Dr Jiraporn Sirikum: Leading EGCO to Become a Successful, Sustainable Organisation
Since Dr Jiraporn Sirikum was appointed CEO of EGCO (Electricity Generating PCL) on 1 May 2024, she has faced numerous challenges at the helm of the group’s power generation businesses and other interests, both domestic and international. Her goal is to lead EGCO Group towards a sustainable, successful future, and one of her challenges to accomplish this is adjusting the company’s renewable energy interests to comprise 30% by 2030.
This requires more than just focusing on looking for new investments, but also developing the workforce and more advanced technologies while solving the disruption these new innovations can cause for many organisations that must learn to adapt. They need to accelerate the upskilling of their employees. Otherwise, they won’t be able to keep up with the new technology and remain competitive. This includes planning for the future by developing successors for personnel at every position, particularly in management.
The EGCO Group is no exception with its aim to not just increase their employees’ productivity and efficiency, but also implement ESG (Environment, Social [Transparent] Governance) strategies into their business operations. To learn more about this, Dr Jiraporn Sirikum took time from her busy schedule to sit down with Elite+ to discuss her vision for the EGCO Group.
What do you think it will take to make EGCO Group a successful, sustainable organisation?
Since I took the helm of the EGCO Group, I have been determined to develop our potential and create opportunities for EGCO to grow sustainably by focusing on three important goals:
First is to increase our production capacity portfolio in both natural gas-fired power plants and renewable energy by continuously seeking investment opportunities, both domestic and international, especially in the seven countries where we already have business bases and partners in addition to Thailand, namely, Laos, the Philippines, Indonesia, Australia, South Korea, Taiwan and the US. Therefore, our investments must be based on efficient portfolio management that’s in line with energy transition to be able to continually improve our performance
Second is creating and increasing our income, or revenue, and profits as this will affect the dividends paid to our shareholders as well as our credit rating. Therefore, we have to continually pursue improving our operational and financial performances. Our portfolio management must be efficient at all times, which means building and maintaining good relations with all our stakeholders to achieve mutual growth.
And third is being a good member of society by creating the right balance between our business, environment, community and society as a whole, according to the ESG framework. Thus, we must operate with transparency and in a sustainable manner that can benefit all.
I do believe the EGCO Group has consistently maintained the highest ESG standards. This has been proven by our listing in the Dow Jones Sustainability Index, Emerging Markets – Electric Utilities (DJSI in Emerging Markets – Electric Utilities) for four consecutive years, 2020 to 2023. At the same time, we are committed to continuing EGCO business operations in a ‘Cleaner, Smarter and Stronger’ direction to drive sustainable growth.
When I say Cleaner, I mean EGCO is focusing on improving our primary power plants to be more environmentally friendly by, for example, using hydrogen and ammonia to produce mixed fuels for electricity generation. At the same time, we are studying and employing CCS (Carbon Capture Storage) and CCUS (Carbon Capture, Utilization and Storage) to increase our renewable, clean energy production to reach a 30% proportion of renewable electricity production by 2030 of our total portfolio.
Now, when it comes to Smarter, EGCO is prioritising more stable and secure electricity generation by investing in and operating the highest quality natural gas-fired plants while seeking new investment opportunities in high-growth related energy businesses to keep up with the rapidly changing technologies.
To be stronger, we are joining forces with our partners to expand and further develop our investments in Thailand and abroad. EGCO Group is very fortunate to have strong partners in all eight of the countries I mentioned earlier where we are located.
What is your strategy to expand your renewable energy generating portfolio by 2030?
Expanding our renewable portfolio by 30% by 2030 is one of my top priorities. As a result, EGCO has announced our goal to move towards a low-carbon society in three phases; short-, medium- and long-term.
In the short term, we hope to increase the share of renewable electricity generation from the current 21% of our total generation to 30% by 2030. Our medium-term goal is to achieve carbon neutrality by 2040 while our long-term goal is to meet net zero greenhouse gas emissions by 2050.
At the same time, we plan to continue to develop renewable power generating facilities in Thailand and abroad by developing and using clean fuel technology. Domestically, we will consider opportunities to bid for renewable power plants under Thailand’s PDP 2024 Plan (2024 Power Development Plan), which comprises the RE Biglot Renewable Energy Auction rounds two and three, Solar, that include potential projects ready for development. We are also preparing for the next round of Solar, Solar with BESS (Battery Energy Storage System) for PV solar and wind farms. In addition, we are involved in hydropower projects to produce and sell electricity to EGAT, the Electricity Generating Authority of Thailand, in accordance with the PDP 2024 Plan, which includes selling up to 3,500MW of electricity from foreign power plants back to Thailand.
Our important overseas renewable energy projects include investment in APEX (Apex Clean Energy Holding) in the US in which EGCO currently holds a 17.46% stake. Headquartered in Virginia, USA, APEX is a leader in the development of large-scale renewable energy projects. It develops these projects up to the commencement of construction, when they receive a Notice to Proceed (NTP) or Commercial Operation Date (COD) certification at which time they will sell a project to interested investors.
APEX operates according to a hybrid business model to develop projects for commercial operation alone or combined with other developing projects. This has led to EGCO changing from solely generating and selling electricity to developing power plants in addition to generating and selling electricity. This will not only help strengthen EGCO Group in the long term, but with the development of APEX projects, we can replace existing power plants with contracts about to expire with new forms of growth for our business. You must remember that it is important to keep increasing our proportion of renewable energy power generating capacity with APEX that operates not just as a project developer, but also a project manager and owner.
As of 30 June 2024, APEX had a total of 211 renewable energy projects in the pipeline with a total production capacity of 56,422MW, including solar, wind and hydrogen power as well as stand-alone battery energy storage systems. Currently, it has 201 projects under development with a total production capacity of 55,073MW. Of these, three projects have begun operating commercially, producing 269MW, while seven more projects remain under construction, which will add another 1,08MW to APEX’s total production capacity. Of these, three are wind power projects, two are solar power projects and two are battery energy storage projects with total net generating capacities of 615MW, 325MW and 140MW, respectively. When completed in 2024, these projects will sell electricity in the power pool market or enter long-term power purchase agreements (PPAs) mostly with leading organisations with credible credit ratings such as Meta and Google.
Meanwhile, when reviewing APEX’s progress during the first six months of this year, they have a Cameron Storage battery energy storage system project that was completed and sold in March. In addition, APEX has one commercially operated project, the Angelo Solar Power Plant, with a 15-year PPA (Power Purchase Agreement) with Meta, providing 195MW of electricity. At the same time, in Q2/2024, APEX earned added revenue from the sale of shares in both the Mulligan Solar Plant and Great Pathfinder wind farm project.
Another overseas renewable energy project that will increase renewable energy generation for the EGCO Group is the Yunlin Offshore Wind Farm (OWF) in Taiwan. EGCO holds a 26.56% share in this project that has a total generation capacity of 640MW. Located in the Taiwan Strait, it is approximately eight to 30 kilometres from the western coast of Yunlin County, covering a total area of approximately 90 square kilometres. With a 20-year PPA with Taipower, Taiwan’s power company, the commercial wind turbines here are currently operating at an average capacity of over 40%, confirming their potential for future revenue generation. When this project is completed, it will be able to generate clean electricity for more than 600,000 Taiwanese households.
As of 23 September 2024, 63 of 80 wind turbine monopiles, or wind turbine generators (WTG), are providing electricity to the grid. Furthermore, I am quite confident that the Yunlin project will be completed by the end of this year, and this will earn added revenue and strengthen cash flow for EGCO Group.
What do you believe is needed to develop people to work in the renewable energy business to cope with technological disruption and meet industry needs?
I understand that advancing technologies are playing an ever more important role in all aspects of life, particularly in work and especially now in the post-Covid era. EGCO Group continues to apply changing technologies in virtually all our work processes, which has resulted in faster, more effective and flexible operations and communication, domestically and internationally, as we pursue a paperless approach to help save vital resources.
For example, since the Covid pandemic, EGCO has introduced Microsoft Teams as a tool to help in our work, helping us to organise meetings and online events as well as linking the company’s telephone system with our MS Teams application, which definitely helps with our communications at all levels.
Meanwhile, we are focusing on preventing risks when employing these technologies. In fact, we have set up a Personal Data Protection and Cybersecurity department to oversee this matter. We are also educating and training our employees in preventing risks from malware and working in accordance with the PDPA (Personal Data Protection Act).
EGCO and other companies in the power and energy sector are now having to deal with the technology disruption we are incurring from rapidly changing technology and energy transition. Thus, we are focusing on developing the knowledge, skills and expertise of our personnel to develop their potential and be capable to handle the requirements of the changing business environment which is becoming even more dependent on modern technology and innovation.
EGCO Group has implemented a personnel potential development approach that is diverse and flexible so it can be adjusted to suit each employee’s and executive’s position, abilities and time availability. Based on planning for individual development, dual career path development and future succession, this development approach is providing all personnel opportunities to advance in their career path.
At the same time, we have an internal training programme, both onsite and through e-learning, with more than 100 courses so we can provide the appropriate training for those who want to attend. We also have allocated a budget to support employees who would want to attend external courses to improve their skills and knowledge. Meanwhile, to provide our employees with hands-on experience, EGCO has organised an internal innovation competition project, “EGCO Group Innergy”. We are also investing in a research and innovation development company, Innopower, in collaboration with EGAT and the Ratchada Group.
So, it appears that EGCO is doing all this to develop successors within the company to ensure EGCO’s long-term sustainable success.
Yes, that is correct. EGCO Group emphasises developing successors through very specific development plans at each level to ensure we have the executives and key personnel who can work and advance continually. Normally, we develop a five-year plan in advance, which we also review annually, to replace personnel who will be retiring.
In addition, we have a process for selecting future successors so they receive the training they need, which includes regular evaluations and clear appointment procedures. If we become involved in a business or activities related to EGCO’s strategic plans, we will provide education and training, including project management skills, in the successor development plan to ensure an employee’s readiness to effectively perform in their new position.
Developing successors requires defining their requirements. If specific qualifications are a prerequisite, the selection and development of personnel must be in line with our business strategies. For example, if we want to send personnel to work in an office in the US, we much select those people with the skills and qualifications they need such as specific knowledge and understanding of management, negotiation and the American electricity industry and market. Most importantly, they must have good language and communication skills. Therefore, after recruiting qualified personnel, we must provide them with the knowledge and skills needed to perform their tasks with utmost proficiency.
Can you now tell us about your CSR projects, how many there are and how they are benefiting local communities and the country as a whole?
EGCO Group has always been committed to contributing to society and protecting the environment while conducting business. Our goal is to develop effective environmental management so we can co-exist with our surrounding communities. We want to build trust, acceptance and confidence wherever we operate by participating in social development in three main areas: First is to promote quality of life in the communities surrounding our power plants. Second is to promote learning about energy and environmental conservation, and third is to conserve natural resources, especially in headwater forests. Thus, we are especially proud of our Khanom Power Plant Learning Centre in Khanom district, Nakhon Si Thammarat province, which caters to youth in promoting energy and environmental conservation.
At EGCO, we believe that a good beginning will lead to a good result. This is why we are continuously working to promote learning about energy and the environment among our youth, who are the future of our country. We thus focus on disseminating knowledge and promoting the development of our youth’s potential in science, innovation and energy technology through the Khanom Power Plant Learning Centre.
The centre has been developed around Thailand’s first and only floating power plant that came on line in 2019. Its function is to educate about the site and its history, which is based on an innovative engineering design for special power plant construction. The centre includes multimedia exhibitions that bring the plant’s operations and its important machinery to life, providing knowledge about energy, electricity generation and environmental management as well as the culture that forms the identity of the Khanom district community.
Recently, the Khanom Power Plant Learning Centre received the 2024 Architectural Conservation Award in Category A, Architectural Heritage Conservation, with a rating of very good, from the Association of Siamese Architects under Royal patronage. This reflects our success in transforming the utility of the power plant into a historical learning centre that contributes its creative design to the development of the area. In addition to the power plant being an important source of electricity generation for the southern region, the learning centre is teaching about energy, electricity production processes and the mutual co-existence between power plants, communities and the environment for youth, communities and the general public.
The Khanom Power Plant Learning Centre is composed of seven permanent exhibition zones that cover the history of electricity, electricity production processes, environmental conservation, the co-existence of power plants and communities, with an emphasis on interactive learning through innovative presentation techniques. A virtual exhibition system has been developed and installed to disseminate knowledge, and through annual Science Week activities, students and youth of Nakhon Si Thammarat and neighbouring provinces can be inspired to learn more about science and technology and pursue careers in these fields.
Could you tell us how EGCO Group is conducting the Headwater Forests conservation projects through the Thai Rak Pa Foundation?
EGCO Group is focusing on the restoration and conservation of headwater forests and the biodiversity of their ecosystems in important headwater areas in Thailand through the Thai Rak Pa Foundation, a charitable organisation that EGCO founded and has supported since 2002.
The foundation has three main missions. First is the restoration and conservation of forests in conjunction with community development to improve quality of life. We have introduced a project, based on the concept, “Thais Love Forests”, “If people can live, the forests can live.” Second is strengthening community networks through the “Thai Rak Pa Network” to develop the potential of communities in watershed areas as well as related agencies, and third is instilling awareness in youth and the public through the “Thai Rak Pa Youth Network” project and “Nature Trail Development” project. In addition, the Thai Rak Pa Foundation is collaborating with the Department of National Parks, Wildlife and Plant Conservation to upgrade nine nature trails in important watershed forests around the country, including in Chiang Mai: four routes in the Doi Inthanon National Park, Chiang Mai: Yod Doi (2018), Kiew Mae Pan (2019), Ang Ka (2021) and Pha Dok Siew (2023) and one route in the Suthep-Pui National Park, Monta Than Waterfall. In Nakhon Si Thammarat province’s Kaho Luang National Park, we have worked to develop four routes: Phrom Lok Waterfall, Larom Waterfall, Ai Khiao Waterfall (2017) and Krung Ching Waterfall (2022).
Now, in closing, we have to thank Dr Jiraporn Sirikum, for taking the time to explain her mission and efforts to make EGCO Group a successful sustainable organisation to meet the demands of the future.
