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Thailand: Green Loan for Renewable Energy and Electric Vehicle Charging Network

Nonsovereign (Private) Project | 54268-001 Status: Active

The project entails a corporate loan with a 3-year tenor to support the ongoing renewable energy and sustainable transport activities of Energy Absolute Public Company Limited (Energy Absolute). The loan is expected to be the first green loan in Thailand certified by the Climate Bonds Initiative and only the second in Asia. The assistance of the Asian Development Bank (ADB) will support Thailand's renewable energy sector, increase awareness about green loans, and support the transition from a conventional automotive industry to an electric vehicle industry in Thailand by establishing a comprehensive EVCN across Thailand's major cities. ADB's assistance will also support a leading clean energy and sustainable transport company in Thailand at a time when capital markets are still adjusting to the ongoing disruptions caused by the coronavirus disease (COVID-19) pandemic.

Project Details

Project Officer
Pascual, Francis Mark A. Private Sector Operations Department Request for information
Country
  • Thailand
Sector
  • Energy
 
Project Name Green Loan for Renewable Energy and Electric Vehicle Charging Network
Project Number 54268-001
Borrower/Company Energy Absolute Public Company Limited
Country Thailand
Location Nation-wide
Type or Modality of Assistance
3966 Loan Ordinary capital resources THB 1,500.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar - Renewable energy generation - wind

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Pascual, Francis Mark A.
Project Sponsor(s)
Description The project entails a corporate loan with a 3-year tenor to support the ongoing renewable energy and sustainable transport activities of Energy Absolute Public Company Limited (Energy Absolute). The loan is expected to be the first green loan in Thailand certified by the Climate Bonds Initiative and only the second in Asia. The assistance of the Asian Development Bank (ADB) will support Thailand's renewable energy sector, increase awareness about green loans, and support the transition from a conventional automotive industry to an electric vehicle industry in Thailand by establishing a comprehensive EVCN across Thailand's major cities. ADB's assistance will also support a leading clean energy and sustainable transport company in Thailand at a time when capital markets are still adjusting to the ongoing disruptions caused by the coronavirus disease (COVID-19) pandemic.
Objectives and Scope The project supports a B1,500,000,000 corporate loan which will be used to finance two of Energy Absolute's operating solar and wind projects in Thailand (the Nakornsawan Solar Power Project and the Hanuman Wind Power Project), as well as Energy Absolute's ongoing investment in a comprehensive electric vehicle charging network in Thailand.
Status of Development Objectives The project's outcome is sustainable funding of business expansion and continuity of Energy Absolute's clean energy investments enabled. This includes a green loan certified as a climate loan by the Climate Bonds Initiative, underscoring the company's commitment to sustainability.
Status of Operation/Construction Target completion in 2022.
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2030, which targets that 75% of ADB operations should support climate change mitigation and adaptation by 2030, and that ADB assistance for climate finance total $80 billion during 2019-2030. ADB's Strategy 2030 also promotes the expansion of private sector operations into sustainable transport and urban transport. ADB's support for the project is also in line with its country partnership strategy (2013-2016) and country operations business plan (2020-2022) for Thailand, which promote private sector development, infrastructure development, and environmentally sustainable development. The proposed project also aligns with the forthcoming country partnership strategy 2021-2025 for Thailand, which will emphasize sustainable and resilient growth, and the role of non-sovereign operations. The project is consistent with ADB's Energy Policy, which supports wider access to energy through investments in energy efficiency and renewable energy projects.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is processed as general corporate finance, with proceeds earmarked to the operational 90MW Nakornsawan solar project, 260MW Hanuman wind project, and expansion of electric vehicle charging network in Thailand. The project is classified as category B for environment based on the most sensitive component of the project which are the wind and solar subprojects. The EV charging network is expected to have minimal environmental impacts. Corporate ESMS audit and subproject environmental and social compliance audit were undertaken by qualified and experienced expert in compliance with SPS requirements. The corrective action plan of the audit report was addressed by EA, including preparation of an ADB-compliant Environmental and Social Management System prior to first disbursement. EA will report its compliance with local regulations and its ESMS through annual monitoring and reporting to ADB.
Involuntary Resettlement The project is classified as category C for Involuntary Resettlement. The land for the solar power project was purchased on a willing seller-willing buyer arrangement. The substation and transmission line from the solar power substation are within the project boundary and have no additional project-linked land footprint. Involuntary resettlement impacts are not envisaged on account of the project and its associated facilities.
Indigenous Peoples The project is classified as category C for Indigenous Peoples. Both the solar and wind subprojects, and existing EV charging network facilities are located in an area not known to be settled, claimed or owned by any distinct or vulnerable ethnic or indigenous peoples group. No impacts on indigenous peoples are envisaged on account of the project.
Stakeholder Communication, Participation, and Consultation Initial public participation and consultation were conducted as part of the local regulatory requirements for the project approval of the solar and wind subprojects. EA conducts monthly CSR activities with the host communities and also checks if there are any grievances related to the projects.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting 13 Jul 2020
Approval 26 Aug 2020
Last PDS Update 23 Apr 2021

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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