SOLAR FLOATING
The first pilot project for private sector of the group company

ORGANIZATIONAL STRUCTURE AND OPERATION OF THE GROUP OF COMPANIES
POLICY AND BUSINESS OVERVIEW Thai Solar Energy Public Company Limited, its subsidiaries and jointly controlled entities (collectively, the “Group of Company”) are committed to being the leader in the power plant business from renewable energy. By focusing on doing business by choosing the right technology. Provide good and stable returns in the long term. including providing efficient power plant construction and equipment procurement (Engineering Procurement and Construction: EPC), In addition the Group of Companies has studied and expanded the business of generating electricity from solar energy in the form of solar farm, solar rooftop and solar floating, including more forms of renewable energy such as biomass energy, biogas energy, wind energy, waste energy, etc., as well as seeking investment opportunities abroad to become a leading company in renewable energy business in Thailand and Asia.

BIOMASS POWER PLANT The production process of a biomass power plant consists of 7 main systems: 1) A fuel preparation system consisting of scales, piles, fuel shredders, belt drive system, a fuel storage silo, and a fuel feeding system to the furnace 2) A fuel furnace system consisting of the furnace body, which is designed to be sloped in order to convey fuel into the combustion chamber and slag kiln 3) A steam generator system or boiler, consisting of high heat resistant metal pipes, which is coiled
back and forth in order to exchange heat to water in the pipe to become steam 4) Power generation systems such as steam turbines and generator 5) Treatment and filtration system for hot gas that leaves the chimney, including hot gas treatment system and a gas chimney 6) The water production system, used in the production process, consisting of the cooling water system and the wastewater treatment system from the production process and 7) the ash collection system for disposal or used to make fertilizer for farmers.

MONITORING PROCESS For the power plant operation controlling process, the Group has CCTV and operational control systems that have been developed in a modern manner to easily and accurately control the process with centralized control in real-time through the internet network for controlling, commanding, and monitoring the operation of power plants in various points. There is a team to control, supervise, solve problems, repair and maintain the power plants of the Group consisting of experienced
internal or external experts who have passed strict selection from the Group to ensure that any problems can be solved quickly within the specified time according to the standards and the power plant is kept in good condition, ready for use, and able to distribute electricity normally

COMMERCIALLY OPERATED POWER PLANTS As of the end 2021, TSE Group engages in the administration of and investments in local and international renewable-energy businesses has 35 projects. Divided into 33 projects in Thailand with a total capacity of 145.2 MW and 2 projects in Japan, with a total capacity of 146.5 MW, representing a total production capacity of 291.7 MW A total of 34 commercial power distribution projects are divided into 33 projects in Thailand, 1 project in Japan, representing a total production capacity of 158.7 MW Details are as follows:

OVERVIEW OF ELECTRICAL SYSTEMS IN THAILAND The current Thai power system is a centralized system which is, having a power plant and a large transmission system covering the whole country. However, in the future, there will be a distribution of electricity generation and an electrical
system control center to the community, as well as an increase in the proportion of electricity generation from renewable energy. Therefore, the advancement of the electricity industry in the era of changing technology must support the arrival of renewable energy, which is to create flexibility of the electrical system. The power plant must be flexible and be able to operate quickly. The power transmission and distribution system must be developed into a Smart Grid system that works through a remote monitor and is able to retrieve information and commands from the control center to resolve emergency
situations immediately. The integration of data from outside agencies is needed for the prediction or forecast of future electricity demand. Renewable energy that still has limitations on instability should be developed in the form of a combination of renewable energy and the main fuel (RE Hybrid Firm) to reduce volatility and be able to produce electricity within the specified contract period, such as solar cells with hydroelectric power plants, wind power plants and fuel cells, and biomass fuel with solar cells. These combinations will become an important alternative for the development of renewable energy in the future, along with the development of energy storage systems to help stabilize electricity distribution from renewable energy. EGAT has piloted three energy storage battery installation projects, namely; the project in Mueang District, Mae Hong Son Province, with a capacity of 4 MW; the Chai Badan high power station in Lopburi Province, with a capacity of 21 MW per hour; and the Bamnet Narong High Voltage Power Station in Chaiyaphum Province, with a capacity of 16 MW-hours.

ELECTRICITY CONSUMPTION Electricity demand and electricity generation (Net Generation): projected according to the 4.5% GDP growth rate in 2021 as reported by the Office of the National Economic and Social Development Council (NESDB) on June 5, 2020, and the short-term electricity demand forecast for the year 2020-2024 according to the resolution of the electricity demand analysis working group on August 13, 2020, as well as the assessment of the trend of impact on electricity consumption from the current situation of the COVID-19 pandemic in January – April 2021, it is expected that the total electricity generation and purchase will be 60,685 million units, increasing by 1,775 million units or 3.01% from the previous forecast (September – December 2020), which was
at 58,910 million units

ISSUE MANAGEMENT IN THE BUSINESS VALUE CHAIN The Group recognizes the importance of stakeholder participation and believes that solid relationships built on trust, as well as stakeholder comments and suggestions, will influence the organization’s ability to develop and grow sustainably. Furthermore, stakeholder management will assist the Company in effectively responding to stakeholders’ requests and reducing the danger of damage to its image and economic chances.

THE BOARD OF DIRECTORS’ RESPONSIBILITY FOR FINANCIAL REPORTING The Board of Directors is responsible for the preparation of consolidated and separate financial statements of Thai Solar Energy Public Company Limited and its subsidiaries and jointly controlled entity, including the financial information presented in this annual report. The aforementioned financial statements are prepared in accordance with Thai Financial Reporting Standards, using careful judgment and the best estimations. Important information is adequately and transparently disclosed in the notes to financial statements for the Company’s shareholders and investors. The Board is also responsible for internal control activities that the Board deemed necessary for the preparation of overall and specific financial statements that do not contain any information that is significantly contradictory to the fact, either by fraudulent intention or by mistake.

Source:TSE