Global Power Synergy Plc (GPSC), the power generation arm of national oil and gas conglomerate PTT Plc, plans to inject 19.1 billion rupees (8.28 billion baht) of capital into India-based Avaada Energy Private to expand its renewable energy business amid growing electricity demand in India.
Through its subsidiary Global Renewable Synergy Co, GPSC holds a 42.9% share in Avaada Energy Private, a subsidiary of India's Avaada Group, a renewable energy firm.
The additional capital is intended for business growth and developing solar power projects that have been designated to serve the rising demand for electricity in India, said Worawat Pitayasiri, president and chief executive of GPSC.
The money would also be used by Avaada Group for refinancing purposes as well as for the expansion of electricity generation capacity.
GPSC will inject the first amount of capital worth 8.6 billion rupees in July.
Avaada Energy Private was awarded three solar power projects via three auctions held in India.
One is a 421-megawatt solar power farm from a bid held by REC Power Development and Consultancy on behalf of Damodar Valley Corporation under the Indian government.
Another is a 560MW solar power farm awarded by Maharashtra State Electricity Distribution.
The Indian firm was also awarded a 200MW solar farm project in a bid organised by Gujarat Urja Vikas Nigam, with Avaada declared the winner after quoting a tariff of 2.75 rupees per kilowatt-hour.
The company was given 18 months to finish the construction of the solar farm.
The bid provides a power purchase agreement lasting for 25 years.
The latest solar farm project is expected to generate 370 million kilowatt-hours annually, which should help lower carbon dioxide emissions by 344,470 tonnes per year.
These three solar farm projects fall in line with GPSC's goal to increase its proportion of renewable energy to more than 50% of total fuels used in its electricity generation, up from 38%, by 2030.
According to Mr Worawat, business know-how and experience from the development of new power projects overseas would help GPSC seek other business opportunities in the power sector.
GPSC and Avaada Energy Private are conducting a joint feasibility study on energy storage system production.
