Yunlin offshore Wind farm. (Photo:EGCO)
The Electricity Generating Authority of Thailand (EGTA) announced on Feb. 13, 2024, that its subsidiary, EGCO Group, is planning to invest 30 billion Thai Baht (about 836 million USD) this year. This investment is aimed at adding 1,000 MW of electricity generation capacity, including accelerating the development of renewable energy sources. Additionally, the cross-border investment in Taiwan's Yunlin Wind Farm is set to be fully operational this year.
The development of renewable energy by EGCO is diverse, including biomass, solar, hydro, onshore and offshore wind, as well as battery and energy storage businesses. Currently, renewable energy accounts for 21% of total electricity generation, reaching 1,440 MW. CEO Thepparat Theppitak stated that the company does not plan to increase coal-fired power generation but aims to maximize the proportion of renewable and clean energy sources.
EGCO plans to increase the proportion of renewable energy to 30% by 2030 and actively seek investment opportunities overseas, including Laos, the Philippines, Indonesia, Taiwan, South Korea, Australia, and the United States.
The Yunlin Wind Farm in Taiwan has a total installed capacity of 640 MW, with all 80 wind turbines expected to be fully operational this year. EGCO mentioned delays in construction progress due to the COVID-19 pandemic and financial restructuring in August 2023, with only 33 turbines currently operational. However, to avoid penalties, efforts are underway to expedite the commissioning process.
In line with achieving carbon neutrality by 2050, EGCO aims to further expand the application of hydrogen energy. On Feb. 12, it signed a memorandum of understanding with Bangkok Industrial Gas (BIG) and Thailand Post to conduct feasibility studies on the use of hydrogen energy in the logistics industry, accelerating the development of low-carbon businesses.
Regarding signs of a global economic slowdown, Thepparat remarked that some things are difficult to predict, emphasizing the need to closely monitor the impact of wars on energy prices. Furthermore, in terms of the development of Thailand's energy market, he acknowledged that although there is currently an oversupply of electricity, the shift in the market from internal combustion engine vehicles to electric vehicles is expected to significantly increase electricity demand. He predicted that there could be a shortage of electricity within the next 2-3 years, highlighting the investment potential in alternative energy sources.
