The Natural Energy Development (NED) yester¬day clinched a Bt5billion credit facility from three local banks and the Asian Development Bank to finance construction of the world's largest solar farm.
The 73megawatt power plant in Lop Buri will entail an investment of Bt8 billion.
The company has also secured a commitment from local and foreign institutions to help finance the Bt1.2billion expansion of the plant to 84MW to commemorate His Majesty the King's 84th birthday next year.
ADB's share is Bt2 billion while Kasikornbank, Bangkok Bank and Siam Commercial Bank will provide the remaining Bt3 billion.
Construction will commence next month and commercial operation will begin in November next year.
NED chairman Vinit Tangnoi, which is a joint venture of CLP Holdings and Electricity Generating Plc, said the additional power has been approved by local authorities in Lop Buri.
The 11MW increase will be sold to the Electricity Generating Authority of Thailand under the small power producer scheme.
The 11MW expansion project has won Board of Investment incentives.
The solar plant will use 540,000 highgrade, thinfilm solar panels from Sharp Corp. ItalianThai Development and ItalThai Engineering will proceed with the construction.
ADB is buying carbon credits from the project, said Peck Khamkanist, managing director of NED. It will also grant $2 million to support NED's research and development of new public utility projects.
The project is expected to cut carbon dioxide emissions by about 1.3 million tonnes throughout its 25-year operation and reduce imports of fuel by 35,000 tonnes per year.
Under the Energy Ministry's incentives, NED will enjoy an adder of Bt8 per unit for solar power for 10 years, while the new adder of Bt6.50 might not attract investors, espe¬cially developers of small solar farm, he said.
Nopadej Karnasuta, vice president for corporate business development at Kasikornbank, said KBank expects to double its energy loans to 10 per cent of its lending portfolio.
KBank targets to extend Bt10 billion to Bt15 billion this year for renewable energy projects. It has already loaned out Bt5 billion in the first half for such projects, he added.