BCPG Plc, the power generation arm of energy conglomerate Bangchak Corporation Plc, has ventured into the cross-border transmission line business to support its overseas electricity sales, following an acquisition of US$32 million (1.07 billion baht) worth of shares in Laos-based Nam Tai Power Sole Co (Nam Tai).
A 25% common share in Nam Tai, bought from Phongsubthavy Group Sole Co, will grant BCPG a right to operate the transmission system to sell electricity from Laos to state-owned Vietnam Electricity (EVN) in Vietnam.
The investment, approved by the BCPG board late last year, was done through BCPG's wholly-owned BCPG Indochina Co, said Niwat Adirek, newly appointed president and acting chief executive of BCPG.
BCPG said the share acquisition in Nam Tai would enable it to develop and operate a 220-kilovolt transmission line system and substations to supply "green electricity" from the Nam Tai hydropower project to EVN.
"The investment in Nam Tai is a good opportunity for BCPG to expand into power transmission and substation business," said Mr Niwat.
"The transmission line system is also an essential infrastructure for both Laos and Vietnam."
It will start supplying electricity to EVN this year.
The facility will also be connected with other nearby renewable energy projects to sell electricity from Laos to EVN.
"The new acquisition of the cross-border transmission system will not only serve high demand for electricity in fast-growing Vietnam, but it will also strengthen our renewable energy development in the long run," said Mr Niwat.
BCPG earlier acquired two hydropower plants -- the 69-megawatt Nam San 3A and 45MW Nam San 3B -- both located in Xiengkhouang province in northeastern Laos.
The two plants played a key role in racking up revenue in the third quarter last year due to higher rainfall in Laos.
According to BCPG, from January to September last year its net profit increased by 19.5% to 1.7 billion baht, up from 1.4 billion baht in the same period in 2020.
