Thailand-listed company RATCH Group Public Co., Ltd has acquired full ownership of the Minh Luong hydroelectric power plant for $25 million. This move is part of RATCH's ongoing efforts to increase the proportion of renewable energy generation, with the aim of reaching 30% by 2030.
The power plant is located in Lào Cai province, Vietnam, and operates as a run-of-the-river facility with an installed capacity of 30 MW. In operation for nearly 5 years under the ownership of Nam Tien Group, it was recently acquired by RATCH Group. The plant has a 20-year power purchase agreement with the Vietnam Electricity Group (EVN), selling approximately 103 million kilowatt-hours of electricity annually.
RATCH Group completed the acquisition through its joint venture company, "NEXIF RATCH Energy," on December 29, 2023, and announced the news on January 2 of the following year. In 2022, RATCH Group formed a joint venture with the Singaporean developer Nexif Energy to establish NEXIF RATCH Energy. The joint venture primarily focuses on the development of hydro, wind, solar, and energy storage projects, with a specific emphasis on the Southeast Asian and Australian markets.
RATCH Group's CEO, Choosri Kietkajornkul, stated that this investment reflects the company's progress in expanding its business in Vietnam. Following the acquisition of the Ming Liang hydropower plant, the power generation capacity has increased to 14.7 MW. This not only indirectly contributes to revenue growth but also raises the share of alternative energy production capacity to 2,947.93 MW, accounting for 27.24% of the total capacity.
NEXIF RATCH Energy's development and investment in Vietnam include an ongoing construction project for a hydropower plant with an installed capacity of 12 MW. Additionally, there are five projects under research, encompassing a total installed capacity of 520 MW in solar and wind energy. If everything proceeds as planned, RATCH Group's share of renewable energy generation is expected to reach 30% by 2030.
After the acquisition of the Minh Luong hydropower plant, RATCH Group's total investment capacity in Vietnam has increased to 266.19 MW. This includes 136.71 MW of fossil fuel capacity and 129.48 MW of alternative energy capacity.
RATCH Group, with a 45% share held by the Electricity Generating Authority of Thailand (EGAT), is actively expanding its renewable energy ventures overseas. This includes the development of a 120 MW wind power project in New South Wales, Australia, and a feasibility study is underway for an energy storage system in Queensland.
Additionally, in Vietnam, RATCH Group is developing solar and wind projects through joint ventures, while also acquiring operational power plants. In the Philippines, the market development is primarily focused on solar energy in Negros and offshore wind energy in San Miguel Bay, Luzon.