Another power company in Thailand is increasing investment abroad to expand its generating capacity as the home market matures.
BCPG, a subsidiary of state refiner Bangchak Petroleum, said it had set aside the equivalent of US$286 million for a share in a 500-MW renewable project in Asia, the Bangkok Post reported.
The investment, in an as yet unspecified country, is part of a US$460 million capital expenditure pot for 2017, company president Bundit Sapianchai said.
Unconfirmed reports said the 500-MW project was in Japan, which has previously been targeted for investment by four Thai renewable energy firms, including BCPG.
They are Thai Solar Energy; Global Power Synergy; Gunkul Engineering and BCPG. They have all invested in solar projects in Japan, said PV Magazine.
Global Power Synergy is a subsidiary of another Thai state-owned oil business, PTT.
BCPG’s Bundit said his company was aiming to own 1,000 MW of renewable energy capacity by 2020 via a combination of buying existing plants and developing new ones.
BCPG was finalising its latest deal before announcing further details such as location, Bundit told the Post.
In January, BCPG bought a 40% stake in the Philippines’ PetroWind Energy via Singapore-based investment fund CAIF III.
PetroWind operates a 36-MW wind power plant in Nabas in the Philippines and is constructing a separate 14-MW wind project in Visayas.
In a separate company statement, BCPG said its subsidiary BCPG Japan, which evolved from purchases last year from SunEdison, was speeding up development of several new solar power projects in Japan.
“The Nagi power plant in Okayama Prefecture in Central Honshu, with an installed capacity of 14.38 MW, was able to start supplying power to the grid on January 20th, 2017, and will begin commercial operations on March 2nd, almost one month ahead of schedule,” BCPG said.
Several renewable energy businesses in Thailand suffered development setbacks in February, when the country’s Supreme Administrative Court ruled that a wind plant on agricultural land was misuse of land and ordered its removal. Up 17 similar projects could face land tenure problems.