The Asian Development Bank (ADB) has signed an agreement to lend up to THB4.2bn ($139.8m) to Bangchak Petroleum Public Company Limited (BCP) to build two solar power plants in central Thailand.
The 8MW and 30MW power plants, which are expected to be completed next year, will use multicrystalline technology produced by solar panel manufacturer Suntech Power.
The Electricity Generating Authority of Thailand and the Provincial Electricity Authority have agreed to buy the power generated by the two plants.
According to ADB, the plants will help the Thai government achieve its target of getting 20.4% of its primary commercial energy from renewable sources by 2022.
Under the 15-year loan agreement, Japan’s Mizuho Corporate Bank will assume a large portion of the medium-term risk on the Baht-denominated loan.
In addition to the loan, ADB is also providing $400,000 in technical assistance to help BCP develop, implement and monitor its carbon neutral goals and provide training to other energy companies in zero carbon emission strategies.