Despite the slowdown of the world’s economic growth, demand for electric power in Asia-Pacific in 2015 tends to increase steadily. Many countries in the region focused in fuel diversification by increasing power generation from renewable energy, thus created investment opportunities for power producers while awaiting for large scale projects.
Thailand’s electricity demand was predicted to increase in a regressive growth rate comparing to previous years due to economic recession and natural disasters. In addition, the country’s power development plan 2015 - 2036 (PDP2015) already identified large-scale power plant construction plan under IPP scheme while promoting the investment in renewable energy sector resulted in business strategy of power producers, all large and small, to increase their investments in renewable power projects, which in turn increased the fierce competition in power industry of the country. Considering the stated situation, EGCO has foreseen that power business in Thailand was of little opportunity, so the company diverted its business expansion to focus on countries in the Asia-Pacific region, particularly in those countries where EGCO already has its business investment.
EGCO’s 3 core business, Efficient management of commercially operated power plants, Efficient project management that projects under construction and development reach their targeted completion, and Seeking continuous investment opportunities by co-investment with strategic partners, has been implemented since 2011 and yielded satisfactory result. Our goals are to provide constant returns to our shareholders each year and to continuously increase revenue as a leading company. Meanwhile, EGCO constantly monitors power sector situation as well as social and environment factors to ensure that the Company would not be affected and grow in the sustainable way.
For 2015, EGCO has succeeded in domestic and international investment with 3 projects. The Company purchased 33.33 percent share of Natural Energy Development Co., Ltd. (NED) and became the major shareholder of NED with its shareholding of 66.67 percent. For international investment, the Company indirectly purchased 2 percent share of Quezon Power, Ltd., Co. (QPL) in the Philippines which led to EGCO holding 100 percent share. Another successful international coal fired project investment was that San Buenaventura Power Ltd. Co. (SBPL), joint ventured company of EGCO and Meralco PowerGen Corporation with the share proportion of 49 and 51 percent, has been awarded a 455 MW power purchase agreement by the Energy Regulatory Commission of the Philippines.
Not less important to maintaining strong and steady business growth, EGCO focuses on its sustainable development by keeping balance among the three pillars: economy, environment and society. To state commitment and make directions clear for holding and group companies, EGCO launched “EGCO Group’s Sustainability Policy” in 2015. The essence of this policy is to minimize negative impact and enhance positive outcome for stakeholders throughout the business process, especially the significance of combating against corruption by leveraging operations and applying protection system and auditing, which adheres to international standards. EGCO has been certified as a member of Private Sector Collective Action Coalition against Corruption Council and has its plan to expand the implementation activities to its subsidiaries, business partners, suppliers and contractors.
As a result of our strong commitment, EGCO has been recognized and awarded on many occasions. In 2015 EGCO received multiple awards domestically and internationally. For example, the company received TOP 50 ASEAN PLCs award granted by ASEAN Capital Markets Forum. This award is presented to top 50 ASEAN companies assessed by ASEAN CG Scorecard. Moreover, EGCO was announced by the Stock Exchange of Thailand as a Sustainable Stock and included in “Thailand Sustainability Investment 2015” list as the Company passed the sustainability assessment by using ESG (Environment, Social and Governance) factors, which adheres to international standards. Our invested coal-fired power project “San Buenaventura” received “Project Finance International 2015 (PFI 2015)” award in the category of “Asia-Pacific Power Deal of the Year” granted by Project Finance International journal.
EGCO’s success has always been derived from trust and support from shareholders, business partners, suppliers, clients, communities and all stakeholders. I, on behalf of EGCO’s Board of Directors, senior management and all employees, would like to extend our most sincere appreciation to all of you. We promise to operate our business thoughtfully, with strong grounds on good governance and accountability towards our stakeholders to ensure that each and every step of EGCO’s growth is stable, strong and sustainable.
Mr. Sombat Sarntijaree
Chairman of the Board of Directors