BGRIM eyes capacity boost via acquisitions

BackSep 03, 2021

A 257-megawatt solar power plant in Phu Yen province in Vietnam is among BGRIM's major investments overseas.

B.Grimm Power Plc (BGRIM), an energy developer with the largest capacity in the small power producer segment, is preparing to acquire more power generation assets totalling 500-1,000 megawatts in capacity across Asia this year as it continues to expand its business.

The company is in talks with prospective sellers to acquire several power plants, with gas and renewable resources as fuel, said Harald Link, president of BGRIM.

The assets, including new development projects and power plants in operation, are located in Thailand, Vietnam, Malaysia and South Korea.

Mr Link expects the deals will be concluded in the second half of this year at a cost of US$1 million per 1MW.

The company has prepared capital expenditure of 250-300 billion baht for 2021 to 2030 to grow its businesses.

It allocated 20-40 billion baht to ongoing development projects this year. The 2021 budget does not cover new asset acquisitions.

Large capital spending will not always cause BGRIM to increase its registered capital because there are many other ways to raise funds, including green bond issuance, infrastructure fund establishment and internal cash management, Mr Link said.

The company set a goal to increase power generation capacity to 7.2 gigawatts by 2025 and to 10GW by 2030, up from 3.05GW at present.

Within 2030, its revenue is expected to go beyond 100 billion baht, a significant increase from 44 billion baht last year, he said.

More earnings will not only come from additional power generation capacity but also new potential businesses such as utility solutions for building developers, liquefied natural gas (LNG) distribution and peer-to-peer power trade on digital platforms.

In June, BGRIM was granted permission by the Energy Regulatory Commission to increase its LNG importation by not more than 550,000 tonnes per year, up from an annual allowance of 650,000 tonnes per year, to supply to its combined cycle power plant projects.

The increase of import volume to 1.2 million tonnes per year makes BGRIM one of the largest private LNG importers for sales to power generation projects in the industrial sector.

This year, the firm plans to increase the power generation capacity of B.Grimm Power Asia Map Ta Phut Co in Rayong to 280MW from 124MW.

BGRIM acquired this facility, which was previously called Glow SPP 1 Co, in 2019.

Investment will also go to the development of seven new gas-fired power plants, worth 40 billion baht.

The facilities, with a combined capacity of 980MW, are set to begin operations between 2022-23.

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