The Asian Development Bank will be providing a company in Thailand loans to develop a wind power plant in the country.
The A.D.B. has signed an agreement to provide $55 million and an additional $30 million from the A.D.B.-administered Clean Technology Fund to Chaiyaphum Wind Farm Company Limited, a special purpose firm that is 90 percent owned by Electricity Generating Public Company and 10 percent by Pro Ventum.
The loans will be used to fund the development of a 81 megawatt wind power plant which will be situated in Chaiyaphum Province, around 300 kilometers northeast of Bangkok. The wind power plant is slated to go into commercial operation around December 2016.
The project is developed as a public-private partnership under Thailand’s small power producer program, with Chaiyaphum Wind Farm Company entering into a power purchase agreement with the state-owned Electricity Generating Authority of Thailand to provide clean electricity to the national grid.
“Wind energy provides a clean and sustainable source of electricity which help diversify the country’s energy mix, strengthen energy security and reduce Thailand’s reliance of fossil fuels. The project will also help accelerate and expand private investment in clean energy infrastructure,” said Christopher Thieme, director with A.D.B.’s Private Sector Operations Department.
According to A.D.B., Thailand mainly relies on conventional fuels for electricity production: 65 percent generated from natural gas; and 20 percent from coal and lignite. However, growing demand coupled with dwindling natural gas reserves mean the country needs alternate fuel sources to save foreign exchange, protect the country from global price fluctuations, and help reduce greenhouse gas emissions.
It is also worth mentioning that the government is targeting the development of wind power capacity of 1,800 MW by 2021, but will need significant investment support from the private sector to achieve this goal with only 223 MW installed to date. – EcoSeed Staff
