“Banpu operates on the principle of balanced and sustainable growth in three dimensions: environmental responsibility, social development and economic return. In recent years we have identified and commenced evaluation of a number of renewable energy investments. We have already concluded investment agreements for solar operations and projects in Japan and going forward are aiming to secure further opportunities in Japan, China, Thailand and other countries. Banpu’s plans are very much in accordance with the guidelines agreed at the UN Climate Change Conference, ‘COP21’ and the objectives of energy and fuel diversification,” said Somruedee Chaimongkol, chief executive officer of Banpu.

The strategic plan for “Balanced Growth, World-Class Sustainability” sets guidelines for 2016-2020 around five main themes. These are: 1) Strategic flexibility in the face of economic uncertainty; 2) Cost reduction and rationalisation, with organic capital expenditure reduced to US$554 million; 3) Productivity optimization; 4) Value-add strategies; and 5) Asset and corporate finance strategy, including launching the IPO of its subsidiary “Banpu Power Public Company” or “BPP”.

“Over the next five years electricity demand in Thailand, Laos and China – i.e. countries where we are already present – is forecast to expand at a compound annual growth rate of towards 7 per cent. And Japan’s solar power demand is likely to grow at over 25 per cent over this period. We therefore think Banpu’s power business is well placed for substantial growth. Our filing process for the IPO is on track as planned. But we are in no rush. We will monitor market conditions this year to achieve optimal timing,” added Somruedee.

According to its current on-going investment plan across the region, it is expected that by the end of 2020 Banpu Power will achieve a total equity-based power generating capacity of nearly 2,394 MWe. The Shanxi Lu Guang Power Project in China, with an installed-capacity of 1,320 megawatts, is in the development process, with commercial operation due by year-end 2017. The seven incremental solar energy projects, with a total of 54 megawatts on an equity basis, will gradually start commercial operations over the period 2016-18. By 2025, the company will have unlocked its potential of increasing the equity-based power generating capacity to around 4,300 MWe, of which 20 per cent will be renewables based.

“Banpu has a philosophy of flexibility and resilience which enables us to overcome challenging macro environments. This, coupled with our proactive financial strategy of maintaining strong cash flows and balance sheet liquidity, has enabled us to keep the momentum of dividend payouts despite volatile commodity market. It also puts us in an excellent position to take advantage of new growth opportunities,” she said.

Since 2013, Banpu has been one of the leading companies listed in the Dow Jones Sustainability Index (DJSI).