ADB and Gulf Energy Partner on $820 Million Renewable Energy Project in Thailand

As a leading power generation company with an installed capacity of 14,544 MW as of October 2024, Gulf Energy is playing a critical role in Thailand’s renewable energy transformation.

The Asian Development Bank (ADB) and Gulf Renewable Energy Company Limited, a subsidiary of Gulf Energy Development Public Company Limited, have signed an $820 million loan agreement to finance the construction of 12 renewable energy projects across Thailand. The initiative represents a significant stride in the country’s renewable energy ambitions.

The portfolio comprises:

8 Ground-Mounted Solar PV Plants: With a combined contracted capacity of 393 megawatts (MW).4 Solar PV Plants with Battery Storage: Offering a contracted capacity of 256 MW and 396 MW-hours of energy storage, ensuring reliable clean energy supply during non-daylight hours.

This blend of solar power and battery storage will enhance grid stability and support further integration of renewable energy into Thailand’s energy mix.

Financing Breakdown

ADB, as the mandated lead arranger and bookrunner, spearheaded the financing package, which includes:

$260 Million from ADB’s Ordinary Capital Resources.$529 Million in Parallel Loans from partners such as the Asian Infrastructure Investment Bank, DEG - Deutsche Investitions- und Entwicklungsgesellschaft (Germany), the Export-Import Bank of China, and KEXIM Global (Singapore).$31.35 Million Blended Concessional Finance from the Clean Technology Fund to mitigate the risks associated with solar-battery energy storage system projects.

"This financing is a game-changer for renewable energy in Thailand and a replicable model for the region," said Suzanne Gaboury, ADB Director General for Private Sector Operations.

Advancing Carbon Neutrality Goals

Thailand has set an ambitious target of generating 50% of its energy from renewable sources by 2037. The projects funded through this initiative will contribute to the nation’s 5 GW renewable energy feed-in-tariff program, expected to double Thailand’s installed wind and solar capacity by 2030.

The integration of battery storage will provide clean energy during peak demand periods and enhance energy reliability, positioning Thailand as a leader in renewable energy innovation in Southeast Asia.

“By combining solar power with advanced battery storage, this initiative addresses grid stability challenges and supports Thailand’s transition to a low-carbon economy,” Gaboury added.

Gulf Energy’s Role

As a leading power generation company with an installed capacity of 14,544 MW as of October 2024, Gulf Energy is playing a critical role in Thailand’s renewable energy transformation.

“Support from institutions like ADB is pivotal for developing large-scale renewable projects,” said Gulf CFO Yupapin Wangviwat. “Together, we are driving Thailand closer to its carbon neutrality goals while fostering sustainable economic growth.”

Broader Implications for the Region

This partnership highlights ADB’s ability to mobilize capital for high-impact infrastructure projects in Asia. It sets a benchmark for innovative renewable energy solutions and reinforces Thailand’s position as a regional leader in clean energy development.

The projects are scheduled to commence construction in 2025, with operational rollout anticipated before the end of the decade.