The Asian Development Bank (ADB) and the Gulf Renewable Energy Company, a subsidiary of Gulf Energy Development Public Company, have finalised an $820m loan agreement to finance the construction of 12 renewable energy projects in Thailand.

The projects comprise eight ground-mounted solar photovoltaic (PV) plants and four solar PV plants with integrated battery energy storage systems (BESS).

The solar PV plants have a capacity of 393MW, and the solar plus BESS plants have a capacity of 256MW and 396MWh of energy storage.

The projects are part of Thailand’s ambitious renewable energy feed-in-tariff programme, aimed at doubling its installed wind and solar capacity by 2030 and progressing the country towards its renewable energy targets.

The move aligns with Thailand’s goal to boost its renewable energy output to 50% by 2037.

ADB, acting as the mandated lead arranger and bookrunner, has structured the financing package, which includes $260m from its own capital resources and $529m in parallel loans from international financial institutions.

ADB will contribute $31.35m from the Clean Technology Fund to mitigate the higher risks associated with solar BESS projects.

ADB private sector operations director-general Suzanne Gaboury stated: “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.

“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.”

Established in 2011, Gulf Energy is a prominent power generation company in Thailand with an installed capacity exceeding 14.5GW as of October 2024.

The company operates primarily within the energy, infrastructure and utilities, and digital sectors.

Gulf CFO Yupapin Wangviwat stated: “Support from institutions like ADB, and the catalytic role they have in mobilising the necessary capital to develop large-scale projects, is pivotal to Thailand’s renewable energy sector.

“Together, ADB and Gulf Energy are contributing to Thailand’s clean energy goals and its sustainable development.”