The Challenge

B.Grimm Power owns and operates a number of gas- and diesel-fired and solar plants and sells electricity under power purchase agreements (PPAs) in Thailand and Vietnam. It was also looking to expand its business into Indonesia and Laos. As part of its plans to raise funds through an initial public offering (IPO), it needed an independent consultant to prepare a report which provided a “true and fair view” of the electricity sectors in which the company operates.

Our Solution

IPA, in conjunction with AWR Lloyd, prepared a detailed Independent Market Research report which included an assessment of the supply/demand dynamics, the competitive environment and the regulatory framework in Thailand, Indonesia, Vietnam and Laos.  The study included:

  • A review of macroeconomic fundamentals in Thailand, which served as the basis for the analysis of electricity demand growth in the country.
  • A description of the organisation of the Thai electricity sector, with particular reference to the recently updated Thailand Power Development Plan.
  • An overview of the main electricity consumption trends in Thailand and the key socioeconomic drivers of electricity demand growth.
  • A summary of Thailand’s generation capacity, installed capacity mix and power generation trends to 2025.
  • A review of Thailand’s small power producer (SPP) generation sector, the contractual structure, and competitive landscape for the company against its peers.
  • An overview of the industrial customer segments which the client supports and the outlook for future power generation requirements.
  • A summary of the development of the renewables sector in Thailand and key issues concerning the growth of renewables.
  • An assessment of market structures, supply and demand growth trends, key sector drivers and challenges faced by the electricity sectors in Indonesia, Vietnam and Laos.

We provided ongoing support through the filing process including addressing questions for key stakeholders and delivering an update to the report to reflect regulatory and market developments in all four markets during the intervening period.  The report was published as part of the offering circular for the company’s IPO in March 2017, and the IPO raised an estimated US$340m and the company’s shares were listed and started trading on the Stock Exchange of Thailand on 19 July 2017.