Electrifying expansion: Demco sparks digital tech and renewable energy growth
Demco yesterday announced expansion plans focusing on diversifying the company’s business into digital technology and enhancing its renewable energy portfolio. As a stock exchange of Thailand (SET)-listed contractor and engineering service provider, the company acknowledges not getting involved in the state renewable development scheme during its first phase.
Pongsak Sirikupt, the company’s chief executive and managing director, revealed that Demco’s expansion plan aims to invest 150 million baht in boosting its rooftop solar power business. Demco’s electricity generation capacity is projected to rise from the current 10MW to 40 megawatts by 2025. The company is currently engaged in discussions with renewable power plant operators in an effort to acquire assets, with an expected conclusion in early 2023.
Presently, Demco operates solar and wind farms with a combined capacity of 70MW, based on its shares in renewable energy operators. Demco’s expansion plans reveal the company’s eagerness to branch out into new energy businesses, with a particular focus on digital technology applications such as smart grid development.
The Demco expansion strategy also includes exploring opportunities in the electric vehicles (EVs) market, as the Thai government’s promotion efforts have made the sector increasingly attractive. In 2021, the National EV Policy Committee announced its goal to have EVs make up 50% of locally manufactured vehicles by 2030, as part of an ambitious plan to establish Thailand as a regional EV hub.
Regarding renewable power plants, Demco plans to participate in the second phase of the renewables scheme led by the Energy Regulatory Committee (ERC). Despite not being chosen for its proposed projects in the first phase, the ERC invited Demco to take part in the second phase, offering a total capacity of 3.6GW. The second phase of Demco expansion will encompass on-ground solar farms, on-ground solar farms with energy storage systems, wind power, biogas, and industrial waste-to-energy projects.
Additionally, Demco is preparing to bid for power transmission and engineering work for various agencies, such as the Electricity Generating Authority of Thailand and two state electricity distribution arms. Altogether, these three organisations possess a combined investment budget of 400 billion baht for electricity system development, reported Bangkok Post.
The Demco expansion strategy is expected to yield significant results, as Pongsak mentioned that the company anticipates earning revenue from backlog projects worth over 3 billion baht in 2023. Thanks to renewable energy, electrical engineering, and construction projects, the company projects its total revenue for 2023 to reach 2.5 billion baht, a 17% increase from the previous year’s 2.1 billion baht.
