Bangkok, Thailand, October 7, 2011—
IFC, a member of the World Bank Group, and the Clean Technology Fund are financing the development of two solar power plants in Thailand to support renewable energy, promote access to infrastructure, and help create jobs in rural areas.
Under the agreement, IFC will provide a loan of $8 million, and the Clean Technology Fund will contribute $4 million to help build two 6-megawatt solar power plants in the Nakhon Ratchasima and Loei provinces. The plants will be owned by the Korat 2 and Loei 1 subsidiaries of Solar Power Company, a leader in Thailand's emerging solar-power sector.
Managed by the World Bank, the Clean Technology Fund is a multi-donor facility with the aim to increase investments in low-carbon technology. These two plants follow the successful development of other solar farms by Solar Power Company, which has secured 34 licenses to build and operate grid-connected solar farms across the country.
“IFC is a trusted partner at every development stage of our renewable energy investment plan,” said Khun Wandee Khunchornyakong, Chairman and CEO of Solar Power Company Group, which wholly owns Solar Power Company. “Financing by IFC, the Clean Technology Fund and other partner banks is critical to the realization of our target to have 204 megawatts of solar generating capacity operational by 2013."
IFC previously invested $2.8 million in equity in Solar Power Company’s first three 6-megawatt solar power plants in northeast Thailand, a rural area with some of the best solar resources in the country. These IFC investments support the government’s goal of generating at least 20 percent of energy from renewable sources by 2022, which will improve the supply of clean energy, help move Thailand toward low-carbon growth, and reduce the country’s reliance on imported energy.
“IFC’s investments in Solar Power Company plants will help catalyze private sector investment in renewable energy, specifically solar, in Thailand,” said Sergio Pimenta, IFC Director for East Asia and the Pacific. “Especially, this first investment of the Clean Technology Fund in Thailand’s renewable energy sector demonstrates the viability of lending to small-scale solar projects, and helps to attract more financing from the banking sector.”
The two new plants are also receiving debt financing from local banks Kasikorn Bank, Bank of Ayudhya, and Thanachart Bank. These solar farms are being developed under Thailand’s Very Small Power Project program, which supports independent generators smaller than 10 megawatts to sell power to the Provincial Electricity Authority, one of two government-owned power distribution companies.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
About Solar Power Company
Solar Power Company is a Thai developer of solar farms whose management has over 30 years of experience in the solar industry. It is majority-owned by its management team with a minority shareholding by Kyocera, one of the world’s leading photovoltaic module manufacturers and the supplier of modules to this project. For more information, visit