SET-listed Ratch Group is on its way to hitting a target of 10,000 megawatts in total electricity generation capacity, as it expects to have additional capacity of 1,000MW from three domestic and overseas power plant projects worth 31 billion baht by the end of this year.
Its current capacity stands at 8,292MW from power plants in Thailand and countries overseas, including Laos, Australia, Indonesia and Vietnam.
The move was announced yesterday by Ratch chief executive Kijja Sripatthangkura.
One of the three projects is a coal-fired thermal power plant from PT Paiton Energy in Indonesia. The facility, with capacity of up to 900MW, has an investment value of 25.4 billion baht.
Ratch is preparing to ask for approval of this project at a meeting of its shareholders.
The other two initiatives are renewable energy projects in Indonesia and Thailand, with investment values of 1.5 billion baht and 4.5 billion baht, respectively.
Ratch expects to conclude merger and acquisition deals on these two projects in the last quarter of 2021.
“If all projects become successful, the company will be able to achieve the power generation capacity target,” said Mr Kijja.
At present, 63% of Ratch’s power generation capacity is produced in Thailand and 37% is produced overseas.
Renewable energy makes up 15% of the 8,292MW. The company aims to increase its proportion to 25%, or around 2,500MW, by 2025.
Ratch focuses on the merger and acquisition approach to expand its investments in Thailand and overseas.
The company wants to increase its overseas investment proportion to 50% by 2025.
“The company is seeking investment opportunities in Bangladesh, Taiwan and the Philippines,” said Mr Kijja.
While the power business remains a major source of revenue for Ratch, the company wants to decrease its proportion from 80% of total revenue to 60%, and increase earnings from infrastructure to 40% from 20%, Ratch said earlier.
The firm is increasingly interested in infrastructure projects and other businesses with strong long-term growth prospects.
It aims to allocate 5% of its investment budget each year to the non-power businesses.
Choosri Kietkajornkul, who will succeed Mr Kijja as chief executive, said she will continue with a mission to ensure sustainable business growth by seeking cooperation with new business partners.