Ratch Group Plc, Thailand's largest private power generator by capacity, expects its revenue to grow by 10-15% next year, thanks to new power stations and asset acquisitions, under a growth plan which will exclude coal-fired power plant projects.
Its acquisition of two coal-fired thermal power plants, with a combined capacity of 2,045 megawatts, from PT Paiton Energy in Indonesia, will be its "last" coal-based energy projects due to the government's commitment to greenhouse gas reduction, said Ratch chief executive Choosri Kietkajornkul.
The company will also continue to diversify into healthcare businesses as Thai society is ageing, she said.
Ms Choosri said the company's long-term business expansion goal is to have an electricity generation capacity of 10 gigawatts by 2025, up from 8,874MW currently.
This year, up to 700MW from fossil fuel and renewable power plants will be added to its capacity.
They include the 29.7MW Ecowin Energy Corporation in Vietnam, the 80MW Nexif Ben Tre wind power facility in Vietnam, a 92MW gas-fired Nexif Energy plant in Rayong, and the expansion of the gas-fired Ratch Cogeneration, with capacity of 31.2MW.
As for the two Indonesian coal-fired thermal power plants, they have power purchase agreements with PT Perusahaan Listrik Negara, the electricity distribution and generation arm of the Indonesian government.
The agreements will remain in effect for 21 years.
This year, Ratch is allocating capital spending worth 15 billion baht for ongoing development projects, and it also plans to acquire new assets by using loans from financial institutions and internal working capital.
"New asset acquisition is expected to provide significant returns on investment, with an average net profit of approximately 7 billion baht per year," said Ms Choosri.
Ratch is also looking for new business opportunities in healthcare businesses, including medical equipment, digital medical services and nutrition.
The company earlier bought a 10% share worth 1.55 billion baht in Principal Capital Plc, which operates 11 hospitals nationwide.
The number will be increased to 20 hospitals next year.
