EGCO Pushes for Expansion in US with Potential to Develop 60,000MW of Clean Projects

Electricity Generating Public Company Limited (SET: EGCO) emphasized its strategic plans to focus on international expansion, especially in the U.S. that sees high growth potential. Meanwhile, the recent agreement for the acquisition of Compass Portfolio is expected to complete by the year’s end at the earliest.

Mr. Thepparat Theppitak, EGCO President, spoke at “Kaohoon Jor Talad Program” on Monday, stating that EGCO is now operating in eight different countries including Thailand, the Philippines, Laos, Australia, Indonesia, Taiwan, South Korea and United States of America for its latest investment.

The president stated that the company continues to look for investable projects, but it has been focusing more on the U.S. market, seeing high demand for electricity and upside opportunity for its business.

One of the notable investments for EGCO is in the Apex Portfolio, which is a mega developer in the U.S., running by Apex Clean Energy Holdings LLC. The Thai-listed power generator company purchased 17.4% indirect shareholding in Apex in 2021. The whole project has nearly 60,000 MW of clean energy under development from 243 projects across the U.S.

The president added that EGCO has turned into not just an electricity seller, but also a power plant seller as well. Projects developed under Apex will be constructed by the company and after the commercial of date, it will attract fund managers, investors or potential buyers to purchase stake in these clean power plants. The funding from selling power plants will be used to develop more projects in its pipeline.

In addition, the president noted that EGCO did not shy away from Asean markets and the company is currently discussing deals with potential partners to expand its portfolio further.

Moreover, EGCO planned to introduce “Functional Currency,” a financial tool that could lower the volatility of foreign exchange when shown in its balance sheet. This could help its bottom line reflecting a more precise outlook on its performance, starting next year.