Gulf Renewable Energy Company, a subsidiary of Gulf Energy Development Public Company Limited (Gulf Energy) of Thailand, has secured a US$820 million financing package from the Asian Development Bank (ADB) and other lenders to fund the construction of a portfolio of 12 renewable energy projects across the country.
The portfolio comprises eight ground-mounted solar photovoltaic (PV) plants with contracted capacity of 393 megawatts (MW) and four ground-mounted solar PV plants with battery energy storage with contracted capacity of 256MW and 396MW-hours of energy storage.
With the ADB acting as the mandated lead arranger and bookrunner, the financing package, announced on November 28, comprised US$260 million from the ADB’s ordinary capital resources, and US$529 million in parallel loans from the Asian Infrastructure Investment Bank, German development finance institution DEG (Deutsche Investitions und Entwicklungsgesellschaft), the Export-Import Bank of China and KEXIM Global (Singapore), among others.
The ADB will also provide blended concessional finance of US$31.35 million from the Clean Technology Fund to allow for the higher execution and operating risks of solar battery energy storage system projects.
The portfolio of projects, says Suzanne Gaboury, the ADB director-general for private sector operations, significantly enhances solar energy and solar energy with battery storage in Thailand, marking a major step forward in the country’s goal of achieving carbon neutrality. It also offers a compelling model that can be replicated throughout the region.
“By integrating battery storage with solar power, these projects will help to provide clean energy during non-daylight hours, grid stability, and facilitate further integration of solar power which will enhance Thailand’s energy mix,” Gaboury points out. “This initiative highlights the ADB’s convening power in mobilizing capital for impactful projects in Asia.”
Thailand, according to the ADB, is targeting to increase its renewable energy generation to 50% by 2037. The projects supported by this financing are part of Thailand’s 5-gigawatt renewable energy feed-in-tariff programme that will double Thailand’s installed wind and solar capacity by 2030.
“Support from institutions like the ADB, and the catalytic role it has in mobilizing the necessary capital to develop large-scale projects, is pivotal to Thailand’s renewable energy sector,” adds Gulf CFO Yupapin Wangviwat. “Together, the ADB and Gulf Energy are contributing to Thailand’s clean energy goals and its sustainable development.”
Established in 2011, Gulf Energy is a leading power generation company in Thailand with a total installed generation capacity of 14,544MW as of October 2024. The company’s core businesses are in the energy, infrastructure and utilities, and digital sectors.
