Banpu Power, the power generation arm of energy conglomerate Banpu Group, is making strategic moves to expand its presence in the United States by acquiring new power plants. The company is targeting power plants with combined-cycle technology, which use both gas and steam turbines to generate electricity efficiently. These plants are also preferred to have low levels of carbon dioxide emissions, aligning with Banpu Power’s commitment to sustainable energy practices.
In order to tap into the growing energy demand in the US, Banpu Power is in talks with several power plant owners who are ready to supply electricity to customers in the merchant market. This market allows for free trade of electricity between buyers and sellers, as opposed to supplying electricity to the government under power purchase agreements. Key merchant markets in the US include the Electric Reliability Council of Texas Corporation and PJM Interconnection, covering states like Pennsylvania, New Jersey, and Maryland.
Banpu Power’s CEO, Issara Niropas, shared that the company aims to increase its power generation capacity in the US to 2.4 gigawatts by 2050, up from 1.2 gigawatts in 2022. To support this growth, the company has allocated a budget of US$500-700 million between 2024 and 2026, with a focus on acquiring power plants with combined-cycle technology. Additionally, Banpu Power is exploring investments in renewable power, energy storage systems, carbon capture technology, and alternative fuels like hydrogen.
The renewable energy sector in the US has been experiencing significant growth, driven by declining costs, state subsidies, and an increase in battery installations. Banpu Power sees this as an opportunity to diversify its energy portfolio and contribute to the transition towards cleaner energy sources. The company’s strong financial position, with a debt-to-equity ratio of 0.5 times, enables it to raise funds for expansion and investment in the US market.
In recent years, Banpu Power has made strategic acquisitions in the US, including the purchase of the Temple II gas-fired power plant in Texas for 16 billion baht. This acquisition followed the earlier purchase of the Temple I power plant in Texas in August 2021. Both facilities utilize combined-cycle technology, aligning with Banpu Power’s focus on efficient and low-emission power generation.
Furthermore, Banpu Power’s gas production arm, BKV Barnet, ventured into renewable energy by developing a 2.5-megawatt solar farm in Denton County, Texas. This project represents the company’s commitment to diversifying its energy sources and integrating renewable power generation into its portfolio. The solar farm has recently commenced operations, marking a milestone in Banpu Power’s renewable energy endeavors.
As Banpu Power continues to expand its presence in the US energy market, the company remains committed to sustainable practices and innovation in power generation. By investing in a mix of conventional and renewable energy assets, Banpu Power aims to meet the growing energy demand in the US while contributing to a cleaner and more sustainable energy future.
Overall, Banpu Power’s strategic acquisitions and investments in the US reflect its commitment to growth, innovation, and sustainability in the energy sector. With a focus on efficient power generation technologies and renewable energy projects, the company is poised to make a significant impact on the US energy market and contribute to the transition towards a more sustainable energy landscape.