GPSC shows progress on solar farm construction in Japan, confidence on operation schedule by late 2017.

GPSC executives were confident that the Ichinoseki Solar Power 1 GK project in Japan would move forward as planned, with the commercial operation date (COD) by the end of 2017.

Dr. Toemchai Bunnag, CEO of Global Power Synergy Public Company Limited or GPSC, an electricity and utility producer flagship of PTT Group, said GPSC executives traveled to Japan last week to follow up on the construction of the solar farm project, which was located in Ichinoseki City, Iwate Prefecture, the north of Honshu island, Japan. The project is an investment of Ichinoseki Solar Power 1 GK, or ISP1, in which GPSC holds 99% of shares. The visit is part of the company’s actions to follow up the project’s construction, with COD expected to be within the fourth quarter of 2017.

“During the visit to the ISP1 project, GPSC were also honored to welcome H.E. Ambassador Bansarn Bunnag, Thai ambassador to Japan as our guest of honor to visit ISP1 together with our executives. The construction had progressed quite well with over 56% of the site preparation work. We were much confident that the project would be able to start the COD within the fourth quarter of 2017. Moreover we had a meeting with Mayor of Ichinoseki to report the project progress in order to build trust and mutual relationship for our further projects” said Dr. Toemchai.

This project is GPSC’s first investment in a solar farm according to its strategic growth plan as of a flagship of PTT Group, outside Thailand and the ASEAN Economic Community or AEC. The project is also in line with the Japanese government’s policy to promote the private sector in conducting alternative energy operations, especially in

solar power, in order to replace the nuclear power plant in Fukushima which was stopped the operation following the tsunami in 2011. Meanwhile, the electricity demand has still continuously risen and the company expects to seek further investment opportunities.

The ISP1 project is a 3.15 billion Baht investment with a production capacity of 20.8 megawatts on 560 rais of land. GPSC holds 99% of the shares. ISP1 has signed a 20 year power purchase agreement with Tohoku Electric Power, a Japanese utility company at the FiT (Feed in Tariff) rate of 40 Yen per unit (after taxes).