Thailand’s listed Ratchaburi Electricity Generating Holding (RATCH) has formed a 49:51 joint venture firm with Medco Energi Internasional to bid for a 250-MW natural gas-fired power plant in Riau, Indonesia.
The project – whose bidding is scheduled to start next month – will require an investment of around $350 million, Rum Herabat, chief executive officer of RATCH, told reporters.
This new project will help the company revise its power generation target from 9,700 MW to 10,000 MW by 2023.
“We will either invest in organic projects or acquire the stakes in developed projects overseas to achieve our target. Meanwhile, we will also look for opportunity in new businesses to minimize the risk from depending on power business. We plan that other business should contribute around one-third of total revenue in the future,” he said.
Apart from the project in Riau, RATCH is also in the process of conducting due diligence to acquire 30 per cent in SUMSEL’s coal-fired power plant project with electricity capacity of 900 MW, which should be finalised this month.
The 800-MW JAVA3 in Indonesia, worth $500-$600 million in joint venture with Banpu, is set to make the bidding by the end of this year.
In the Philippines, the company is waiting to see the new government’s policy. But initially, it is keen to invest in thermal and renewable power plants as well as a 600-MW coal-fired power plant, he added.
Currently, it has total electricity capacity of 6,890 MW according to its share proportion in each project. Of the total, 71 per cent are from domestic projects and remaining is accounted for by overseas projects. It plans to boost the capacity from clean energy to 2,000 MW, or 20 per cent of total by 2023, up from currently 12.85 per cent.