GPSC set to invest 8.28 billion baht in India’s Avaada Energy
Embarking on a mission to bolster its renewable energy portfolio, Global Power Synergy Plc (GPSC), the power production offshoot of PTT Plc – the national oil and gas conglomerate, is looking at investing upwards of 19.1 billion rupees (roughly 8.28 billion baht) in India-based Avaada Energy Private. This investment is aimed at leveraging the upswing in electricity demand in the Indian subcontinent.
Through Global Renewable Synergy Co, its subsidiary, GPSC has a 42.9% stake in Avaada Energy Private, which itself is a subsidiary of India’s Avaada Group, an enterprise that specialises in renewable energy.
As stated by Worawat Pitayasiri, the President, and Chief Executive of GPSC, the objectives of the extra capital involve seeding business growth and aiding the construction of upcoming solar power initiatives, planned to address the burgeoning demand for electricity in India. The Avaada Group will also direct this capital towards refinancing efforts, in addition to expanding electricity generation capacity.
It is expected that by July, GPSC will inject the initial tranche of capital, amounting to 8.6 billion rupees.
Avaada Energy Private has had the good fortune of winning three solar power projects through auctions held in India. The first project is a solar power farm with a potency of 421 megawatts, awarded by REC Power Development and Consultancy on behalf of Damodar Valley Corporation, operating under the Indian government. The second project, a 560MW solar power farm, was awarded by Maharashtra State Electricity Distribution. Lastly, as part of a bid spearheaded by Gujarat Urja Vikas Nigam, Avaada was awarded a 200MW solar farm project, by offering a tariff of 2.75 rupees per kilowatt-hour.
To expedite the construction of the solar farm, Avaada has been granted a window of 18 months. Moreover, this bid guarantees them a power purchase agreement of 25 years.
The forthcoming solar farm project is predicted to produce 370 million kilowatt-hours each year, which will significantly contribute to curbing carbon dioxide emissions by 344,470 tonnes every year.
This trio of solar farm projects are perfectly aligned with GPSC’s aim to escalate its renewable energy contribution to exceed 50% of its total energy sources for electricity generation by 2030, a considerable leap from the current 38%.
In the opinion of Worawat, the expertise and operational knowledge gained from the inception of new power projects abroad will considerably aid GPSC in unearthing additional investment prospects in the power sector. Currently, GPSC, alongside Avaada Energy Private, is jointly investigating the potential of energy storage system production, reported Bangkok Post.
