Thai Appliance Industry Co (THAICO) has inked a memorandum of understanding with Asiaâ€™s real estate investment holdingÂ Pacific Star (China Holdings)Â and Singapore-based energy and power firm Asiatic Group (Holding)Â to build 10 solar power plants in Thailand with an investment of 3 billion baht ($88.24 million).
The investment will be made through a joint venture firm, Thaico Energy Co Ltd, in which THAICO holds 60% and Pacific Star and Asiatic Group hold the other 40%.
Each power plant will have electricity generating capacity of 5 MW and will require investment of about 300 million baht. They will be set up in different provinces such as Nakhon Sawan, Lampang, Kanchanaburi and Prachuap Khiri Khan.
Managing director of THAICO Polsak Lertputtipinyo said that local agricultural co-operatives will be allowed to co-invest in this project by being in charge of the cost of land and property maintenance for 25 years, while the companies will be responsible for technology investment.
The electricity from plants will be sold to theÂ Provincial Electricity Authority (PEA)Â and 70 per cent of the profit will be given to the co-operatives. The project is expected to reach the break even point within 7 years.
He cited that the construction will be started once the project gets approved by theÂ Energy Regulatory Commission.
Originally from Deal Street Asia