Thailand farms

SPCG to obtain approval for 23 solar farms in the EEC

SPCG, a SET-listed company pioneering the development of solar farms in Thailand, plans to secure state approval to build 23 solar farms in the Eastern Economic Corridor (EEC) in the third quarter to make up for its loss revenue due to the gradual expiration of the additional tariff for its existing solar farms.

The new project, which will be co-developed by PEA Encom International Co, a wholly owned subsidiary of the state-owned power distribution arm Provincial Electricity Authority, will be one of the largest solar energy developments in Thailand, with a combined capacity of 316 megawatts.

Wandee Khunchornyakong Juljarern, chief executive of SPCG, said the company had already acquired land and signed a power purchase agreement with the government. It is awaiting approval for the construction from the National Energy Policy Council, she said.

The 23 solar farms, which will be located in the provinces of Chon Buri, Chachoengsao and Rayong, will be developed with a budget of 23 billion baht.

The new project is expected to generate more revenue for the company as the end of the addition tariff occurs gradually between 2020 and 2024. The tariff has been granted to its 36 solar farms in the northeast and central regions.

The eight-baht tariff, introduced by the government to encourage investors to build solar farms, is added to the electricity tariff, allowing SPCG to sell electricity to the public grid at a higher price for 10 years after the start of operation.

Ms Wandee said the company was preparing to diversify its revenue several years ahead of the expiration dates by expanding its solar power business in Japan, where it operates and develops three solar parks.

“We are concerned about a shortage of some building materials and rising prices for some electronic equipment due to the conflict in Europe. This can affect development costs,” she said.

For its rooftop solar panel business, SPCG expects rooftop solar panel sales, particularly to the industrial sector, to pick up in the third quarter, following a delay in purchases caused by the pandemic.