Global Power Synergy Public Company Limited (SET: GPSC) announced that the Board of Directors Meeting No. 8/2023 on June 27, 2023, resolved to approve an inclusion of battery energy storage system (BESS) to a business operation and a capital increase in Avaada Energy Private Limited (“AEPL”) amounted to 42.93 percent stake in accordance with its shareholding. The investment in AEPL will be made through Global Renewable Synergy Company Limited (“GRSC”), which is a wholly owned subsidiary of GPSC. Total investment value is approximately INR 19,167 million or equivalent to about THB 8,625 million. Furthermore, the capital injection schedule is subject to potential development, with the first batch amounting to INR 8,649 million, approximately THB 3,892 million, scheduled for July 2023.
This investment in AEPL is aimed at expanding renewable energy plants and capturing other related future business opportunities including integrated energy production. It is an integral part of AEPL’s growth target of 11 GW by 2026. The investment decision aligns with the anticipated growth in demand for renewable energy in India, which is supported by the Indian government’s policy and its target to achieve up to 500 GW of renewable energy capacity by 2030. During Q2/2023, AEPL has consistently increased its total capacity and successfully secured the bidding for 6 solar power plant projects, adding a total contracted capacity of 1,793 MW, increasing AEPL’s total contracted capacity up to 6,720 MW.
Furthermore, the investment in AEPL is in line with GPSC’s growth strategy, which aims to increase the proportion of renewable energy in its total portfolio to more than 50% by 2030. The strategy focuses on renewable energy business internationally and is facilitated through international strategic partnership, allowing the company to leverage its expertise in renewable energy business.