GUNKUL Signs a PPA with CJ for the Combined of 18MW Solar Rooftop Projects

GUNKUL Signs a PPA with CJ for the Combined of 18MW Solar Rooftop Projects

Chief Executive Officer of Gunkul Engineering Public Company Limited (GUNKUL), Miss Sopacha Dhumrongpiyawut, revealed that the company has signed a Power Purchase Agreement (PPA) with C.J. Express Group Co.,Ltd. (CJ) for the solar system on the roof of all CJ’s stores and branches. Regarding the scope of work, GUNKUL will invest in the design, installation, management and other related structures of a solar panel system, with a total capacity of 18MW.


GUNKUL will generate electricity to CJ for a period of 15 years, expecting the construction to complete by this year.


Miss Sopacha stated that the company targeted a 15% growth for this year’s earnings ahead of a full-year recognition from a combined COD of 200MW, consisting of 160MW from solar farms in Vietnam and Malaysia, and solar rooftop projects.


GUNKUL expected a total capacity to reach 1,000MW within 2021-2023, an increase of 300-400MW from the current 600MW, which will come from the M&A of 30-50MW wind farms and solar farms in Vietnam. At present, GUNKUL is under discussion with several business alliances. GUNKUL has also planned to expand its investment in private PPA, estimating an additional 30-50MW per annum to its power portfolio.    


For the actual EPC business, there are about 8,000 million baht of backlog, however, expecting to increase to 9,000 million baht once the agreement with Provincial Electricity Authority (PEA) is done, which aims to get some clarity in 1Q21.GUNKUL will book the revenues from this year onwards. 


She added GUNKUL has budgeted approx. 5,000-7,000 million baht for the 2021 investment, which mainly focus on power business, then EPC, PPA and M&A.