Thailand’s B Grimm Power garners nearly US$58m of ADB investment for Asean renewables

News | 26 July 2017

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In a bid to invest in low carbon energy production in Asean and meet rapidly-growing energy demands, the Asia Development Bank (ADB) made an equity investment in an initial public offering (IPO) for B Grimm Power Public Company.

This will enable B Grimm, one of Thailand’s largest private power companies, to develop renewable energy projects in Asean – the ADB subscribed to 123m shares worth B1,968m (US$57.8m).

Shares began trading on the Stock Exchange of Thailand on 19 July. ADB is also administering a loan of up to US$20m from the Canadian Climate Fund under its Clean Energy Financing Partnership Facility.

“The project will help support B Grimm in diversifying its energy production and expand to other less-developed countries,” said Jackie Surtani, a director of ADB’s Private Sector Operations Department.

“In doing so, the project will help the Asean region in its transition to a low-carbon economy through the development of renewable energy.”

B Grimm currently builds and operates power plants in Thailand, Vietnam and Laos. It operates 12 natural gas-powered plants with five under development.

It has 15 solar plants and wants to increase its renewable energy generation capacity to 30% of output.

ADB’s investment is directed toward B Grimm’s 114 MW solar projects and 16 MW wind power projects in Thailand, as well as solar, wind, and other renewable energy projects in Cambodia, Indonesia, Laos, Myanmar, Philippines, Thailand, and Vietnam.

The ADB said in a statement that the administered loan from Canada will add renewable energy capacity (particularly solar) in Asean. Power from individual solar modules will be collected in batteries and use enhanced software to be dispatched during peak demand.

The loan will also help B Grimm address various legal, technical, and regulatory challenges in some of the Asean countries. ADB plans to provide further corporate lending to the company in the future.

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