MW. These solar farms have been in commercial operation since 2014-2015.

Back19 November 2020