Gulf Energy Development Public Company Limited (SET: GULF) has announced that it signed a Power Purchase Agreement with the Electricity Generating Authority of Thailand for a total production capacity of 650 MW.
GULF made an announcement to the Stock Exchange of Thailand in reference to the National Energy Policy Office’s resolutions to increase electricity production from clean energy in order to reduce the electricity price and move towards net zero emissions, in which the Energy Regulatory Commission (ERC) has been assigned to make an announcement regarding the purchase of electricity in accordance with the Regulations for Purchasing Electricity from Renewable Energy Sources under a Feed-in-Tariff (FiT) Scheme between 2022-2030 for Power Plants with No Fuel Costs. The group of Gulf Energy Development Public Company Limited (the Company) has submitted the applications to develop power plants under the aforementioned announcement, and was awarded the renewable energy projects.
The company would like to provide notification to the Stock Exchange of Thailand that on October 16, 2023, a group of subsidiaries in which the company indirectly holds 100% equity stake through Gulf Renewable Energy Company Limited have entered into 25-year Power Purchase Agreements with the Electricity Generating Authority of Thailand (EGAT) for the development of a total of 12 solar farms and solar farms with battery energy storage systems (BESS) projects (the Projects). The total contracted capacity of the Projects is 649.31 megawatts, with a scheduled commercial operation date (SCOD) between 2024 and 2025, which comprise of:
The solar farms and the solar farms with battery energy storage systems will receive a Feed-in-Tariff (FiT) rate of 2.1679 Thai Baht per kilowatt-hour and 2.8331 Thai Baht per kilowatt-hour, respectively, throughout the contract term. The purchase of electricity from the Projects will help reduce fuel price volatility and alleviate both household and industrial sectors’ electricity cost burden by providing access to electricity at a low price throughout the contract period, as the Projects have lower electricity production costs in comparison to the current average electricity price.
The development of the aforementioned projects is aligned with the company’s plan to increase the renewable energy proportion to no less than 40% by 2035. Further, there will be more power purchase agreements signed in the future for projects with scheduled commercial operation dates between 2026 and 2030.
