- Thailand’s SPN has raised a $64 million financing package to grow its renewable energy portfolio
- The IFC and the Siam Commercial Bank have each contributed $32 million towards the package
- SPN plans to use the proceeds to acquire, develop and construct projects in Thailand, Indonesia and Vietnam, including solar farms and rooftop solar
Sermsang Palang Ngan Company Limited (SPN) of Thailand has secured a financing package of $64 million from the International Finance Corporation (IFC) to expand its renewable energy portfolio in Thailand, Indonesia and Vietnam.
A wholly-owned subsidiary of Sermsang Power Corporation Public Company Limited (SSP), SPN will use the green loan to finance the acquisition, development and construction of renewable energy projects in these target nations. It will especially focus on solar farms, rooftop solar and biomass in Thailand and other ASEAN nations.
The $64 million financing package includes up to $32 million loan each from the IFC and Thailand’s Siam Commercial Bank (SCB). The World Bank Group’s IFC will also help with a green finance framework as it expands its footprint in the East Asia and Pacific region.
Thailand aims to grow the share of solar energy in its total energy mix to 15 GW by 2037 as it targets renewables to account for 34% of its energy consumption. Earlier, it was targeting 6 GW solar by 2036 (see Thai Cabinet Approves 77 GW Power Capacity Goal).
A recent International Energy Agency (IEA) report says Thailand needs to install an additional 32 GW of wind and solar power capacity by 2037, as against the government target of 18.6 GW, to achieve its climate targets. It should include a big role for rooftop solar (see Accelerated RE Deployment Must For Thailand).
“Renewables offer a viable path forward in meeting growing energy demand, especially for emerging markets,” said IFC Country Manager for Thailand and Myanmar, Jane Yuan Xu. “We are proud to work with companies such as SPN and develop a long-term relationship with a growing renewable energy company and help expand its footprint in the region.”
SPN already operates a 52 MW DC/40 MW AC solar power plant in Thailand’s Lopburi, constructed by Sharp Corporation, Italthai Engineering and Italian Thai Development PLC. It uses thin-film solar panels. The project, commissioned in 2015, is supplying clean energy to the Electricity Generating Authority of Thailand (EGAT).
