Power arm of Thailand's PTT to invest $635m in Asian renewables

Out-Law News | 06 Jul 2021 | 1:33 am | 1 min. read

Global Power Synergy, the power arm of Thailand’s state-owned oil and gas group PTT, will invest THB20 billion ($635 million) in renewable energy across Asia including China and India.

The company will borrow the fund from PTT for investment focusing on solar and wind projects. The company is reported to be aiming to have 30% of the power it generates come from renewables, including hydropower, up from the current 12%.

Global Power Synergy said it has formed a subsidiary to handle the overseas renewables business.

The planned overseas investments follow the company’s decision in November 2020 to buy a solar project in Taiwan.

Global Power Synergy has capacity of 5.05 million kilowatts mainly in Thailand, with over 80% coming from fossil fuel sources. PTT aims to increase its renewable energy capacity to 8 gigawatts (GW) by 2030, the majority of which will be delivered by Global Power Synergy.

Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “In line with what is a truly global movement, traditional energy companies in the South East Asian region are also seeking to balance their portfolio, driven by environmental, social and governance (ESG) concerns as well as other climate related objectives. Whilst wind projects have been patchy across this region, given the range of wind resources available, solar has generally been more successful in just about every nation in Asia, which is to be expected given the quality of the solar irradiation.”

“However land mass is generally limited which limits the scope for onshore renewables, and with so much capital seeking the same investment opportunities in onshore renewables, perhaps the time has arrived for other more challenging renewable energy sources such as geothermal or waste to energy to play more meaningful roles in Asia’s net zero agenda,” he said.