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The renewable power generation arm, BCPG, a subsidiary of Bangchak Corporation Plc plans to increase clean energy investments in mature markets and developed countries, including Taiwan, in the next 5 years to improve risk management.
Only 2% of the company’s total electricity generation capacity is in Australia, Japan and Malaysia. However, frontier markets like Thailand, Indonesia, Cambodia, Laos, Philippines, Vietnam, and Myanmar, command a 98% share.
The company is looking to rebalance their energy portfolio by decreasing its frontier market capacity to 75%.
Chief executive of BCPG, Niwat Adirek stated that the changes are made to build a portfolio that is in line with the company’s risk appetite, as the company continues to tap into the global trend towards renewable energy development.
BCPG has committed 95 billion baht to capital expenditure to support its clean energy projects in the next 5 years. This is an increase on the 65 billion baht that was planned for Q3 2021.
“We are expanding our business by undertaking new development projects and asset purchases in order to sustain our growth and focus on large projects,” stated Mr Niwat.
This is despite the possibility of no future feed-in or adder tariffs being granted by energy authorities to encourage renewable energy development in Thailand’s energy sector.
According to Mr Niwat, Taiwan has a huge potential market for new energy investment because its government is speeding up clean energy development.
BCPG entered Taiwan’s power market in January by obtaining licenses to build on-ground solar farms with a capacity of 469 megawatts. They will be operational between the fourth quarter and 2025.
Mr Niwat stated that “In the long-term, we aim at increasing the capacity to 1-2 gigawatts in Taiwan,”
Because of its good sunshine, Southwestern Taiwan is the best place for solar energy projects. According to Mr Niwat, the development of solar farms in this area promises higher returns, even at an early stage.
According to Mr Niwat, developers are also eligible for feed-in tariffs as well as long-term power purchase deals with Taiwan Power Company. This state-owned company manages electricity production and distribution in the country.
BCPG Japan has been granted licenses to operate solar projects totaling 89MW capacity. Facilities with a total capacity of 79MW have been built and are currently in operation.