BAFS Invests Almost 2 Billion Baht in 7 Solar Power Plants to Increase Revenue Stability and Alternative Energy Capacity

Tuesday 08 December 2020 09:04

BAFS Clean Energy Corporation Company Limited, a subsidiary of Bangkok Aviation Fuel Services Public Company Limited (BAFS), recently acquired seven solar power plants with a total production capacity of 36.4 megawatts at a total value of 1,704.67 million baht, marking a significant move in increasing new revenue and expanding its portfolio in alternative energy.

BAFS Invests Almost 2 Billion Baht in 7 Solar Power Plants to Increase Revenue Stability and Alternative Energy Capacity

Mr. Prakobkiat Ninnad, President of Bangkok Aviation Fuel Services Public Company Limited (BAFS), said the company's special meeting of its Board of Directors, convened on 3 December 2020, approved the full purchase by its subsidiary, BAFS Clean Energy Corporation Company Limited (BC), of PDI Energy Company Limited (PDIE), a subsidiary of Padaeng Industry Public Company Limited. PDIE holds shares in three companies that operate seven solar power plants. The total transaction value of 1,704.67 million baht includes:

  1. ATC Enviro Co., Ltd. (ATCE): ATCE operates five solar power plants with a total production capacity of 29 megawatts, including three plants in Prachinburi and two plants in Samut Sakorn. The company signed a power purchase agreement (PPA) with the Provincial Electricity Authority for 25-year period with 20 years remaining in the contract.
  2. PDI Mae Ramat Co., Ltd. (PDIMR): PDIMR operates one solar power plant in Tak with a total production capacity of 6.3 megawatts. The company signed a PPA with two agreed adder rates to be automatically renewed every five years.
  3. P.P. Solar (Nong-No) Co., Ltd. (PPS): PPS operates one solar power plant in Khon Kaen with a total production capacity of 1.1 megawatts. The company signed a PPA with two agreed adder rates to be automatically renewed every five years.

The project detail is based on information already disclosed and submitted to the SET.

The seven solar energy power plants, with a total production capacity of 36.4 megawatts, have already achieved commercial operation dates (CODs). BAFS expects this acquisition to contribute roughly 300 million baht in revenue in 2021, increase the company's competitiveness and broaden business opportunities. BAFS will benefit from the expertise and knowledge of experienced employees in longstanding operations and management in alternative energy, thereby reducing risks in operational challenges that may occur following the acquisition while supporting the company's stability and expanding business in the future.

M.L. Nathasit Diskul, Chief Executive Officer of BAFS Clean Energy Corporation Company Limited (BC), said that the investment in the solar power plant project is an important stepping stone for the company in expanding its business in alternative energy. This will also provide more stability to the group's revenue while meeting its strategic plan and corporate governance in operating more sustainably. In addition, BC has budgeted roughly five billion baht for continued investment expansion both domestically and internationally over the next five years.

BC was established in March 2020 with 500 million baht in working capital and is wholly-owned by BAFS. The company operates joint venture businesses in alternative energy projects in Thailand and abroad, and also provides management services encompassing technical services, financial management services, and other related services dealing with alternative energy.