BCPG Plc, the renewable power generation arm of energy conglomerate Bangchak Corporation Plc, is expanding its business in Southeast Asia by purchasing shares worth 4.5 billion baht in two wind farms in Vietnam.
The two wind power projects, both located in Gia Lai province in central Vietnam, represent the second asset the company has acquired after investing in a wind farm in Laos.
"The investment is in line with BCPG's strategy to expand our renewable power business and strengthen our revenue and stable returns to shareholders in the long run," said Niwat Adirek, president and chief executive of BCPG.
The company recently signed a share purchase agreement to invest in the two wind farms, with combined electricity generation capacity of 99 megawatts.
The share purchase transaction is expected to be completed within the first quarter of 2025.
"After the transaction, the two power plants will start commercial operations immediately to generate cash flow for the company," said Mr Niwat.
The two wind farms are the Che Bien Tay Nguyen Wind Power Plant Project (49.5MW) and the Phat Trien Mien Nui Wind Power Plant project (49.5MW).
In 2023, BCPG acquired development and operating licences for the Monsoon Wind Power Plant, with a capacity of 600MW, and the associated transmission systems.
Monsoon is being developed on an area covering 400,000 rai, or 64,000 hectares, in the provinces of Sekong and Attapeu, according to an agreement signed by the government of Laos and BCPG.
The Lao government granted a 25-year concession for the operation of the wind farm, according to the website of the Asia Wind Energy Association.
The construction of the Monsoon wind farm, which will supply electricity to Vietnam's state grid, is now 89% complete, said BCPG. The facility is scheduled to start a trial run early next year and it is expected to be operational within the second half of 2025.
Mr Niwat said the renewables projects in Laos and Vietnam are a part of the company's Greener Diversified Portfolio project that will increase the proportion of renewable power to 70% within 2030, up from 62% as of September this year.
Its gas-based electricity is set to be reduced to 30% from 38% as of September 2024.
BCPG currently owns solar power, hydropower, wind power and natural gas businesses in Thailand, Taiwan, Laos, Vietnam, the Philippines and the US.