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NNEG starts commercial electricity and steam production RATCH-NNCL-GPSC co-developing 60-MW expansion phase II to serve industrial users in Nava Nakorn industrial zone, with an expected completion in 2019

Nava Nakorn Electricity Generating Co., Ltd. (NNEG) today announces the commercial operation of its gas-fired cogeneration power plant, with 125-MW distributed electricity generation and steam capacity of 30 tons per hour. NNEG is a Small Power Producer (SPP) awarded the firm power purchase agreement (PPA).

The company is the joint venture of three partners, including Ratchaburi Electricity Generating Co., Ltd. or RATCHGEN (40% shareholding), Nava Nakorn PCL. (30%), and Global Power Synergy PCL. or GPSC (30%). It successfully develops, constructs and runs operation of its power plant project commercially operated today. The Electricity Generating Authority of Thailand (EGAT) will purchase 90-MW electricity for 25 years, while the 35-MW electricity and 30-ton/hour of steam will be distributed to customers in Nava Nakorn industrial zone.

Mr. Rum Herabat, CEO of Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) as the wholly-owned shareholder of RATCHGEN, said NNEG’s revenues will derive from sales of electricity and steam that is a co-product of cogeneration system to EGAT and industrial users in Nava Nakorn industrial zone. Recognition of profit sharing from NNEG will start in the second half of 2016 and operating capacity of RATCH will also increase to 6,419 megawatts (out of the total invested capacity of 6,885 megawatts). Moreover, the project potentiality of generation and steam capacity can be expanded in response to growing needs of industrial users in the industrial zone as per the economic recovery. Currently, the phase II of NNEG is in the feasibility study process and the construction expects to be finished in 2019.

Mr. Nipit Arunvongse Na Ayudhya, Managing Director of Nava Nakorn Public Company Limited (NNCL), said NNEG was appropriately established by three partners. NNCL is the owner of 6,500-rai land in Nava Nakorn industrial zone, Pathum Thani, where more than 200 plants are located, with 400-MW electricity demand. Joining forces with RATCH as Thailand’s leading independent power producer, and GPSC, a PTT Group’s subsidiary operating a number of power plants, definitely helps further NNEG’s advancement in expansion. Currently, NNEG power plant, phase II, with capacity of 60-MW generation and 30-ton/hour steam is in process of conducting a feasibility study. This will not only result in rising revenue, but also add more efficiency and reliability for electricity and steam generation system in the industrial zone. Moreover, this effort offers entrepreneurs in Nava Nakorn industrial zone lower-cost electricity and steam, with more stable generation, thus enhancing their competitiveness. 

Dr. Toemchai Bunnag, Chief Executive Officer of GPSC – PTT Group's power and infrastructure flagship, comments as a 30% stake owner of NNEG that among under construction projects with a combined capacity of 584 MW during 2016-2019, NNEG is a project under construction

and progresses as planned. GPSC will likely show greater operating performance, thanks to the profit sharing from NNEG project after commercial operation and revenue recognition since June 2016. Due to the solid financial status, GPSC is ready to expand investment in phase II by joining hands with the existing partners. This will drive the business growth to meet the GSPC’s strategic goal focusing on development and investment in IPPs in Thailand and neighboring countries. Currently, GPSC generates the 1,922-MW equity capacity, with 1,582-ton/ hour steam.

Located in Nava Nakorn industrial zone, Pathum Thani, with more than 200 plants and 400-MW electricity demand, NNEG power plant, with 139.13-MW installed capacity has been developed according to the approval of Energy Regulatory Commission (ERC) under 2,000-MW power purchase framework. Typically, food, beverage, pharmaceutical and steel industries need steam to support their manufacturing process. Consequently, NNEG project will help secure the country and industrial sector’s power stability, while feeding steam into factories.

The construction, 60-MW NNEG power plant, phase II, with 30-ton/hour steam is scheduled to complete in 2019 based on an aim to serve the higher electricity and steam demand of industrial users in Nava Nakorn industrial zone.

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