Thailand’s Gulf Renewable Energy Gets an ADB Boost for Thailand solar energy
Thailand’s journey towards a sustainable energy future has received a significant boost, as the Asian Development Bank (ADB) approved a major financing package for Gulf Renewable Energy. The substantial USD 350 million loan is set to fund the construction of three pivotal solar power projects, underscoring the growing momentum for renewable energy in the region.
The Projects at a Glance for Thailand solar energy
The financing will support a portfolio of projects located in Thailand’s Suphanburi and Phetchaburi provinces. This initiative by Gulf Renewable Energy, a subsidiary of Gulf Development Public Company Limited, is not just about expanding solar capacity but also about enhancing grid stability. The portfolio includes:
- Two solar-plus-storage power plants, combining 126 MW of solar capacity with 151 MWh of battery energy storage.
- One standalone 68 MW solar power project.
The inclusion of battery storage is particularly noteworthy, as it addresses the intermittency of solar power, allowing for a more reliable and consistent energy supply.
A Closer Look at the Financing of Thailand solar energy
The Asian Development Bank played a central role in structuring the deal, acting as the sole mandated lead arranger and bookrunner. The comprehensive USD 350 million package is a blend of direct and parallel loans, demonstrating strong international confidence in Thailand’s renewable energy sector. The financing is composed of:
- USD 75 million from the ADB’s own ordinary capital resources.
- USD 50 million B-loan from DBS Bank Limited.
- USD 150 million in parallel loans from prominent development finance institutions, including DEG, Development Finance Institute Canada, and Export Finance Australia.
- An additional USD 75 million, completing the package.
This investment is part of a larger strategic push by Gulf, which has reportedly secured approximately USD 1.9 billion in loans for a broader portfolio of 27 projects. These projects collectively represent a contracted capacity of 939 MW, signaling a massive scale-up of the company’s renewable energy operations.
This financial injection from the ADB and its partners is a critical enabler for Thailand, helping the nation advance its clean energy targets and reduce its carbon footprint. By backing projects that integrate energy storage, the ADB is also championing the development of a more resilient and modern energy grid prepared for the future.
