Ratchaburi Electricity Generating Holding Plc (Ratch), Thailand's biggest private power producer, is on track to complete its power purchasing agreement (PPA) of 7,500 megawatts this year.
An additional 1,058MW of power is needed from Ratch to supply state utilities and honour the commitment, said chief executive Rum Herabat.
To complete the PPA within this year, he said Ratch has set aside capital expenditure of 10 billion baht for projects to increase power-generation capacity.
Of the additional 1,058MW of power required, some 535MW has already been secured to be sold on time.
Ratch is also in talks to acquire shares in other commercial power-generating companies to acquire more capacity via equity-based agreements, which are expected to bring in 500MW.
To complete the PPA Ratch will continue its six projects in Thailand and overseas, including the 100MW small power plant at home and the 250MW combined cycle power plant in Medco Power in Indonesia.
It will also continue operating the Xe Kong 4 hydropower plant in Laos, a coal-fired power plant in the Philippines and the Collinsville wind and solar farms in Australia.
In the longer term, Ratch plans to increase total power generating capacity to 10,000MW within 2023 by investing directly in power plants and diversifying into other power-generating businesses.
Ratch plans to double renewable power capacity to comprise 20% of total power-generating capacity.
Last year Ratch set up a joint venture with Bangkok Mass Transit System Co, the operator of the BTS skytrain system, and Ch. Karnchang Plc. The group won the bid to develop and operate the Pink and Yellow mass transit lines in Bangkok worth a combined 130 billion baht.
Ratch also plans to diversify into other related power businesses including power storage systems and floating storage regasification units as well as infrastructure projects such as water management, mass transit and smart grids.
Ratch yesterday reported revenue of 52.3 billion baht in 2016, down 13% from 2015. Net profit, however, rose 93% to 6.16 billion baht.
RATCH shares closed yesterday on the Stock Exchange of Thailand at 51.50 baht, up 25 satang, in trade worth 195 million baht.