Asian Development Bank to loan 22-billion-baht to develop the Monsoon Wind project in Laos
Will be the electricity-generating facility with the largest capacity in Southeast Asia
BCPG Plc, the renewable energy arm of mostly state-owned Bangchak Corporation Plc, has selected Asian Development Bank (ADB) to arrange a new 22-billion-baht loan to develop the Monsoon Wind project in Laos into an electricity-generating facility with the largest capacity in Southeast Asia.
The 600-megawatt wind farm is expected to be a “bankable project”, said BCPG chief executive Bundit Sapianchai.
It will play a key role in global efforts to reduce carbon dioxide released from fossil fuels, he said.
ADB has financed several of BCPG’s green power projects, including its first wind farm with an energy storage system in Thailand.
The Monsoon Wind project also drew interest from multilateral development banks as well as Thai and overseas commercial banks, said Mr Bundit.
“We are considering proposals from these institutions and will finalise a selection process within the first quarter of next year,” he said.
The facility is expected to cut 35 million tonnes of greenhouse gas emissions over its lifetime, helping the UN reach its net-zero target, a balance between greenhouse gas emissions and absorption.
The Monsoon Wind is also aimed at supporting economic growth in the region and reinforcing Laos’ position as the battery of Asia.
Impact Energy Asia Development Co (IEAD), a joint venture between BCPG and Impact Wind Investment Co, signed a power purchase agreement with state-run Vietnam Electricity to supply electricity from Laos to Da Nang in Vietnam.
IEAD plans to commence Monsoon Wind construction in the second half of next year and expects to start a commercial operation by 2025.
Monsoon Wind is BCPG’s third wind project. The company earlier acquired a 40% share in PetroWind Energy Inc, the operator of the Nabas wind farm in the Philippines, with an installed capacity of 20MW.
BCPG also operates the 9MW Lom Ligor wind farm in Nakhon Si Thammarat’s Pak Phanang district under a joint development with the state-run National Science and Technology Development Agency.
“We are confident the Monsoon Wind project will create value to all stakeholders, including communities in the areas and on the planet,” Mr Bundit said.