The Asian Development Bank (ADB) and Energy Absolute Public Company Limited (Energy Absolute) signed a 1.5 billion Thai baht ($47.62 million) green loan to finance ongoing renewable energy projects and a countrywide electric vehicle charging network in Thailand.
The loan will finance the Nakornsawan Solar and Hanuman Wind power plants, and deploy fast and standard chargers at charging stations across Thailand. Thailand aims to be a regional leader in electric vehicles to reduce greenhouse gas emissions from conventional transportation, which currently accounts for around 26% of the country’s total annual emissions.
“ADB aims to increase awareness of green financing by continuing to support Thailand’s renewable energy sector and investing in the electrification and decarbonization of its transport sector,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “ADB sees Energy Absolute’s leadership in green investment as an invaluable step in developing the financing of renewable energy in the region.”
This green loan is the first climate loan in Thailand to be certified by the Climate Bond Initiative, which administers the international Climate Bond Standards and Certification Scheme. Green loans are used to fund projects that benefit the environment, while climate loans focus on climate change benefits.
“We are positioned to grow our businesses in green energy and have been investing in modern technology-based industries that offer a total solution for promoting renewable power and electric mobility in Thailand and other countries,” said Energy Absolute Deputy Chief Executive Officer Amorn Sapthaweekul. “ADB’s continued support not only helps us financially but also highlights our trustworthiness and enhances our reputation.”
Established in 2006, Energy Absolute is the largest renewable energy company on the Stock Exchange of Thailand. Its six renewable power plants generate a total of 664 megawatts, while its biodiesel production capacity totals 800,000 liters daily. Energy Absolute has diversified into large-scale production of lithium-ion batteries for transport and power, and electric vehicle charging infrastructure for various types of electric vehicles such as e-ferries, e-buses, and e-cars.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.