The Asian Development Bank (ADB) has partnered with Gulf Renewable Energy Company Limited (GRE), a subsidiary of Gulf Development Public Company Limited (GULF), to provide Rs 350 mn to develop three renewable projects in Thailand. The financing will support two solar plus battery energy storage systems with a combined contracted capacity of 126 megawatts (MW) and 151 megawatt-hours (MWh) of storage and a standalone 68 MW solar plant. The projects aim to expand renewable generation, strengthen grid stability and accelerate decarbonisation of the power sector.

As lead arranger and bookrunner ADB provided Rs 75 mn from its ordinary capital resources and arranged a Rs 50 mn B-loan from DBS Bank Ltd. The package includes Rs 150 mn in parallel loans from DEG, Development Finance Institute Canada Inc and Export Finance Australia plus a Rs 75 mn loan from the ADB-administered Leading Asia's Private Infrastructure Fund 2 (LEAP 2). International cofinancier support underlined confidence in Thailand's renewable market.

Once commissioned the projects are expected to cut an average of 191,550 tonnes (t) of carbon dioxide each year, contributing to Thailand's net-zero by 2050 target. The initiative aligns with the country's five-gigawatt renewable energy feed-in tariff programme and represents Southeast Asia's first large-scale procurement of solar and battery energy storage systems. Backers expect that integrating large-scale solar with battery storage will improve grid stability and attract further investment.

ADB's country director for Thailand said battery-integrated solar is essential for the transition to affordable reliable clean energy and that cooperation between private investors and development finance institutions can accelerate national renewable goals. GRE and GULF indicated the scheme sets a regional benchmark for grid management. GULF, founded in 2011, has an operational capacity of 16,504 megawatts (MW). LEAP 2 is supported by a Rs 1.5 bn commitment from the Japan International Cooperation Agency and focuses on sustainable private infrastructure.