Last year, Virya Energy became the majority shareholder of Constant Energy, a Singapore-based commercial and industrial developer with activities in Thailand, Vietnam and Malaysia. This was an important step for Virya in terms of geographical and technological diversification of its onshore business. Let’s find out more about this company in an interview with Franck Constant, CEO and founder of Constant Energy
Can you tell us how the story of Constant Energy began?
Our journey started in early 2017 when my partner Markus and I noticed a growing opportunity in the solar business. We had been in the industry for over a decade and saw solar power becoming increasingly competitive due to cost reductions, resulting in the elimination of the need for subsidies and the sector becoming market-competitive. This was particularly evident in sun-rich countries like Thailand with high electricity tariffs. We saw that we could sell solar directly to large industrial customers, offer them significant savings and make a good return on our investment. In 2017, we built our first 0.8 megawatt plant, the first of its kind in Thailand. We immediately recognized the market opportunity and decided to expand this to hundreds of projects with B2B customers.
What is the vision behind Constant Energy?
We want to provide our industrial customers with constant renewable energy, in a stable manner, avoiding intermittency. We are convinced this will be possible with the decreasing costs of both solar power and batteries and we are working towards making it a reality.
“ I believe I’ve offset my carbon footprint from my early years.” – Franck Constant
Why did you choose Asia as a market?
Asia offers a favorable business environment with good regional connections and a substantial electricity market. We have been doing business in Thailand for over 30 years, so it was a low-risk decision to start our business there.
How did you discover solar power?
I first worked in the independent power producer sector after which I moved into the gas and hydro business. In 2007, when I was working in Asia as a consultant in the energy sector, one of my friends contacted me about solar projects in Spain. He explained that solar projects became larger (>1MW) and that the return on investment was good. I saw the opportunity and decided to work in solar energy. I started as a consultant but soon launched my own solar energy company, starting in France and Spain after which we expanded into10 countries. I believe I’ve offset my carbon footprint from early years by installing solar panels.
After joining the Virya Energy and Korys family last year, what has been your experience?
We like Virya Energy’s experience in the energy sector, which extends beyond power generation in areas such as EV charging and hydrogen. From working with their experts we gain valuable insights into market trends. Furthermore, we appreciate the openness to the opportunities we bring to the table and the short decision lines.
We see a lot of synergies in the Virya Energy Group. Virya’s experience in the European market in terms of regulation will be invaluable as the Asian market follows the European market. On the other hand, we share our knowledge in corporate power purchase agreements and the solar sector in which Virya Energy has ambitious growth plans in Europe.
How do you see Constant Energy’s future?
The solar industry has seen a significant surge, with yearly growth rates of 20%. Our company has been fortunate to ride this wave, expanding our team from 30 to 70 people over the last two years. While we anticipate a period of more modest growth as we shift into a phase of consolidation, our focus remains on long-term growth. Over the next decade, it will be important to continue to grow our asset base. In addition, we have to assure that our customer service responds to the needs of our industrial customers. Indeed, unlike business-to-government (B2G), where transactions require less follow-up, B2B interactions require negotiation and relationship building. Hence, we are committed to developing our reputation and customer service.
Looking ahead, we will not only focus on behind-the-meter B2B solar plants and grid-connected (B2G) assets, but we will also explore front of the meter and hybrid (solar and battery) projects involving large plants. We believe that front of meter B2B market and co-location of solar and batteries, already established in Europe, will soon emerge in Asia. We are actively preparing for this shift to ensure we remain on the forefront of the industry.
What is the biggest solar myth you would like to dispel?
The biggest myth is that solar takes up too much space and leaves no room for agriculture (and thus food). This is simply not true. In most countries, you only need 2% of the land for solar plants, leaving 98% for alternative use. The second myth is that solar is expensive. In reality, solar is the cheapest power source today in most countries and cost is still going down.
