SPCG Retains Japan Project’s Start Date – EQ Mag Pro
SET-listed SPCG, a pioneer in solar farm development in Thailand, is maintaining its plan to start operation of its Ukujima Mega solar project in Japan in 2023, despite delays in investment caused by the pandemic.
The 480-megawatt power generation facility is one of three on-ground solar farms to be developed to offset revenue and profit decreases as the company’s 36 solar farms in Thailand, with a combined capacity of 260MW, will see their adder tariff expire in five years, said Pipat Viriyatranon, director of SPCG’s finance department.
The eight-baht tariff, introduced by the government to encourage investors to build solar farms, is added to the electricity rate, allowing SPCG to sell electricity to the state grid at a higher price for 10 years after the operation dates.
SPCG formed a joint venture with eight industrial conglomerates to build the Ukujima facility worth 52.2 billion baht.
The company is required to pay 2.768 billion baht from March 2020 to September 2021 in five payments.
The last two payments will be delayed until January next year.
“Strict travel restrictions to contain Covid-19 caused the payment delay, but the project’s operation date remains the same,” said Mr Pipat.
The company expects revenue from its 36 solar farms will decrease to 1.5 billion baht once the adder tariff expires between 2020 and 2024.
Without the adder tariff, electricity sales will be based on power tariff, similar to that of fossil-fired power plants, at almost four baht per kilowatt-hour (KWh).
Previously the 36 solar farms generated electricity at an average of 385-390 million KWh per year at the average power tariff rate, including adder tariff, of more than 11 baht per KWh.
Another on-ground solar farm planned to offset the adder tariff expiration is the 67MW Miyako Mega solar project in Japan.
SPCG plans to inject 100 million baht to finance the project this year. The northern section of the facility has operated since July, while the southern one is scheduled to operate in February 2023.
SPCG earlier teamed up with PEA Encom International Co, the clean energy arm of state-run Provincial Electricity Authority, to conduct a feasibility study on energy storage system development in the Eastern Economic Corridor (EEC) area, following an estimate of stable revenue in its solar energy business this year.
Last year, SPCG also formed a joint venture with PEA Encom International to build a 23-billion-baht solar farm within EEC’s special development zone.
Source: bangkokpost
