In a landmark move for Thailand’s renewable energy sector, UOB Thailand and KASIKORNBANK (KBank) have provided significant green financing to support Levanta Renewables’ acquisition of 34 solar power projects across Thailand. This initiative, backed by global sustainable infrastructure investor Actis, totals 230 megawatts (MW) and marks a critical step towards Thailand’s goal of achieving carbon neutrality by 2050, underscoring the banks’ deep commitment to sustainable lending.
Levanta Renewables’ Acquisition with Thailand solar power financing
UOB and KBank have jointly extended tailored green acquisition and structured financing to Levanta Renewables, a company backed by Actis. This funding facilitates the acquisition of a substantial portfolio of 34 solar power projects located throughout Thailand, with a combined capacity of 230 MW. This strategic partnership highlights strong investor confidence in the nation’s clean energy market and its potential for growth.
The collaboration is instrumental in scaling up Thailand’s renewable energy infrastructure, aiming to deliver reliable and clean energy to communities across the country. The financing deal itself is a testament to modern sustainable finance, structured as a green loan that aligns with international best practices. While specific frameworks may vary, such deals often adhere to principles like those found in the Association of Banks in Singapore’s Green and Sustainable Loan Framework, which encourages and standardizes green lending practices in the region.
Banks’ Commitment to Thailand solar power financing
This latest initiative is a clear reflection of UOB and KBank’s ongoing commitment to supporting green and sustainable projects. In 2021, UOB Thailand approved 22 billion baht in green financing, while KBank financed 12 billion baht in similar projects. Both banks have set ambitious targets for 2024, with UOB aiming for 90 billion baht and KBank targeting 50 billion baht in sustainable financing.
Caryn Kopp, UOB Thailand’s head of sustainable finance, highlighted the importance of this project in advancing green energy development. “This collaboration represents a significant advancement in our efforts to support green energy development in the region,” she said.
Kopp also noted that the project aligns with the bank’s commitment to sustainable lending, particularly in the renewable energy sector. The growth of this sector relies not just on funding, but on a robust supply chain, from the procurement of solar panel raw materials to the final installation.
“By supporting Levanta Renewables’ expansion in Thailand, we are not only contributing to the growth of the renewable energy sector but also reinforcing our commitment to sustainable lending practices,” she added. This growth is powered by an increasingly sophisticated solar panel manufacturing process that makes large-scale projects like these possible.
Thailand’s Renewable Energy Goals
Thailand has set ambitious targets for its energy future, aiming to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065. The government’s revised Power Development Plan includes a target of 35% renewable energy in the power generation mix by 2037. Thailand’s solar energy strategy has a stunning 14 GW goal by 2040, placing solar power at the forefront of this transition.
To support this vision, the government has implemented several key policies. Notably, Thailand’s National Energy Policy Council has approved a major boost to its public solar projects, with the Thailand solar power quota increased to 400 MW annually. This is complemented by grassroots initiatives like the ‘Solar for All’ rooftop program, designed to encourage residential solar adoption.
The acquisition of the 34 solar power projects by Levanta Renewables directly contributes to these national targets. As detailed in the Thailand Solar Panel Manufacturing Report, the country is also exploring innovative solutions like floating solar farms to diversify its renewable portfolio. This project not only helps reduce greenhouse gas emissions but also strengthens Thailand’s energy security by reducing reliance on fossil fuels. Understanding the basics of solar panel manufacturing and the specialized solar panel manufacturing machines involved helps appreciate the scale of this industrial shift.
The partnership between UOB, KBank, and Levanta Renewables demonstrates how strategic financial support can accelerate a nation’s transition to a sustainable, low-carbon economy.
If you are interested in learning more about what it takes to build a solar energy enterprise from the ground up, from the initial investment to the final product, explore our free e-course on solar panel manufacturing.
