Participation in a Solar Power Generation Project in Thailand
February 26, 2013
Chubu Electric Power Co.,Inc.
This is to inform you that Chubu Electric Power has acquired a 49% share of the stocks in an operating company (Note 1) that develops and operates mega solar generation plants at a total of six locations in central and northern Thailand (contract capacity 30.9 MW) from Gunkul Engineering Public Company Limited (hereafter GUNKUL) (Note 2).
This marks the first time that Chubu Electric Power has participated in a solar power generation project in another country.
This is a project to sell electricity wholesale to the Provincial Electricity Authority (PEA) in Thailand on a long-term purchase agreement based on the Thailand VSPP Program (Note 3). Two (7.4 MW) of the mega solar generation plants owned by the project have already begun commercial operation, and the remaining four plants (23.5 MW) are presently under construction. Chubu Electric Power will promote this project jointly with GUNKUL and will engage in appropriate business operations.
At Chubu Electric Power, we have considered Thailand to be a base in the Asia region since 2001, when we took part in an overseas investment project for the first time. The present business is the fifth project in which Chubu Electric Power has participated in Thailand.
This marks participation in a renewable energy project to follow the Rice Husk Biomass Power Generation Project and the Huaybong Wind Farm, the largest such facility in Southeast Asia. We consider it an indication of how Chubu Electric Power can make still greater contributions to global environment protection in Thailand.
To ensure sustainable growth in the future, we aim to increase revenues by making use of our managerial resources and advancing overseas businesses. We will additionally aim to strengthen the foundation of our business by enhancing our technological expertise and brand strength through our overseas businesses to further enhance our domestic energy services.
(Note 1) Gunkul Powergen Company Limited
The operating company established by GUNKUL in 2009 to promote this project. With our participation in the project, this company's name is slated to change to Gunkul Chubu Powergen Company Limited.
(Note 2) Gunkul Engineering Public Company Limited
An electrical equipment manufacturing and sales enterprise that manufactures and sells power transmission and distribution and transforming equipment in Thailand. It was established in 1982 and was listed on the Stock Exchange of Thailand in 2010.
(Note 3) VSPP Program
Very Small Power Producers (VSPP) are producers of less than 10 MW of electric power, and the Thai government purchases their entire output through the PEA. A VSPP can apply for inclusion in an incentive program (for subsidy payments) for the purpose of promoting renewable energy.