Investment/energy

Editorial team

RATCH Group invests 528 million baht in Indonesian 73 MW hydroelectric power plant enhancing renewable energy portfolio, expected commercial operations in 2028

RATCH Group Public Company Limited announces its investment in a Sibundong hydroelectric power plant project with an installed capacity of 73.70 MW in Indonesia.

The acquisition is succeeded by Fareast Renewable Development Pte. Ltd. (FRD), a 90% equity owned by RH International (Singapore) Corporation Pte. Ltd. (RHIS), its wholly owned subsidiary in Singapore.

Ms Choosri Kietkajornkul, chief executive officer of RATCH Group PCL

Accordingly, FRD purchased 55.56% ordinary shares of PT Tapanuli Hydro Energy from Eco Energy Holding Pte. Ltd. (EEH) valued at USD13.89 million or approximately 528.07 million baht. Consequently, RHIS indirectly holds 50% stake in PT Tapanuli Hydro Energy and realizes 36.85 MW equity capacity in Sibundong hydroelectric power project.

PT Tapanuli Hydro Energy is a developer and operator of a 73.70 MW Sibundong hydroelectric power project and an affiliate of EEH which is RATCH’s joint partner of Asahan-1 Hydroelectric power plant.

The investment will increase the company’ portfolio of renewable generation to 19.18% and the dispatch of Sibundong project forecasts in 2028.

Ms. Choosri Kietkajornkul, chief executive officer of RATCH Group PCL said that this success comes from the company’s synergy strategy towards strengths of partnership which leveraged for potential opportunities to expanding business and growing economic values mutually.

EEH Group is regarded as our strategic alliance who took us to renewable energy business in Indonesia since 2018, with the first joint investment in a run-of-river 180-MW Asahan-1 power plant, located on Asahan river, North Sumatra province, where currently the company indirectly holds 47.89% of its equity, and followed by the Sibundong Hydroelectric power project, a run-of-river type, locates on Sibundong river, North Sumatra.

“The company commits and aims for business expansion on renewable portfolio growth both domestically and internationally. Besides the Sibundong hydroelectric power project, the company currently has 10 projects under developing and construction, which will gradually commence commercial operations from 2023 onwards, including hydropower projects in Vietnam and Lao PDR, solar power plants in the Philippines and wind power projects in Australia and Vietnam.

To date, the company has invested in renewable energy projects totaling 1,913.20 MW, accounting for 19.18% of its total generation capacity. Importantly, renewable business development is still determined as a critical element for developing our climate strategy, greenhouse gas reduction target and plan which is soon to be concluded,” said Ms. Choosri.