GreenYellow secures 1.1 billion Baht project finance to expand solar project development in Thailand

Friday 24 December 2021 10:30
Deal marks latest development of GreenYellow, the French Green Independent Power Producer (IPP), as it increases its footprint in Southeast Asia.Scope of transaction establishes GreenYellow's key position in the region's self-consumption solar PV market.GreenYellow, a global player in decentralized solar power generation and energy efficiency, has announced the completion of 1.1 billion Baht debt financing to expand solar project development in Thailand after the success of its 92 solar self-consumption power plants already in operation. The non-recourse financing provided by Asian Development Bank (ADB), KASIKORNBANK (KBank), and responsAbility (rA) means loan repayments will be made using only the earnings of the projects and will fund the expansion of its portfolio.

The strength of an international group with the expertise of local teams

Through this transaction, GreenYellow has managed to leverage one of its operating portfolios of 92 solar PV projects, which encompasses rooftop installations, solar farms, and floating solar for a total capacity of 60.3 MWp. Teaming up with leading local financing partners enables the French Green IPP to combine the strength of an international group with the expertise of local teams. Current installations are distributed across Thailand and serve solar power - complementing the PEA/MEA grid during daytime - to 14 private customers through long term Solar Power Purchase Agreements (PPA) - between 15 to 20 years.

After agreeing a PPA with a company, GreenYellow provides all the investment needed for the solar plant: this one stop solution covers the whole lifetime of the solar project, from finance, license application and design to construction, operation, monitoring and maintenance, without additional charges for the client throughout the duration of the PPA.

This solar-as-a-service solution enables GreenYellow's customers to reduce their carbon footprint by using clean energy generated by the solar power plant with zero investment required. Integrating solar power helps businesses contribute to the Thai government's 2030 goal of reducing greenhouse gas emissions by 40%, and the 2050 goal of achieving net zero emissions. Additionally, the units of solar power sold by GreenYellow to its customers are cheaper than the grid tariff, which helps them reduce their operating costs.

Key player in competitive solar self-consumption solutions in South-East Asia

This latest fundraising of 1.1 billion Baht over 13 years will enable GreenYellow to secure new solar installations to complement its existing portfolio of 140 projects and accelerate its growth in Thailand and Southeast Asia region.

The loan allows GreenYellow to strengthen its position as a Green IPP and accelerate its development in Thailand and Southeast Asia. With more than 100 people across its offices in Bangkok, Ho Chi Minh City, Ha Noi and Phnom Penh, GreenYellow has established itself as a key player in decentralized solar power generation in the region, and this latest development emphasises the company's ability to propose ambitious and competitive solar self-consumption solutions to its regional and global customers.

Otmane Hajji, Founder and President of GreenYellow, states: "The completion of this financing is a testimony to the maturity of self-consumption solar in Thailand and South-East Asia, and enhances our leadership in this area. Given the scarcity of available land and the fact that more than 70% of Thailand's electricity consumption comes from large companies and industry, decentralized solar energy production is a solution that will enable the country to achieve its low-carbon trajectory objectives while continuing its growth dynamic. For our private sector customers, the deployment of these solutions also allows them to substantially reduce their energy bills. As a result, this transaction opens up new financing opportunities for our development ambitions in the region. We would like to warmly thank the Asian Development Bank, KBank, and responsAbility for their confidence in this project."

Tipakorn Saiphatana, Executive Vice President of KASIKORNBANK, adds: "With this deal, KBank continues to play a leading role as a financial service provider that is a driving forces for the Thai economy. We have always prioritized financial support for environmentally friendly projects in alignment with the National Energy Plan of the Committee on Energy Policy Administration (CEPA), Ministry of Energy, that aims to accelerate Thailand towards the use of clean energy and reduction of CO2 emissions within 2065."

Antoine Predour, Head of Climate Finance and member of Senior Management of responsAbility Investments AG, concludes: "The transaction with GreenYellow is a great addition to our portfolio in distributed solar solutions for commercial and industrial clients in the region. The partnership with GreenYellow presents another notable step in the renewable energy transition in Asia, which is at the core of our investment activity."

About GreenYellow

In 14 years, GreenYellow has become a major player in the energy transition in France and abroad and a true ally of companies and public communities in this field. As an expert in decentralized solar photovoltaic production, energy efficiency projects and energy services, GreenYellow offers its clients a unique and global platform to empower them to make their energy transition a beneficial and committed reality. By March 2021, GreenYellow had developed 355 MWp of photovoltaic capacity and signed nearly 2,650 energy efficiency agreements representing an annual volume of energy savings of 855 GWh. The Group was also managing more than 2.9 TWh of energy for its clients. GreenYellow is constantly expanding its offering through innovation to meet the needs of private and public players and to help them reduce their environmental footprint. Operating in 16 countries on 4 continents, the company has more than 500 employees worldwide.

GreenYellow started its solar activities in Thailand in 2017 and has secured more than 129 MWp of self-consumption solar projects across the country with large renowned brands like CP All, Siam Makro, Royal Porcelain, Valeo, and many more leading industrial players across various industry segments. GreenYellow has established as a key player of the Solar Private PPA market and invested more than 3,000 million Baht in Thailand to date.




Source: Spark Communications