PTT's Power Arm To Invest $635 Million In Renewable Energy Across Asia

Global Power Synergy, the power unit of Thailand's state-owned oil and gas group PTT, will invest 20 billion baht equivalent to USD 635 million, in renewable energy assets across Asia including India and China.

Global Power Synergy announced that it will be borrowing up to USD 635 million from parent PTT for investment chiefly in solar and wind projects. Global is endeavoring to have 30 percent of the power generated from renewables, which stands currently at 12 percent, including hydropower.

The power generating company has formed a subsidiary to supervise the overseas renewables business. Global Power Synergy possesses a capacity of 5.05 GWs (gigawatts), mostly in Thailand, with over 80 percent coming from thermal plants. These planned overseas investments have come after a decision taken in November to acquire a solar farm in Taiwan.

Thailand's oil and gas conglomerate PTT Group has set itself a target to take its renewable energy capacity to 8 GWs by 2030, with the majority being handled by Global Power Synergy.

Listed on the Stock Exchange of Thailand, Global Power Synergy earned 7.5 billion baht in consolidated net profit for 2020, an 85 percent surge year-on-year. The company is 75 percent owned by PTT and other group members.

PTT has invested in the electric vehicle (EV) segment as well to deepen its footprint in clean energy. PTT has tied up with the Foxconn Trading Group, popularly known simply as Foxconn to build electric cars in Thailand. Foxconn is a contract electronics manufacturing giant that is best known for being the largest vendor for Apple for its iPhones and more.

Notably, Thailand is a key components hub for the auto sector, and like similar hubs, is in the middle of a process to pivot to the rising ride of electric vehicles to stay relevant.