Thailand's Bangchak Petroleum secures loan for solar power plants

The two power plants, eight and thirty megawatts are due to be completed in Ayutthaya next year. The move is to ensure that the Thai government reaches its target of securing 20.4 percent of its commercial energy from renewable resources by 2022. This translates currently to constitute about 5,806 MW of power.

The loan will run over a 15 year repayment period according to Bangchak Petroleum’s president Anusom Sangnimuan. Bangchak is also seeking to raise the capacity of the project to 120 MW in five years. The company will start selling its power to the Thai grid by next October and will have a tariff of 8 Thai Bahts per unit (0.19 euro cents).

The Asian Development Bank is also providing loans in technical assistance to boost Bangchak’s developmental and zero emission goals. The company estimates that the project will reduce 35,000 tonnes of carbon dioxide emissions annually.

The Asian Development Bank has an Asia Solar Energy Initiative that seeks to support solar projects in a bid to aid Asia to capitalise on its solar power. The initiative aims to provide US$2.25 billion in financial support in order to hit 3,000MW of solar power in the bank’s developing member countries by mid-2013.