Ratchaburi Electricity Generating Holding Plc (RATCH) expects its 4.274-billion-baht wind power site will be operated in 2011 after two years of feasibility studies, president Noppol Milinthanggoon said yesterday.

The company is now selecting contractors for the 60-megawatt wind turbine, located in Khao Kho, Phetchabun, and is seeking the approval from the Royal Forest Department to use 1,000 rai of land.

"Once the wind turbine starts operating, it will be the largest of its kind in Southeast Asia and we plan for it to become an attractive tourist spot in Phetchabun," Mr Noppol said.

The project is being developed by Sustainable Energy Corporation (SEC) which is 60% owned by Renewable Energy Co, a local research house for alternative fuel, 35% by Ratchaburi and 10% by retail investors.

The group has been doing feasibility studies for the project for more than two years. It has proved to be commercially viable since wind strength at the site averages five metres per second.

The site will have 30 units of 110-metre high piles with blades 100 metres in diameter. Ratchaburi expects that using the 60 MW of power from wind, instead of power production from fossil sources, could replace greenhouse gas emissions by 60,000 tonne a year.

"Power production from renewable resources would be above the 10- megawatt target we set several years ago and we will go on to another project in order to increase portfolio in alternative fuel," he said.

The company is also studying the feasibility of power production from biomass such as rice husks, waste sugarcane and wood.

Ratchaburi is also planning to cut its 20-billion-baht debt burden through the issuing of debenture or refinancing with its creditors since the company will need to finance power plant projects from next year.

The company has monthly interest payments to creditors of approximately 70 million baht. At a time of declining interest rates, it is looking to increase its cash on hand. It will finalise financial cost-cutting strategies within the next quarter.

RATCH shares closed yesterday on the Stock Exchange of Thailand at 37.00 baht, down 50 satang, in total trade of 13.42 million baht.