Competitiveness: Thailand’s solar energy takes off with a rich supportive eco-system

• By Pooky, Thai Intel’s economics journalist

They say these days, when a stock market analysts visits a firm, that is a sign of failure, because analysts should focus more on the eco-system of that firm.

In Thailand the eco-system for solar energy firm is rich and diverse, from solar cell producers, to banks and finance companies eager to lend, to the venture capitalist interested in start-ups, to solar energy plant engineering and construction firm ready to put up solar systems-they are all here in Thailand in significant numbers.

For example, take one company, Solar Power Company. The news about its eco-system includes:

• Ekarat and SPC sign MOU agreement. On the 7th December 2010, Ekarat Engineering Public Company Limited(Ekarat) signed a long term Memorandum of Understanding(MoU)where Ekarat will supply a total of 198 by 2200 volt oil immersed hermetically sealed power transformers to the Solar Power company Limited (SPC). The value of the contract is 120 million THB.

• IFC’s Solar Energy Investment Helps Thailand Get More Power from Renewable Sources. Washington, D.C., November 18, 2010—IFC, a member of the World Bank Group, is investing $1.1 million for a 9 percent equity stake in two of Solar Power Company’s solar power plants that will help Thailand generate more of its energy from renewable sources

• THB 2-billion funding for two new solar projects: The Kasikornbank has extended THB 2 billion in project financing to the Solar Power Company (SPC) for the construction of two new solar power farms in Sakon Nakhon and Nakhon Phanom.The signing ceremony was held at the K bank head quarters with senior management from the K bank, Kyocera and the Md of SPC Khun Wandee Khunchornyakong all attending.

• Press Conference by Kasikorn Bank to announce the Financial Support to the first SPC 6MW: A press Conference was held by the KASIKORNBANK to announce and confirm financial support to SPC the Solar Power company of Thailand for our first 6 MW. Solar power Farm Project (Korat#1). The project is in Nakornratchasima province” This is the 1st and largest Multi-Megawatt Commercial Solar Farm in Southeast Asia.

• Kasikornbank press release: Today the Kasikornbank reconfirmed its committment to supporting green energy and protecting the envoirenment by extending a THB 1.1000 million loan to the Solar power Company SPC for the construction of the first and largest solar power farm in S.E.Asia. This is the banks first major investment in a “”green field”” project. The Kasikornbank will continue to support renewable energy projects as they see the this as a way to reduce the use of natural gas and other more polluting power sources.

• IFC Makes $1.7 Million Equity Investment in SouthEast Asia’s Largest Solar Power Farms

Clearly, with one firm being Solar Power Company, the eco-system, includes, the IFC, the World Bank, Kasikorn Bank, the solar cell maker, the engineering firm setting up the solar plant and others.

Renewable Energy World reports:

Thailand Joins the Solar Fast Lane

By Jeremy Wilcox, Contributor

10 เมษายน 2555

BANGKOK — Economic renewable energy development typically requires that countries exploit their natural renewable resources with subsidies reducing in line with technology costs and market maturity. Thailand has adopted such an approach to renewable development and while its biomass has the greatest renewable generation potential, the rapid growth of solar development could conceivably see solar challenge wind power as the kingdom’s second most important renewable resource by the next decade.

As a country, Thailand benefits from strong year-round solar radiation with the largely rural northeast Isaan region of the country benefitting most. It is not surprising then that Solar Power Company (SPC), a Thai developer, has plans for 34 solar plants in Isaan totalling 204 MW by the end of 2012. But while SPC will likely be the major player in Thailand’s fast-developing solar sector, the honour of developing the largest solar plant to date will go to Natural Energy Development (NED), a cooperation of local and foreign financial institutions together with manufacturer Sharp Corporation.

NED is constructing a 73 MW (DC) solar plant in Lopburi province, about two hours north of Bangkok, and earlier this year the company announced it would expand the gross capacity of the plant to 84 MW (DC). The first phase of the plant is due to commence operations as REW goes to press, with an installed capacity of 8 MW and additional capacity expected to come on line in monthly phases until the full capacity is reached in 2013.

Thailand’s drive towards renewable energy took place about a year before the 2006 coup, when then prime minister Thaksin, called for Thailand to diversify Thailand’s energy away from oil and gas.

Local press reports:

Energy conservation and alternative energy are national priorities in 2006, with continued R&D into renewable energy resources — in particular solar energy, biomass, hydro power and wind energy. Several factors have influenced the government’s decision to pursue renewable energy (RE) alternatives, including the increased demand for electricity; the high price of oil; growing concerns about the combustion of fossil fuels; and the high investment cost of expanding Thailand’s existing electricity grid. Thailand’s tropical climate makes it an ideal location for the development of RE technologies, in particular biomass and solar energy, says Siriporn Sailasuta, director general of the Department of Alternative Energy Development and Efficiency (DEDE). As one of the world’s top exporters of rice, rubber, cassava and sugar, Thailand has huge potential to develop biomass technologies — the gasification process using wood, charcoal and other biomass materials to produce electricity Siriporn says. In addition, Thailand’s ample sunshine ensures that solar energy (see Focus On) will become an important renewable energy source in isolated areas of the country, despite accounting for less than 1% of Thailand’s total renewable energy at the present time, she says.

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