ADB will in green bonds of Energy Absolute to help support long-term financing for the 260MW wind farm
Image: ADB to support Thai renewable energy company with $98m loan. Photo: Courtesy of Energy Absolute.
The Asian Development Bank (ADB) has announced that it will invest THB3bn ($98.7m) in green bonds of Energy Absolute to help support long-term financing for 260MW Hanuman wind farm in Thailand.
By investing in the bonds, ADB will contribute to Thailand’s renewable energy objectives and its ongoing efforts to reduce carbon emissions.
With a total of THB10bn ($330m), the bond issuance is claimed to be the second Climate Bonds Standard-certified bond issued by a Thai energy company and the first green bond for a wind power project in Thailand.
The proceeds from the bonds will be used for funding new or existing projects that deliver environmental or climate-related benefits.
The agreement was signed in Bangkok by ADB private sector operations department deputy director general Christopher Thieme and Energy Absolute deputy CEO Amorn Sapthaweekul.
Thieme said: “Thailand has ample renewable energy resources and its green and climate bond market has tremendous potential.
“This maiden green bond issuance by Energy Absolute will contribute to the evolution of that market, while supporting the clean energy ambitions of Thailand’s Power Development Plan by underpinning the growth of wind power generation.”
Hanuman wind farm is expected to offset 200,000 tonnes of carbons emissions
The Hanuman wind farm is located in northeastern Chaiyaphum Province and is expected to offset 200,000 tonnes of carbon emissions annually next year.
In 2017, Siemens Gamesa was selected to supply 103 of its G126-2.5MW turbines for the wind farm.
Renewable energy sources in Thailand are expected to contribute 15% to 20% of the country’s total energy production by 2036, up from the present 10%.
Sapthaweekul said: “The green bond issuance benefits our company through lower cost of financing and demonstrates our strong commitment to sustainable development including environmental and social dimensions.
“After the success of the 260 MW Hanuman Wind Project, we took another significant step to become a more value-added business by focusing more on patent development and innovation in clean energy and related industries including energy storage systems, electric vehicles (EV) and EV charging stations, and electric ferries.
“We are also preparing to launch an energy trading platform, which we have studied and developed through our own technology and innovation. This platform will play a major role in demand-side management for energy efficiency.”
Established in 2006, Energy Absolute is now one of the largest renewable energy companies in Thailand. The company has an installed capacity of 644MW that include four solar and two wind power plants.