Electricity Generating Public Company Limited or EGCO Group has announced its 2025 business plan, featuring a 30-billion-baht investment aimed at expanding its power and energy-related businesses both domestically and internationally. This investment is expected to drive rapid growth in both revenue and profit. Central to the plan is the "Triple P" strategy, with a particular focus on efficient portfolio management through asset recycling policy. This approach will help EGCO Group identify new investment opportunities that generate higher value and support long-term growth. Key areas of focus will include investments in natural gas-fired and renewable energy power plants, particularly in regions where the company already operates and has established partnerships. The US will be a key market for investment, while domestic projects will also continue to progress.
Dr. Jiraporn Sirikum, President of EGCO Group, said that several factors are impacting the energy industry this year. These include the energy transition, climate change, the policies of the new US President, which may slow global and Thai economic growth, and the escalating trade barriers. These factors have led analysts to predict that the global economy in 2025 will grow at a modest rate. However, President Trump's policy to increase domestic production of natural gas and oil is expected to supply the market with more resources, positively impacting global fuel prices by lowering them. Additionally, the National Economic and Social Development Council (NESDC) projected the Thai economy to grow by 2.3-3.3% in 2025, which is slightly better than the previous year. Given these challenges and opportunities, EGCO Group has adjusted its business direction and strategy for the three-year period (2025-2027), with the primary goal of continuously increasing revenue and profit. The company has been restructured in all dimensions to support sustainable growth in the future, with the "Triple P" strategy, which includes:
- Profitability and Performance Energizing: Continuously increasing revenue and profit generation capabilities while maintaining financial stability to manage debt to EBITDA ratios and preserve company credit ratings, as well as prioritizing shareholder returns through consistent dividend payment policy.
- Power and Energy-related Focus: EGCO Group will prioritize investments in the power sector as its core business. This will include natural gas-fired power plants, which are crucial for energy security during the energy transition, as well as renewable energy plants, with an aim to achieve Net Zero carbon emissions. The company will explore both mergers and acquisitions (M&A) and greenfield investments. The strategy also involves seeking energy-related business opportunities. The company's business expansion focuses on the eight countries it already operates in throughout Asia Pacific and North America, especially in the US and Thailand, with an annual investment budget of 30 billion baht.
- Portfolio and People Management: To optimize its portfolio, EGCO Group will focus on asset recycling to generate additional income, enabling value-added investments and long-term growth. The company will also emphasize operational excellence, leveraging digital technology to support organizational restructuring and enhance employees' skills to support future growth opportunities. As part of this strategy, EGCO Group sold the RISEC natural gas-fired power plant in the US and the Boco Rock wind farm in Australia - worth a combined 7 billion baht in January 2025. The proceeds from these sales will be reinvested in new projects with higher growth potential.
In 2025, the progress of the operating plan and investment projects, both in Thailand and overseas, which are key factors supporting income and profit growth, are as follows:
- Full-year income recognition from the commercial operations of the 74-megawatt EGCO Cogeneration SPP Replacement power plant in Rayong.
- Full-year income recognition from the acquisition of the 1,304-megawatt Compass Portfolio in the USA.
- Full-year income recognition for the first time after the 640-megawatt Yunlin offshore wind farm in Taiwan has fully transmitted power to the grid.
- Revenue recognition from renewable energy project sales and gradual commercial operations of APEX in the USA, with six projects under construction totaling 841 megawatts.
- Ongoing negotiations for a new power supply agreement (PSA) for the Quezon power plant in the Philippines with a total power capacity of 400 megawatts (after the end of the current power purchase agreement with Meralco in May 2025). The new PSA is expected to be signed within Q2/2025.
- EGCO Group is ready to invest in the development of domestic renewable power plants under the second-round bidding of the RE Biglot Feed-in Tariff for 2023-2030, in the "no fuel cost" category, specifically for ground-mounted solar farms. EGCO Group has already been selected for 11 projects, totaling 448 megawatts.
- For overseas renewable power plant investment, EGCO Group has invested through APEX, a developer of large-scale renewable energy projects in the US. This flagship project will drive EGCO Group toward achieving its goal of increasing RE up to 30% by 2030. APEX plans to develop over 56,000 megawatts of RE capacity, with approximately 2,000 megawatts already developed. In addition, it has attracted the interest of investors from various countries, including Thailand, which is also looking to increase RE in its portfolio.
- For new investment opportunities, EGCO Group is negotiating mergers and acquisitions (M&A) for 4-5 projects, totaling over 1,000 megawatts, to achieve immediate income recognition. These projects include both natural gas-fired and renewable power plants in countries where EGCO Group operates or has partnerships. The negotiations are expected to be finalized and concluded by Q2/2025.
- Energy-related businesses: The infrastructure and utility business group operated by PT Chandra Daya Investasi (CDI) in Indonesia has made significant progress. CDI is currently building a 32-megawatt floating solar farm in a water reservoir for a comprehensive water production and treatment business, which is scheduled for completion and commercial operation by 2027. Additionally, CDI plans to expand its logistics business to support the petrochemicals business growth by acquiring more vessels for oil, petrochemical and natural gas transport.
"EGCO Group believes that our "Triple P" strategy will steer the company toward sustainable profitability resulting in the company's sustainable growth in all aspects. It will enable us to achieve a balance between business opportunities, operational excellence, and the ability to reach our goal of achieving Net Zero carbon emissions. Considering EGCO Group's expertise in the power industry and project management in Thailand and overseas, our strong strategic partners with extensive experience, and our in-depth understanding of the areas where projects are developed, we believe these factors will enhance our competitiveness and continuously drive income growth. Moreover, EGCO Group places importance in shareholders as they are crucial to our business operations through consistent dividend payment policy," said Dr. Jiraporn.