ADB invests in Thai power utility
The Asian Development Bank has invested US$57.7 million in Thai power utility B Grimm Power Public Company to support the firm in investing and developing clean energy projects throughout Southeast Asia.
The Asian Development Bank (ADB) has subscribed to 123 million shares worth US$57.7 million of an initial public B. Grimm to develop renewable energy projects in Southeast Asia. ADB will also administer a loan of up to US$20 million from the Canadian Climate Fund under ADB's Clean Energy Financing Partnership Facility.
B. Grimm, established in 1993 in Thailand, is one of the largest private power producers in the country with a total capacity of 1,626 MW, operating 12 gas-fired plants, with 5 more under development or construction. In recent years, B. Grimm has diversified into renewable energy and is operating 15 solar power plants. Based on the success of these and strong potential for expansion within the Association of Southeast Asian Nations (ASEAN) countries, B. Grimm is planning to increase the shares of renewable energy generation of its portfolio from 10% to 30%.
Jackie Surtani, a Director of ADB's Private Sector Operations Department, said:
'The project will help support B. Grimm in diversifying its energy production and expand to other less-developed countries. In doing so, the project will help the ASEAN region in its transition to a low-carbon economy through the development of renewable energy.'
ASEAN countries face a rapid rise in energy demand, fueled by factors such as high population growth, sustained economic growth, urbanization, and an expanding middle class. According to the Organisation for Economic Co-operation and Development, electricity consumption by ASEAN countries will grow more than 8% a year between 2009 and 2030.
ADB's equity investment will be earmarked toward B. Grimm's 114 MW solar projects and 16 MW wind power projects in Thailand as well as solar, wind, and other renewable energy projects in Cambodia, Indonesia, the Lao People's Democratic Republic, Myanmar, Philippines, Thailand, and Viet Nam.
The administered loan from Canada will contribute to the diversification of ASEAN's energy mix by adding renewable energy capacity, in particular, solar power. Under this, power generated from individual solar modules will be collected using battery storage and software, to be dispatched to thousands of homes and commercial buildings during peak demand hours. It will also help the company address various legal, technical, and regulatory challenge in some of the ASEAN countries.
ADB is also planning to provide later a corporate loan facility to B. Grimm to support its future expansion and development of gas-fired and renewable power projects in the ASEAN region.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members-48 from the region. In 2016, ADB assistance totaled US$31.7 billion, including $14 billion in cofinancing.
