SUPER ENERGY CORPORATION
PUBLIC CO., LTD.
Registered Capital: 3,281,935,872.80 Baht
SUPER SPEED SUPER ENERGY OPEN TECHNOLOGY
CONSTRUCTION CO., LTD. GROUP CO., LTD. CO., LTD.
Hold shares 100%
Hold shares 100% Hold shares 76.25%
SUPER SOLAR SUPER SOLAR LEMON GOLD SUPER EARTH SUPER WIND ENERGY
ENERGY CO., LTD. ONE CO., LTD. FARM CO., LTD. ENERGY CO., LTD. CO., LTD.
Hold shares 100% Hold shares 76%
Hold shares 100% Hold shares 100% Hold shares 100%
ROOT SUN CO., LTD. ENERGY SERVE LAND EQUATOR SOLAR CO., SUPER SOLAR SUPER SKY ENERGY CO., Super Wind Energy Conly
Hold shares 100% CO., LTD. Hold shares LTD. Hold shares 49% (THAILAND) CO., LTD. LTD. 1. Joint Stock Company
100% Hold shares 100% Hold shares 70% Hold shares 51%
PT Drive (Thailand) Co., POWER TECHNOLOGY ENERGY SERVE ONE INFINITE ALTERNATIVE SUPER EARTH ENERGY SUPER WIND ENERGY
Ltd. Hold shares 95% INTERNATIONAL LAND CO., LTD. ENERGY CO., LTD. 1 CO., LTD. (HONGKONG) CO., LTD.
CO., LTD. Hold shares Hold shares 33%
GREEN BI-O Hold shares 100% Hold shares 100% Hold shares 100%
MAHASARAKHAM CO., 100% RANG NGERN
LTD. Hold shares 100% ENERGY SERVE TWO SOLUTION CO., LTD. SUPER EARTH ENERGY SUPER WIND
NPS STAR LAND CO., CO., LTD. Hold shares 100% 8 CO., LTD. ENERGY
LTD. Hold shares 100%
Hold shares 100% SUPER ENERGY (EAST) Hold shares 100% (HONGKONG) 1 CO.,
CO., LTD. LTD. Hold shares 100%
IQ GOOD CO., LTD. GENEROUS LAND CO., ENERGY SERVE THREE SUPER EARTH ENERGY
Hold shares 100% LTD. Hold shares 100% CO., LTD. Hold shares 100% 9 CO., LTD.
Hold shares 100% Hold shares 100%
THAI GREEN CO., WORLD EXCHANGE SPP SIX CO., LTD. SUPER EARTH ENERGY
LTD. Hold shares 100% ASIA LAND CO., LTD. Hold shares 49% 2 CO., LTD.
Hold shares 100% Hold shares 100%
PKT GREEN CO., ENSERV TECHNOLOGY WXA 4 CO., LTD. SUPER ENERGY GROUP SUPER EARTH ENERGY
LTD. Hold shares CO., LTD. Hold shares Hold shares 49% (HONGKONG) CO., LTD. 3 CO., LTD.
100%
100% WXA 5 CO., LTD. Hold shares 100% Hold shares 100%
ENERGY SERVE CO., Hold shares 49%
MILLENNIUM ACT CO., LTD. Hold shares 49% SUPER ENERGY-GA SUPER EARTH ENERGY
LTD. Hold shares 100% JAPAN 1 GK CO., LTD. 4 CO., LTD.
17 ANYAWEE HOLDING SRI NAGA POWER WXA 6 CO., LTD. Hold shares 75% Hold shares 100%
CO., LTD. Hold shares CO., LTD. Hold shares Hold shares 49%
SUPER ENERGY-GA SUPER EARTH ENERGY
100% 49% WXA 7 CO., LTD. JAPAN 2 GK CO., LTD. 5 CO., LTD.
Hold shares 49%
MEDIA MARK CO., LTD. AMARNUVE CO., LTD. Hold shares 100% Hold shares 100%
Hold shares 86% Hold shares 49%
SUPER SOLAR ENERGY GREEN POWER ENERGY
ELECTRICA ASIA POWER POWER TECHNOLOGY APOLLO SOLAR CO., (HONGKONG) 1 CO., CO., LTD.
CO., LTD. Hold shares INTERNATIONAL CO., LTD. Hold shares 49%
100% LTD. Hold shares 100% Hold shares 100%
LTD. Hold shares 49% IQ ENERGY CO., LTD.
HEALTH PLANET Hold shares 49% SUPER SOLAR ENERGY SUPER EARTH ENERGY
MANAGEMENT S2P ENERGY CO., (HONGKONG) 2 CO., 6 CO., LTD.
(THAILAND) CO., LTD. LTD. Hold shares 49% AIQ ENERGY CO., LTD.
Hold shares 100% Hold shares 49% LTD. Hold shares 100% Hold shares 100%
WRP ENERGY CO.,
NORTH SOLAR POWER CO., LTD. Hold shares 49% IQ SOLAR CO., LTD. SUPER SOLAR ENERGY MUEANG THAI NA YU
LTD. Hold shares 49% Hold shares 49% (HONGKONG) 3 CO., CO., LTD.
LTD. Hold shares 100% Hold shares 92.54%
SUPER SOLAR ENERGY NONG KHAI NA YU CO.,
(HONGKONG) 4 CO., LTD. Hold shares 67%
STFE SOLAR CO., LTD. SOLKIT SOLAR CO., IQ GREEN CO., LTD. LTD. Hold shares 100%
Hold shares 100% LTD. Hold shares 49% Hold shares 49%
TANG SAE YIANG GREEN NORTHEAST FUTURE ESTA POWER CO.,
POWER ONE CO., LTD. Hold ENERGY CO., LTD. LTD. Hold shares 100%
Hold shares 100%
shares 100%
Pursuant to the resolution of the Board of Directors meetings in 2018, the Company passed resolutions
authorizing the establishment of the following new company subsidiaries for the purpose of expanding
businesses in the future:
1. New Subsidiaries in Thailand
(1) Mueang Thai Na Yu Co., Ltd./Comprehensive municipal waste management.
(2) Nongkhai Na Yu Co., Ltd./Comprehensive municipal waste management.
(3) Super Solar (Thailand) Co., Ltd./Investment and shareholding in other domestic or
international companies.
(4) Super Earth Energy 8 Co., Ltd./Electricity production from waste energy.
(5) Super Earth Energy 9 Co., Ltd./Electricity production from waste energy.
2. New Company Subsidiaries in Vietnam
- Wind Power Plant Projects
(1) SUPER WIND ENERGY HONGKONG Co.,Ltd. : SWE-HK
(2) SUPER WIND ENERGY HONGKONG 1 Co.,Ltd. (SWE-HK1)
(3) SUPER WIND ENERGY HONGKONG 2 Co.,Ltd. (SWE-HK2)
(4) SUPER WIND ENERGY HONGKONG 3 Co.,Ltd. (SWE-HK3)
(5) SUPER WIND ENERGY HONGKONG 4 Co.,Ltd. (SWE-HK4)
(6) SUPER WIND ENERGY HONGKONG 5 Co.,Ltd. (SWE-HK5) **
(7) SUPER WIND ENERGY HONGKONG 6 Co.,Ltd. (SWE-HK6) **
(8) SUPER WIND ENERGY HONGKONG 7 Co.,Ltd. (SWE-HK7) **
(9) HBRE Phu Yen Joint Stock Company **
(10) HBRE Gia Lai Joint Stock Company **
- Solar Power Plant Projects
(1) SUPER SOLAR ENERGY HONGKONG 3 Co.,Ltd. : SSE-HK3
(2) SUPER SOLAR ENERGY HONGKONG 4 Co.,Ltd. : SSE-HK4
(3) SUPER SOLAR ENERGY HONGKONG 5 Co.,Ltd. : SSE-HK5
(4) Nam Viet Phan Lam Co.,Ltd. **
(5) Nam Viet Green Energy Joint Stock Company **
(6) Nam Thuan Energy Investment Joint Stock Company **
(7) Nam Binh Energy Investment Joint Stock Company **
(8) Everich Binh Thuan Energy Limited Liability Company **
(9) Sinergy Holding Pte.,Ltd **
(10) Sinenergy Ninh Thuan Power Limited Liability Company **
(11) Van Giao Solar Power Plant Joint Stock Company **
(12) Van Giao Solar Energy Plant Joint Stock Company **
Remarks: **Ongoing
At present, the Company and subsidiaries have invested directly and indirectly in 35 companies that
produce and distribute alternative energy. The information about the location of these alternative energy
power plants that are distributed in each region of the country follow the division of areas of responsibility of
the Provincial Electricity Authority consisting of four regions as follows:
Figure Showing the Locations of (Domestic) Solar power plants as of 27 February 2018
The renewable power The renewable power plants in the
plants in the northern zone northeastern zone are composed of
five solar power plants with a
are composed of eight solar combined production capacity of 8.95
and waste power plants with megawatts located in Maha
a combined production Sarakham, Nakhon Ratchasima and
capacity of 53.90 megawatts Ubon Ratchathani.
located in Phrae, Lampang
and Phichit.
The renewable power plants The renewable power plants in the central zone
in the southern zone are
composed of twenty-eight solar are composed of eighty solar and waste power
power plants with a combined plants with a combined production capacity of
production capacity of 230.80 483.95 megawatts located in Lopburi, Saraburi, Sa
megawatts located in Kaeo, Samut Songkhram, Pathum Thani, Samut
Suratthani, Krabi, Phetchaburi Sakhon, Samut Prakan, Ayutthaya, Nakhon Pathom,
and Prachuab Khiri Khan. Kanchanaburi, Ratchaburi, Rayong, Chonburi,
Prachinburi, Chachoengsao and Bangkok.
The investment details on subsidiaries and group companies (direct and indirect) as of 28 February
2019 are as follows:
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
Alternative Energy Businesses
Super Energy Coperation 3,281.94 Power plant maintenance.
1
Company Limited
Super Energy Group Company 100.00 Investment and development in
2 Limited 10,000.00 100.00% % waste (municipal waste) energy
alternative energy power plants.
Super Solar Energy Company 100.00 Solar energy power plant investment
3 10,000.00 100.00%
Limited % and development.
Lemon Gold Farm Company 1.00 Investment and development in wind
4 76.00% 76.00%
power plants.
Limited
Root Sun Company Limited 150.00 100.00% 100.00 Solar power plants.
5
%
Pro Solar One Company 263.25 100.00% 100.00 Solar power plants.
6
%
Limited
PT Drive (Thailand) Company 150.00 100.00% 100.00 Solar power plants.
7
%
Limited
Green Bi-O Maha Sarakham 280.00 100.00% 100.00 Solar power plants.
8
%
Company Limited
9 Millennium Act Company 2,500.00 100.00% 100.00 Investment and development in solar
Limited % power plants.
17 Anyawee Holding 1,320.00 100.00% 100.00 Solar power plants.
10
%
Company Limited
Media Mark Company 401.20 86.00% 86.00% Solar power plants.
11
Limited
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
Health Planet Management 680.00 100.00% 100.00 Solar power plants.
12
%
Company Limited
Electrica Asia Company 276.00 100.00% 100.00 Solar power plants.
13
%
Limited
North Solar Power Company 136.00 49.00% 49.00% Solar power plants.
14
Limited
Tang Sae Yiang Green Power 68.00 100.00% 100.00 Solar power plants.
15
%
One Company Limited
STFE Solar Company Limited 110.00 100.00% 100.00 Solar power plants.
16
%
Apollo Solar Company 198.00 49.00% 49.00% Solar power plants.
17
Limited
Power Technology 903.50 Solar power plants.
18 International Company 49.00% 51.38%
Limited
Energy Serve Company 1,103.00 49.00% 51.00% Solar power plants.
19
Limited
20 Amanuf Company Limited 412.50 49.00% 86.01% Solar power plants.
21 Sri Nakha Power Limited 495.00 49.00% 51.63% Solar power plants.
Infinite Alternative Company 570.00 Investment and development in solar
22 33.00% 33.00%
Limited power plants.
Rang Ngern Solution 1,355.00 33.33% 33.33% Solar power plants.
23
Company Limited
24 SPP 6 Company Limited 669.00 49.00% 98.97% Solar power plants.
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
25 Solkit Solar Company Limited 85.00 49.00% 98.97% Solar power plants.
Northeast Future Energy 85.00 49.00% 51.08% Solar power plants.
26
Company Limited
27 S2P Energy Company Limited 490.00 49.00% 51.08% Solar power plants.
WRP Energy Company 655.00 49.00% 51.08% Solar power plants.
28
Limited
Equator Solar Company 1,394.00 49.00% 51.15% Solar power plants.
29
Limited
30 WXA 4 Company Limited 85.00 49.00% 51.61% Solar power plants.
31 WXA 5 Company Limited 85.00 49.00% 51.61% Solar power plants.
32 WXA 6 Company Limited 85.00 49.00% 51.61% Solar power plants.
33 WXA 7 Company Limited 85.00 49.00% 51.61% Solar power plants.
34 IQ Solar Company Limited 92.75 49.00% 49.00% Solar power plants.
AIQ Energy Company 33.13 49.00% 49.00% Solar power plants.
35
Limited
36 IQ Energy Company Limited 198.75 49.00% 49.00% Solar power plants.
37 IQ Green Company Limited 69.85 49.00% 49.00% Solar power plants.
38 Asta Power Company Limited 248.00 49.00% 49.00% Solar power plants.
En Serve Technology 1.00 100.00 Investment and development in
39 100.00%
% businesses.
Company Limited
Energy Serve 1 Company 1.00 Investment and development in land.
40 100.00% 49.00%
Limited
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
Energy Serve 2 Company 1.00 Investment and development in land.
41 100.00% 49.00%
Limited
Energy Serve 3 Company 1.00 Investment and development in land.
42 100.00% 49.00%
Limited
Power Technology 0.10 100.00% Investment and development in land.
43 International Land Company 100.00
Limited %
NPS Star Land Company 0.10 100.00 Investment and development in land.
44 100.00%
%
Limited
Generous Land Company 0.10 100.00 Investment and development in land.
45 100.00%
%
Limited
Energy Serve Land Company 0.10 100.00 Investment and development in land.
46 100.00%
%
Limited
World Exchange Asia Land 1.0 100.00 Investment and development in land.
47 100.00%
%
Company Limited
Super Earth Energy Company 1,000.00 100.00 Investment and development in
48 Limited 100.00% % waste energy alternative energy
power plants.
Super Sky Energy Company 5.00 Investment and development in
49 Limited 70.00% 70.00% waste energy alternative energy
power plants.
Super Earth Energy 1 1,000.00 100.00 Investment and development in
50 Company Limited 100.00% % waste energy alternative energy
power plants.
51 Super Earth Energy 2 116.00 100.00% Investment and development in
100.00
waste energy alternative energy
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
Company Limited % power plants.
Super Earth Energy 3 136.00 100.00 Investment and development in
52 Company Limited 100.00% % waste energy alternative energy
power plants.
Super Earth Energy 4 120.00 100.00 Investment and development in
53 Company Limited 100.00% % waste energy alternative energy
power plants.
Super Earth Energy 5 128.00 100.00 Investment and development in
54 Company Limited 100.00% % waste energy alternative energy
power plants.
Super Earth Energy 6 182.00 Investment and development in
55 49.00% 49.00%
Company Limited waste power plants.
Super Earth Energy 8 1.00 100.00 Investment and development in
56 100.00%
% waste power plants.
Company Limited
Super Earth Energy 9 1.00 100.00 Investment and development in
57 100.00%
% waste power plants.
Company Limited
Green Power Energy 405.00 100.00% 100.00 Waste (industrial waste) energy
58
% power plants.
Company Limited
59 Super Wind Energy Co., Ltd. 100.00 Investment and development in wind
100 100.00%
% power plants in foreign countries.
Super Solar (Thailand) Co., 100.00 Shareholding or investment in
60 0.1 100.00%
Ltd. % Thailand or foreign countries.
61 Mueang Thai Na Yu Co., Ltd. 670.00 Investment and development in
92.54% 92.54%
waste power plants.
62 Nong Khai Na Yu Co., Ltd. 1,000.00 67.00% 67.00% Investment and development in
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
waste power plants.
63 IQ Good Co., Ltd. 100.00 100.00% 100.00 Solar power plants.
%
64 Thai Green Co., Ltd. 121.00 100.00% 100.00 Solar power plants.
%
65 PKT Green Co., Ltd. 125.00 85.00% 85.00% Solar power plants.
Information Technology
Businesses
Open Technology Public 40.00
66 76.25% 76.25% Information Technology Businesses
Company Limited
Construction/Investment
Consultation Businesses
Super Speed Construction 100.00 100.00% 100.00 Construction contractor and
67
% consultation services.
Company Limited
International Companies
SUPER ENERGY(EAST) SGD200,00 100.00% 100.00 Investment and development in solar
68
0 % power plants.
PTE LTD.
SUPER ENERGY GROUP HKD100,00 100.00 Investment and development in solar
69 100.00% % power plants.
(HONGKONG) CO.,LTD 0
SUPER ENERGY-GA JPY100,000 Investment and development in solar
70 75.00% 75.00%
JAPAN 1 GK power plants
SUPER ENERGY-JAPAN 2 100.00 Investment and development in solar
71 100.00%
GK JPY100,000 % power plants.
72 SUPER SOLAR ENERGY HKD50,0 100.00% 100.00 Investment and development in solar
Registered
No. Company Name Capital Share Ratio Voting Business Type
(Million Rights
Baht)
(HONGKONG) 1 00 % power plants.
SUPER SOLAR ENERGY HKD50,0 100.00% 100.00 Investment and development in solar
73
00 % power plants.
(HONGKONG) 2
SUPER SOLAR ENERGY HKD100,0 100.00% 100.00 Investment and development in solar
74
00 % power plants.
(HONGKONG) 3
SUPER SOLAR ENERGY HKD100,0 100.00% 100.00 Investment and development in solar
75
00 % power plants.
(HONGKONG) 4
SUPER WIND ENERGY VND10,0 Investment and development in wind
76 CONGLY 1 JOINT STOCK 00 51.00% 51.00%
COMPANY power plants in Vietnam.
SUPER WIND ENERGY HKD100,0 100.00% 100.00 Investment and development in wind
77
00 % power plants in Vietnam.
(HONGKONG) CO.,LTD
SUPER WIND ENERGY HKD100,0 100.00% 100.00 Investment and development in wind
78
00 % power plants in Vietnam.
(HONGKONG) 1 CO.,LTD
Remarks: 1. The Company group holds 33.33 percent of shares in Infinite Alternative Co., Ltd. while Infinite
Alternative Co., Ltd. holds 100 percent of shares in Rang Ngern Solution Co., Ltd.
2. The Company group holds 92.5 percent of shares in Mueang Thai Na Yu Co., Ltd. while Mueang
Thai Na Yu Co., Ltd. holds 67 percent of shares in Nong Khai Na Yu Co., Ltd.
3. Company passed a resolution to purchase ordinary shares and/or preferred shares in its subsidiary,
S2P Energy Company Limited, from the previous 51 percent of shares the Company will hold 100
percent of shares after the purchase. Currently, payments are being made for the purchase of shares.
4. Company passed a resolution to purchase ordinary shares and/or preferred shares from its
subsidiaries as follows: WRP Energy Company Limited, from the previous 51 percent of shares the
Company will hold 100 percent of shares after the purchase, and Northeast Future Energy Co., Ltd.,
from the previous 51 percent the Company will hold 100 percent of shares after the purchase.
Currently, payments are being made for the purchase of shares.
2. Business Characteristics
Super Energy Corporation Public Co., Ltd. (“the
Company” or “SUPER”) was founded on 20 December 1994.
Presently the Company is engaged in renewable energy
businesses. The Company has policy to provide renewable
energy power plant operation and maintenance services.
Furthermore, the Company operates business to produce and
distribute electricity from alternative energy power plants and
related business, including information and communications technology businesses under the operation of
subsidiaries and joint venture companies, both domestic and international. The business group management
structure is as follows:
1. Solar Energy Power Plant Operations and Maintenance Services
Operated by Super Energy Corporation Public Co., Ltd. (“SUPER”), businesses cover operation and
maintenance services of solar power plants, power station and transmission line management services
and others for projects belonging to subsidiaries in which SUPER either directly or indirectly holds
shares subsequent to commencement of commercial operations in order to provide supervision and
maintenance of power plant machinery and equipment and management to ensure that the
aforementioned power plants achieve full capacity production. The Company has clear policy to operate
business in the operation and maintenance of power plants that belong to the Company’s group and/or
other outside companies in the future and has an objective to expand business scope to cover the contract
construction and operation, management and monitoring of alternative energy power plants in the future.
2. Production and Distribution of Electricity Produced from Renewable Energy
2.1 Production and Distribution of Electricity Produced from Solar Power Plants (“Solar Energy”)
This is operated by Super Solar Energy Company Limited (“SSE”) and its subsidiaries for the
purpose of investment and development of businesses in the production and distribution of electricity
from solar power plants and related businesses. At present, domestic and international electricity
production projects number at a total of 130 projects with a capacity of 768.6 megawatts.
2.2 Production and Distribution of Electricity Produced from Waste Power Plants (“Waste
Energy”)
This is operated by Super Earth Energy Company Limited (“EARTH”) and its subsidiaries for the
purpose of investment and development of businesses in the production and distribution of electricity
from thermal (waste) power plants and related businesses. At present, one of the aforementioned power
plants has achieved commercial operations with a capacity of nine megawatts and two of these power
plant projects are under construction as stipulated by a power purchase agreement with a capacity of
fifteen megawatts.
This is operated by Super Energy Group Company Limited (“SUPER ENERGY”), which operates
projects in the production and distribution of electricity from thermal (waste) power plants and related
businesses. At present, one of these power plant projects is ongoing as stipulated by a power purchase
agreement with a capacity of eight megawatts.
2.3 Production and Distribution of Electricity Produced from Wind Power Plants (“Wind Energy”)
This is operated by Lemon Gold Farm Company Limited (“LEMON”) for the purpose of investment
and development of businesses in the production and distribution of electricity from domestic wind
power plants and related businesses. At present, projects are being studied and related work sections are
being prepared.
This is operated by Super Wind Energy Company Limited (“SUPER WIND”) and its subsidiaries
for the purpose of investment and development of businesses in the production and distribution of
electricity from international wind power plants and related businesses. The company is currently in the
process of investing in and developing wind power plants in Vietname in the first phase for a combined
production capacity of 350 megawatts.
3. Information & Communications Technology
This is operated by Open Technology Public Company Limited (“OPEN”) and covers development
and installation of information systems, information system and computer equipment maintenance
services, procurement of personnel for comprehensive services and business management and
consultation.
The performance of the Company’s group in 2018 is categorized according to four business groups
based on revenue structure as follows:
1. Revenue from operations and maintenance services for solar power plants is generated from the
provision of operation and maintenance services for solar power plants, provision of power station and
transmission line management services and others with the aim of providing maintenance to the machinery
and equipment in power plants in addition to management in order to ensure that the aforementioned power
plants operate in the most effective manner.
2. Revenue from alternative energy business operations is generated from the sale of electricity
produced by solar power plant projects that achieve commercial operations to the Electricity Generating
Authority of Thailand, the Metropolitan Electricity Authority and the Provincial Electricity Authority with
730.60 megawatts in combined production capacity.
3. Revenue from renewable energy business operations is generated by the distribution of electricity from
industrial waste power plant projects that have achieved commercial operations to the Provincial Electricity
Authority with a combined production capacity of nine megawatts.
4. Revenue from information technology services is generated from providing services in terms of
personnel with technological knowledge and capabilities in comprehensive maintenance and services to
public and private agencies.
Revenue Structure from Operations as of 31 December 2018
Revenue Type Company 2018 % 2017 % 2016 %
Million Million Million
Business-specific
Financial Statements Baht Baht Baht
1 Company Revenue
- O&M SUPER 339.06 70.22 339.73 100.00 50.15 57.56
2018 2017 2016
Revenue Type Company Million % Million % Million %
Baht Baht Baht
- Project Consultations SUPER 40.00 8.28 -- 36.97 42.44
-Accounting Management SUPER 103.79 21.50 -- --
Total Financial Statements
2 Revenue from Renewable
Energy Businesses
- Solar Energy Subsidiaries 5,376.25 91.52 5,390.76 93.03 3,526.50 92.75
- Waste Energy Subsidiaries 219.23 3.73 8.08 0.14 --
- Wind Energy Subsidiaries -- -- --
- Other 1/ Subsidiaries
143.47 2.44 284.22 4.90 190.32 5.00
3 Revenue from Information Technology
Businesses
- Revenue from Sales Subsidiaries 3.60 0.06 5.97 0.10 8.59 0.23
- Revenue from Services Subsidiaries 130.31 2.22 105.37 1.82 76.52 2.01
- Others Subsidiaries 1.43 0.02 0.30 0.01 0.11 0.01
Remarks: 1/ Other revenues are composed of profits from investments in joint venture companies, exchange
rates and other incomes. For 2018, other revenues are composed of 84.10 million baht of profit from
investments in joint venture companies, 12.21 million baht of profit from exchange rates and 47.16 million
baht from other incomes.
2.1 Renewable Energy Power Plant Operation and Maintenance Services (O&M)
At present, there are renewable energy power plants belonging to the Company’s group composed of
solar power plant that have achieved commercial operations with a capacity of 768.60 megawatts and
thermal (industrial waste) power plants that have achieved commercial operations as of 14 June 2018 with a
capacity of 9 megawatts. Operation and maintenance services subsequent to commencement of commercial
operations in the aforementioned renewable energy power plants are very important and require monitoring.
These renewable energy power plants have designs, installations and use of machinery that require personnel
that possess specialized knowledge and abilities in the management and monitoring of all the essencial work,
especially in the case of thermal (industrial waste) power plants, which have a complicated production
process, in order to ensure that power plants achieve production at full capacity. Moreover, the company
provides consultation services and 115-KV power station and transmission line construction. The Company
is required to always provide enough experienced project engineers and staff that possess specialized
knowledge to perform technical and security activities.
At present, the Company’s O&M services that are provided cover the following services:
1. Operating work.
2. Maintenance material and tools.
3. 3rd party or specialist service, If required.
4. Facility for O&M plant staff.
5. Insurance work.
6. Other services.
2.1.1 Products and Services
Power Plant Operations and Maintenance Services are operations and maintenance services provided
to each solar power plant project. Knowledgeable and able employees are recruited to operate and maintain
power plants, test their readiness, test electricity values and monitor and manage electricity values that are
produced in addition to procurement of equipment, work coordination, work supervision, training, operation
teams, provision of consultation and project management at power plants.
Work Scope
1. Daily activities include the monitoring and testing of light intensity, the testing and management of
PV system data, the recording of the daily production unit values, the recording of significant events in each
day, the monitoring of weather conditions, including the plant surroundings and the maintenance of testing
equipment. Furthermore, daily activities also include coordinating with local agencies in the testing or
gathering of information and the education of interested parties and people in general.
2. System management. For example, giving recommendations and consultations and helping to find
solutions in order to facilitate maximum efficiency in electrity production, anticipating production capacity,
testing and maintaining work systems in the power plants as required by the proper and adequate safety
standards.
3. Make monthly reports on preventive maintenance to confirm the inspection of assets, maintenance
results, project efficiency reports, result of moisture indicators of inverters and facility cleanliness.
Furthermore, an evaluation must be performed on the usage of necessary and other equipment. The reports
are to be made within 15 days of the last workday of each month.
4. Bi-monthly inspections are performed on visual equipment according to the usage and maintenance
manuals provided by the manufacturer, etc.
5. Quarterly inspections are performed on project fences, control builings, office buildings, electrical
substations and road conditions, etc., to ensure that they are always ready for use.
6. Annual inspections are performed on the internal and external condition of major equipment such as
22kV switch gears, 22kV ring main units and 22kV relays as well as HV cable conductors, invertor
transformers, internal cleanliness of equipment, work systems, etc.
7. Biannual inspections are performed on cable and pipe systems, etc.
Consultation and management of power station and 115 kV transmission line construction are
engineering and management services that begins with project feasibility studies and includes designs,
construction supervision, coordination for convenience in the construction stage, power station and 115 kV
transmission line management and the proper linking of electrical systems.
2.1.2 Marketing and Competition
In the past few years, the growth of renewable energy businesses, whether in the form of solar energy,
waste energy or biomass energy, has relied on the government’s campaign for the private sector to invest and
develop the electricity production business by using environmentally-friendly technologies and natural
energies, such as solar energy and wind energy, or unused energies, such as agricultural produce and waste
which has become a major issue. The effort can be seen in the rapid growth of investments in the
aforementioned businesses that have contributed to the growth of renewable energy power plant operation
and maintenance businesses. Nonetheless, the majority of producers hire the same construction contractor for
the operation and maintenance of their facilities due to energy performance contracts (EPC) that require the
contractor to set up the system and test equipment functionality in the renewable energy power plants’
operations in the future. In fact, other than maintaining the cleanliness of solar cells, the operation and
maintenance of renewable energy power plants, particularly solar power plants being operated by the
Company, the core is in the initial design and installation. If the design and installation are standardized and
well-controlled, then the operation and maintenance will be low-risk and efficient.
The Company began to provide operation and maintenance services to solar power plants belonging to
companies in which the Company directly or indirectly holds shares. The Company has policy for power
plant operation and maintenance and consultation and the management of power station construction and 115
kV transmission lines that facilitate the efficient operation of solar power plants. The Company has clear
policy to operate business in the operation and maintenance of power plants that belong to the Company’s
group and/or other outside companies in the future and has set in place the following work areas:
1) Project Management – Provides a center for the management, control and initiation of all
activities of power plants to achieve effective electricity production at suitable power capacities and in line
with set plans.
2) System Analysis – Studies in power plant work processes and machinery operation and functions
of each machinery and equipment using computer system processing to provide data for improving and
revising power plant effectiveness.
3) System Engineering – Inspection, monitoring and corrections in cases of damage in the operation
of power plant systems, including purchase and procurement of equipment in line with system specifications,
etc.
2.2
Renewable Energy Businesses
The Company and subsidiaries invests in the production and distribution of electricity derived from
alternative energy power plants. Previously, investments were made in solar power plant projects and
thermal (waste) power plant projects. Investments are being made in solar and wind power plants in
Vietnam, in addition to related businesses, through Super Energy Group Company Limited, a subsidiary of
the Company, in line with management structure in order to maintain convenience.
Power purchase agreement signing in alternative energy power plant projects, both solar power plants
and thermal (waste) power plants, belonging to the Company’s group have been made with the Electricity
Generating Authority of Thailand and/or the Metropolitan Electricity Authority and/or the Provincial
Electricity Authority. Commercial operations for solar power plants have commenced since 2011. As for
waste power plants, the Company’s first project under Green Power Energy Co., Ltd. achieved commercial
operations on 14 June 2018. All projects are receiving power purchase agreements supported with increased
power purchase shares in Adder format and/or Feed-in Tariff (Fit) for a period of seven to twenty-five years
in accordance with the country’s development and promotion of renewable energy usage aimed at
environmentally-friendly growth.
The Company’s Power Purchase Agreement Types and Characteristics Time Period
No. Total Electricity (Years)
(MW)
1 Power purchase agreements supported with increased 7.00 10
power purchase shares in solar power plant projects
in Adder format at 8.00 baht/unit.
2 Power purchase agreements supported with increased 5.95 10
power purchase shares in solar power plant projects 729.15 25
in Adder format at 6.50 baht/unit. 28.00 25
3 Power purchase agreements supported with increased
power purchase shares in solar power plant projects
in Feed-in Tariff format at 5.66 baht/unit.
4 Power purchase agreements supported with increased
power purchase shares in solar power plant projects
in Feed-in Tariff format at 4.12 baht/unit.
5 Power purchase agreements supported with increased 26.00 7
power purchase shares in thermal (waste) power
plant projects in Adder format at 3.50 baht/unit.
6 Power purchase agreements supported with increased 6 20
power purchase shares in thermal (waste) power
plant projects in FiT format at 5.08 baht/unit.
Total Maximum Electricity according to the 802.1
power purchase agreements (MW)
2.2.1 Products and Services
Solar Power Plants
Sunlight is the largest source of natural energy. It is a clean energy and exists everywhere but utilizing
it has limitations since sunlight is only available in the day time. Furthermore, light intensity is uncertain due
to changes in weather conditions and seasons. Solar energy is an alternative energy that can be used without
end. Solar power production costs are high compared to other power production costs. However, recently
solar energy has received more interest leading to new technological developments which are highly efficient
and less expensive. Moreover, the construction and maintenance of solar power plants are easy and most
importantly do not have an impact to the environment contributing to its popularity. Nevertheless, there are
time constraints in the production of renewable energies such as solar energy. Even though solar power
production has limitations there is a need for the provision of electricity for the entire system. Therefore, it is
necessary to manage and integrate power production with ready-to-use energy sources such as natural gas
and coal, which being depleted as time goes by so the present day solar energy plays a major role and is a
necessary alternative.
The production of electricity from solar energy is the act of converting light energy into electricity by
using a semiconductor, such as silicon, which is the cheapest and most prevalent semiconductor on earth, and
submitting it to a scientific process to produce a thin film. As soon as light shines on the cells, the light
radiation containing energy particles called photons will transfor energy into electrons in the semiconductors
until there is enough energy for the electrons to be ejected from atomic binding and move freely. When the
electrons are completely mobilized, they create a direct current. The main components of “solar cells” are
two types of semiconductors connected to each other called P-N junction. When sunlight hits a solar cell,
energy is transferred to the atoms of the semiconductors to create free electrons and holes that wait at the
junction. Thus, when it is connected to an external circuit, i.e., when a lightbulb is connected to the junction,
there is a flow of electrons/holes that provides the external circuit with direct current and will continue to
provide power as long as there is sunlight for the cells to absorb. This energy can be used immediately.
Significant Variables in Solar Cell Function
Significant variables that facilitate solar cell efficiency are different in each area and important for the
consideration of each area to be used and the calculation for the system or the number of solar cells required
for each area. Significant variables include the following:
· Light intensity. Electrical current depends on light intensity. This means that high light intensity
leads to a high current from the solar cells. Meanwhile, electrical voltage rarely changes along
with light intensity. Standard light intensity is measured from the ground in clear cloudless
weather and at sea level when the sun is perpendicular to the ground.
· Temperature. Electrical current does not change with different temperature. Meanwhile,
electrical voltage will drop as the temperature rises. On average, for each degree of increased
temperature the voltage decreases by 0.5 percent. Furthermore, the temperature of standard solar
cells used for determining efficiency is 25 degrees Celsius. As the temperature rises the
maximum wattage of solar cells is decreased.
Electricity Production Procedures in Solar Power Plants
Production of electricity by solar power plants uses the PV grid connected system. It is a system
designed for producing electricity using equipment to convert direct current to alternating current directly
into transmission lines. Solar cells capture sunlight. As sunlight impacts the solar cells, electricity is
generated from these solar cells. The electricity that is generated is low-voltage direct current. Therefore, the
low-voltage direct current is passed through an inverter to convert it into low-voltage alternating current.
Next, the low-voltage alternating current is delivered to an electrical transformer in order to increase its
voltage through voltage transformation. Finally, it is supplied along transmission lines by the Provincial
Electricity Authority for distribution to consumers.
Benefits of Solar Power Plants
1. Power is generated continuously.
2. Clean energy without creating pollution.
3. Minimal maintenance with simple authomatic functions.
Limitations of Solar Power Plants
1. Solar cells have a short useful life.
2. The amount of power produced is unstable due to uncertain weather conditions.
3. Power can only be produced in the day time since sunlight is require in the production.
Waste Power Plant
“Waste” is a type of renewable energy used in the production of electricity and thermal energy. At
present, there is a large amount of waste from communities and industries in each area. Data from the
Pollution Control Department reveals that Thailand created 27.40 million tons of solid waste in 2017 and has
the potential to increase every year. Thus, the production of electricity from waste is another way to help
eliminate waste while also producing electricity. In order to raise awareness about improper waste solutions
and reduce waste pollution, the government is pushing for all sectors to manage solid waste, which is a major
environmental problem for the country, using one important measure supported by the government sector:
using waste as fuel for power production. This is done along with providing villagers and communities with
knowledge and understanding about proper environmental impact as follows:
1. Understanding is made with the people and communities in the surrounding area about the
necessity, and assurance is made with the people about operations from land procurement to technology
selection and management of solid waste burial sites as well as the benefits and setbacks for people living in
the surrounding area or people who will be affected.
2. Suitability and transparency in land procurement. Since construction of solid waste disposal sites
may affect the local people’s way of life, land suitability is the first priority. Furthermore, land procurement
should be transparent to reduce any future impacts.
3. Consistency in the provision of information and understanding to people. This process should be
carried out consistently so that the process of creating understanding with the people can achieve the desired
goals.
Electricity Production Using Thermal Processes
1. Power Production Technologies Using Incinerators
Incineration is a method of burning waste was specially designed to suit the property of waste that has
high moisture levels and varied heating values. Incineration requires good control to prevent environmental
pollution and disturbances such as toxic gasses, smoke, odors, etc. Gas created by incineration will be
disposed of in compliance with smoke and particle disposal regulations before being released into the
atmosphere. Ash left over from incineration accounts for approximately 10 percent by volume and 25-30
percent by weight of the waste that entered the incinerators. The ash will be buried or used as a road
construction material. Ash with metal components may be reused. Moreover, the thermal energy created by
the incineration of waste is used in steam, hot water or electricity production.
1.1 A moving grate incinerator is a mass burn incinerator. This system is widespread and contains
movable grates. Incineration is done on this grate. During the incineration, the grate will move and transport
waste from start to finish. With good design, the waste will be moved and combined efficiently and the air
used in the incineration can infiltrate to the surface of the waste. The grate may be separated into specific
areas which allows the amount of air to be adjusted, so waste can be incinerated freely; even waste with low
heating values can be incinerated.
1.2 A rotary kiln incinerator is a mass burn incinerator for solid waste using a cylindrical combustion
chamber that rotates on an axle. The waste moves along the walls with the rotation of the cylindrical
chamber, thereby creating an incline angle. Most rotary kiln incinerators have flame-resistant brick walls.
1.3 A fluidized bed incinerator functions by relying on the principle where solid particles are
combined with solid waste in the incinerator to form a bed (materials added into the incinerator to facilitate
continuous burning) to fuel combustion. Air is passed through the waste from the sides the waste is
suspended in the air and takes on a fluid-like state.
Incinerators are typically cylindrical in shape and mounted vertically. The bed is usually made of sand, silica,
limestone or ceramic. The incinerator has an advantage in that it can reduce the amount of hazardous
substances using the bed and is affective with high heat. It can be used with many types of fuel.
Refuse Derived Fuel (RDF)
Burning waste directly in the incineration tends to cause complications due to its inconsistency and
non-homogeneousness which make up solid waste and varies with communities and seasons. Furthermore,
these kinds of solid waste have low heating values and high ash percentage and moisture level. These all
cause problems for incinerator designers and operators and it is difficult to control the environmental impact.
Thus, solid waste is converted using various processes to improve the physical qualities and chemical
properties and turn it into solid fuel with heating value qualities, low moisture level, appropriate size and
density for transportation or incineration and consistent chemical and physical components. The refuse
derived fuel can be used more and more efficiently as fuel for energy production. RDF’s general
characteristics include the following:
- The fuel is sterilized with heat and so risks from coming into contact with pathogens are
reduced.
- It is odorless.
- The size is appropriate for feeding into incinerators-steam boilers (with a diameter of 15-30 mm
and a length of 30-150 mm).
- It is denser than the typical solid waste and biomass (450-600 kg/m3) which is suitable for
storage and transportation.
- It has the same heating value as biomass (~ 13-18 MJ/kg) and a low moisture level (~ 5-10%).
- It reduces pollution problems caused by combustion such as NOx and dioxins and carbofuran.
2. MSW Gasification
This is a process for producing gas fuel or pyrolysis/gasification. It is a process for converting waste
into gas by causing an incomplete combustion reaction-that is, the organic substances in the waste will react
to a limited amount of air or oxygen creating a biogas. In general, biogas is composed of about 50 to 70
percent of methane (CH4) and about 30 to 40 percent of carbondioxide (CO2) with the rest being other
gasses such as hydrogen (H2), oxygen (O2), hydrogen sulfide (H2S), nitrogen (N) and steam. Technically,
methane causes the fermentation of organic substances. This process can occur in landfills, manure piles and
the bottom of a stagnant well. This means that anytime organic substances ferment together for a long time,
biogas may be created and then it is ready to be incinerated so that the generated heat can be used to boil
water and produce electricity.
Benefits of Waste Power Plants
1. They are a cheap source of energy.
2. They reduce the problem of waste elimination.
Limitations of Waste Power Plants
1. Some technologies are high in cost. If the project is too small, the investment would not be
worthwhile.
2. The cost of waste elimination must be suitable before the waste is converted into energy.
3. Proper technologies are required in the management of smoke and substances caused by waste
incineration, for example, dust and smoke created by a power plant may contain heavy metals such as lead or
cadmium or waste incineration may create dioxins which are cancer causing compounds.
4. Waste power plants are usually resisted by nearby communities.
Thermal Power Plants (Industrial Waste)
The Company’s thermal power plants (industrial waste) uses a fluidized bed incineration system. This
is a system in which the air speed used in the incineration is increased enough to cause the waste to be
suspended in the air and off the bed materials in a fluid-like state. Incineration occurring while waste is in a
fluid-like state can increase efficiency, heat transfer and mass transfer. Practically speaking, a bed material
such as quartz or river sand that is about one millimeter in size is used in the incinerator. The size of solid
waste has to be reduced. The bed materials and solid waste are combined in the incinerator and incinerated
using excess air and a temperature of about 850 to 1,200 degrees Celsius. Generally, there are two main bed
types as follows:
1. A bubbling, fluidized bed is a system for incinerating solid fuel. Solid fuel is reduced to a small size
and mixed with hard materials such as sand or heavy ash. Next, the mixture is fluidized with air that is
distributed from the bottom of the combustion chamber to bring the solid fuel to melting point and blend
materials together. While combusting on the bed, the solid fuel will be incinerated to ash and drained through
the openings at the bottom of the bed.
2. The circulating fluidized bed is a fluidized bed system that circulates. It has a mechanism to
separate large solid particles or create an incomplete chemical reaction and then feed the particles back into
the process once again. The fluidized bed combustion system can be used with nearly all types of solid fuels
and has a consistent temperature throughout the interior of the incinerator. It has a stable combustion rate and
can be used well with fuels with a high moisture level. One of the significant advantages of using this system
is that it uses an inert material such as sand as a bed which is good for the blending of fuel and oxygen,
resulting in complete and quick combustion. Furthermore, the bed also stabilizes the heat preventing cooling.
The temperature inside the incinerator is not very high and so does not cause nitrogen oxide (NO2)
problems.
Fluidized Bed Electricity Production Process
The production process is composed of: 1) fuel preparation; 2) combustion system and boiler and 3)
steam turbine generator as follows:
Fuel Preparation
The size of the fuel must conform with the incinerator’s specifications to achieve complete
combustion. The size of the fuel must be small so that the conveyor belt can transport the fuel and feed it into
the combustion chamber. For this project the Company has prepared fuel for each part in a closed building.
The aforementioned fuel preparation building is next to the indoor fuel storage house to prevent sound and
dust from escaping. Thus, the fuel preparation building has been designed to have concrete walls to
completely seal the building. The fuel for feeding into the incinerator will be transported on two sets of
conveyor belts (for two types of fuel) with complete covers to prevent dust from the fuel from dispersing into
the air.
Combustion System and Boiler
The project uses a circulating fluidized bed (CFB) system which is a steam production technology
with a good process for controlling pollution before it is released into the atmosphere. A CFB incinerator
functions by relying on the principle where solid particles gather to form a bed in the incinerator and mixed
with the combustion fuel and then the mixture is suspended in the air due to the air blown in from the sides
causing fluidization. Silica, limestone or ceramic is generally used as bed material. This type of combustion
system has a plate distributor at the bottom. The plate distributor contains a number of small holes for
blowing air in to fluidize the fuel, which is similar to boiling liquid or highly efficient combustion.
A fluidized bed uses low temperature combustion. This way the creation of oxides of nitrogen is
controlled and if limestone (CaCO3) is fed into the incinerator with the fuel, sulfur can be eliminated (oxides
of sulfur (SOx) is reduced). The generated heat will be transferred to the steam boilor for steam production.
The project’s steam boilers use a combination of fuels for steam production. Fuel is fed into combustion
chamers via conveyor belts. On average, the combustion chambers have a temperature of about 850 degrees
Celsius. Next, the generated hot gas will transfer heat to the water without any of the minerals fed into the
pipes around the walls of the steam boiler, raising the water temperature until the water turns into steam. The
steam produced will be fed into the steam turbine electricity generator to produce electricity.
Steam Turbine Power Production System
Steam produced by the steam boiler will be fed into the steam turbine electricity generator which
converts steam energy into electricity. The steam produced by steam boilers is sent to spin the steam turbine
which uses the same axle as the electricity generator, causing the magnetic field inside the generator to spin
in different directions and produce electricity. The project has installed one steam turbine electricity
generator with a gross power capacity of 9.9 megawatts with 9.0 megawatts of power being distributed to the
PEA. The remaining power is used in the steam project. The used steam that has been through the steam
turbine generator will be sent through a condenser to be converted into condensate water before being
converted into steam again. Moreover, steam condensation is required in order to cool down the steam.
Fuel for the project is separated in to the following two types:
(1) Renewable fuel from sewage or non-hazardous unused materials created by the processes of
various industries, for example, plastic industry, packaging industry, rubber industry, etc. The
aforementioned sewage or unused materials may be waste from materials, production processes or
deteriorated products. This sewage or unused materials must not be hazardous or contaminated with
hazardous substances as stipulated by law. Furthermore, the waste must not be organic as this type of fuel
has a very high heating value (HHV).
(2) Renewable fuel from sewage or non-hazardous unused materials from municipal solid waste,
including plastic, wood, paper and other non-organic municipal waste that can be used as fuel. This type of
fuel has a low heating value (LHV).
Benefits
1. Many types of fuels with varying qualities can be used alone or as a combination because they
remain on the bed for a long time, allowing for complete combustion.
2. Due to the low incinerator temperature, erosion and formation of fluidized ash on heat transfer
surfaces (fouling) is reduced.
Limitations
1. The time for starting or stoping the incinerator is long.
2. The function of the feed system varies significantly with fuel property.
3. Steam erosion is high due to the clash of particles and gasses.
4. The ash management system is very large and complex.
2.2.2 Marketing and Competition
Production and distribution of electricity derived from solar energy is considered a business without
direct competition with other entrepreneurs. This is because, in the present state of electricity production and
distribution, each type of licensed entrepreneurs in the production and distribution of electricity derived from
renewable energy, whichever type, needs to be sold to the government’s electricity agencies according to the
prices and terms prescribed by the power purchase agreement, which clearly states the amount, purchase
price and time period, for which their application was submitted. Furthermore, entrepreneurs, in order to
invest in the market, must possess the qualifications stipulated by electricity agencies and the Ministry of
Energy and be evaluated in terms of technical specifications in order to be approved to enter into contracts
with related electricity agencies. Therefore, the competition in the renewable energy market is presently not
very intense. In addition, it is necessary to complete many processes that can be quite lengthy in order to
enter this business, e.g., project feasibility studies, electricity production licensing, technological
preparations and investment promotion for renewable energy production, etc.
Nevertheless, growth of the aforementioned business and support from the government sector in
several countries have contributed to the competition and growth of manufacturers of the necessary
equipment and materials for renewable energy power plants to develop more efficient technologies at
cheaper prices, causing power purchase prices to lower and methods for applying for rights to become
producers and distributors of electricity derived from renewable energy to change. One example is discount
offers on power purchase prices. This has revitalized competition by the private sector to apply for permits to
become the producer and distributor of electricity derived from renewable energy.
(a) Competitive Strategies
Electricity is classified as an essential basic consumer product in the lives of the people. However,
since electricity is not a product that can be used to drive and increase user figures in the same manner as
ordinary consumer goods. On the other hand, it is also a product that is campaigned for more conservative
usage. In addition, in operating businesses in the production and distribution of electricity to EGAT or PEA
or MEA, long-term power purchase agreements are made. Under these contracts, the volume or quantity in
addition to purchase prices are clearly stipulated for each period to provide stable income for each producer.
Hence, there is no significant competition with other private power producers. Nevertheless, however,
economic growth is a major indicator of growth in domestic electricity consumption. Therefore, the
Company has stipulated operating strategies with emphasis on producing electricity in accordance with the
terms set forth by power purchase agreements made with the PEA and has expanded the scope of investment
in compliance with the government policy campaigning for clean and environmentally-friendly energy in the
production and distribution of electricity. The competitive strategies are as follows:
1. Quality of Electricity
Emphasis is placed on regulating the quality of electricity that is produced. This means stability in
the electricity distribution system. In the Company’s electricity production, experts that possess knowledge
and capabilities in each field of electricity production are employed as producers and production supervisors
to ensure quality. Moreover, modern, computerized electricity production equipment is used. Therefore,
electricity production is effectively controlled in order to produce electricity that meets the quality
specifications stipulated by power purchase agreements.
2. Delivery of Electricity
The delivery of electricity according to the quantity and schedule stipulated by power purchase agreements is
prioritized in order to boost the company’s work confidence.
3. Production Security
High-quality, secure and highly stable electricity must be produced in accordance with the terms and
specifications stipulated in power purchase agreements.
(b) Customer Characteristics and Distribution Channels
At present, the Company’s customers consist of the PEA, MEA and EGAT. Electricity generated by
renewable energy power plants belonging to the Company is linked to the power stations of PEA and/or
MEA and/or EGAT at the location of installation of each power plant. Then the electricity that is purchased
from the Company is distributed to the public. The quantity of electricity that the Company sells to the PEA
and/or MEA and/or EGAT is measured by electrical meters located at the points of distribution, which are at
the Company’s renewable energy power plants.
As for the method for calculating fees for the electricity the Company supplies to the PEA and/or
MEA and/or EGAT each month, calculations are based on the quantity of electricity distributed to power
stations. At the end of every month, the Company’s staff and officials from the PEA and/or MEA and/or
EGAT record the figures of electricity that the Company supplies to the PEA and/or MEA and/or EGAT.
Once the figures of electricity supplied to the PEA and/or MEA and/or EGAT for a given month are verified,
the Company will use the aforementioned electricity quantities to calculate monthly purchase/sales prices
according to the agreed prices in power purchase agreements and then send invoices to the PEA and/or MEA
and/or EGAT for payment to be made to the Company for electricity fees.
(c) Industry and Competition
Thailand has a rather high power usage growth rate due to the growing agricultural and industrial
economy. The growing population has contributed to the consistently increasing number of residences and
conveniences such as department stores, tourism businesses, production of goods, etc. Various national
developments by the government sector has contributed to the increasing necessity of basic public health
system such as electricity, water, communication system and fuel. This has caused other electrical needs to
also increase in almost all aspects of economy. The height of the country’s electricity use occurred on 24
April 2018 at 13:51 pm at 34,317 MW, a 0.6 percent increase from the same time in the previous year. The
overall electricity usage was at 203,577 GWh, a 2.5 percent increase. This was partly caused by economic
expansions, especially tourism which was starting to recover. Furthermore, there were not many factors for
electricity usage due to the cool weather in the beginning of the year and out-of-season rain.
Electricity Usage
GWh 2018
(Jan - Nov)
Field
2016 2017 2018 Growth Share
(Jan - Nov) (%) YoY (%)
Households 43,932 44,374 41,560 1.2 20
Businesses 44,639 45,100 42,910 3.0 21
Industries 8,6878 87,772 80,885 0.1 40
25,634 3,0372 30,869 11.2 15
IPS 7,398 7,353 1.4 4
Others 208,481 7,878 203,577 2.5 100
Total 215,496
A large portion of electricity production in Thailand uses natural gas as fuel, followed by coal and
water. This may have an impact on electricity if problems occur with natural gas sources. Moreover, there is
a limited amount of natural gas remaining, which will be depleted within a few years, and the price will only
get higher. Furthermore, there is a potential that Myanmar will not export natural gas to Thailand due to the
need to store it for the development of the country in the past forty years. The ratio of electricity production
from oil and water are respectively lower due to limited resources and higher prices. A significant alternative
option for the provision of energy resources is renewable energy. Thailand has agricultural produce that can
be used as material for power productionas well as a potential for natural energy such as solar energy and
wind energy.
At present, changes have been made to allow the private sector to participate in the production of
electricity, creating competition in the stability of electrical energy. Fuel sources, modern technology and
higher efficiency are needed for the production of electricity in order to meet the needs of the population and
industries. Therefore, there is a campaign for renewable energy by the government sector. The Ministry of
Energy has predicted that in 2036 the final energy consumption will reach 131,000 kilotonne of oil
equivalent (ktoe).
This is done in order to meet future electricity needs and to be consistent with changing circumstances
and the country’s economic expansions and entrance into the ASEAN Economic Community (AEC) as well
as the world energy outlook, especially by neighboring countries such as Myanmar, Laos and Cambodia who
have turned their attention to the industrial sector to raise their economic status and increase their roles in the
ASEAN stage, the production of electricity in these countries not only need to meet the needs of their people,
it also has to support the industrial sector. Thus, power production in ASEAN countries must adjust and
adapt to meet the increasing demand.
Thailand has an advantage in product transportation and distribution because of the country’s location.
This creates economic opportunities for the country on the long term which is needed in order to prepare for
increased electricity demands in the future.
The Ministry of Energy has created Thailand’s Integrated Energy Blueprint (TIEB). The following
two masterplans have been made for the investment and development of power production in the country:
1. The Power Development Plan (PDP) for 2015 – 2036 was created to meet future electricity
demands so as to reflect the country’s predicted economy and infrastructure and also as a guideline in the
establishment of national energy policies. The aforementioned PDP is also used as a business plan in the
power production industry. The PDP adheres to energy stability and economic efficiency principles as well
as environment and community impact reduction principals.
Thailand’s Estimated Electricity Demands and Power Production Capacity in Accordance with the
Power Development Plan for 2015 - 2036
Megawatts
Maximum Production Capacity
Electricity
Demand
In the aforementioned estimated electricity demand, there is increased growth in the rate of electricity
demand. Therefore, the power production capacity needs to be increased to meet the demand by increasing
the ratio of renewable energy in the production of electricity to reduce reliance on fossil fuel and the import
of electricity from neighboring countries. Furthermore, there is a rise in the effort to increase the utilization
of renewable energy.
2. The main objective of the Alternative Energy Development Plan (AEDP 2015) for 2015 – 2036 is to
increase the production goals of all types of renewable energy for the purpose of reducing reliance on foreign
countries and promoting the utilization of renewable energy at the community level.
Furthermore, in 2018 the Ministry of Energy has established strategies mobilized mainly by energy
problems. The strategies focus on the sufficient and stable provision of energy to meet demands. Moreover,
there is a campaign for the investment and management of energy businesses and energy prices in order to
allow people access to reasonable prices and for the sustainable and environmentally friendly development
of energy.
Thus, the government sector has given importance to the promotion and advancement of renewable
energy utilization and the involvement of the private section in the country’s power production industry. This
lead to the expansion of related businesses. The private sector has been giving more importance to this
matter and recognizes the business benefits of increased renewable energy use. Furthermore, this is an
opportunity for the Company to expand the scope of its investments in the future which has the potential to
move forward in a good direction.
2.2.3 Procurement of Products and Services
(a) Land Procurement
The Company and/or subsidiaries select the locations of renewable energy power plants in according
to the following specifications:
· Land without legal problems, legal disputes and/or not located in a national park.
· Land located adjacent to a main road and connection points of the PEA’s and/or MEA’s
and/or EGAT’s electrical systems to cut cost and reduce wastage of electricity due to
distance in connections with the PEA’s and/or MEA’s and/or EGAT’s systems.
· Land located on high ground without history of flooding with suitable formation for solar
power plant construction.
· Not highly expensive land, as prices impact the investment return period of projects.
(b) Requesting Solar Power Plant Construction
Hold public discussion and Apply for Or. 1 and Or. 6 Apply for license to operate
assess/report environmental and construction licenses and
Ror.Ngor. 4 business license business in the production
management impacts by the
Energy Regulatory Commission of electricity and controlled
energy from the ERC.
In each request for the construction of a solar power plant project, the following procedures need to be
followed:
· Hold a public discussion and listen to problems from people living within the designated radius and
make an environmental impact/procedure report.
· Request for permission to construct the power plant from the Energy Regulatory Commission to
apply for a construction permit (Or. 1) (if any) by considering the regulations and the City
Planning Act in effect.
· Submit the construction permit (Or. 1) to apply for license to operate a factory business to the
provincial office of the Department of Industrial Works to obtain the factory business license
(Ror. Ngor. 3 and Ror. Ngor. 4).
· Submit the Ror. Ngor. 4 license to apply for license to operate business in the production of
electricity and controlled energy to the Energy Regulatory Commission.
· Once all licenses are granted, construction of the renewable energy power plant can
commence.
All renewable energy power plant projects that the Company develops and invests in properly and
strictly follows the abovementioned procedures. In the construction of every renewable energy power plant
project of the Company, all licenses are issued correctly and completely by the aforementioned agencies.
(c)Procurement of Equipment
Major Solar Power Generation Equipment
The primary equipment used in photovoltaic electricity production is solar panels and inverters.
Because equipment used in solar power plants generally have a life span of over thirty years, the Company
makes sure to select quality electricity production equipment meeting the standards set in place for solar
power plants. The following equipment is used in production:
1) Solar Cells
There are two main types of solar panel technologies used in photovoltaic solar power plants as
follows:
· Crystalline – Composed of two sub-types as follows: monocrystalline silicon solar cells and
polycrystalline silicon solar cells. This solar panel technology has been in use for over 40 years and is
accepted globally.
· Thin film – Composed of two sub-types as follows: Silicon-derived solar panels and solar
panels derived from other semiconductors such as gallium, arsenide, cadmium, telluride and copper indium
selenide, etc. This type of solar panels is cheaper than crystalline type. However, the technology is new and
the long-term effectiveness of this type of solar panels is unproven. Furthermore, it might require more panel
placement space than other technologies, and some types of thin film panels such as cadmium and telluride
also contain toxins.
Monocrystalline Silicon Polycrystalline Silicon Solar Thin Film
Solar Cell Cell
Pros - Highly efficient due to being - Cheaper than monocrystalline - Cheaper than
produced from high quality silicon solar cells due to crystalline solar cells
silicon. simple production process. due to being easier to
- More efficient at higher produce.
altitude than polycrystalline - More elasticity.
silicon solar cells and - Efficient level is still
amorphous silicon. in a good range even
in high-temperature
- Functions well even in low-
light conditions. and low-light
conditions.
Cons - More expensive compared to - Slightly less efficient than - More efficient than
polycrystalline silicon solar monocrystalline silicon solar crystalline silicon solar
cells and amorphous silicon cells. cells at lower altitude.
due to complex production - High efficiency
process.
degradation rate during
- Less efficient than the first six months of
amorphous silicon but more exposure to sunlight.
efficient than polycrystalline
silicon solar cells in high-
temperature conditions.
2) Inverters
Aside from solar panels, the inverter is an important piece of equipment for solar power plants. The
Company selects high-quality and reliable inverters with 10 years warranty. If malfunction occurs, the
manufacturer is required to complete corrections or replace any malfunctioned inverter during the warranty
period.
Electricity production in the Company’s solar power plants is regulated and operated by skilled people
with expertise in solar energy production. Experienced engineers of the Company act as operators in the
production and maintenance of machinery in order to maintain the Company’s quality and stability in
electricity production and successfully supply electricity according to the quantities and schedules stipulated
by power purchase agreements that are made with the PEA.
3) Other Materials and Equipment
As for other materials and equipment such as transformers, the Company makes careful selctions.
Transformers from long-accepted transformer manufacturers and distributors meeting TIS 384-2524
industrial standard are used. Moreover, the Company uses excellent-quality cables of various sizes to ensure
optimal use and minimal electricity wastage. Aside from electrical transformers and cables, while selecting
for other equipment that will be used in solar power plants, the Company primarily considers usage
effectiveness and reasonability.
Important Equipment in Waste Power Production
For the production process using steam produced by the incineration of waste fuel, the Company
selects equipment from accepted and popularly used technology manufacturers. Furthermore, the Company
considers the assurance, suitability with fuel types and environmental impact, etc. In the power production
process using steam from a steam boiler, steam is fed into a steam turbine electricity generator. The
generator converts energy from steam into electricity. The steam produced from the steam boiler is sent to
mobilize the steam turbine which shares an axle with an electricity generator causing the magnetic fields in
the generator to spin in different directions, producting electrical currents. Generally, steam turbine
electricity production systems require the following important equipment:
1) A steam boiler is the first equipment in the process. The steam boiler used in the project is a
watertube boiler. The boiled water that was turned into steam will enter the pipes or tubes that will receive
heat via conduction, convection and radiation from the combustion chamber into which fuel is fed from the
fuel storehouse in front of the steam boiler. The amount of fuel fed into the incinerator is controlled to be
consistent with the amount of fuel required by the steam system. Steam created by the heat from the
incinerator separates from the water and receives another round of heat until it is converted into high-
temperature dry steam before being sent into the steam turbine.
2) A steam turbine is an equipment used to convert thermal energy into mechanical energy. High
pressure steam from the steam boiler is sent into the steam turbine via pipes. The steam is injected into the
steam tubine using an injection nozzle to make the turbine spin. The spinning speed of the steam turbine can
be controlled with highly accurate equipment. A steam turbine’s driving force depends on the size and
specifications for the work required to send power into the generator.
3) A condenser is a device for receiving low pressure exhaust steam from the steam turbine. The
condenser has pipes through which cool water runs to reduce the temperature and convert steam into water
(condensation). This water is called condensate water and it is always pumped back into the feed tank of the
steam turbine to repeat the process.
4) A generator is a device for converting mechanical energy into electricity. It is an important
equipment for producing electricity to be distributed in accordance with the project’s plans.
(d) Environmental Impacts
SUPER is aware about environmental impacts. Therefore, actions have been taken to manage the
environment from the start of project operations. Environmental codes of practice (COP) are given priority in
order to implement proper protocols and operate in accordance with the international environmental
management standard ISO 14001:2004.
At present, solar power plants have been accepted by the agencies involved as having very little
environmental impact or creating no sound, heat and air pollution that will impact the country’s overall
environment. Furthermore, the Company is in the process of searching for a provider of ISO 14001:2004
system inspection and certification services after the Company announced the implementation of its
regulations in order to be consistent with the specifications of ISO 14001:2004. Moreover, the Company
expects to pass the system inspections.
2.2.4 Work Pending Delivery
-None-
2.3 Information & Communications Technology
For the Company’s business objectives in the period of rapidly changing technology, the Company has
planned activities to enhance the capabilities of Company personnel in order to prepare to provide
communication services, other services and, importantly, technical expertise to support services provided to
public and private customers that manage IT processes and basic infrastructure consistently with the digital
economy.
2.3.1 Products and Services
Open Technology Public Company Limited (“OPEN”)
Address: 223/95 Country Complex Building, Building A, 20th Floor,
Ordinance Road, Bang Na, Bang Na, Bangkok 10260, Tel.:
02-753-4291, Fax: 02-753-4289
Website: www.opentechnology.co.th
Date of Registration of Establishment: 25 September 2008.
Registered Capital: 40,000,000 baht divided into 40,000,000 shares at 1 baht per
share par value.
Paid-up Capital: 40,000,000 baht.
Business Characteristics
Open Technology Public Company Limited operates business in information and communication
technology. The company operates business with emphasis on a supportive model to ensure consistency
with the needs of each customer group, from filtering products to selecting work systems. The company is
renowned for technological product distribution through distributors or partners for the purpose of finding
the perfect technological products for the operation and business characteristics of various customer groups
such as financial institutes, industries, the public sector and state enterprises with the aim of maximizing
benefits to the organization and customers’ businesses.The company recognizes the importance of manage
services and provides personnel recruitment services for stationing at locations desired by customers
(outsourcing services) where technical engineer specialists work with the customers’ engineers as a team to
create liquidity and maximum efficiency under service-level agreement. Furthermore, the company provides
on-demand services such as computer maintenance services in case of equipment malfunction or problematic
system.
Another of OPEN’s businesses is the management and supervision of common assets for residential
buildings and office buildings as the condominium juristic manager.
Revenue Structure
The overall revenue structure of OPEN for the past three years sorted by product types and services is
as follows:
2018 2017 2016
Product Million % Million % Million %
Baht Baht Baht
Revenue from Equipment and System Development 125.02 92.37 100.21 89.76 71.36 83.74
and Maintenance Services/1 5.35 8.59 10.08
3.60 2.66 5.97
Revenue from Computer and Software Sales/2
Revenue from Real Estate Management 5.30 3.92 5.16 4.62 5.16 6.05
Other Revenue/3 1.43 1.06 0.30 0.27 0.11 0.13
Total Revenue 135.35 100.00 111.64 100.00 85.22 100.00
Remarks:
/1 The majority of revenue from service business is generated from provision of maintenance and outsourcing
services.
/2 The revenue generated from the sale of computer devices, hardware, software and peripheral devices is
recorded and perceived as revenue from computer and software sales, while revenue generated from the
installation fees of the aforementioned devices is recorded as revenue in equipment and system development
and maintenance service fees.
/3 Other Revenue is composed of received interest and other miscellaneous income.
Products and Services of OPEN
1. Information System Development and Installation (System Integration: SI)
Information system development and installation or system integration is a one-stop service business
covering system design, hardware and software procurement, system development and consultation in
appropriate computer and IT system installations aimed to meet customer needs under specified budgets.
System integration services include date storage systems, date security systems, organization networks,
Internet connection systems, etc.
OPEN is responsible for the design, installation,
software development and device connections of
systems to achieve effective work operations as
required by customers. Hardware, software and
network systems offered by the company are products
manufactured by world-leading technology
companies such as Hewlett-Packard (HP), Sun
Microsystems, Oracle, IBM, CISCO, etc.
2. Maintenance Services for Computer Equipment and IT Systems with One-Stop Outsourcing
Services (Maintenance Services and Outsourcing Services)
The company has a flexible repair and maintenance service format to respond to customer needs,
covering sending company employees to the customer’s company to correct problems for customers (on-site
or on-demand services) and manage services by sending employees to be stationed at locations required by
customers (outsourcing services) where the employees work with the customers as a team under a service-
level agreement. Furthermore, employees are assigned to respond to inquiries and solve problems by
telephone (IT help desk) and coordinate work in cases where experts are required to resolve problems, all for
the convenience and speed of service for customers.
The company has experienced, knowledgeable, competent and skilled engineers in hardware, software
and operating systems stationed at the organization to provide services and consultation services for
company customers. As the company understands the importance of maintaining service quality, the
company provides quality technical, communication and service training to the company’s employees on a
regular basis.
Formats of Maintenance Services and Outsourcing Services:
24-hour daily services without off days.
8-hour daily services covering five business days.
Assignment of employees to be stationed at locations required by customers to provide services
according to agreed formats.
3. Business Management and Consultation Services (Business Commercial)
Business management and consultation services are provided ever since the start of the company’s
business and cover, e.g., property management. Furthermore, the company receives IT management work
and IT installation consultation work, as the company is a telecommunications consultant registered with the
Consultant Database Center, Ministry of Finance.
2.3.2 Marketing and Competition
Business Strategy
In order to successfully operate an information technology business, it is necessary to build
organizational strength because the market is highly competitive, and technology changes constantly. The
company perceives and realizes the aforementioned key point. Therefore, clear business policies and
objectives are stipulated, thereby allowing the Company to continue operating businesses sustainably with
focus on its original business strategies, albeit with altered contents, procedures and guidelines to keep up
with the modern age and changes in technologies.
Business Clarity
As stated above it is necessary to build organizational strength in order to successfully operate
business, make improvements and compete effectively with competitors in the market. Hence, the company
has recently stipulated clear work plans and policies to primarily improve maintenance services and
outsourcing services. Other than providing services to external organizations, another mission is to increase
technological potentials for internal organizations for liquidity and to support changes in the digital
transfermer age.
Recruitment of Quality Personnel
Because of business management clarity, the Company is able to effectively plan activities
consistently with main policies. In order to increase potential for internal organizations and customers in the
digital transformer age, the provision of quality personnel suitable for each fuction is necessary for
maintenance and outsourcing services to achieve maximum efficiency. The company has concise policies in
place to ensure the recruitment of high-quality personnel to join the organization. Moreover, training is
provided inside and outside the organization in terms of technical skills and soft skills with regular review
and improvements on employee benefits and welfare to ensure that selected personnel have good living
quality with readiness to provide services to the point of satisfaction and increased business value for the
Company group and customers.
Quality Improvement and Service Consistency
An essential part in operating a good service business is understanding and care in the close and
consistent provision of customer services. Furthermore, it is necessary to improve service quality to increase
customer benefits by cooperating with customers in providing consultation and technical and manpower
support to develop customers’ organizations. This strategy maintains satisfaction in the Company’s services
in existing customer base. In addition, project manager engineers are assigned to provide guidance and
coordination between customers, work teams and offices to achieve flexibility and speed in providing care to
customers in each project. Additionally, a central IT help desk has been set up to provide solutions to basic
problems and coordination with agencies to facilitate speed of customer service.
Customer Retention and Expanding to New Customers
The aforementioned strategy allows the Company to strongly preserve its existing customer base while
at the same time expand service share through trust provided by current customers. In addition, during the
previous year, the Company made expansion to reach new customers on maintenance services and
outsourcing services, especially in the public sector and private organizations. This is evident in the sales
ratios for 2018 where 99.67 percent of total revenue was generated from existing customers with new
customers constituting 0.33 percent of total revenue.
Characteristics of Customers and Target Customers
The company has a large customer base in each business category. The company’s customers can be
divided into four main groups, namely, government agencies and state enterprises, private agencies and
international trade; financial, securities and insurance institutes; and independent organizations and agencies
and others.
Government agencies and state enterprises in the economic, commercial, commucation, education and
public health fields are the main customers in the Company’s business operations. There are clearly
established budgets and IT management time periods for each year, allowing for the creation of clear sales
plans and strategies. In 2018, the aforementioned customer group generated 76.50 percent of the Company’s
total revenue.
The private agencies and international trade group is composed of technology, medical service,
industry and retail, flight and automobile businesses and other. This group is a main customer group to which
the company continuously provides services. In addition, this group continues to place trust in services, and
the company’s work team work with customers in partnerships that involve regular joint planning and
discussions to obtain understanding about work characteristics and problems and achieve speed and
flexibility in project management. In 2018, the company’s revenue from the private agencies and
international trade group accounts for 17.33 percent of total revenue.
The financial, security and insurance institutes group is a customer group to which the company has
also continuously provided services. The revenue share of this group is 3.08 percent of total revenue.
The independent organizations and agencies and others group is composed of public charity
organizations and public benefit agencies located inside the country and internationally. The company
provides services to this group without profit motives with the aim of assisting the aforementioned
organizations and public agencies as a way to indirectly benefit society.
State of the Industry and Competition
No one can deny that IT systems play a key role in every organization’s
business operations with an even larger role over the past year with our
entrance into the digital transformation age. Most organizations need to
develop their entire IT system to support the significantly different forms of
business operations. In the past few years, businesses that have clearly changed
and become remarkably competitive include retail businesses, print media
businesses, financial and banking businesses, insurance businesses, transportation and logistics businesses
and medical and healthcare businesses.
In Thailand, businesses that have changed the most in this digital transformer age are retail businesses
which have transformed into e-commerce businesses, for example, online shopping via various channels
such as websites, Alibaba, Line application and Facebook, etc. In addition, the banking sector which is
clearly having to keep up with FinTech has developed mobile banking, resulting in the reduction of the
number of commercial bank branches in the country. IDC Thailand stated, “Thailand’s entrance into an
economic system mobilized by digital transformation has contributed to the growth of national investment in
the IT sector which reached 4.4 hundred billion baht in 2018 and has a growing trend with a projected 4.7
hundred billion baht of investment in 2021.”
Furthermore, IDC stated, “We are seeing a number of organizations in Thailand adapting to create and
increase their digital capabilities. Organizations are altering their work methods, developing new products
and services and changing their interaction with customers.” “Organizations in Thailand need to raise the
level of transformation and innovation even more due to the increasingly competitive nature of business in
the near future. We also believe that more and more organizations will make digital transformation their
number one concern when it comes to strategies.”
2.3.3 Corporate Social Responsibilities/CSR Work
The company is well aware that the greatest value
created to the organization does not only result from the
creation of the greatest business returns. Instead,
considerations need to be made about the livelihood of
employees and participation in society inside and outside
the organization. It is still necessary to create understanding about the importance of CSR activities in order
to instill in company employees a sense of social participation in order to create bonds inside the
organization and achieve business sustainability.
2.3.4 Work Pending Delivery
The company has product purchase-sales contracts and service contracts with customers in single-
delivery, installment and regular forms according to periods specified in contracts. As of 31 December 2018
and 2017, they value 49.40 million baht and 64.62 million baht, respectively.
3. Risk Factors
SUPER provides solar power plant operation and maintenance services for various companies in
which the Company directly or indirectly holds shares. Emphasis is placed in the monitoring of power plant
operations and maintenance of machinery and equipment to ensure that the aforementioned power plants
produce and distribute electricity at full capacity. Furthermore, the Company provides consultation about the
alternative energy business, e.g., solar energy, waste energy and wind energy. The Company has an objective
to expand business scope to cover the contract construction and operation, management and monitoring of
alternative energy power plants in the future. Furthermore, the Company operates business to produce and
distribute electricity from alternative energy power plants and related business, including information and
communications technology businesses.
3.1 Solar Power Plant Operations and Maintenance Services
3.1.1 Risks from Deterioration of Machinery and Equipment
Operations of solar power plants involve the use of main machinery and equipment such as solar
panels, inverters and electrical transformers connected in a system to generate and distribute electricity to
electricity agencies. Due to the standards of the aforementioned equipment, the aforementioned equipment
has long life spans with direct warranty from manufacturers. Nevertheless, if equipment deteriorates more
quickly than specifications or due to work activities, electricity production is naturally affected. Therefore,
they are risks that the Company must quickly correct. Furthermore, in addition to using high-quality and
accepted machinery and equipment, monitoring and maintenance of all related machinery and equipment are
necessary and essential to work to ensure that the aforementioned machinery and equipment can operate at
the highest level of effectiveness.
3.2 Renewable Energy Power Plant Business
Previously in the Company’s business operations in solar energy and waste energy electricity
production, it was necessary to encounter risk factors that could affect the Company’s performance. Even
though the renewable energy power plant business is a low-risk business, land procurement, construction and
electricity sales can all contain factors that that will be subsequently discussed. Nevertheless, the Company is
aware and gives significance to the specification of guidelines to manage potential risks by monitoring and
impact assessment in addition to the specification of the following risk prevention measures:
3.2.1 Risks from Abnormally Low Sunlight Intensity
Because investment and development of solar power plants require heavy reliance on sunlight, if
sunlight is less intense than normal or in some years, as Thailand is a nation that is heavily covered by
clouds, the Company’s solar farms might fail to generate electricity at full capacity, which can impact the
Company’s electricity sales revenue.
However, Thailand is situated near the equator. Therefore, it is exposed to high-intensity light.
Furthermore, the Company conducts light intensity studies in each area using 10-year retrospective light
intensity data from the National Aeronautics and Space Administration (NASA) in order to ensure that the
areas where the Company’s solar farms are installed will be exposed to a high level of light intensity.
3.2.2 Risks from Natural Disasters
At present, the Company’s solar farm projects that have commenced commercial operations might
be affected by natural disasters such as floods, storms, lightning strikes and other natural disasters, all of
which can damage projects and increase the construction and repair cost of solar farms as well as affect the
Company’s performance.
However, in the Company’s investment in solar power plant projects and land for the development of
solar power plants, the Company performs statistical studies on flood occurrences at places where solar
farms are to be developed in order to reduce flooding at the Company’s solar farms. Furthermore, the
foundations of the Company’s solar panels are designed for durability in accordance with engineering
standards with the capacity to withstand at least 80 kilometers per hour of wind strength. Moreover,
independent grounding cables are used between solar panels in an effort to reduce damage from lightning
strikes. In addition, the Company procures all-risk insurance for every solar farm project.
3.2.3 Risks from Premature Deterioration of Solar Panels
The volume of electricity generated by solar farms is dependent on numerous factors, one of which
that affects electricity production is the deterioration of solar panels. If solar panels deteriorate prematurely,
the amount of electricity that can be generated might be affected, leading to decreased electricity production
and reduced revenue from projections.
However, all of the Company’s solar farm projects that have commenced commercial operations are
provided warranty against solar panel deterioration by manufacturers for a period of 25 years. Moreover, the
Company obtains all-risk insurance to allow the Company to receive immediate coverage when damage
occurs.
3.2.4 Risks from Fluctuation of Foreign Currency Exchange Rates
About 60 percent of the investment budget in solar farm construction is spent in the purchase of solar
panels and inverters. Inverters are imported internationally. Therefore, payments for solar panels and
inverters need to be made in foreign currencies. Consequently, the Company might be vulnerable to risks
from fluctuation of foreign currency exchange rates. As payment due dates for solar panels and inverters
approach, solar farm investment costs might, therefore, deviate from original budgets.
Nevertheless, in the development of the Company’s solar power plants, policies have been set to
evaluate currency values and take risk prevention actions through FX forward contracts and FX options to
purchase foreign currencies in full when solar panels and inverters are recorded as Company assets.
3.2.5 5 Risks from Interest Rates
One financial source from which the Company obtains funds for investment in alternative energy
power plants is financial institutes. The Company exercises caution to appropriately management funds, as
the Company has loans taken from domestic financial institutes. These institutes specify interest rates based
on the characteristics and purposes of loans. For example, for loans for investment in solar power plants,
interest rates based on the MLR are usually used, while letters of credit and trustee seats for international
transactions generally use interest rates based on the LIBOR.
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