The International Finance Corporation ( IFC ) is providing a loan package of up to 3.14 billion baht ( US$92 million ) to Winchai Company, a wholly-owned subsidiary of Sermsang Power Corporation ( SSP ), to support the development and operation of renewable energy projects in Thailand and across Southeast Asia.

The financing package, announced on June 12, includes a loan of 1.57 billion baht from IFC’s own account, with the remaining amount mobilized through a parallel loan from Sumitomo Mitsui Banking Corporation. The funds from the local currency financing package will replace Winchai’s existing US dollar-denominated loan for a 45-megawatt operational wind power plant in Thailand and enable SSP to increase its capacity to further invest in renewable energy projects across Southeast Asia.

SSP chief executive officer Varut Tummavaranukub says IFC’s long-term local currency financing package and its expertise in environmental and social risk management will enable the company to sustainably operate the existing wind project and expand its presence across Southeast Asia. “This investment will also help the company reach our electricity generation target of 1 gigawatt by 2032 and strengthen SSP’s position as a key player in the region,” he adds.

Thailand’s energy demand is driven largely by its industrial sector, according to IFC. The country is also promoting industries such as robotics, aviation, and digital technology as new engines to underpin growth and create jobs, further driving up the demand for electricity consumption.

Supporting the economy’s growth with sustainable energy is a key priority for Thailand. The country’s draft Power Development Plan aims to achieve a 51% share of renewable energy by 2037, focusing on solar, wind, and energy storage.

Jane Yuan Xu, IFC’s country manager for Thailand and Myanmar, says diversifying Thailand’s energy mix is essential to meet the country’s energy demand in a sustainable manner. “By supporting a leading private sector player, IFC aims to help Thailand increase national competitiveness, create jobs, and promote economic development – while shifting to a low-carbon growth path,” she points out.