Osaka Gas Singapore Pte Ltd (a wholly-owned subsidiary of Osaka Gas Co Ltd) and Energy Pro Corporation Ltd (a Thailand-based solar power producer) announced July 3, 2019, that they have agreed to establish a joint venture (JV) for a solar electricity supply business in Thailand.
The new company, "OE Solar (tentative name)," will run a solar power generation (PV) business using a "third-party ownership model" (PPA (power purchase agreement) model) mainly in Bangkok. They will set up PV facilities by renting the roofs of buildings and empty spaces owned by industrial and commercial customers and sell electricity generated to customers for 15 to 20 years.
The investment ratios of Energy Pro and Osaka Gas Singapore are 51% and 49%, respectively (their investment amounts have not been disclosed). Energy Pro President Masahiko Nakagawa will also become the president of the JV. The JV is scheduled to be established July 31, 2019, aiming to install 50MW of facilities in three years.
The government of Thailand expects to increase the ratio of renewable energy-based electricity to all the electricity generated in the country to 20% (excluding imported hydroelectric power) by 2037, according to the power development plan that it made in 2018. Thailand has good sunshine conditions and is suited for the introduction of PV facilities. So, the needs for such services are expected to grow in the future.
According to Osaka Gas, this is the first time that the company has participated in a renewable energy-related project in Southeast Asia. The Osaka Gas group plans to secure about 1,000,000kW of renewable energy-based power sources by about 2030, and the establishment of the JV is part of its efforts toward that goal.