Asian Development Bank Invests $57.7 Million To Develop Renewable Energy In Southeast Asia
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The Asian Development Bank has invested $57.7 million into Thailand’s B. Grimm Power Public Company with the intent to develop renewable energy projects across Southeast Asia.
Founded in the early 1960s, the Asian Development Bank (ADB) is intended to help foster economic growth and cooperation throughout Asia, which has long been one of the poorest regions in the world. Announced on Wednesday, the ADB revealed that it had subscribed to 123 million shares of the initial public offering (IPO) of Thailand’s B. Grimm Power Public Company, to help develop renewable energy projects across Southeast Asia. B. Grimm was one of the largest private power producers in Thailand, established back in 1993, and operates 12 gas-fired power plants, and 5 more under development. However, in recent years, the company has been diversifying its energy options, and now operates 15 solar power plants — with plans to now increase its share of renewable energy generation from 10% to 30%.
The investment made by the Asian Development Bank will be accompanied by a loan of up to $20 million from the Canadian Climate Fund under the ADB’s Clean Energy Financing Partnership Facility, which will aim to contribute to the diversification of the energy mix within the Association of Southeast Asian (ASEAN) countries.
“The project will help support B. Grimm in diversifying its energy production and expand to other less-developed countries,” said Jackie Surtani, a Director of ADB’s Private Sector Operations Department. “In doing so, the project will help the ASEAN region in its transition to a low-carbon economy through the development of renewable energy.”
The ADB’s share purchase has been earmarked for supporting B. Grimm’s 114 MW worth of solar projects and 16 MW worth of wind projects in Thailand, as well as new solar, wind, and other renewable energy projects throughout Cambodia, Indonesia, the Lao People’s Democratic Republic, Myanmar, Philippines, Thailand, and Viet Nam. Meanwhile, the Canadian loan will seek to add more solar power throughout the ASEAN countries.
The announcement by the Asian Development Bank just a day after it announced that it would provide a $526 million multitranche financing facility, or MFF, aimed at supporting and increasing infrastructure investments in Bangladesh, focusing particularly in financing public-private partnership (PPP) projects and renewable energy interventions. Specifically, the ADB will provide a $500 million market-based loan to finance medium- and large-scale PPP infrastructure projects, and a $26 million concessional loan to finance small- and medium-sized renewable energy and energy efficiency projects, focusing on rural areas.
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