A new investment through a green loan facility will help develop more renewable energy projects in Thailand, Indonesia, and Vietnam, with International Finance Corporation (IFC)‘s $64 million to Sermsang Palang Ngan Company Limited (SPN) aiming to address the region’s growing energy demand.

The financing package includes an IFC loan of up to $32 million and a parallel loan from Siam Commercial Bank (SCB) for a similar amount, IFC said in a statement on Wednesday.

According to the statement, IFC’s funding will help SPN finance the acquisition, development, and construction of renewable projects—especially solar farms, solar rooftops, and biomass—in Thailand as well as in other ASEAN countries.

IFC will also assist the company with a green finance framework as it expands its footprint in the East Asia and Pacific region.

SPN currently owns a 52-megawatt solar photovoltaic power plant in Lopburi province, north of Bangkok, which sells power to the Electricity Generating Authority of Thailand (EGAT) under a non-firm power purchase agreement.

“We are honored that IFC has supported us in developing projects which reflects our commitment to secure a future energy source for everyone, powering a better tomorrow with renewable energy investments in Asia” said Varut Tummavaranukub, Chief Executive Officer of Sermsang Power Corporation Public Company Limited (SSP) group, parent company of SPN.

According to the statement, the energy sector is the largest emitting sector in ASEAN countries, accounting for 55 to 70 percent of total greenhouse-gas (GHG) emissions.

Despite significant potential for renewable energy, it currently represents less than 20 percent of the region’s energy supply.

As a result, ASEAN countries are at risk of seeing an approximately 35 percent reduction of their gross domestic product (GDP) by 2050 due to climate change and natural hazards.

A shift to renewable energy is therefore urgent. Cited the latest estimates, the statement noted that Asia’s overall power capacity is expected to see a steady increase in its capacity for renewables, reaching 63 percent in 2035.

In Thailand, the government aims to ensure that renewables supply 34 percent of its energy consumption by 2037.

According to its latest Power Development Plan, the solar capacity target has been revised from an earlier 6 GW to 15 GW by 2037.

“Renewables offer a viable path forward in meeting growing energy demand, especially for emerging markets,

“We are proud to work with companies such as SPN and develop a long-term relationship with a growing renewable energy company and help expand its footprint in the region,” said Jane Yuan Xu, IFC Country Manager for Thailand and Myanmar.

IFC has decades of experience in financing, structuring, and leading complex energy transactions in emerging markets, with more than 50 gigawatts of energy generation financed to date.

At the end of FY22, IFC’s committed energy portfolio amounted to $6.1 billion, with half of that attributable to renewable energy projects.

Every year, IFC portfolio clients provide electricity to 100 million people around the world.

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets.

The organization works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the Impacts of global compounding crises.

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