Ratchaburi Electricity Generating Holding Plc (RATCH) has set aside A$1 billion (28.7 billion baht) to acquire the 4,640-megawatt Macquarie power plant in Australia.
Peerawat Pumthong, the chief operating officer of Thailand's largest private power producer in terms of capacity, said Ratch is fully prepared to submit an expression of interest to make an acquisition bid for the coal-fired power plant that will cost between A$900 million and A$1 billion.
The SET-listed company will join with two foreign strategic partners to bid for this asset but did not mention their names. An offer is expected to be made this October, he said.
Located in New South Wales state, the plant has two generating units of 2,640 MW and 2,000 MW and is listed on the state's plan to privatise power assets.
Other assets include gas-fired power plants and transmission lines.
A coal mine was called for bidding last month. Mr Peerawat said Ratch is also conducting a feasibility study of the 160-MW Nam Muan hydroelectric power project in Laos, with a target to start construction next year.
Ratch achieved second-quarter revenue 14.7 billion baht, down by 24.6% year-on-year, for a net profit of 1.55 billion, down by 52.9%.
The main reason for the decline was the termination of a power purchase agreement for the Collinsville power station in June 2012, cutting payments to Ratch-Australia Corporation Co.
The first-half net profit was 3.7 billion baht on revenue of 27.6 billion.
Mr Peerawat said Ratch's short-term investment plan focuses on international projects and renewable power.
Two wind farm projects with a combined capacity of 420 MW and a 20-MW solar farm in Australia have progressed.
The first 180-MW wind farm expects to be granted construction permission this quarter and is scheduled for commercial operation in early 2015.
The other wind farm and the solar farm are expected to receive construction permission early next year.
"Many countries clearly plan to support renewable energy to reduce the use of fossil fuels in power generation, thereby easing climate change impact," said Mr Peerawat.
"The sector is attractive, with massive investment potential."
Shares of RATCH closed yesterday on the SET at 51.75 baht, down 1.25 baht, in trade worth 38.4 million baht.