BCPG to divest its nine solar farms in Japan for strategic reinvestment
BCPG Plc, Bangchak Group’s power generation subsidiary, is planning to divest all its nine solar farms in Japan, in a strategic move to revamp its long-term investment in renewable energy. The assets on sale include equity worth 6.93 billion baht and net debt totalling 3.44 billion baht.
The company has entered into an asset purchase agreement with Danish renewable energy investment firm Obton, with the transaction expected to conclude by the first quarter of next year, stated Niwat Adirek, who holds the positions of both president and CEO at BCPG.
“The funds generated from our exit [from Japan] will be channelled into other renewable projects to boost our swift expansion.”
The solar farms on sale have a combined capacity of 117 megawatts, with 104MW from operational farms and 13MW from those currently under development. Niwat noted that this divestment aligns with BCPG’s core strategy of developing and operating top-tier renewable power plants and exiting at optimal times to maximise asset value and recycle capital.
BCPG made its maiden investment in Japan, a solar farm with a capacity of 13MW, in 2016. The announcement of its divestment has sparked interest from a diverse array of global investors, given the assets’ strategic locations, exceptional operational performance, and the promise of a consistent cash flow. These facilities also contribute significantly to reducing the country’s greenhouse gas emissions, said Niwat.
“Our solar projects in Japan have attracted investors from across the globe, which is a testament to our world-class standards in terms of business performance, revenue stream, and environmental considerations, including talent acquisition and development.”
In addition to this, BCPG is looking to broaden its investment portfolio overseas. The company recently announced plans to enhance its revenue from electricity generation in the US by acquiring an additional 8.7% share in Carroll County Energy Llc, which operates a combined-cycle power plant in Ohio, reported Bangkok Post.
