The Asian Development Bank (ADB) and Gulf Renewable Energy Company Limited have entered into a USD 820 million loan agreement to finance a portfolio of 12 renewable energy projects in Thailand. This portfolio includes eight ground-mounted solar photovoltaic (PV) plants with a combined capacity of 393 megawatts (MW) and four solar PV plants equipped with battery energy storage systems, totaling 256 MW and 396 megawatt-hours of storage. The financing package is primarily led by ADB, which contributes USD 260 million from its ordinary capital resources, alongside parallel loans from various financial institutions, including the Asian Infrastructure Investment Bank and DEG – Deutsche Investitions- und Entwicklungsgesellschaft.
This initiative is part of Thailand’s broader goal to increase its renewable energy generation to 50% by 2037, aligning with the country’s 5 GW renewable energy feed-in-tariff program aimed at doubling its installed wind and solar capacity by 2030. ADB’s Director General for Private Sector Operations highlighted that these projects will not only enhance solar energy production but also improve grid stability and facilitate the integration of solar power into Thailand’s energy mix. The projects are seen as a model that could be replicated throughout the region, contributing to ADB’s mission of mobilizing capital for impactful projects in Asia.
Gulf CFO Yupapin Wangviwat emphasized the importance of ADB’s support in mobilizing necessary capital for large-scale renewable energy projects in Thailand. With Gulf being a prominent power generation company in the region, this partnership aims to advance Thailand’s clean energy goals while supporting sustainable development. The financing will also allow for higher execution and operational risks associated with solar-battery energy storage systems, further underscoring the commitment to enhancing Thailand’s renewable energy landscape.
(Source: Asian Development Bank)