Germany’s development finance institution DEG has committed $50 million in debt to support Gulf Renewable Energy Company Limited (GRE), the clean energy arm of Thailand’s Gulf Development Public Company Limited, as part of a $350 million financing package to expand renewable power capacity in the country.
The facility will fund the construction of three projects with a combined capacity of 194 megawatts (MW), comprising one solar plant and two solar-plus-battery energy storage system (BESS) facilities.
The projects will sell electricity under long-term power purchase agreements with the Electricity Generating Authority of Thailand (EGAT), providing stable contracted revenues typical of infrastructure assets.
The loan is structured as a corporate facility to GRE and is backed by an unconditional first-demand guarantee from Gulf Development, one of Thailand’s largest private power producers with a total installed capacity of more than 12 gigawatts.
The transaction adds 194 MW of carbon-free generation and supports the deployment of utility-scale battery storage, a segment expected to play a growing role as Southeast Asian power systems integrate more intermittent renewable energy.
DEG said the financing aligns with its climate and impact strategy and will help diversify Thailand’s energy mix while expanding solar generation.
The project is also expected to meet IFC Performance Standards, ensuring high environmental and social compliance.
“This project contributes to market and sector development by expanding renewable energy from solar, diversifying Thailand’s energy mix and addressing the need for sustainable energy sources,” the development lender said, adding that the investment supports environmental stewardship through strong environmental and social safeguards.
The financing forms part of a broader programme aimed at accelerating Thailand’s renewable rollout and scaling battery storage capacity.
It also supports Gulf’s transition strategy to increase the share of renewables in its portfolio to at least 40% by 2035.
For Gulf, the repeat backing from international development finance institutions highlights continued investor appetite for contracted renewable infrastructure across Southeast Asia, particularly projects combining solar generation with energy storage to enhance grid stability and bankability.
InfraCapitalAsia.com
