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Thai EGCO Group to invest in geothermal expansion of existing assets in Indonesia

Wayang Windu Unit II, West Java, Indonesia (source: Aecom)
Alexander Richter 11 Mar 2018

Thailand-based EGCO Group plans with investment in the expansion work on its geothermal assets jointly held with Star Energy in Indonesia in 2018.

In its report on “remarkable performance in 2017”, Thailand based Electricity Generating Public Company Limited (EGECO Group), highlights its geothermal interests in Indonesia.

The company was involved in the acquisition of the geothermal assets of Chevron in Indonesia. EGCO acquired a 20.07% stake in the Salak and Darajat geothermal power plants with Star Energy.

For 2018, EGCO Group has allocated around THB12,000 million ($380 million) investment budget for its three overseas power projects in pipeline. These consist of ‘Xayaburi’ and ‘Nam Theun 1’ in Lao PDR and ‘San Buenaventura’ in the Philippines which are scheduled to start commercial operations in 2019 and 2022. Such budget does not include new investment projects and 3 overseas projects under development such as ‘Pak Beng’ hydropower project in Lao PDR, expansion of ‘Star Energy (Unit 3-4)’ geothermal power project in Indonesia, and ‘Quang Tri’ coal-fired power project in Vietnam.

For 2018, EGCO Group is yet committed to sustainable growth and to generate steady and good return for the shareholders with an aim to maintain at least 10% return on shareholders’ equity (ROE) by deploying three key strategies which are as follows.

  • Ensuring maximum efficiency of existing power plants and managing projects under construction to be completed as plan and budget
  • Seeking opportunities to acquire operating assets and develop greenfield projects in both domestic and Asia Pacific region
  • Expanding investment in renewable energy projects to achieve target of 30% by 2026 and exploring new business opportunity

‘We still focus on power business, which is our core expertise and we see great opportunities for business expansion, especially in overseas markets where the Company has strong presence. Philippines will be our flagship market, followed by Lao PDR and Indonesia. The Company will also seek investment opportunities in other Asia Pacific countries, especially in renewable energy projects so to increase its renewable portfolio to 30% by 2026. EGCO Group presently runs 16 operating renewable power plants with total equity contracted capacity of 876 MW, accounted to 20.56% of the Company’s total equity contracted capacity’, said Mr. Jakgrich.

 

As of 28 February 2018, EGCO Group runs 27 operating power plants with total equity contracted capacity of 4,260 MW in 5 countries across Asia Pacific region – Thailand, Lao PDR, Philippines, Indonesia and Australia. There are 3 projects under construction with total equity contracted capacity of 544 MW. The Company’s power plants generate electricity using several fuel sources such as natural gas, coal, biomass, waste, hydro, solar, wind, and geothermal.

Source: Company release via PublicNow