Ratchaburi targets wind

       Ratchaburi Electricity Generating Holding Plc (RATCH) plans to invest more in wind-power projects, possibly in the North and Northeast, for which it is now conducting a feasibility study.
       Thawat Vimolsarawong, senior executive vice-president for business development, said billions of baht in new investment would be spent on additional wind-power project, with further details should be concluded within next year.
       "We are currently gathering information on prime locations and discussing possibilities with potential partners. Project capacities would depend on the prevailing wind magnitude in each location," said Mr Thawat.
       For each megawatt of wind power,60 million baht in investment is needed.
       He said wind power was the most promising renewable power source for Thailand. Other sources do not offer as satisfactory a level of return on investment.
       Its 60-megawatt wind farm worth 4.274 billion baht in Khao Kho, Phetchabun, is currently awaiting approval from the Royal Forestry Department to use 1,000 rai of land. Construction is expected to start late this year or early next year as planned.
       The project is being developed by Sustainable Energy Corporation (SEC)which is 60% owned by Renewable Energy Co, a local research house for alternative fuel,35% by Ratchaburi and 10% by retail investors.
       The Thai power producer also has four ongoing projects in Laos but some are on hold as domestic power demand has been affected by the global slump.
       Its Nam Ngum 3 and Xe Pien Xe Nam Noi hydropower projects, which are both undergoing price negotiations with the Electricity Generating Authority of Thailand (Egat), could be delayed by one or two years from the original plan to operate by 2013.
       The increase in construction costs driven by more expensive crude last year has led the company to propose a new power price to Egat, which is also reassessing domestic demand.
       Mr Thawat said the Nam Ngum 2 plant, on which construction is 80%complete, would start producing power next year, while the power sales contract for its lignite-fired Hong Sa plant is awaiting Thai cabinet approval.
       "This process should be completed within this year and the construction should commence within two years,with power generation beginning in 2015," Mr Thawat said.
       President Noppol Milinthanggoon said Ratchaburi's revenue would decrease slightly in the second half due to a planned shutdown for maintenance.
       However, he remains certain of seeing 5% revenue growth this year from 42.21 billion baht recorded last year.
       The company recorded a revenue drop of 22.1% in the first half of the year to 16.5 billion baht from 21.29 billion last year. Its net profit over the period increased 31.3% to 3.9 billion from 2.97 billion.
       The company is also in talks with financial institutions to lower the interest burden for its Ratchaburi Power.
       "Details should be disclosed within this year, but the aim is to reduce our interest burden and the refinancing plan will help maximise shareholders' value,"said Mr Noppol.
       RATCH shares closed yesterday on the Stock Exchange of Thailand at 37.75 baht, down 75 satang, in total trade of 27.56 million baht.