SSP on Course to Become Asias Leading Energy Firm, Aims to Reach 200MW Renewable-Energy Power Plants Capacity by 2020

Energy Press Releases Wednesday September 27, 2017 10:57
Bangkok--27 Sep--MT Multimedia

SSP, a company holding shares in local and overseas renewable energy power producers and suppliers and connected businesses, believes that the company's stock will attract investors' interest on its first trading day on the MAI. Its solar farm in Lop Buri Province has begun commercial operation with a contracted capacity of 40MW and an installed capacity of 52MW, and it is also investing in eight more solar farm projects with a total installed capacity of 122.4MW in Thailand and Japan, which are expected to begin commercial operation between Q4 of 2017 and Q2 of 2020 and produce new growth. It seeks to raise its renewable energy-based power plants' total capacity to 200MW by 2020.

Mr Varut Tummavaranukub, Chief Executive Officer of Sermsang Power Corporation (or SSP), a company holding shares in local and overseas renewable energy power producers and suppliers and connected businesses, revealed that, after making an initial public offering (IPO) of 276,375,000 capital-increase ordinary shares (which represent up to 30% of its post-IPO issued and paid-up capital) at the price of THB 7.70 each, SSP has floated its stock (ticker symbol: SSP) on the Market for Alternative Investment (MAI) on 27 September 2017, which is expected to attract healthy interests from the investors.

SSP has started recognising revenue from a solar farm in Thailand that has begun commercial operation, namely, Sermsang Solar Project (Lop Buri Province; installed capacity: 52MW; contracted capacity: 40MW), which is run under a five-year non-firm power purchase agreement (renewable for five years each) with an adder rate of THB 6.5/kWh for 10 years starting from the commercial operation date.

The CEO added that, given the successful funding, the company now seeks to achieve further growth, and is investing in eight new solar farm projects in Thailand and Japan with a total installed capacity of 122.4MW and a contracted capacity of 98MW.

Another project in Thailand – War Veterans Organisation of Thailand's Solar Farm Project (Ratchaburi Province; contracted capacity: 5MW; feed-in tariff (or FiT) rate: THB 4.12/kWh, fixed for the entire 25-year contract term) – is in the preconstruction development phase. It is expected to begin commercial operation by Q4 of 2018.

SSP currently invests in five solar farm projects in Japan. Two of them are in the construction phase and have a total contracted capacity of 47MW: i) Hidaka Project (Hokkaido Prefecture; contracted capacity: 17MW; FiT rate: JPY 40/kWh, fixed for the entire 20-year contract term), expected to begin commercial operation in Q1 of 2018; and ii) Yamaka Project (Kumamoto Prefecture; contracted capacity: 30MW; FiT rate: JPY 36/kWh, fixed for the entire 20-year contract term), expected to begin commercial operation in Q2 of 2020.

Two other Japanese projects, with a total contracted capacity of 36MW, are in the preconstruction development phase: i) ZOUEN Project (Kumamoto Prefecture; contracted capacity: 6MW; FiT rate: JPY 36/kWh, fixed for the entire 20-year contract term), expected to begin commercial operation in Q4 of 2018; and ii) Leo Project (Shizuoka Prefecture; contracted capacity: 30MW; FiT rate: JPY 36 kWh, fixed for the entire 20-year contract term), expected to begin commercial operation by Q2 of 2020.

The last project, Yamaka Project (contracted capacity: 10.0MW; FiT rate: JPY 36 kWh, fixed for the entire 20-year contract term) is in the initial development phase and expected to begin commercial operation in Q2 of 2020.

The company is also looking to invest in two solar rooftop projects in Thailand. They include i) SNNP 1 Project (Samut Sakhon Province; installed capacity: 384KW), which is in the construction phase; and ii) SNNP 2 (Ratchaburi Province; installed capacity: 998KW), which is in the preconstruction development phase. In these projects, power will be purchased by Srinanaporn Marketing Co., Ltd. under 25-year contracts with an FiT rate to be fixed based on PEA's base retail rate and the average retail Ft charge rate. They are expected to begin commercial operation in Q4 of 2017.

"We focus our efforts on investment expansion and personnel development to ensure sustainable growth. We aim to keep investing in and developing power plants until our capacity reaches 200MW by 2020 and become a leading energy firm in Asia with an unwavering commitment to sustainably producing and supplying power and promoting a clean environment in the best interests of the public", said he.

Mr Manpong Senanarong, Managing Director of Kasikorn Securities PCL, as Financial Advisor and Lead Underwriter, commented that SSP will benefit from the continuously growing power demand in Thailand and Japan and the public policies to consistently promote production and supply of power from renewable energy sources.


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