Thai renewable energy developer and construction firm, Gunkul Engineering PCL, expects a 20% rise in total revenue next year owing to its rooftop solar PV installation and construction service, as well as cannabis businesses.

Gunkul Engineering operates renewable power generation businesses — wind and solar farms as well as rooftop solar panels — in Thailand, Malaysia, Vietnam, and Japan, with a current combined capacity of 642MW.

The main source of revenue growth for Gunkul Engineering for this year is accounted for by the increase in power generation capacity, especially from rooftop solar energy development and construction under private power purchase agreements.

Gunkul Chief Executive Officer & Secretary to the Board of Directors, Somboon Aueatchasai mentioned that the revenue growth rate is similar to this year, despite the ongoing Covid-19 pandemic.

"We will work on rooftop solar panel projects for businesses, including operators of modern trade such as Charoen Pokphand Group, CJ Shop, and Home Products Center Plc,” he said.

These operators are expected to install up to 700MW of solar, helping the company to exceed its total power generation capacity target of 1GW by 2023.

The construction segment of Gunkul has the potential for new projects worth THB 8 billion (~USD 240 million) mostly from several state utility projects, including the improvement of power transmission lines, relocation of overhead electricity, and underground telecom cables.

The Government of Thailand has allocated a total budget of THB 50 billion (~USD 1.5 billion) for utility improvement projects over the next couple of years, where Gunkul looks to bid for projects worth 7-10% of the budget each year.

It is expected that up to 90% of Gunkul’s capital spending for 2021-23 will go to renewable energy development, with the remaining fund supporting other businesses, including cannabis and industrial hemp.