The Asian Development Bank (ADP) has loaned THB235.55m ($7.2m) to BCPG subsidiary Lomligor for a 10MWh windfarm in Thailand.
The project will use a 1.88MWh battery storage system to increase the energy available to the grid.
Understanding the project
The Lomligor wind farm is Thailand’s first private-sector plan to increase the grid capacity by using an energy storage system. The system will store the surplus energy produced by the windfarm, helping the grid’s stability and reliability.
The project will increase the amount of renewable energy production in Thailand and is expected to generate 14,870MWh of electricity per year while offsetting more than 6,000 tonnes of CO2 emissions.
Under the terms of the contract, ADP will also manage a $4.75m concessional loan, which was provided by the Clean Technology Fund (CTF).
The loan was used for the project’s bankability issues as well as for supporting the replication of battery storage projects in Southeast Asia.
Established in 2008, the Clean Technology Fund – alongside the Climate Investment Funds – promotes financing for the development of climate-related projects.
The Thai banking group Kasikornbank also provided BCPG with another THB235.55 million loan.
Executives respond to the deal
ADB private sector operations infrastructure finance division director Jackie B. Surtani said: “This project contributes to Thailand’s Power Development plan targets for clean energy and also demonstrates the potential of integrated renewables and batteries to provide clean energy for southern Thailand.
“This will enhance the resilience of the region’s electricity grid, provide energy security for communities and support economic growth across the country.”
BCPG president Bundit Sapianchai added: “Lomligor is the first wind power plant in Thailand to adopt energy storage system technology as the solution to the intermittency of wind power. This will help enhance energy management efficiency and the resilience of energy grids.
“We are grateful to ADB for acknowledging the initiative of the Lomligor project in applying energy storage system technology to energy production and providing BCPG with such significant financial support including Clean Technology Fund (CTF) mobilization for the project.”
Company overview and share price
With a TBH3.4bn worth of revenues in 2019, BCPG is one of the largest renewable energy companies in the Asia-Pacific region. The company has an installed capacity of 507.5MW while 415MW under development.
At the moment of writing, BCPG’s share price has gone up by 0.63% to TBH16.10 after hitting a low of TBH15.80 on Thursday.
ADB is a regional development bank that promotes assistance to social and economic development projects. Founded in 1966, ADB is made up of 68 members of which 49 are based in the Asia-Pacific region.
Kasikorn Bank is a Thai banking group founded in 1945 and headquartered in Bangkok. According to the latest estimates, the bank’s assets in 2019 amounted to TBH3.3tn.