JAKARTA (RambuEnergy.com) – BCPG Public Co. Ltd, a renewable company of Thailand, plans to invest in the geothermal power business in Indonesia through equity acquisition in Star Energy Group Holdings, which is engaged in geothermal power generation and steam production, with an equivalent total power production capacity of 995 megawatts, The Nation reported.
BCPG expects the acquisition process to be completed within the second quarter of 2017. BCPG president Bundit Sapianchai said the company’s board of directors had on Apr. 25 approved the investments in the geothermal power business in Indonesia, subject to final approval from shareholders.
Through the investment, BCPG will hold an indirect equity in three geothermal power projects with total power production capacity of 182 MW: 20% in the 347 MW Wayang Windu Power Plant, (127 MW of which are already in operation); 17.3% in the Salak Power Plant, with a total production capacity of 377 MW equivalent of electricity and steam; and 17.3% in Darajat Power Plant, with a total production capacity of 271 MW equivalent of electricity and steam. All the projects have long-term feed-in tariff contracts with Indonesia’s state electricity company PLN.
BCPG plans to invest US$357.5 million (Bt12.34 billion) in this project. Funds will be used from the company’s cash flow, and from loans for which many leading financial institutions have already expressed interest. The acquisition process is expected to be finalised by the second quarter of 2017 and the company expects to realise profits immediately.
An extraordinary shareholders general meeting will be held on Jun. 13 to seek final approval from the company’s shareholders.
“We strongly believe that the investment will help enhance BCPG’s long-term stability and is in line with BCPG’s business growth strategy to diversify into other forms of renewable energy and into other countries, in addition to solar and wind power businesses in Thailand, Japan, and the Philippines,” said Bundit.
“As a leading renewables business from Thailand, BCPG is keen to invest in geothermal energy which is a stable resource with continuous round-the-clock supply. Moreover, BCPG can also leverage the expertise in exploration and production business of our parent company, Bangchak Corporation Public Co Ltd,” he added. (*)