• Starting commercial operation of its 6 megawatts "Korat 3" Solar Farm to stabilize local power system
• Making an accumulative of 23.98 megawatts in solar power according to its shareholding
• Expanding the Company's renewable business to help reduce fossil fuel for electricity generating

Bangkok:   Ratchaburi Electricity Generating Holding PCL. (RATCH) announced today that Solar Power (Korat 3) Co., Ltd. which is a joint venture between Ratchaburi Electricity Generating Holding PCL. (40%) and Solar Power  Co., Ltd. (60%) has started Commercial Operation to supply electricity to the Provincial Electricity Authority (PEA).

Mr. Noppol Milinthanggoon, Chief Executive Officer, Ratchaburi Electricity Generating Holding PCL., disclosed that the "Korat 3" solar farm is the second accomplished and commercially operated solar farm of the Company after Sai Sena solar farm in Ayuthaya province.  The project reflects the Company's determination to expand its renewable energy business in order to increase country's potential sources of fuel for power production, and, at the same time support the government's policy.  The Company's renewable business gives priority to solar, wind and biomass. 

A "Korat 3" solar farm has a  non-firm power purchase agreement for small power producer generating electricity from renewable energy sources and distribute generated electricity to the Provincial Electricity Authority.  Moreover, the project is subsidized with the adder tariff of Bt 8 per unit from the PEA for ten years.  Not only the solar farm helps reduce and prolong the usage of fossil fuels, but it also tackling the climate change issue due to its daytime utilization, added Mr. Noppol.

Apart from the 6 megawatts "Korat 3", the Company also invested in the other two solar farms.   The individual farm has an installed capacity of 6 megawatts.  And they are now under construction.  These two projects are expected to start its commercial operation within the second quarter of 2012.   Furthermore, RATCH has also invested in another 8 solar projects under Solarta Co., Ltd.  The projects are located in Ayuthaya, Nakhon Pathom and Supanburi with total installed capacity of 34.25 megawatts.   In accordance to its shareholding, RATCH currently has 23.98 megawatts generating capacity in regards to solar power.

On the same day, to emphasize the Company's determination in renewable energy business expansion, particularly on Small power producer.  RATCH has also established its subsidiary company to be responsible for the operation and maintenance services of the small power plant projects that the Company has invested named "RATCH O&M Co. Ltd." with 99.99 percent stake.

 Mr. Noppol Milinthanggoon, Chief Executive Officer of Ratchaburi Electricity Generating Holding PCL. said, “Under our growth strategy, investment expansion in renewable business is one of the company's aims. The investment gives priority on solar, wind and biomass energy sources. The Sai Sena Solar Power project is the first accomplishment of the company in developing solar energy  which is in line with government's policy that aims to reduce the usage of fossil fuels and promote the utilization of renewable energy. It also responds to the company’s climate change commitment to take part in tackling the global warming issue. The Sai Sena solar farm will help Thailand avoid at least 2,500 tons of green house gasses annually. At the same time, the company and Yanhee Solar Power, under Solarta Company Limited, have been developing another seven solar projects located in Nakhorn Pathom and Suphanburi provinces. We shall pursue new investments and develop solar energy to gradually accommodate the growing demand for solar energy in the country and the rest of the world.”

Solarta Company Limited is the developer of eight solar electricity generating projects (including the Sai Sena project), with a total installed capacity of 34.25 megawatts, with Ratchaburi Electricity Generating Holding PCL. and Yanhee Solar Power Co., Ltd. holding 49% and 51% equity respectively. All projects will distribute electricity to the Provincial Electricity Authority (PEA) under the non-firm power purchase agreements for small power producers generating electricity from renewable energy sources. Additionally, the projects are subsidized with the adder tariff of Bt 8 per unit from the PEA for ten years.

Reference is made to the above notification made by Ratchaburi Electricity Generating Holding Public Company Limited (“the Company”) to the Stock Exchange of Thailand (“the SET”) regarding the investment of 40 per cent stake in Solar Power (Korat 3) Company Limited for the development of Korat 3 Solar Farm (“the Project”) in Nakorn Ratchasima Province.

The Company would like to inform the SET that the Project has started Commercial Operation since 6 th March 2012 to supply electricity to the Provincial Electricity Authority.

The 3-megawatt Korat 3 Solar Farm has non-firm power purchase agreement for very small power producer with the Provincial Electricity Authority and has been granted 10-year subsidy of Baht 8 per unit adder from the Power Department Fund Management Division, Office of the Energy Regulatory Commission.

Ratchaburi Electricity Generating Holding PCL (RATCH) disclosed that RATCH has joined investment in Songkhla Biofuel Company Limited with holding 40% stake of the comapny. The newly established company is also owned by Precise Power Producer Company Limited and Assiddeek Savings Cooperative Ltd with 40% and 20% of shareholdings respectively. Songkhla Biofuel Company Limited currently has registered capital of Baht 1,000,000 and will supply biofuel for Songkhla Biomass power station located in Chana District, Songkhla Province.

Mr. Noppol Milinthanggoon, Chief Executive Officer, Ratchaburi Electricity Generating Holding PCL., said that the joint venture company will secure the operation of Songkhla Biomass power station without risk of fuel shortage. The company will guarantee supply of approximately 300-370 tons biomass residues per day, which will be used as the station's fuel source. The residues including rubber wood slabs and roots are abundant in most southern provinces where most areas are rubber plantation. After thorough study of raw material sufficiency, it found that residues will have adequate quantity to serve the facility’s generation for the whole project period.

 "We are confident that fuel source of the Songkhla Biomass power plant will be secured, while power generating is more stabilized and consistent. In addition, it helps reduce use of fossil fuel for power generation in accordance with the government's policy. More importantly, the project has been accepted and gained cooperation from the communities because they are aware of benefit not only to the community, but also to the country as a whole.

The 9.9 MW Biomass power station has been granted an 1.30 baht adder tariff per unit from the Power Department Fund Management, Energy Regulation Commission for 7 years. This project value is around 600 million baht.    

Public Relations Department
Wiwan Phayakvichien, Nuannang Changadveja 
Tel: 0 2794 9941, 0 2794 9944  
E-mail: wiwanp@ratch.co.th