"Since EGCO is a holding company, its main source of revenue is from the dividend income from subsidiaries and joint ventures which are located in both Thailand and the Asia Pacific region"
The Electricity Generating Public Company Limited (EGCO) is the first independent power producer in Thailand registered on May 12, 1992 by the Electricity Generating Authority of Thailand (EGAT). Such incorporation marked the commencement of the Thai government’s privatization initiatives to allow broader private sector investment in the power sector. On March 23, 1994, EGCO was transformed into a public company and then listed on the Stock Exchange of Thailand (SET) on January 16, 1995.
Since EGCO is a holding company, its main source of revenue is from the dividend income from subsidiaries and joint ventures which are located in both Thailand and the Asia Pacific region. EGCO Group companies either operate in the power sector with Power Purchase Agreement (PPA) or conduct energy and related business.
EGCO operating businesses can be categorized into 5 groups as follows:
- Independent Power Producer (IPP) : This Group comprises Khanom Electricity Generating Co., Ltd., (KEGCO), BLCP Power Ltd., (BLCP) and Gulf Power Generation Co., Ltd. (GPG). The combined capacity is 2,337.25 megawatt (MW) equity, representing 56.70% of EGCO’s total asset capacity.
- Small Power Producer (SPP) : This Group comprises EGCO Cogeneration Co., Ltd. (EGCO Cogen), Roi-Et Green Co., Ltd. (Roi-Et Green), Gulf Cogeneration Co., Ltd. (GCC), Nong Khae Cogeneration Co., Ltd. (NKCC), Samutprakarn Cogeneration Co., Ltd. (SCC), Gulf Yala Green Co., Ltd. (GYG) and Lopburi Solar Project (LSP) of Natural Energy Development Co., Ltd. (NED). The combined capacity is 389.83 MW equity, representing 9.46% of EGCO’s total asset capacity.
- Very Small Power Producer (VSPP) : This Group comprises SPP Two Co., Ltd. (SPP 2), SPP Three Co., Ltd. (SPP 3), SPP Four Co., Ltd. (SPP 4), SPP Five Co., Ltd. (SPP 5), G-Power Source (GPS), Theppana Wind Farm Co., Ltd. (Theppana), Solarco Co. Ltd. (Solarco), Wang Ploeng Solar Project (WSP) of NED and GIDEC Company (GIDEC). The combined capacity is 88.32 MW equity, representing 2.14% of EGCO’s total asset capacity.
- Overseas Power Producer : This Group comprises Quezon Power (Philippines) Ltd., Co. (Quezon) and Masinloc Power Partners Co., Ltd. (MPPCL) in the Philippines, Nam Theun 2 Power Co., Ltd. (NTPC) in Lao PDR (mainly sells electricity to Thailand), Star Energy Geothermal Pte. Ltd. (SEG) in Indonesia and Boco Rock Wind Farm Pty Limited (Boco Rock) in Australia. The combined capacity is 1,306.50 MW equity, representing 31.70% of EGCO’s total asset capacity.
- Other Businesses : This Group comprises two operation and maintenance companies being EGCO Engineering & Service Co., Ltd. (ESCO) and Pearl Energy Philippines Operating, Inc. (PEPOI). There is a water supply company being Eastern Water Resources Development and Management Public Co., Ltd. (East Water). There is a management service company to Quezon power plant being Quezon Management Services Inc. (QMS). Also, there is a coal mining company being PT Manambung Maura Enim Co., Ltd. (MME).
Details of each project are shown in the table at the end of this part.
Significant Events in 2016
In 2016, EGCO Group operated 24 power plants in both Thailand and abroad with total contracted capacity of 4,121.90 MW equity. EGCO mainly sold 2,993.45 MW of power to EGAT, 88.32 MW to PEA, 81.87 MW to Industrial Users (IUs) and the rest 958.24 MW to overseas customers. Highlights in 2016 were as follows:
- On March 3, 2016 Masinloc Power Partners Co., Ltd. (MPPCL), EGCO’s associated company, held a groundbreaking ceremony for the construction of a 335 MW (gross) expansion unit to be co-located at the same campus with the existing 630 MW (gross) power plant of MPPCL in Zambales province, the Philippines. The Scheduled Commercial Operation Date for the expansion unit will be mid-2019.
- On June 19, 2016 Khanom Power Plant Unit 4 of Khanom Electricity Generating Company Limited (KEGCO), EGCO’s wholly-owned subsidiary, commenced its Commercial Operation Date to supply electricity to the national grid. The electricity supply from this new unit replaces that from Khanom Power Plant Unit 2 and Unit 3 of which Power Purchase Agreements expired and stopped their operation on June 19, 2016 as well.
- On June 27, 2016 the geothermal power plant project in Indonesia which EGCO has indirectly invested through 20% ownership interest in Star Energy Geothermal Pte., Ltd. (SEG) received the approval of tariff adjustment under Energy Sale Contract with Indonesian electricity authority Perusahaan Listrik Negara (PLN). The adjusted tariff increased 40% in average from existing tariff, enabling EGCO to realize additional profit from this project.
- On July 12, 2016 the transaction of Gen Plus B.V. (Gen Plus), EGCO’s wholly-owned subsidiary, to acquire additional indirect ownership interest in Masinloc Power Partners Co., Ltd. (MPPCL) was completed. Following the transaction completion, EGCO’s indirect ownership interest in MPPCL increased from 40.95% to 49.00%.
- On December 16, 2016 Chaiyaphum Wind Farm (CWF) of Chaiyaphum Wind Farm Company Limited, in which EGCO holds 90.00% of stakes commenced its Commercial Operation Date to supply electricity to national grid.