Jun 05, 2020
Cutting-edge battery systems to store wind-generated power will get off the ground in Thailand through a $4.75 million concessional loan from the Clean Technology Fund (CTF).
The finance will help launch the first private sector initiative in Thailand combining utility-scale wind power generation with a battery storage system. Through the Southern Thailand Wind Power and Battery Energy Storage Project, a 10-megawatt (MW) wind power plant will come online along with a 1.88-megawatt-hour (MWh) pilot battery energy storage system.
The battery system marks a significant step forward, as the plant can store energy when wind turbines generate more power than the electrical grid can absorb, and feed the stored power in at times of lower supply. The system ensures that supplies overall remain stable and reliable.
The CTF loan has been critical in overcoming the risk-related “bankability” challenges that such a project might otherwise face in debuting an innovative technology. The benefits stand to be substantial, including the annual generation of at least 14,870 MWh of electricity and the reduction of 6,364 tons of carbon dioxide emissions, beginning in 2020.
The Asian Development Bank (ADB) will channel the financing through a blended finance agreement with Lomligor Company Limited, a subsidiary of BCPG Public Company Limited. The agreement totals THB235.55 million ($7.2 million equivalent). Kasikornbank PCL is also supporting the project with a THB235.55 million ($7.2 million equivalent) loan.
“A decade ago, we helped support some of the first solar farms in Thailand, and today we are proud to continue driving clean energy innovation in Thailand alongside ADB and BCPG,” said Mafalda Duarte, Head of the Climate Investment Funds. “This project shows that hybrid renewable energy plus storage facilities can provide affordable, dependable clean energy solutions to homes and businesses in Thailand.”
“This project contributes to Thailand’s Power Development Plan targets for clean energy and also demonstrates the potential of integrated renewables and batteries,” said Jackie B. Surtani, the ADB’s Infrastructure Finance Division director for Southeast Asia, East Asia, and the Pacific. “This will enhance the resilience of the region’s electricity grid, provide energy security for communities, and support economic growth across the country.”
“Lomligor is the first wind power plant in Thailand to adopt energy storage system technology as the solution to the intermittency of wind power,” said BCPG President Bundit Sapianchai. “This will help enhance energy management efficiency and the resilience of energy grids. We are grateful (for) such significant financial support, including CTF mobilization for the project.”
CTF is one of two trust funds comprising the Climate Investment Funds (CIF), established in 2008 to provide financing for climate-related development.
As a leading renewable energy company in Thailand, BCPG has 507.5 MW of total installed capacity in operation. An additional 415.0 MW is under development. The company’s renewable energy investments comprise solar, geothermal, wind, hydro, biogas and biomass.
