BGRIM’s Strategic Moves: Solar, Wind, and Gas Insights
BGRIM, led by Mr. Harald Link, the Chief Executive Officer of BGRIM Group, has made significant strides in 2024, showcasing continuous growth and strategic investments. The company’s net profit from operations (NOP) in 2024 reached 2,227 million baht, representing a 5.8% increase, while EBITDA stood at 14,987 million baht, a 4.3% rise compared to the previous year. This growth can be attributed to several key factors, including a 10.8% increase in electricity sales to the Electricity Generating Authority of Thailand (EGAT) and the completion of three Small Power Producer (SPP) power plant projects totaling 420 megawatts.
Renewable Energy Investments and Expansions
Expanding its commitment to sustainable energy, B. Grim Power has invested in renewable energy projects totaling 1,345 megawatts. In line with this focus, BGRIM is actively involved in various solar and wind projects. For instance, the Kopos wind power plant project in Thailand accounts for 20 megawatts, while the U-Tapao solar power plant adds another 18 megawatts. The Intrey Brim solar power plant in Thailand is set to generate 80 megawatts, and the solar project installed on the roof of Jong Cho Rubber in Amata City Industrial Estate, Rayong Province, contributes 35 megawatts. Global reach is evident with a 27.5 megawatt project installed on the roof of a facility in the United Arab Emirates, the Kingdom of Saudi Arabia, and the Kingdom of Bahrain.
| Project Name | Location | Capacity (MW) | Technologies |
|---|---|---|---|
| Kopos Wind Power Plant | Thailand | 20 | Wind |
| U-Tapao Solar Power Plant | Thailand | 18 | Solar |
| Intrey Brim Solar Power Plant | Thailand | 80 | Solar |
| Jong Cho Rubber Rooftop Solar | Rayong, Thailand | 35 | Solar |
| 386 Rooftop Solar | UAE, Saudi Arabia, Bahrain | 27.5 | Solar |
| Areco Solar Power Plant | Republic of the Philippines | 65 | Solar |
Notice the diversity in project locations and the dominant role of solar energy, with 186.5 MW of solar projects compared to just 20 MW of wind power. This approach underscores BGRIM’s strategy of leveraging both mature and emerging technologies.
Natural Gas and Industrial Customer Growth
BGRIM has strategically managed its natural gas procurement, with plans to import no more than five Liquefied Natural Gas (LNG) ships. This cautious approach, coupled with the 14.2% decrease in the average price of natural gas, has positively impacted BGRIM’s operational costs.
The company’s industrial customer base has also expanded considerably. The amount of electricity sold to industrial customers (IUS) in Vietnam grew by 6.4%, and Thailand’s steam sales rose by 19.1%. For 2025, BGRIM aims to add new IUS customers with a projected capacity of 40-50 megawatts. Additionally, BGRIM has set ambitious targets for its projects under construction, planning for a production capacity addition of over 605 megawatts from various sources, including projects in Korea and the Philippines.
Did you know? The Nakwol coastal power project in the Republic of Korea is set to contribute a substantial 365 megawatts to BGRIM’s capacity, while the Areco solar power plant in the Philippines will add 65 megawatts to the mix.
Dividend Policy and Future Outlook
BGRIM’s Board of Directors has approved a dividend policy to pay at least 50% of the net profit from operations. Shareholders can expect dividends at 0.43 baht per share, consisting of 0.18 baht per share and a final payment of 0.25 baht per share in April 2025.
Looking ahead, BGRIM predicts the natural gas price for SPP will range from 320 to 350 baht per million BTU in 2025, consistent with 2024 prices. This stability will likely support continuous growth and investment in renewable energy projects.
Future Trends in Energy Production
BGRIM’s strategy aligns with broader trends in the energy sector:
-
Renewable Energy Transition: As costs for renewable energy continue to drop, expect an increased focus on projects like those at U-Tapao and Intrey Brim.
-
Gas Diversification: With the global push towards cleaner energy, the cautious approach to natural gas acquisition ensures a balance between cost efficiency and environmental impact.
-
Regional Expansion: BGRIM’s investments in diverse locations highlight the importance of regional diversification in mitigating risks and leveraging localized market potential.
- Industrial Demand Growth: With the rise in industrial demand, BGRIM’s robust IUS customer strategy will likely continue to play a critical role in its growth.
FAQ Section
What are BGRIM’s key revenue drivers?
BGRIM’s revenue is driven by increased electricity sales to EGAT, the completion of SPP power plant projects, lower natural gas prices, and growing demand from industrial customers.
How does BGRIM plan to expand its renewable energy projects?
BGRIM has committed to expanding its renewable energy investments with a total capacity of 1,345 megawatts. Projects range from wind power to solar installations across Thailand and internationally.
What is BGRIM’s dividend policy?
The company aims to pay shareholders at least 50% of the net profit from operations as dividends.
What are some of BGRIM’s upcoming projects?
Upcoming projects include the Kopos wind power plant, U-Tapao solar power plant, and various international solar projects in the UAE, Saudi Arabia, and the Philippines. These projects will contribute to a total production capacity addition of over 605 megawatts.
By maintaining this strategic approach, BGRIM is well-positioned to navigate the evolving energy landscape while delivering value to shareholders and stakeholders.
