Precise Corporation Public Company Limited

The government is preparing to invest in a smart grid system, or intelligent power network, with short-term approval expected for a pilot project budget of approximately 10 billion to 20 billion baht, drawn from the 200 billion baht energy transition allocation under the 400 billion baht emergency loan decree. Concrete progress is expected to begin this year. Naphan Chaisaen, Deputy Managing Director of Research and a fundamental investment analyst covering the capital market at Bualuang Securities, told Than Hoon that the medium-term smart grid roadmap for 2022 to 2031 consists of five pillars. The first is Demand Response, which will replace household electricity meters with millions of smart meters, starting in high-usage areas such as Bangkok, its vicinity, major cities, and industrial estates in Rayong and Chachoengsao. Companies with potential in this area are FORTH, SKY, INSET, ALT, and PCC. Next is RE Forecasting, which involves system integrators such as TKC, SECURE, and SAMART. Then comes Microgrid and Prosumer, with GUNKUL and BGRIM. Next is ESS, or energy storage systems, with EA and GPSC. Finally, EV Integration involves FORTH and EA. Investment in the smart grid can also be accelerated without waiting for full clarity on the new Power Development Plan, and it will serve as key infrastructure to support the massive electricity consumption of data centers in the future without affecting electricity costs or the stability of power supply for the general public.

Bualuang Securities released an analysis stating that the development of Thailand's smart grid is nearing a turning point, moving from a phase focused on long-term roadmaps toward rule-setting, pilot project implementation, and greater private-sector participation. The medium-term smart grid drive plan for 2022-2031 comprises 5 pillars: Demand Response and Energy Management Systems, or DR & EMS, which accounts for roughly 30% of the budget; Renewable Energy Forecasting, or RE Forecasting, about 10%; Microgrid and Prosumer, about 20%; Energy Storage Systems, or ESS, about 25%; and EV Integration, about 15%. The analysis states that stocks that could benefit under the DR & EMS pillar include SKY, PIS, FORTH, PCC and ALT, while the RE Forecasting pillar includes TKC and SAMART. The Microgrid & Prosumer pillar includes BGRIM, the ESS pillar includes EA, GPSC, GULF and EGCO, and the EV Integration pillar includes FORTH and EA. Bualuang Securities takes the view that heavy investment in ESS and Microgrid should not be rushed from the early stage, because committing large amounts of capital to batteries, hardware and EPC work before pricing mechanisms and service markets are clear carries the risk of assets being underutilized. Meanwhile, DR/EMS forecasting and EV Integration require less capital and open up opportunities to generate revenue from platforms, service fees and recurring income.

Deputy Prime Minister and Minister of Higher Education, Science, Research and Innovation, Professor Dr. Yoschanin Wongsawat, along with Deputy Minister of Agriculture and Cooperatives, Miss Piyarat Chaiyaphruek, visited Chiang Rai Province to follow up on the progress of the "No Burn, Wallet" project under the PMUC Zero Burn to Earn initiative, which aims to address the burning of agricultural waste through economic mechanisms. The project builds on the success in Chiang Mai Province two months ago and aims to expand across the North and the entire country. The key mechanism is creating a market for purchasing agricultural waste, with the Ministry of Higher Education, Science, Research and Innovation collaborating with five private companies: Precision Corporation Public Company Limited, Sahacogen Green Company Limited, Green Leaf Power Company Limited, EPC Sustainable Energy Company Limited, and Siam Wattana Company Limited. Under a one-year cooperation, agreements have been signed to purchase a total of 40,000 tons of agricultural waste, valued at over 30 million baht per year, to be processed into biomass pellets, mechanical pulp for packaging, biochar, and fiber insulation. In the first four months of the project, from eight pilot routes, 330,000 kilograms of waste have been brought into the system, helping reduce PM2.5 dust by approximately 270 kilograms. For the five-year goal, the project aims to expand coverage across the North, bringing a total of 200,000 tons of waste into the system, generating over 3 billion baht in economic value, and reducing cumulative PM2.5 dust by approximately 1.6 million kilograms.