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SGC Wind signs contract with carbon-trading firm
Bangkok Post – 4 November 2008
NUNTAWUN POLKUAMDEE
Thailand has huge potential for growth in the booming world market for carbon credits, according to Erik Chan, country director at Eco Securities Group.
Mr Chan, who oversees Malaysia, Singapore and Thailand for Eco Securities, said around 30 to 40 players were in the Thai market, mainly in biogas.
Eco Securities, the largest dedicated carbon trading firm in the world, signed a five-year contract yesterday with SGC Wind Energy to market carbon credits.
SGC Wind was established in 2007 to develop the country's first wind power plant under the VSPP (very small power producer) programme. The company is investing two billion baht in a 30- megawatt plant located in Nakhon Si Thammarat, which will sell electricity to the provincial electricity authority under a 20-year contract. SGC managing director C.A. Kumaresan said the company would qualify for a 10-year subsidy at 3.50 baht per kilowatt-hour.
Wind energy, popular in the US and Europe, is projected to generate 115 MW in electricity for the country by 2011, according to government power plans.
''The project will break even within five years, and is located in the best location among 50 various projects,'' said Mr Kumaresan. ''We also hope to expand into other projects. The return on investment and demand is huge, although Thai companies lack knowledge and data to really enter the business.''
The trade in carbon credits is worth billions of dollars each year. Under the Kyoto accord, companies in the industrialised world can purchase credits to offset their emissions and meet reduction targets. Projects typically qualify for credits through applying for certification from the United Nations' clean development mechanism (CDM) system.
Eco Securities, a subsidiary of Credit Suisse founded in 1997 and currently listed on the London Stock Exchange, has developed and advised on CDM projects in more than 80 countries.
Sawin Laosethakul, managing director of Sawin Consultant, the financial adviser to SGC, said interest in Kyoto projects was mostly driven by foreign companies and financial institutions.
''We hope carbon credits will become more popular and more attractive as a business proposition,'' he said.
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