Banpu Power to acquire 4 Chinese PV parks

Banpu Public Company Limited, a mining and power company in Thailand, has recently announced the acquisition of four solar photovoltaic plants with a combined capacity of 78.5 MW in the Shandong province, China.

Banpu, through a subsidiary of its wholly-owned Banpu Power Public Company Limited (BPP), has signed sales and purchase agreements to acquire 100% of the share capital in four solar power projects for a total consideration of approximately RMB 604 million (US$97 million), which will be financed by combination of debt and equity. 

The deal is expected to be closed by mid-2016, upon connection of the projects. 

According to sources, Ms. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, said:

“Entry into solar power in China is part of BPP’s strategy to invest in markets with attractive growth fundamentals and strong government support.  We are building on the success of our solar business in Japan and a decade of power sector experience in China.  With the addition of these solar operations in Shandong and the completion of the 1,320 MW Shanxi Lu Guang power project in 2017, Banpu is on track to increase its power generating capacity to 4,300 MWe by 2025 of which around 20% should be renewables-based.”

In the first quarter of 2016, Banpu’s power business EBITDA increased 10% QoQ to US$42 million with net profit contribution from China Power maintained at a solid level of US$18 million.  BLCP in Thailand reported a strong quarter with smooth operation, high dispatch rate, with an equity income contribution to Banpu of US$20 million.