Gulf Energy Development, one of Thailand's largest private power producers, has outlined strategies to expand to digital asset exchange and virtual banking businesses, while continuing to build its key energy segment.
The SET-listed conglomerate is in the process of applying for a virtual bank licence from the Bank of Thailand with initial investment of 5 billion baht.
Meanwhile, the company's joint venture with Binance, which operates the world's largest crypto exchange, launched a service in Thailand.
Gulf also plans to develop renewable power, especially after the government's introduction of the green utility tariff (GUT) to regulate renewable power prices, said chief executive Sarath Ratanavadi.
GREEN ENERGY
The GUT reflects state efforts to promote clean energy, aiming to draw foreign investors that want cleaner energy to run their businesses, said Mr Sarath.
According to the Energy Regulatory Commission, Thailand may take two years to fully adopt the GUT, recently launched to regulate renewable power prices, as many businesses need time to adapt to the global campaign against carbon-intensive manufacturing.
The time frame is an estimate following a public hearing on the GUT, which is a new tariff used to calculate the price of electricity generated by renewable resources.
There are two GUT rates. GUT 1 rates, which refer to rates for existing renewable power generating facilities, are slightly higher than the current power tariff of 4.18 baht per kilowatt-hour (unit).
GUT 2 rates, used for new renewable power projects, are estimated to be in the range of 4.55-4.56 baht a unit.
Mr Sarath said Gulf is pushing ahead with projects to develop solar and wind energy to serve demand from investors.
The company recently announced it will allocate 90 billion baht over the next five years to support plans to increase its electricity generation capacity, with a focus on renewable resources.
Up to 80% of the budget will go to renewable energy projects, including solar and wind power, hydropower and waste-to-energy power plant development, said Ratthaphol Cheunsomchit, deputy chief executive of Gulf.
Some 16% of the budget supports its gas-fired power generation facilities, with the remainder for other business projects.
Gulf wants renewable power to make up 40% of its total electricity generation capacity by 2035, up from 10% at present.
BUSINESS OF THE FUTURE
Gulf Binance chief executive Nirun Fuwattananukul said the company aims to be the leading digital asset and cryptocurrency trading platform in Thailand by next year, with the highest trading volume and number of users.
Its crypto exchange, Binance TH, offers more than 120 tokens of digital assets, the largest number of coin pairs available on any digital asset exchange in Thailand.
The platform also offers a fee structure of 0.1% for trades between USDT pairs, and 0.25% for trades between baht pairs and digital assets.
Binance views Thailand as an important market with potential to grow the digital asset industry, said chief executive Richard Teng.
Thailand has a 10% adoption rate for digital assets, indicating Thais have technological expertise, he said. In addition, there is a government policy that promotes business operations, giving Thailand an advantage and a strong foundation, said Mr Teng.
"In recent years, many events occurred in the cryptocurrency industry. The governments in many countries are beginning to open up to digital assets by regulating the market," he said.
Recently the US regulator approved spot Bitcoin exchange-traded funds.
Cryptocurrency blockchain is an adaptable technology and is always growing, said Mr Teng.
"Gulf Binance expects to play an important role in shaping the digital asset landscape in Thailand," said Mr Nirun.
"Gulf can draw on Advance Info Service [AIS] to help expand, promote and provide knowledge on the use of digital assets in Thailand."
DEEPER COOPERATION
Mr Sarath said AIS is developing an IT backup system to link Binance's cryptocurrency exchange and AIS's app MyAIS.
Gulf is a major shareholder of SET-listed AIS, the country's biggest mobile operator by revenue market share.
He said the backup system is expected to be launched next month.
The applications linkage should help expand the channel for cryptocurrency investment and daily trading, as well as ease mass demand to access the exchange, said Mr Sarath.
MyAIS app, which provides categories of products and services for customers, would link to the Binance app.
"Digital assets and cryptocurrency are a core portion of the new economy, which have been accepted by the public for years," he said.
Previously AIS chief executive Somchai Lertsutiwong said the company was transitioning the MyAIS app from December 2023 to a "super-app" scheme under a "mobile first – app first" concept, aiming to provide a wider array of categories of products and services.
The move is part of AIS's shift of operating model to become a cognitive tech company by early 2025.
A cognitive technology company means AIS will be able to provide customers personalised services, real-time offers, and interactive information and autonomous network service, he said.
Features on the app include entertainment, insurance, finance, health, food and beverage, and deals from AIS partners.
