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RATCH expands SPP portfolio for steady revenue and prepare readiness for IPS model, Investing in another 30MW expansion of NNEG Power Plant for industrial users, Electricity dispatch of NRER Power Plant for EGAT effectively commenced

Nonthaburi – RATCH Group Public Company Limited announced its additional investment in NNEG Power Plant for expanding another 30MW generation capacity and five tons per hour of steam. The adding capacity will be served demand of industrial customers gradually growing according to economic recovery. The investment estimates THB1.724 billion and expects funding 70% by debt and 30% from shareholders’ capital, of which RATCH will inject around THB200 million. It plans for construction in December 2022 and commercial operation in June 2024, resulting in NNEG Power Plant’s capacity increase to 215 MW and 45 tons per hour of steam.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited said that investment in power generation, the company’s core business, is still our focus and target both in domestic and abroad. In Thailand, the company pays attention to small power producer (SPP) ventures particularly cogeneration projects besides renewables with aims to enhance revenues and enterprise values, and to prepare readiness for seizing future opportunity when power generation structure transforming to independent power supply (IPS) model, and end users freely make decision for electricity consumption. At present, the company has seven SPP cogeneration power plants in the portfolio with total equity capacity included this investment of 536.97 MW, of which 481.3 MW already dispatched.

“NNEG Power Plant is operated by Nava Nakorn Electricity Generating Company Limited (NNEG), a joint venture of RATCH Group, Nava Nakorn Public Company Limited and Global Power Synergy Public Company Limited with equity holding of 40%, 30% and 30% respectively. The power plant currently produces 185MW electricity and 40 tons per hour of steam which 90MW electricity is distributed to Electricity Generating Authority of Thailand (EGAT). The rest of electricity is sold to industrial customers in the Nava Nakorn Industrial Zone in Pathumthani province. The additional capacity consequently enables NNEG power plant’s electric power generation and steam for industrial users to 125 MW and 45 tons per hour. In addition, RATCH and Nava Nakorn Group has collectively been developing an IPS project with 31.2MW capacity in the Nava Nakorn industrial zone located in Nakhon Ratchasima province. With commitment to green generation, the gas-fired NNEG power plant has put in place the international accepted environmental management system certified by ISO 14001 standard and also achieved certification of Green Industry Level 3: Green System from the Department of Industrial Works, Ministry of Industry. It also actively puts effort to lower carbon footprint for electricity unit that meets RATCH’s goal of reducing greenhouse gas,” said Ms. Choosri.

In 2021, the company recorded revenues from SPP portfolio totaled THB2.938 billion accounting 7% of total revenues, derived from RATCH Cogeneration Power Plant, NNEG Power Plant, Ratchaburi World Cogeneration Power Plant, Berkprai Cogeneration Power Plant and Sahacogen Chonburi Power Plant.

“In 2022, the company positively estimates increase of revenues from SPP portfolio compared to last year due to income gains from three SPPs namely; Sahacogen Power Plant, NRER Power Plant in Rayong and expansion phase of RATCH Cogeneration Power Plant. Recently, NRER Power Plant has effectively dispatched electricity to EGAT,” concluded Ms. Choosri.

The 98MW gas-fired NRER Power Plant located in Rayong province, started commercial operation on April 30, 2022 by distributing 90MW electricity to EGAT in accordance with 25-year power purchase agreement. The power plant has carried out its quality control in construction under international standards, as well as installation advanced technology with high efficiency electric power generation and environmental quality management that is in line with the World Bank’s standards for environment and society.

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