ADB loan fuels ASEAN expansion of Thai renewable energy firm

MANILA, Philippines — Thai renewable energy firm B. Grimm Power Public Co. Ltd. is expanding in ASEAN, including the Philippines, with the help of a $235-million loan from the Asian Development Bank (ADB).

In a statement yesterday, the multilateral development bank said it has signed a loan agreement with B.Grimm Power, one of the largest power producers in Thailand, to develop and enhance renewable energy capacity in the ASEAN region.

“The development of renewable energy in Southeast Asia is critical to meet its energy needs and B.Grimm Power is at the forefront of the region’s fast growing alternative energy sector,” said Michael Barrow, director general of ADB’s Private Sector Operation’s Department.

“ADB is proud to once again partner with B.Grimm Power as it continues its expansion strategy in ASEAN member countries,” he added.

ADB said the financing would support the firm’s implementation of the ASEAN Distributed Power Project, which will expand renewable and distributed power generation into new markets that include Cambodia, Indonesia, Lao People’s Democratic Republic, Myanmar, the Philippines and Vietnam.

The project will involve the execution and operation of distributed and utility-scale solar, wind, biomass, waste-to-energy, gas-fired power, energy storage, as well as associated infrastructure.

B.Grimm Power’s total distributed power generation capacity is expected to increase to 2,500 megawatts (MW) by 2022, while the renewable energy share in its portfolio will rise from 10 percent to 30 percent.

ADB took a $57.7 million equity stake in B.Grimm Power as part of the company’s initial public offering in July 2017. ADB also administered a $20 million loan provided by the Canadian Climate Fund for the Private Sector in Asia under the Clean Energy Financing Partnership Facility.

B.Grimm Power is a subsidiary of the 140-year old conglomerate B.Grimm Group which has been in the energy industry in Thailand since 1993. The firm currently has a total capacity of 1,779 MW, operating 13 gas-fired plants, with four more under construction.

The firm has in recent years diversified into renewable energy and is operating 15 solar power plants and two hydropower plants.