Asian Development Bank to support $85m wind farm in Thailand

The Asian Development Bank (ADB) will provide around US$85 million in financing for an 81MW wind project in north-eastern Thailand.

The Chaiyaphum project is being developed by a joint venture with 90 per cent owned by Thai energy producer Electricity Generating Public Company (EGCO), and 10 per cent by German renewable power developer Pro Ventum.

ADB will provide a loan of up to THB 1,807m ($55m) and $30m will be provided by the ADB-administered Clean Technology Fund.

The development is scheduled to go online in December 2016 and Chaiyaphum Wind Farm Company has entered into a power purchase agreement with the state-owned Electricity Generating Authority of Thailand to provide power to the national grid.

ADB released a statement saying: “Fast growing demand and dwindling natural gas reserves in the Gulf of Thailand mean the country needs alternate fuel sources to save foreign exchange, protect the country from global price fluctuations and help reduce greenhouse gas emissions.”

The government is aiming for 1.8GW of wind energy capacity by 2021, but it will need significant investment to achieve the target with only 223MW installed to date.