BANGKOK: Thailand’s largest private power producer, Ratchaburi Electricity Generating Holding Pcl , said on Friday it will invest 7.5 billion baht ($208 million) over the next five years in a nuclear power plant in China.
The Thai utility will partner with China General Nuclear Power Group (CGN) and Guangxi Investment Group Co. in a joint venture to build and operate the second phase of a nuclear power plant in Fangchenggang, in Guangxi province.
The deal, the first nuclear project for a Thai company and Ratchaburi’s first investment in China, will pave the way for further partnership with CGN in other clean energy ventures in China and Southeast Asia, Ratchaburi chief executive officer Rum Herabat told a news conference.
Thailand is keen to reduce its dependence on domestic gas reserves, which will run low within the next decade, and invest in clean and renewable energy. Ratchaburi wants to invest in other Southeast Asia countries to boost growth.
Through its wholly-owned RATCH China Power, Ratchaburi will hold a 10 percent stake in the second phase of the Chinese nuclear project, which is worth 200 billion baht, Rum said. Ratchaburi will pay cash of 7.5 billion baht for the stake, he said. “The project marks a milestone of business expansion in China,” Rum said.
The Thai and Chinese governments will sign a deal to cooperate on non-military nuclear energy early this year, he added. CGN, which will have a 51 percent stake, will provide expertise in nuclear power. Ratchaburi expects to receive a stable “double digit” return, Rum said. The venture, Guangxi Fangchenggang Nuclear Power (II) Co., Ltd, will invest in two reactors of 1,180 megawatts each, with commercial operation slated for 2021.
Fangchenggang, a port city near Vietnam, is the second site where China plans to build Hualong-1 reactors under a pilot programme. The nuclear power project will add 236 MW to Ratchaburi’s capacity, Rum said.
Ratchaburi, 45 percent owned by state-run Electricity Generating Authority of Thailand, also plans to invest about 10 billion baht in 2016 to develop existing power plants and expand capacity, Rum said. But none of those will be nuclear. Thailand has indefinitely delayed expanding nuclear power on its own soil after strong political opposition.
