As part of its continuing effort to seek out further investment opportunities in the power business, GPSC’s subsidiary, GRSC, has completed the acquisition of shares in Avaada Energy Private Limited (Avaada), one of the leading renewable energy companies in India, buying 41.6% shares of an approximately 3,744 MW (megawatt) solar power portfolio. The deal expands our renewable energy portfolio according to the renewable energy target of 8,000 MW in 2030 of the group.
Today (13 July 2021) that Global Renewable Synergy Company Limited (GRSC), GPSC’s wholly-owned subsidiary, has completed the acquisition of the shares in Avaada, India’s leading developer of renewable energy projects, with a total investment of approximately 14,825 million baht, accounting for 41.6% of the total capital. Avaada’s current committed capacity is approximately 3,744 MW, of which about 1,392 MW are from operating plants and approximately 2,352 MW from under-construction plants, which will gradually begin commercial operations between 2021 and 2022. In addition, Avaada aims to expand the renewable energy business up to 11,000 MW by 2025. Furthermore, the company can start performance recognition immediately.
Mr. Auttapol Rerkpiboon, President and Chief Executive Officer of PTT Public Company Limited (PTT) said that this partnership has shown PTT Group’s commitment to sustainable business in line with the energy transition trend towards Net Zero Carbon Emissions. This investment in India will support the policy of the country that encourages investment in renewable energy in many forms.
The expansion of investment in renewable energy totaling 3,744 MW of this project, at full capacity, will help avoiding the emission of greenhouse gas by around 4.3 million tons carbon dioxide equivalent per year compared with the greenhouse gas emissions from current electricity generation in India. In addition, the joint venture between GRSC and Avaada Group is a significant business move, as it will expand PTT Group’s renewable energy capacity to 8,000 MW by 2030, allowing us to accelerate on the road of clean energy for low-carbon society and leading to the development of sustainable energy together.
Mr. Worawat Pitayasiri, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC (the innovative power flagship of PTT Group), revealed that the partnership is a significant business move in accordance with the Company's growth strategy as the power flagship of PTT Group and will raise GPSC’s renewable energy capacity to 2,145 MW or 32% of the total capacity of 6,613 MW. This will increase together with Avaada’s target of expanding capacity to 11,000 MW in 2025.
The deal is in line with GPSC’s strategic plan to increase its renewable energy capacity both domestically and internationally and the group recognizes the investment potential of a partnership with Avaada, which aims to expand its renewable energy business to keep up with the growing demand for electricity in India, a country with a population of over 1.3 billion. In addition, the Indian government is actively promoting clean energy and is targeting 450 GW (gigawatt) of installed renewable energy capacity from the current capacity of 73 GW by 2030. Therefore, with its advanced technological research and development, India offers tremendous potential and an excellent opportunity for the group to expand its investment portfolio.
GPSC recognizes the importance of the development of renewable energy, a crucial turning point in global energy development where environmental sustainability is of high priority. There is also an increasing number of renewable projects worldwide including Thailand, which is targeting net-zero carbon emissions. The group’s investment in Avaada not only plays a role in creating environmentally friendly energy security for the country but also helps maintain its competitive edge that will lead to sustainable energy development.