The Asian Development Bank (ADB) and Gulf Renewable Energy Company, a subsidiary of Gulf Energy Development Public Company (Gulf), have signed an US$820 million loan to provide construction financing for a portfolio of 12 renewable energy projects across Thailand.

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.

The financing package, led by the ADB as the mandated lead arranger and bookrunner, comprises US$260 million from the bank’s ordinary capital resources, and US$529 million in parallel loans from the Asian Infrastructure Investment Bank, the German development finance institution DEG, the Export-Import Bank of China and Kexim Global (Singapore).

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.

Thailand-based Gulf is a holding company that invests in a portfolio of three core businesses: energy, comprised of gas-fired power generation and other related businesses, renewable energy and gas; infrastructure and utilities; and digital.

“This portfolio of projects 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,” says Suzanne Gaboury, the ADB’s director-general for private sector operations. “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. This initiative highlights the ADB’s convening power in mobilizing capital for impactful projects in Asia.”

Thailand 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 they have in mobilizing the necessary capital to develop large-scale projects, is pivotal to Thailand’s renewable energy sector,” adds Yupapin Wangviwat, Gulf’s CFO. “Together, the ADB and Gulf Energy are contributing to Thailand’s clean energy goals and its sustainable development.”

Established in 2011, Gulf has a total installed generation capacity of 14,544MW as of October 2024.