Global Power Synergy Plc (GPSC), the power generation arm of national oil and gas conglomerate PTT Plc, plans to inject 2.5 billion baht of capital into Avaada Energy Private, an Indian solar power developer, in a move to boost renewable power generation.
The capital injection is in line with a plan to increase power generation capacity, part of GPSC's efforts to expand its business in India, Worawat Pitayasiri, president and chief executive of GPSC, said after the capital increase was approved by the board on April 25.
GPSC holds a 42.93% share in Avaada Energy Private, a subsidiary of Avaada Group, a renewable energy developer.
Avaada Energy Private was awarded three solar power projects in three auctions in India.
One is a 421-megawatt solar power farm from a bid held by REC Power Development and Consultancy on behalf of Damodar Valley Corporation under the Indian government.
Another is a 560MW solar power farm awarded by Maharashtra State Electricity Distribution.
The Indian firm was also awarded a 200MW solar farm project in a bid organised by Gujarat Urja Vikas Nigam, with Avaada declared the winner after quoting a tariff of 2.75 rupees per kilowatt-hour.
The company was given 18 months to finish the construction of the solar farm.
The bid grants a power purchase agreement lasting 25 years.
The latest solar farm project is expected to generate 370 million kilowatt-hours annually, which should help lower carbon dioxide emissions by 344,470 tonnes a year.
These three solar farm projects are in line with GPSC's goal to increase its proportion of renewable energy to more than 50% of total fuels used in its electricity generation, up from 38%, by 2030.
GPSC entered the energy industry in India last year by acquiring a 41.6% stake worth 14.8 billion baht in Avaada Energy Private.
The firm has continued to buy more shares, with the stake increasing to 42.93% at present.
