ADB Backs Thailand solar projects with $350 Million Loan
In a significant move to accelerate Thailand’s transition to clean energy, the Asian Development Bank (ADB) has approved a substantial $350 million loan package. This financing is earmarked for the construction of three new solar power projects, signaling strong international confidence in the nation’s renewable energy sector.
The projects are being developed by Gulf Renewable Energy, a subsidiary of the prominent Gulf Development Public Company Limited. This investment is a crucial step forward in helping Thailand meet its climate goals and expand its renewable energy capacity.
The Thailand solar projects in Detail
The financing will support the development of two solar-plus-storage plants and one standalone solar facility, strategically located in the Suphanburi and Phetchaburi provinces.
The two innovative solar-plus-storage projects will feature a combined solar capacity of 126 megawatts (MW) and will be integrated with 151 megawatt-hours (MWh) of battery energy storage. This integration is vital for ensuring a stable and reliable power supply, as the batteries can store excess energy generated during peak sunlight hours and dispatch it when needed, even after the sun has set.
In addition to these, a third standalone solar project will contribute another 68 MW of clean energy to the national grid. Together, these projects represent a major addition to Thailand’s renewable infrastructure.
A Closer Look at the Financing of Thailand solar projects
The comprehensive $350 million financing package is a collaborative effort, showcasing a strong partnership between public and private financial institutions. The ADB played a central role as the sole mandated lead arranger and bookrunner for the entire transaction.
The funding is broken down as follows:
* $75 million from the ADB’s ordinary capital resources.
* $50 million B-loan provided by DBS Bank Limited.
* $150 million in parallel loans from a consortium including DEG, Development Finance Institute Canada, and Export Finance Australia.
* An additional $75 million, completing the total package.
This multi-lender structure underscores the financial viability and strategic importance of these solar initiatives.
A Boost for Thailand solar projects Clean Energy Transition
This investment aligns perfectly with Thailand’s broader ambitions to increase the share of renewables in its energy mix and reduce its carbon footprint. By supporting projects that not only generate clean power but also incorporate energy storage solutions, the ADB is helping to build a more resilient and modern energy grid.
This move is also consistent with the ADB’s wider efforts to support sustainable infrastructure across Southeast Asia. The bank is a key partner in initiatives like the ASEAN Power Grid Financing Initiative, which aims to create a more interconnected and sustainable energy network throughout the region. By financing flagship projects like these in Thailand, the ADB is actively paving the way for a greener and more energy-secure future for Asia and the Pacific.
