Chubu Electric Power to Participate in Cogeneration Projects in Thailand Industrial Areas
April 26, 2011
Chubu Electric Power Co.,Inc.
This is to announce that Chubu Electric Power, having decided to participate in small-scale cogeneration projects in Thailand, has purchased a 47.6% interest in TAC Energy Company Limited, the holding company for the projects.
The scope of the projects is to build and manage small-scale cogeneration facilities at a total of three sites (one at Thailand's Lat Krabang Industrial Estate about 30 km east of Bangkok and two at the Bangpoo Industrial Estate about 30 km southeast of Bangkok). Under the SPP Program,* the projects have concluded 25-year electric power sales agreements with the Electricity Generating Authority of Thailand (EGAT), to which they will sell power wholesale, and they will also directly sell electric power and steam to customers in the industrial areas. Specifically, about 80% of the total output (about 110 MW per site) will be sold under the plan to EGAT steadily over the long term, while the approximately 20% remaining will be sold to customers in the industrial areas as electric power and steam.
This is Chubu Electric Power's first time to participate in a cogeneration project outside Japan. We will be consulting with EGAT concerning the operation's starting date and working with the other investors to develop the projects.
* SPP Program: Small Power Producers Program
A program under which EGAT makes a long-term guarantee to purchase electric power at a preferential price from small-scale cogeneration projects that meet certain conditions for generating efficiency, etc.
1. Overview of TAC Energy Company Limited
TAC Energy Company Limited
Chubu Electric Power (through a subsidiary) (47.6%)
Holding company for operating company