SPCG to Invest ฿23Bn in a 500MW Solar Farm, Expecting the Construction to Start by 2021
SPCG to Invest ฿23Bn in a 500MW Solar Farm, Expecting the Construction to Start by 2021
SPCG to Invest ฿23Bn in a 500MW Solar Farm, Expecting the Construction to Start by 2021
26 พ.ย. 2563

SPCG Public Company Limited (SPCG) announced the Board of Directors’ Meeting held on November 25, 2020 has resolved to propose the investment in the solar farm project in the new city area of Eastern Economic Corridor Special Development Zone (EEC) with a production capacity of not less than 500 MW and an investment value of not exceeding THB 23,000 million to the Meeting of Shareholders for an approval. The power purchase agreement is expected to take place by November 2020 and expect to start the construction by 2021, and complete the construction by the first quarter of 2022.
 
The project will be invested through SET Energy Co., Ltd. (SET Energy), which is a limited company jointly owned by SPCG and PEA ENCOM International Co., Ltd. (PEA ENCOM), set up by Provincial Electricity Authority (PEA) for the purpose of investment in clean energy and other electricity energy. 
 
This investment in the solar farm project has the objective to drive the EEC area to be low carbon society, clean and eco-friendly city in line with the Sustainable Development Goals (SDGs), strengthen stability of energy, support a long-term economic drive, increase the capacity to generate income, as well as the cash flow of SPCG. 
 
Nonetheless, the investment in the solar farm project will be started only when SET Energy has entered into the power purchase agreement with PEA ENCOM, which is expected by November 2020, and SPCG has obtained the approval from the Extraordinary General Meeting of Shareholders dated 15 January 2021.
 
In the same meeting, the Board of Directors proposed to the Meeting of Shareholders for an approval of the Entire Business Transfer (EBT) of Mitsu Power Group Co., Ltd. (Mitsu) which holds 400,000 shares of SET Energy, in a proportion of 40% of total issued and paid-in shares to be presented in the shareholders’ meeting for approval. 
 
SPCG will issue and consider an allotment of ordinary shares, not exceeding 81,800,000 shares, with par value of THB 1.00 to Mitsu. This share allotment is for an exchange of Mitsu’s entire business transfer which is expected to be acquired by SPCG by January 2021, only when SET Energy has entered into the power purchase agreement with PEA ENCOM and the Company has obtained the approval from the Meeting of Shareholders.
 
As of now, SPCG holds 40% shares in SET Energy, Mitsu holds 40% and PEA ENCOM holds 20%, once the transaction completes the shareholding of SPCG in SET Energy will increase to 80%. 
 
In addition, SPCG has proposed the capital increase of the Company at the  amount of 179,199,000 shares allotted to Private Placement (PP) and plans to issue debt securities such bonds of not less than THB 5,000 million.
 
For the capital increase, SPCG aimed to increase the capital from THB 973,990,000 to THB 1,153,189,000 by issuing increased ordinary shares, amount of 179,199,000 shares with its par value of THB 1.00. SPCG will offer in the number of not exceeding 81,800,000 shares with value of THB 2 2.00 per share to Mitsu in return of acceptance of the entire business transfer and will offer not more than 97,399,000 as Private Placement allotment. 