PTT Group prepares to trade GRP to support expansion of investment in renewable energy plants abroad. The company focuses on investing in solar power generation and wind power generation business, along with strengthening the business, raising investor confidence and building financial potential.
Mr. Auttapol Rerkpiboon, President and Chief Executive Officer, PTT Public Company Limited (PTT) disclosed the resolution of the Board of Directors' meeting that it approved the purchase of 4.655 million shares of Global Renewable Power Co., Ltd. (GRP) (a subsidiary of Global Power Synergy Public Company Limited or GPSC which holds approximately 100% of GRP) from GPSC shares, representing 50% of the registered capital. The purchase will be carried out by PTT Global Management Co., Ltd. (PTTGM). The total transaction value is approximately Baht 693 million. The joint venture is another step towards enhancing cooperation in accordance with PTT Group's transformation strategy, which focuses on stakeholders and synergy among PTT Group companies as well as in line with PTT Group's strategic plan. In addition, it will realize PTT Group strategic goal of generating 8,000 megawatts of renewable energy by 2030 and develop the group's renewable energy capability in the future. The move is a coalition of experienced people and renewable energy expertise from PTT and GPSC to work together, which increases efficiency and increases competitiveness. This will in turn lead to the development of sustainable energy together.
Mr. Chawalit Tippawanich, President and Chief Executive Officer, Global Power Synergy Public Company Limited (GPSC) said the partnership serves the goal of driving the renewable energy business to increase its capabilities, expertise and opportunities to expand new projects internationally. Ultimately, GPSC can manage financially efficiently to gain sufficient funds to invest in projects in accordance with the company's growth goals to increase the proportion of electricity generated from primary and renewable energy both domestically and internationally. GPSC will continue to be the leader of the group's sustainable electricity innovation. Currently, GRP invests in the business of producing and distributing electricity to the Provincial Electricity Authority (PEA), manages and maintains 9 solar farm projects. Located in Lopburi, Suphanburi, Phichit and Khon Kaen provinces, the total capacity is 39.5 megawatts with a 25-year power purchase agreement including the additional electricity purchase price agreements or adders at Baht 8 per unit (for the first 10 years of the contract) of 3.6 megawatts and feed-in tariff or FiT contracts at Baht 5.66 per unit. All power plants begun their commercial operation in 2014 and 2015.
GPSC Information
GPSC is owned by PTT (22.8%), PTT Global Chemical Public Co., Ltd. (GC) (22.7%), Thaioil Public Co., Ltd. (TOP) (8.9%), Thaioil Power (TP) (20.8%) and general investors (24.8%) (PTT is in the process of buying 8.9% GPSC shares from TOP, raising PTT’s shareholding in GPSC shareholding from 22.8% to 31.7%. The purchase is scheduled to complete by 2021.) GPSC is the leader in PTT Group's electricity and utilities business, which mainly operates the production and distribution of electricity, steam and utilities for sale to industrial customers, Electricity Generating Authority of Thailand (EGAT) and others. The company has a combined capacity of approximately 5,076 megawatts; 2,876 tons of steam per hour; 15,400 tons of chilled water ;and 7,372 cubic meters per hour of industrial water.