BANGKOK -- Global Power Synergy Public Company (GPSC), the power-generation arm of Thai oil and gas conglomerate PTT, has purchased a 41.6% stake in Indian renewable power producer Avaada Energy for 14.8 billion baht ($453 million).
Auttapol Rerkpiboon, PTT's president and CEO, said the acquisition will give PTT additional renewable generating capacity of 3,744 megawatts. "The deal expands our renewable energy portfolio, according to the renewable energy target of 8,000 MW in 2030 [for] the group," Auttapol said in a statement late Tuesday, adding that PTT has a current renewable power capacity of 2,145 MW.
"This investment in India will support the policy of the country, which encourages investment in renewable energy in many forms," Auttapol said.
For oil and gas giant PTT, expanding its renewable energy business is an urgent task. Facing increasing pressure from investors, it needed to take the sort of significant action epitomized by the Avaada deal.
Of PTT's additional renewable energy capacity in India of 3,744 MW, around 1,392 MW comes from plants currently online, while some 2,352 MW comes from solar farms under construction that are scheduled to go online by 2022.
This acquisition will help PTT reduce its emissions of greenhouse gas by around 4.3 million tons of carbon dioxide equivalent per year. In addition, Avaada aims to increase its renewable energy business to 11,000 MW by 2025.
The deal marks a key step in PTT's expansion of its renewable generating capacity in India, a country whose more than 1.3 billion people have a huge and growing appetite for power.
In March 2019, GPSC bought a 69.11% stake in Glow Energy, another Thai energy company, for 93 billion baht, giving PTT a total generating capacity of 4,726 MW.
PTT has been steadily expanding its power generation business in Thailand, but many analysts have pointed out that it urgently needs to develop overseas markets.