Distributed Commercial Solar Power Project (ADB-49366-001)

Countries
  • Thailand
Where the impacts of the investment may be experienced.
Specific Location
Nationwide
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 10, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Stumpf Energy Solutions (Thailand)
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 47.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 125.40 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS May 31, 2017

Disclosed by Bank Jul 25, 2016


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Project Description
The project involves the rollout and operation of multiple solar photovoltaic installations, each with a capacity ranging from 400 kilowatts-peak (kWp) to 5 megawatts-peak (MWp), on rooftops or elsewhere on the premises of commercial and/or industrial buildings owned or leased by host companies in Thailand up to an aggregate capacity of 100 MW and will be installed at no up-front cost to the host companies. The project, which does not rely on Thai FIT regime, has strong potential to be scaled up, particularly in Thailand’s growing manufacturing sector. Host companies will maintain connections to the national grid to augment their power supply, and they will benefit from the project in the following ways: (i) discounted electricity prices, (ii) more reliable electricity supply, (iii) avoidance of having to pay the up-front costs associated with developing their own solar power facilities, (iv) reduced emissions, and (v) an improved corporate image. The project offers attractive benefits for Thailand, including (i) helping it reach its renewable energy target by scaling up grid-parity solar power; and (ii) increasing its use of distributed generation (i.e., power that is generated where it is consumed), thereby reducing the need to upgrade and maintain grid infrastructure. The project will demonstrate the viability of the business model of solar projects on rooftops or elsewhere on the premises of commercial and/or industrial buildings that do not require FIT subsidies in Thailand. This will lead to unlocking of vast potential to scale up solar photovoltaic installations on rooftops or elsewhere on the premises of commercial and/or industrial buildings, particularly in Thailand’s growing manufacturing sector. The project will also contribute to the diversification of Thailand’s energy mix by adding renewable energy capacity, thus helping the country progress toward its renewable energy target. Solar energy is a clean and sustainable source of electricity that diversifies the country’s energy mix, strengthens energy security, and reduces reliance on fossil fuel. The project is also aligned with one of the sustainable development goals of the United Nations’ 2030 Agenda for Sustainable Development: “Ensure access to affordable, reliable, sustainable and modern energy for all.”
Investment Description
  • Asian Development Bank (ADB)
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main