Thai Demco eyes 770 MW of wind, solar project orders - report

Aug 13, 2014 - Thai construction services provider Demco Pcl (BKK:DEMCO) is aiming to secure up to 690 MW of wind farm construction contracts and some 80 MW of solar project orders as part of its diversification into green energy.

Managing director Phongsak Siricupta was cited by the Bangkok Post as saying that it is very likely his company would be the one to build all 930 MW of wind farms planned by Thai developer Wind Energy Holding (WEH). Demco has already constructed the first two parks in the portfolio, with a combined capacity of 180 MW, and will commence work on a third 60-MW project in the current quarter.

The whole 930-MW wind portfolio is to be completed in 2018. Demco has 4% stakes in the first two parks, 10% in the third and is willing to make investments the next projects, its head mentioned.

As for solar energy, Thailand aims to have 3,000 MW by 2021, including 1,400 MW from large solar farms, 800 MW from solar rooftops and 800 MW from community solar systems. Siricupta said, as cited by the daily, that Demco expects the new government to start with 800 MW of projects nationwide. The company targets a 10% share in the construction orders for these solar projects, while the rest will be won by “the big players”.

The Bangkok Post said that Demco is expected a significant jump in revenue next year thanks to the construction of clean energy projects for the private sector. In 2013, the company booked revenues of THB 5.23 billion (USD 164m/EUR 122m) and a net profit of THB 357 million.

(THB 10 = USD 0.313/EUR 0.234)

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