Ratchaburi Electricity Generating Holding Plc (Ratch), plans to invest 70 billion baht to expand its power generating capacity to 10,000 megawatts by 2023, says chief executive Rum Herabat.
The company, Thailand's largest private power producer by capacity, can currently generate 6,956MW. The expansion plan will be submitted for approval at its next executive board meeting due this quarter, said Mr Rum.
Most of the extra capacity will be for Ratch's investments overseas, since power is in oversupply at home due to the domestic economic slowdown, he said. In addition, Thailand will not need additional power from private producers over the next decade as firms that bid for licences to generate up to 5,000MW since 2013 have yet to start operations.
Mr Rum said the new power generating capacity would be from both fossil fuels and renewable energy, including greenfield investments and mergers and acquisitions.
Ratch's overseas power plants have a combined capacity of 2,000MW, including a coal-fired power plant in Hongsa, Laos, which generates 1,800MW. The company plans to ramp up that plant's capacity by another 600MW.
Ratch is further expanding in Laos via the 410MW Xe-Pian Xe-Namnoy hydropower plant, which is still under construction. It is further conducting a feasibility study to invest in the Nam Ngum hydropower plant.
For its power business in Laos, Ratch plans to switch from large-scale investment and projects to smaller ones to adapt to the current market climate.
Meanwhile, the Electricity Generating Authority of Thailand (Egat) plans to invest in producing power in Laos on a large scale via its wholly-owned subsidiary, Egat International Co (Egati). It would sell the power back to Egat in a bid to cut costs.
In Myanmar, Ratch, in partnership with Egati, will conduct a feasibility study for the My Tong hydropower project, which is set to have a capacity of 6,000MW.
Ratch also plans to join PTT Plc to develop a floating storage re-gasification unit (FSRU) with an annual capacity of 3 million tonnes. The unit will sit offshore of Myanmar and connect with an existing gas pipeline that feeds into Thailand.
In Indonesia, Ratch plans to bid on an independent power producer scheme by joining with local businesses vying for a 1,000MW coal-fired plant in Sumatra. It is also eyeing a coal mining business via a partnership with Egati.
In China, Ratch has acquired a 10% stake in the second phase of the 2,360MW Fanchenggang nuclear power plant via a joint venture with China General Nuclear Power Corporation.
At home, Ratch is doing a feasibility study with PTT to develop an FSRU with capacity of 5 million tonnes per year, said Mr Rum.
RATCH shares closed on the SET at 51.25 baht, up 25 satang, in trade worth 52.8 million baht.