The Glow Energy power plant SPP 1 at Hemaraj Industrial Estate in Rayong.

SET-listed Glow Energy Plc expects to disclose a deal to sell the SPP 1 power plant in the Map Ta Phut area of Rayong province within the first quarter of 2019.

The power plant sale is a condition imposed by the Energy Regulatory Commission. On Dec 26, the ERC told Glow it must sell the power plant to a third party before Global Power Synergy Plc (GPSC) can acquire Glow.

Glow SPP 1 is a co-generation plant at Hemaraj Eastern Industrial Estate in Map Ta Phut. It has 124 megawatts, with 90 tonnes per hour for steam and 190 cubic metres per hour for demineralised water.

Pajongwit Pongsivapai, Glow's chief financial officer and executive vice-president, said the company hopes to finalise the sale before the end of March.

A source from the ERC said there are five SET-listed companies eager to buy the power plant: BCPG Plc, B.Grimm Power Plc, Ratchaburi Electricity Generating Holding Plc, Electricity Generating Plc and WHA Corporation Plc.

The power plant is valued at close to 6 billion baht. The National Energy Policy Council, chaired by Prime Minister Prayut Chan-o-cha, will consider on Jan 24 whether the plant can renew its existing concession, the source said.

The concession of Glow SPP 1 ends in 2021.

Last June, GPSC agreed to buy 69.11% of Glow from French-based Engie, with the remaining 30.89% to be acquired through a tender offer. The deal was valued at 139 billion baht.

But the ERC blocked the deal in its first two rulings in October and December.

The regulator said such a deal would breach the Energy Industry Act of 2007, which encouraged the regulator to liberalise the power business.

The deal would give GPSC control of the largest market share of private power purchase agreements (PPPAs) in the Map Ta Phut area, at 80%.

Before the takeover was set in motion, GPSC controlled 20% of PPPAs in Map Ta Phut and Glow had 60%, with the remaining 20% owned by the Provincial Electricity Authority.

After two rejections, GPSC submitted a plan to the ERC on Dec 19 with the intention of purchasing Glow shares.

The ERC's third judgement approved the sale, with the proviso that Glow SPP 1 be sold.

Narupat Amornkosit, the ERC's secretary-general, said Glow must clarify the contract terms to its power buyers affected by the deal to ensure fairness, transparency and good governance.