Gunkul Engineering intends to invest nearly THB10bn ($296.9m) this year, most of which will be spent to increase its green energy portfolio in Thailand and abroad.
Gunkul Engineering Business Development assistant managing director Phongsakorn Damnoen was cited by Reuters as saying that the company will spend approximately THB4bn ($118.5m) on solar power facilities and THB5bn ($148.1m) on wind energy.
The Thailand-based firm is a supplier for electrical equipment, which expanded its business to the renewable power sector, following the military government’s announcement to purchase additional solar power from small producers.
The firm expects 12% returns from its solar portfolio and 16-17% from wind power, on an average.
Phongsakorn said: "Solar has the lowest risk."
Gunkul expects its revenue for the year to cross the THB5.2bn ($154m) threshold, an increase of more than 50%.
By the end of the year, the firm aims to have a power capacity of 134MW, up from its present capacity of 29MW.
The company has received contracts to develop 95MW solar facilities, out of which it will only have stakes in 80MW. It is also in talks with small power producers for construction of solar farms in the country, which will add 93MW to its capacity.
More than THB10bn ($296.3m) has been planned for two wind power developments in 2016, by Gunkul. The facilities totalling 120MW will be able to increase the company’s capacity to 254MW by year-end.
By 2017, the firm’s capacity is expected to increase to 382MW.
Gunkul is responsible for a 25MW gas-fired energy facility in Myanmar, which has been scheduled to be commissioned within the year. It also has plans to enhance its solar portfolio in Japan with a 78MW development, which is likely to start commercial operations in mid-2017.