“Beyond Adder” Business Growth for BCPG

“When we have a clear understanding of our business and know what we are doing, we will walk on a path that leads us to success. With the government’s adder phasing out over the past two to three years, BCPG’s main goal is to bridge the revenue gap resulted from the phased-out adder by 2025. “Every new project from this point onward represents growth beyond adder rates” said Niwat Adirek, President and Chief Executive Officer, BCPG Public Company Limited (BCPG), a Bangchak Group affiliate, regarding the direction of the company growth.

Although the adder BCPG has been receiving is gradually phasing out, BCPG has recorded significant growth through a diversified energy investments strategy. Currently, it boasts a total production capacity of 2,025.2 MW, with 1,248.7 MW in operation, and 776.5 MW under development. BCPG has established a business presence in seven countries, covering solar power, hydropower, wind power, and natural gas power plant businesses.

2023 The Year of Seeking Opportunities and Expanding Business Scope

During the first eight months of 2023, BCPG successfully completed the acquisition of four natural gas power plants in the United States (capacity in proportion to BCPG’s ownership stakes: 857 MW). These projects were already in operation, enabling immediate revenue recognition. These natural gas power plants employ modern technology, efficient power generation, and minimal energy loss giving BCPG a competitive advantage in the PJM (Pennsylvania - New Jersey - Maryland Interconnection) Energy Market, a market with high electricity demand, covering 13 states in the United States.”

Niwat added that in addition to business expansion in the United States, the company also invested in the oil terminal and crude oil jetty in Phetchaburi province, which includes 20 tanks, all with contracts to serve customers, generating immediate revenue and recurring income.

Ongoing Important Project Development

This past June, BCPG successfully sold electricity generated from the Nam 3A and 3B power plants in Lao PDR to Vietnam. At the same time, the 600-MW Monsoon Wind Project, the largest wind farm in Southeast Asia, is currently under construction and is planned to commence operation in 2025, which will add an additional 290 MW to BCPG’s overall capacity.

Moreover, BCPG has secured permits for the construction of a 185- MW power plant in Taiwan. This includes a 40-MW power plant that has already obtained the necessary permits and is poised for construction. It is expected to commence operation in the third quarter of 2024. The remaining 145 MW is in the process of acquiring the required permits.

When we have a clear understanding of our business and know what we are doing, we will walk on the path that leads us to success. For BCPG, every new project from now represents growth beyond adder.