SAAM Energy Development Public Company Limited, formerly Siam Advanced Asset Management Company Limited, was established on 7 September 2007 to engage in the business of project site procurement and rendering of services within solar power projects. During that same period, shareholders of Bangkok Cable Company Limited, which operates the business of manufacturing and sale of electrical and cable wires in Thailand and is one of the pioneers in solar cell production in Thailand, established Bangkok Solar Power Company Limited (“BSP”) in March 2007 to expand the business as operator of solar power projects. The Company, by Mr. Podduang Kongkamee and Ms. Krittiya Honghiran as major shareholders and directors, foresaw business opportunities and started developing solar power projects alongside BSP. SAAM Group invests in the procurement of the right to land, whether in the form of leasehold rights or land ownership transfer, for use as project site location for BSP, as well as provides services relating to security and cleaning of equipment and the surrounding area throughout the period of the agreement. SAAM Group has 17 projects in conjunction with BSP, with total capacity of approximately 41.1 MW on 750-3-48.5 rais of land.
Mr. Podduang Kongkamee worked as Chief Operating Officer at BSP since 2007 and resigned in September 2016. However, the Board of Directors, executives, and major shareholders of BSP are not related to and do not pose potential conflicts of interest with the Board of Directors, executives, and major shareholders of the Company and its subsidiaries.
In 2015, the Company expanded its revenue base in investment in renewable energy projects as operator of solar power project. SAAM Solar Power One Company Limited (“SAAM-SP1”) and SAAM Solar Power Two Company Limited (“SAAM-SP2”), which are subsidiaries of the Company, entered into 2 Power Purchase Agreements (“PPA”) with the Provincial Electricity Authority (“PEA”) with installed capacity and output capacity of 2.0 MW under the Feed-in-Tariff (“FIT”) scheme at the rate of THB 5.66 per kWh for a duration of 25 years. On 30 December 2015, 1 project, located in Pattananikom Sub-District, Pattananikom District, Lopburi Province, commenced commercial operations (“COD”). The project, under SAAM-SP1 in which the Company holds 100% of shares, has installed capacity and output capacity of 2.0 MW.
The project under SAAM-SP2 is on hold with regards to construction as SAAM-S entered into a Power Purchase Agreement (“PPA”) with the PEA on 12 May 2015 with interconnection point at Di Lang Sub-District, Pattananikom District, Lopburi Province and Scheduled Commercial Operation Date (“SCOD”) within 31 December 2015. On 21 May 2015, SAAM-SP2 held a public hearing whereby locals in the area surrounded the event in protest opposing such project pertaining to force majeure. As such, SAAM-S was not able to continue construction of the solar power project. On 3 June 2015, SAAM-SP2 informed relevant authorities in writing requesting relocation of the project, after which a problem in the consideration process of relevant authorities led to inability to relocate as intended to commence commercial operations as scheduled within 31 December 2015. As a result, on 28 July 2016, SAAM-SP2 filed for litigation to the Central Administrative Court on charges that relevant authorities impose acts of administration which are unlawful in delayed negligence, causing damage to SAAM-SP2 and leading to it not being able to operate the project on the original location in time. Such legal proceeding is currently being considered by the Central Administrative Court.
At present and in the next 2 years, SAAM Group aims to operate its business in renewable energy project development for sale, with plans to expand its business in continuously developing various types of renewable energy projects such as solar power projects, biomass power projects, geothermal power projects, hydro power projects, and wind power projects in potential geographies including Japan and other countries in Asia, to generate cash flow streams for use as capital in investing in renewable energy projects which SAAM Group has developed to create continuous revenue streams. In the long-term, SAAM Group will engage in renewable energy project development for sale domestically and internationally, as well as the procurement of project site location and rendering of related services for constant returns. In addition, SAAM Group places emphasis on investment in businesses related to renewable energy project operations to strengthen the value chain for stakeholders of the renewable energy project in the future.