Business Model Resilience

Impact on Business

Strategic planning is a pivotal factor that enables the Company to diversify risks, develop competitive advantage, and improve crisis response capabilities, all of which are particularly relevant to the energy industry, where system reliability and availability is paramount in fostering stakeholder confidence.
In addition to strengthening the core business, CKPower must seek out new opportunities through expansion into new markets to create new revenue streams, investments in cutting-edge technologies for operational efficiency optimization, and flexible business model resilience, which minimizes risks and enhances agility.
Business model resilience under a sustainable business management framework plays a crucial role in steering the business in the right direction, earning CKPower acceptance from stakeholders, bolstering its competitiveness, and enhancing the confidence of customers and partners. In addition, such resilience is an indicator of CKPower’s capabilities to handle risks and adapt to changes effectively.

Challenges and Opportunities

In addition to the rising demand for energy and the fast-paced transition toward renewable sources, technological advances, changes in laws and regulations, global conditions, and climate change pose great challenges to CKPower. Business resilience management is therefore critical in maintaining production reliability and creating long-term value for stakeholders.

In preparation for opportunities and risks, CKPower has implemented the following key initiatives:

  • Developing new businesses and expanding into international markets
  • Forging partnerships in renewable and alternative energy to enhance competitive potential
  • Elevating strategic risk management in anticipation of industry changes
  • Developing smart energy infrastructures to enhance the efficiency and safety of energy systems

CKPower also strives to advance decarbonization by improving production efficiency and continuously increasing investments in clean energy. In tandem, initiatives are undertaken to enhance the capabilities of its personnel and the organization in preparation for future changes in the energy industry.

Commitment

CKPower strives to drive its business on the basis of sustainable development, placing emphasis on social and environmental responsibility throughout the value chain as well as fostering business resilience in anticipation of changes in the energy business.

The Company aims to maintain the stability and availability of its production system through cutting-edge technology and innovation as well as corporate governance, with the target of fostering business stability and generating sustainable value for shareholders and investors.

Furthermore, CKPower prioritizes people capability development in anticipation of changes in the industry and promotes partnerships in the renewable energy and clean power industries to create a positive impact on its international business expansion to seize business opportunities. The Company also seeks to foster sustainable growth by consistently adjusting its investment portfolio in line with the trends of energy transition and climate resilience.

CKPower is ready to move forward into the future, focusing on the development of clean energy infrastructure and enhancing the company's capabilities to align with the global energy transition. This commitment aims to ensure long-term energy security and sustainability.

Operational Guidelines

1) Business Model Resilience Management

CKPower implements business model resilience strategies in alignment with government policies, technological changes, and energy market trends, driven by the concept of “enhancing capabilities to address challenges and achieve sustainable growth.” Particular attention is paid to three major components:

In addition, CKPower focuses on pursuing new investment opportunities in Thailand and ASEAN in conjunction with digital technology and innovation implementation throughout the value chain to strengthen energy security and deliver equitable returns for shareholders and valued customers.

2) Business Resilience Strategies

The Company strives to expand its investments in clean energy production and distribution, aiming to achieve 95% of its installed capacity from renewable energy by 2043., expanding investment in eco-friendly renewable energy, and fostering partnerships in the region. In conjunction, the Company is exploring the potential of green hydrogen from renewable energy and clean energy technology, which form the foundation of future energy innovation.

CKPower also prioritizes personnel capability development and promotes learning and the adoption of innovations in operational systems to enhance efficiency and accommodate green hydrogen businesses in the future. In tandem, the Company advances its business on the basis of sustainable development and strives to continuously foster business resilience in anticipation of opportunities and risks in the energy sector.

Develop Action Plan
Enhance Digital Technology
  • CKPower created an action plan to enable comparison of operating results every six months, performed risk assessment of emerging risks.
  • Prepare contingency plans to promptly adjust strategies when performance deviates from expectation.
  • A system was installed for remotely monitoring the performance of the solar power plant via the internet.
  • A system was implemented for monitoring the water flow at the Xayaburi Hydroelectric Power Plant via the internet, with plans to develop a predictive program for water flow in the future.
Collaborate with Partners
Expand Opportunities in Renewable Energy
  • Strengthen regional partnerships for joint renewable energy project development
  • Enter into memorandums of understanding with business partners to enhance capabilities and implement new technological innovations
  • CKPower sold Renewable Energy Certificates (RECs) from solar power plants.
  • Plan the expansion of RECs sales to hydroelectric power plants in response to global clean energy trends.
Build Market Strength
  • CKPower studied the Thai market and identified opportunities for investing in additional renewable energy power plants
  • CKPower increased its installed capacity
3) Business Resilience Action Plan

CKPower developed a business resilience action plan in 2022 as part of the Company’s key strategies, with a timeframe of five years (2022-2026), to achieve clear short-term and long-term outcomes in line with sustainable development goals (SDGs).

The action plan covers:

  1. Digital technology and innovation implementation:
    • Develop human capital to optimize energy production efficiency and organizational management.
    • Utilize inflow forecasting systems to improve planning accuracy.
  2. Renewable energy business opportunity expansion:
    • Invest in clean and alternative energy sources, such as solar and hydroelectric power.
    • Expand the Renewable Energy Certificate (RECs) market to interested customers.
  3. Operational resilience enhancement:
    • Improve processes to accommodate economic, social, and environmental changes.
    • Create business opportunities from clean energy production for a sustainable world.
Business Continuity Management Policy
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4) Personnel Development – Appointment of CKP Exploration Team

CKPower is dedicated to expanding its investments to become the largest green energy producer and distributor in Thailand and Southeast Asia. To this end, the Company adopts high-standard pollution reduction technology and actively develops the capabilities of personnel at all levels to promote learning and enable them to utilize innovation to optimize operational efficiency.

Furthermore, CKPower has appointed the CKP Exploration Team, consisting of personnel from different units, including the Administrative Department, Business Development Department, Engineering Department, and the Sustainability Management Department. This team, spearheaded by young engineers and executives, plays a crucial role in:

  • Initiating new business approaches to accommodate future energy trends
  • Researching and developing energy innovations to enhance the Company’s capabilities
  • Exploring business opportunities and new approaches in power generation operations
  • Determining the Company’s direction and strategies in line with industry and global trends

The CKP Exploration Team not only helps enhance the Company’s business resilience but also serves as a crucial mechanism in mitigating risks, particularly emerging risks, and preparing for future changes.

2024 Achievements, targets, and corporate key performance indicators

Business Model Resilience
Business Model Resilience
(GRI 201, GRI 102-15)
Long-term Targets
Installed capacity from renewable energy by 2043
>95%
 Operation in a new country in ASEAN by 2024
≥1
operation
New customers with the operations following action plans to complete the greater business model resilience by 2027
≥3
new
customers
2024 Targets 2024 Achievements
Installed capacity from renewable energy
93%
93%
Install capacity from renewable energy
>3,402
MW
>3,402
MW
Expansion of renewable energy business Sold Renewable Energy Certificate (RECs)
18,771
RECs
Solar Power Project by Bangkok Expressway and Metro Public Company Limited (Projects 1-3).
7
MW
SDGs

Projects highlight in 2024

In 2024, CKPower expanded its opportunities in the Renewable Energy Certificate (RECs) business by selling 18,771 RECs from Bangkhenchai Company Limited to interested customers through Innopower Company Limited.

Building upon CKPower’s renewable energy power production business, this business enhances its competitiveness and reinforces its position as a clean energy leader in the energy industry.

CKPower has partnered with Bangkok Expressway and Metro Public Company Limited (BEM) to implement solar-generated power for the MRT Blue Line and Purple Line operations, marking Thailand’s first-ever utilization of clean energy in the mass transit industry, which is one of the highest greenhouse gas-emitting sectors, to reduce environmental impact.

As for the solar power projects for the MRT system, CKPower is currently constructing three solar power plants at the Chaleom Ratchamongkon Rama IX Train Depot with a total installed capacity of 6.95 megawatts.

  • Progress as of November 2024: Overall project completion exceeded 50%.
  • Commercial operation date (COD): First project in December 2024
  • Second and third projects: Scheduled for completion in June 2025

This partnership marks a significant milestone for CKPower as a renewable energy leader in Southeast Asia as it drives systemic change, supports decarbonization efforts in a tangible way, and promotes low-carbon transportation for Thailand’s energy sustainability.