RATCH : capacity reached 10,000 MW as a result of its strategic plan enforcement in 2nd half of 2023, moving forward with renewable projects in the Philippines & Australia, as well as carbon neutrality goal by 2050

Nonthaburi - RATCH Group Public Company Limited unveils its strategic plan to drive business growth in the second half of the year, focusing on five approaches: 1) accelerating development of pipelined projects in portfolios of Nexif RATCH Energy Investment (NREI), its 49% owned joint venture; and RATCH-Australia Corporation Limited (RAC), its Australian base subsidiary, 2) seeking investment in potential matured and emerging markets to create long-term growth 3) optimizing revenue generation of assets for sustainable growth, 4) managing under- construction projects to complete electricity production serving customers' demand on schedule, and 5) striving for achieve carbon neutrality goal in 2050. These have driven the company's continued growth in the long term, where now the company's equity capacity already increased to 10,807.35 megawatts.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group, said that, in the second half of the year and onwards, the company have put the best efforts on development of nine pipelined projects of NREI and RAC with a total equity capacity of 1,116.98 megawatts, of which four projects with combined 550 megawatt equity capacity located in the Philippines, the company's new strategic market, include two solar farms and two onshore and offshore wind farms. Also, there is a hydroelectric and wind projects in Vietnam, with combined 65.15 megawatt equity capacity, and another three projects with combined 502 megawatt equity capacity in Australia, consisting of a wind farm, a solar farm and a battery energy storage system project. Furthermore, the company have continuously explored potential investment and extended collaboration with extensive experienced strategic business partners in expanding growth in both power and non-power businesses in existing markets, namely Thailand, Lao PDR, Indonesia, Vietnam, and Australia. It considers a combination of different types of investment; greenfield, brownfield and merger and acquisition, in order to make balance of the portfolio and manage average returns at acceptable level.

This year, the company successfully established in the Philippines market with investment in under-construction 74-megawatt Calabanga solar farm project which schedules to commence the commercial operation in 2024, which 85% of the electricity production will distribute to affiliated company of AboitizPower, AP Renewables, and Aventenergy under power purchased agreement. Besides, there are investments in 150-megawatt NPSI solar project and two large- scale wind farms with around 400-450 megawatt installed capacity including a nearshore at San Miguel bay and an offshore wind projects. The NPSI solar farm, nearshore and offshore wind projects are under development and expected to complete commercially operation in 2025, 2027, and 2028 respectively. In Australia, development of 150-megawatt solar farm project is ongoing and expects commercial operation by 2025. Importantly, the company has studied to pursue investment opportunities in developed country markets focusing on renewable power projects and gas-fired power project with potential conversion to hydrogen. The company are also interesting in hydrogen fuel production project in Australia as a great potential market and a strategic location of renewables projects of the company. Consequently, it will help support our greenhouse gas reduction mission to achieve the carbon neutrality goal by 2050," said Ms. Choosri.

In addition, asset efficiency management was focused in order to sustain growth and steady income. The SPP cogeneration assets in Thailand have been given importance to increase industrial customers for reaching their electricity and steam maximum capacity. Whilst, the IPP or large-scale power plants in Thailand and abroad have been emphasized on maintaining availability efficiency to ensure timely response for dispatch order of customers as well as optimizing fuel consumption and production costs effectively. The hydroelectric power plant projects have been strictly attention to water management and monitoring climate conditions for assessing risks and managing electricity generation plan aligned with the contract. Currently, the company have 20 projects under development and construction with combined 2,933.39 megawatt equity capacity, which will gradually commence commercial operation from 2023 to 2033.

This year, the company has formulated a climate change strategy plan to be a framework for managing and reducing greenhouse gas emissions with three approaches: increasing efficiency of electricity generation to reduce the amount of greenhouse gas emissions; expanding into green or low-carbon business; and carbon offsetting/buying. Each approach has clearly defined mid-term goals in 2030: reducing GHG intensity by 15% compared to the base year 2023, increasing the renewable power generation up to 30%, and removing GHG by the forests (carbon credit) for 1% of total emissions. The action plan has been moving forward to achieve the said target.

Aside, the Board of Directors' Meeting No. 9/2566 B.E. held on August 18, 2023, approved the interim dividend payment for the first six-month operating results (1 January-30 June 2023) at the amount of 1,740 million baht, or 0.80 baht per share. The record date schedules on 4 September 2023, and dividend payment will be made on 15 September 2023.