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Linkage to Country/Regional Strategy |
The proposed investment is a loan to Chaiyaphum Wind Farm Company for the Subyai Wind Power Project in Thailand. The project will construct and operate an 81-megawatt power plant comprising 32 wind turbines. The project is consistent with the country partnership strategy, 2013 2016 of the Asian Development Bank (ADB) for Thailand. The strategy has three core strategic areas: infrastructure, environmental sustainability, and finance sector development.a The strategy recognizes that overall spending for investment and public infrastructure relative to gross domestic product in 2011 may not be sufficient to address the infrastructure constraints in areas of particular importance such as the energy sector. It further enumerates the following energy infrastructure challenges: increasing power generation capacity, accelerating development of renewable energy generation, and strengthening regional energy markets. The government recognizes that it needs to do more to create an environmentally sustainable and low-carbon economy. Toward this goal, the Eleventh National Economic and Social Development Plan, 2012 2016 includes priorities for inclusive growth, private sector development, and environmentally sustainable development. Its road map includes the promotion of green growth by increasing energy efficiency, supporting clean energy sources, and expanding forest coverage. Thailand's Renewable and Alternative Energy Development Plan, 2012 2021, approved by the government in December 2011, emphasizes wind power development and sets a target of generating 25% of primary energy from renewable sources by 2021, thereby avoiding 76 million tons of carbon emissions annually.b The project supports the government's long-term objective under the Thailand Clean Technology Fund Investment Plan to utilize ADB Clean Technology Fund resources to support renewable energy projects in the private sector. The project is expected to contribute to Thailand's initiatives to boost energy security, and be a factor in accelerating and expanding private sector investment in clean energy infrastructure. |
