EGCO solar farms win Bt2.46bn loan
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Electricity Generating Plc has won a Bt2.46 billion loan for its solar power plants, Thailand's first solar tracking projects.
The loan was syndicated by Kasikornbank, ICBC (Thai) Bank and Land and Houses Bank. The new project follows EGCO Group's policy to increase electricity generating capacity through renewable energy. This included three solar power plants which rely on the solar tracking system.
"These are the first privately-owned projects with solar tracking systems in Thailand. Such systems will help the solar panels to achieve greater power-producing efficiency than with fixed-panel systems," said Sahust Pratuknukul, president of the power company.
The three projects to be funded are SPP2 in Saraburi, SPP3 in Si Saket and SPP4 near the provincial borderline between Sisaket and Ubon Ratchathani. Each of the first two has 8 Megawatt in capacity while the last has 6MW.
The three projects – with a combined output of 22 megawatts – are to be 99.99 percent owned by EGCO Group.
“This investment is part of EGCO Group’s target of expanding into the renewable energy business. The company aims to increase their generating capacity to 300 megawatts within 2015, with the government’s policy of boosting renewable and clean energy resource use for domestic needs to create a low carbon society. It also reinforces EGCO Group’s corporate social responsibility direction consistently held over the past two decades,” Sahust said.
According to Vasin Vanichvoranun, an executive vice president of KBank which is the mandated lead arranger, of total funding, Bt868.10 million will go to SPP2, Bt903.80 million to SPP3 and Bt683.90 million to SPP4. The project financing is being extended to cover construction and operational work to achieve project sustainability, plus the acquisition of technologies and the hiring of power plant professionals.
“Along with domestic investors, KBank is ready to assist in driving renewable power projects with promising growth potential, with our knowledgeable team members providing financial and advisory services. KBank is the domestic leader in financial services to the power generation and renewable energy industry," Vasin said.
KBank expects to attain an 80-percent share of the lending to the renewable energy industry.
