Heaptalk, Jakarta— International Finance Corporation (IFC) poured a strategic green fund of US$64 million, equal to Rp1 trillion, into Thaliand’s electricity company, Sermsang Palang Ngan Co., Ltd (SSP), to fulfill the renewable energy demand in Indonesia, Thailand, and Vietnam.
This funding package covers IFC’s loan worth US$32 million and a parallel loan from Siam Commercial Bank (SCB), with an equivalent amount. This capital will bolster the company’s finance acquisition, development, and construction of renewable projects, particularly solar farms, solar rooftops, and biomass.
“We are honored that IFC has backed us in expediting green projects, which reflect our commitment to secure a future energy source for everyone, powering renewable energy investment in Asia,” CEO of Sermsang Power Corporation Public Company Limited (SSP), Varut Tummavaranukub, conveyed.
In ASEAN, the energy sector is the most significant emitting sector for those countries, accounting for about 55% – 70% of the total greenhouse gas (GHG) emissions. Despite tremendous potential for renewable energy, this sector represents less than 20% of the region’s energy supply. In effect, ASEAN countries risk perceiving an approximately 35% reduction of their GDP by 2050 because of climate change and natural hazards.
According to the latest estimates, Asia’s overall power capacity is expected to see a steady increase in its capacity for renewables, reaching 63% in 2035. Sermsang currently possesses a 52MW solar photovoltaic power plant in Lopburi province, North of Bangkok, selling the power to the Electricity Generating Authority of Thailand (EGAT) under a non-firm power purchase agreement.
“Renewables offer a viable path forward in meeting increasing demand, specifically for emerging markets. We are proud to work with SSP in developing a long-term relationship with a growing renewable energy and help expand its footprint in the region,” IFC Country Manager for Thailand and Myanmar Jane Yuan Xu said.
IFC has decades of experience in financing, structuring, and leading complex energy transactions in emerging markets, with over 50 gigawatts of energy generation financed. At the end of FY22, IFC’s committed energy portfolio amounted to $6.1 billion, with half of that attributable to renewable energy. IFC portfolio clients provide electricity to 100 million people worldwide annually.
