SPCG Nakthon Ratchasima & Loei Solar Plants

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Thailand-based solar developer Solar Power Company (SPC) was financed to build, own and operate two solar pv projects of 6 MW in the Nakthon Ratchasima and Loei regions. The project developer was a subsidiary of SPCG Public Company Limited, an entity partially owned by the IFC, with a 15% equity stake in the company. The generated electricity was to be sold to the state-owned Provincial Electrical Authority (PEA). Power Purchase Agreements for all eight projects in the portfolio were signed under Thailand’s ‘Very Small Power Producer’ program. The power sales tariffs for all projects lock in the premium price of US$ 0.26/kWh. Total cost for the two projects was estimated at THB 890 million, or USD 28.8 million. Of the total, KasinBank provided USD 6.8 million, BAY and Thanachart Bank provided USD 5.2 million, while IFC lent USD 8 million and The World Bank Clean Technology Fund USD 4 million. Commissioning for the projects was scheduled for 2012. The projects by SPCG held a PPA with the Provincial Electricity Authority (PEA), for 5 years - open ended. The PPA provided for a feed-in adder of THB 8.0 on top of the base tariff for 10 years after commissioning. The projects receive tax benefits of 0% for the first 8 years, and half of normal tax rate for the 5 year following. In May 2012, it was reported that the firm started construction on 4 solar plants of 7.46MW each (29.9MW) which were commissioned in August 2012, holding a PPA with PEA, including a 10 year adder tariff of THB 8 ($0.26) per kWh. Total cost of these projects were unknown, but ESTIMATED here at US$84 million, of which 28.8 million was already accounted for. The reported D/E ratio of Loei 1 was 70/30. http://origin-www.bloomberg.com/apps/news?pid=conewsstory&tkr=TCAP:TB&sid=aUv7rJAW7wug http://origin-www.bloomberg.com/apps/news?pid=conewsstory&tkr=TCAP:TB&sid=aUv7rJAW7wug