The new 2022 Thailand Power Development Plan (PDP) is expected to mainly benefit stocks operating in clean energy and hydropower businesses in which the new plan will ramp up electricity production of both power significantly.
The Director of the Energy Policy and Planning Office (EPPO) revealed that the National Energy Plan 2022 is in the process of hearing which will be an indicator for the power development of Thailand in the next 5 years, 10 years and 20 years, such as the energy transition from fossil fuel to clean energy that should be materialized by 2023, reported Kaohoon Turakij on December 14, 2021.
The plan is set to decrease natural gas by 700 MW while increasing clean energy by 1,000 MW and import of hydropower by 1,366 MW along with the others such as wind energy and waste energy. However, the power production of solar power, biogas and biomass will be decreased from the previous plan.
Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), stated that Gulf Energy Development Public Company Limited (SET: GULF) will benefit the most from the increase in clean energy and hydropower due to its shareholding stake in most of the new projects, including three dam projects in Laos namely; Pak Beng, Pak Lay, and Sanakham projects that are crystalize on the feed-in-tariff issue. The three projects are expected to initiate the commercial of date between 2029-2030. In addition, the company also has two upcoming hydropower projects as well.
Meanwhile, Mr. Sinsadok added Energy Absolute Public Company Limited (SET: EA), Gunkul Engineering Public Company Limited (SET: GUNKUL), Ratch Group Public Company Limited (SET: RATCH), and Electricity Generating Public Company Limited (SET: EGCO) to those that will be benefit from the new power plan, raising EA and GUNKUL as best two stocks, seeing available capacity for more wind projects.
