Bangkok Post - Egco offloads stake in US power plant

Thai firm to focus on clean energy in US

PUBLISHED : 25 Oct 2024 at 06:03

NEWSPAPER SECTION: Business

WRITER: Yuthana Praiwan

SET-listed Electricity Generating (Egco), a power generation arm of the Electricity Generating Authority of Thailand, has decided to adjust its investment in the US by selling the company's entire 49% stake in RISEC Holding, the operator of a Rhode Island-based combined cycle power plant.

The shares were sold by Egco's wholly-owned Egco RISEC II to Shell Energy North America.

"This divestment aligns with our portfolio management strategy, allowing us to utilise the proceeds from the transaction for reinvestment designed to support our long-term growth and strategic objectives," said Jiraporn Sirikum, president of Egco.

The share sale transaction, which was approved by Egco's board of directors, is expected to be completed in the first quarter of 2025.

RISEC Holding owns the Rhode Island State Energy Centre, which runs a 609-megawatt combined cycle power plant in the town of Johnston.

The power plant uses both heat and natural gas in its power generation production process.

This facility operates within the New England Power market, also known as "ISO-NE", with 100% of its capacity and black start ancillary services contracted to ISO-NE.

Egco acquired its 49% stake from Carlyle Group in November 2022.

Carlyle Group is a Washington, DC-based firm which operates in private equity, alternative asset management and financial services.

Like Egco, Carlyle also decided to divest its remaining 51% ownership in RISEC by selling all its shares to Shell Energy North America through its subsidiaries -- Cogentrix RISEC CPOCP Holdings and Cogentrix RISEC CPP II Holdings.

Egco is focusing on its investment in US-based Apex Clean Energy Holdings, believing the investment will increase Egco's renewable power proportion to 30% by 2030 as it seeks to promote clean energy.

Renewable power comprises 21% of almost 7 gigawatts of electricity generated by Egco's power plants globally, both in operation and under construction.

Apex is carrying out all renewable energy projects under a hybrid business model. The company is not only developing the projects to increase its power generation capacity, but it is also selling some completely developed projects to other investors.

Egco acquired a 17.4% share in Apex in 2021.