BCPG Plc, the power generation arm of energy conglomerate Bangchak Corporation Plc, plans to allocate 39 billion baht in capital spending to fund its domestic and overseas businesses and asset acquisitions, including those affected by ongoing banking problems in the US and Switzerland.
The company is monitoring whether the financial turbulence faced by Silicon Valley Bank and Signature Bank in the US and Credit Suisse in Switzerland will escalate, which may deal a blow to some power companies.
"We are ready to acquire assets from businesses facing a cash shortage," said Niwat Adirek, president and chief executive of BCPG. "We've prepared around 20 billion baht for asset acquisitions this year."
The budget is part of the capital spending, with 77% of the total set aside for new development projects of BCPG, said Mr Niwat.
In Thailand, BCPG participated in the auction of power generation projects under the 5.2-gigawatt renewable scheme, which promotes the development of wind power (1,500 megawatts), on-ground solar farms (2,368MW), on-ground solar farms with energy storage systems (1,000MW) and biogas (335MW).
The Energy Regulatory Commission, which oversees the project, is selecting qualified companies and is slated to announce the winners early next month.
The government announced a goal for renewable energy to make up 50% of fuels used for electricity generation in two decades, up from 12% in 2022.
This year, BCPG plans to further develop projects in its pipeline, including two solar farms in Japan's Chiba prefecture. The facilities, with combined capacity of 10MW, are scheduled to operate next year.
BCPG is preparing to start the first-phase development of the 600MW Monsoon Wind Power project in southern Laos. The facility, touted as the largest cross-border wind energy project in Asean, is expected to start operation in 2025.
In the Philippines, the company plans to start building the 13.2MW Nabas 2 wind farm on Vasai Island. The project is scheduled to start operating in 2025.
