“One Sun One World One Grid” and “World Solar Bank” are concepts by the Indian government to harness abundant solar power on a global scale.
The Government of India has set a target of installing 175 GW of renewable energy capacity by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. Solar power in India is a fast developing industry.
As of March 31, 2021, India has established nearly 42 solar parks with a total installed capacity of 40 GW.
Judging from the progress in establishing solar parks and commercialization to reach the target by 2022, the achievement might be quite difficult.
One of the challenges is that the land price is costly for acquisition in India in which the dedication of land for the installation of solar arrays must compete with other needs. Meanwhile, the Covid-19 situation in the country, although slowed down from its peak and declining, is still a worrisome problem that could cause delay in the general process.
Thus, seeking for international funds to help investing in its renewable projects could have helped India achieve its target of 175 GW faster.
This gives an opportunity for a renowned power producer in Thailand, Global Power Synergy Public Company Limited (GPSC), according to the source, to acquire a solar farm project with a proportion to its shareholder equity ratio in a production capacity of 1,600-1,700 MW in a joint venture with Indian partner, under its subsidiary, Global Renewable Synergy Company Limited (GRSC) with an objection of investing in overseas renewable energy business.
The deal is expected to be completed by the third quarter of 2021.
Nevertheless, the current installed capacity in India is still far from the 2022 target of 175 GW, giving more opportunity for GPSC, a power flagship of Thailand’s oil and gas behemoth PTT Group, to acquire one after another project in India.
In the meantime, Taiwan is also aiming to become a leader in the energy transition, both in Asia and globally with a target of 15 GW offshore wind farm by 2035.
This led to another acquisition by GPSC as the source reported that the company was also aiming to sign a deal for a wind farm project in Taiwan with a production capacity of 200-500 MW. The deal is expected to be completed in the first quarter next year.
As for the investment funds, GPSC’s Board of Directors at the meeting held on June16, 2021 approved to enter into the long-term loan agreement between the company and/or GPSC Treasury Center Company Limited (GPSC TC) and PTT Public Company Limited (PTT) and/or PTT Treasury Center Company Limited (PTT TCC) in the amount not exceeding 20,000 million baht. The objective is to support the investment in renewable energy abroad.
GPSC plans to invest in wind farms, solar farms and natural gas in Taiwan, Vietnam, Myanmar and India. The company currently has a total installed production capacity of 5,055 MW with a proportion of renewable energy of 12% or approximately 606.60 MW. The company expects to ramp up the proportion to 30% within 5 years and push it to 8,000 MW within 10 years.