To address Southeast Asia’s growing energy demand and support local economies, the International Finance Corporation (IFC), a member of the World Bank Group, is providing a loan package of up to THB3,140 million (approximately $92 million) to Winchai Company Limited – a wholly-owned subsidiary of Sermsang Power Corporation Public Company Limited (SSP).

IFC said in a statement on Thursday that the financing package will support the development and operation of renewable energy projects in Thailand and across the region.

IFC’s financing to Winchai includes a loan of THB1,570 million (approximately $46 million) from its 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$-denominated loan for a 45 MW operational wind power plant in Thailand and enable SSP to increase its capacity to further invest in renewable energy projects across Southeast Asia.

“IFC’s long-term local currency financing package and its expertise in environmental and social risk management will enable us to sustainably operate the existing wind project and expand our 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,” said Varut Tummavaranukub, Chief of Executive Officer of SSP.

It is noted that Thailand’s energy demand is driven largely by its industrial sector.

In addition, Thailand is promoting industries such as robotics, aviation, and digital technology as new engines to drive 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 new Power Development Plan aims to achieve a 51 percent share of renewable energy by 2037, focusing on solar, wind, and energy storage.

“Energy access is a strategic priority for the World Bank Group,” said Jane Yuan Xu, IFC Country Manager for Thailand and Myanmar.

“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 added.

IFC is the largest global development institution focused on the private sector in emerging markets.

The organizations works in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.

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