Message From Chairman
Dear all shareholders and stakeholders,
The year 2023 has been a particularly challenging year for driving organizational growth for RATCH. Despite pressures from both geopolitical conflicts affecting global fuel prices and ongoing efforts to manage and reduce greenhouse gas emissions due to climate change, the Company successfully achieved its mission. These challenges have spurred efforts in various areas, such as legal reforms to control greenhouse gas emissions, the development of renewable energy and new clean fuels to replace fossil fuels, the advancement of efficient innovation and technology, as well as a drive towards business model like BCG and digitalization. These factors represent both risks and opportunities in conducting business and ensuring the sustainability of the organization.
For this year, the Company has adhered to 3 approaches to drive the business according to the Strategic Plan for 2023-2027 under 3S strategy. These include S1: Strength – Strengthening economic value by focusing on managing the efficiency of assets, especially power plants to generate return to their full potential, including operational excellence and employee capacity to enhance the competitiveness and support the business changes; S2: Synergy – Collaborating with domestic and international business partners to expand the business to grow and increase investment opportunities in power business and non-power businesses with high potential and value in the future, and S3: Sustainability – Conducting business to be economical, social, and environmental sustainability. The Company has formulated a sustainability strategy to drive the organization towards it business goals and Carbon Neutrality in 2050, which is aligned with Thailand’s goals, to take part in reducing the global climate change.
Continuously expand business and growth
The Company continues to invest in the electricity generation business, which is the core business that continuously creates stability for the organization, both domestically and internationally. In 2023, the projects under development and construction had a total equity capacity of 2,944 MW. The Company has also expanded its investment base in the Philippines, which offers a great potential for renewable energy development. The Company has 4 projects under construction and development in the Philippines with a total equity capacity of 549.83 MW namely Calabanga Solar Farm which is under construction with equity capacity of 36.33 MW, Negros Island Solar Farm with equity capacity of 73.5 MW, Offshore Wind Farm in San Miguel Bay and Lucena Offshore Wind Farm on Luzon Islands, with equity capacity of approximately 220 MW for each wind farm. These 3 latter projects are under development phase.
There were 2 projects that have been completed and commercially operated, generating income for the Company in the past year i.e., RATCH Cogeneration extension project with installed capacity of 31.20 MW and steam generation capacity of 7.15 tons per hour, and Ecowin Windfarm in Vietnam with equity capacity of 15.16 MW.
The end of this year, the Company has realized total equity capacity of 10,848 MW, an increase of 1,061 MW from the past year, which can be catagorized as revenue generating capacity of 7,904 MW and the capacity under construction that the Company will gradually recognize revenue from 2024-2033 of 2,944 MW. The renewable energy capacity increased to 27% or 2,974 MW, achieving the 2023 renewable energy capacity target of at least 20% of total capacity.
Regarding non-power businesses, the Company has expanded investment into healthcare business by investing 25% in PRINC Hospital Mukdahan, scheduled to open in 2025, a joint investment with Principal Capital as a continuation of PRINC Hospital Sakon Nakhon, which has already opened for service in February 2023. In addition, the Company has invested in RATCHTEX Co., Ltd. with 60% shareholding to conduct the business of installing Solar PV Floating Systems, and Rooftop Solar Installation Project that has Private Purchase Agreements with 6 hospitals of Principal Healthcare Group with total production capacity of 1.2 MW which were operated through Sahacogen (Chonburi) Public Company Limited, in which the Company holds 51.67% of the shares. It also included 4 projects of solar rooftop installation for industrial factories in Saha Group Industrial Park with a total capacity of 8.4 MW. In terms of the MRT Yellow Line Project, it has been put into commercial operation, while the MRT Pink Line Project has been undergoings a Trial Run for some stations and will be fully commercially operated by 2024.
Moreover, the Company is committed to expanding its investment into the energy innovation business and future fuel business such as green hydrogen fuel. It also supports the operation of Innopower Co., Ltd., in which the Company holds 30% of shares, to invest in the clean energy business and develop innovation for energy efficiency, comprehensive electric vehicle (EV) related business, and registration and trading of Renewable Energy Certificate (REC).
Sustainability Development
The Company adheres to sustainable development as guidelines for its business operations to create growth for the organization while creating added value in a balanced manner between business, society, and environment. In the past year, the Company has promulgated the Environmental and Social Policy, which established guidelines covering the feasibility study process for project investment and mergers and acquisitions, and assessment of key business partners to ensure that environmental and social risks and impacts are tightly managed and prevented. Furthermore, the Code of Conduct for business partners has been promulgated as an operational framework and guidelines for business partners business ethics, environmental preservation, social responsibility, and respect for human rights principles in line with international practices.
The Company has also developed the Environmental and Social Management System (ESMS) as a practice for managing important environmental and social issues to the business. It covers all phases of the project from development, construction, operation, and demolition. In terms of human rights, the Company has assessed the human rights impacts of employees in accordance with the Human Rights Due Diligence. The assessment results reflect the efficiency on the Group’s good management of human rights. In addition, a management system has been developed to set a target of zero complaints or human rights violations, both in the businesses in which the Company has a control as well as the supply chain. The Company also provides complaint channels via the Company’s website: www.ratch.co.th to ensure that the Company values business operations that consider and respect human rights and dignity of all stakeholder groups.
The Company’s operations are recognized and trusted by stakeholders and society at large, as reflected by awards and evaluation scores from various institutions such as Honorary Mention of the 11th NACC Integrity Award (2022) from the Office of the National Anti-Corruption Commission (NACC), Chief Innovation Officer (CIO) Honorary Award from the National Innovation Agency (Public Organization), Corporate Governance Assessment Award 2023 from the Thai Institute of Directors (IOD) with an Excellent level (5-Star), and SET ESG Ratings Assessment for 2023 at AA Level from the Stock Exchange of Thailand.
On behalf of the Board of Directors, executives, employees, and personnel of RATCH Group, I would like to express my appreciation to all shareholders and stakeholders in the business chain for their trust and continuous support in the Company’s operations. The Company is committed to driving and conducting its business to achieve the goal of becoming a leading company in the Asia-Pacific region that focuses on creating economic value while promoting shared value for society and environmental protection to be a force for creating the future and the growth for the organization continuously and sustainably.
Mr. Suthat Pattamasiriwat
Chairman