The Asian Development Bank (ADB) has signed a THB235.55 million ($7.2 million) loan with Lomligor Company Ltd to finance the construction of a wind and battery storage facility in southern Thailand.
The Southern Thailand Wind Power and Battery Energy Storage Project is the first private sector initiative in Thailand to integrate utility-scale wind power generation with a battery energy storage system.
It will comprise a 10 MW wind farm and 1.88 MWh pilot battery energy storage system, which will store excess energy generated by the wind farm and boost grid reliability and stability.
“This project contributes to Thailand’s Power Development Plan targets for clean energy and also demonstrates the potential of integrated renewables and batteries to provide clean energy for southern Thailand,” said Infrastructure Finance Division Director for Southeast Asia, East Asia, and the Pacific at ADB’s Private Sector Operations Department Jackie B. Surtani. “This will enhance the resilience of the region’s electricity grid, provide energy security for communities, and support economic growth across the country.”
“Lomligor is the first wind power plant in Thailand to adopt energy storage system technology as the solution to the intermittency of wind power,” said Bundit Sapianchai, President of Lomligor’s parent company BCPG. “This will help enhance energy management efficiency and the resilience of energy grids. We are grateful to ADB for acknowledging the initiative of Lomligor Project in applying energy storage system technology to energy production and providing BCPG with such significant financial support including Clean Technology Fund (CTF) mobilization for the project.”
The project will help increase the supply of renewable energy to Thailand’s domestic grid. It is expected to generate at least 14 870 MWh of electricity per year while avoiding 6364 tons of annual carbon dioxide emissions in the country beginning in 2020.
As part of ADB’s blended finance offering for the project, ADB will administer a $4.75 million concessional loan provided by CTF.