Key Takeaways
- The IFC invests 1.48 billion baht ($45 million) in CleanMax Energy to enhance clean energy accessibility in Thailand.
- This investment marks the IFC’s first debt commitment to a renewable energy developer focused on the commercial and industrial sector in Thailand.
- With this funding, CleanMax aims to expand its solar capacity, emphasizing the increasing demand for on-site solar solutions among industries.
Investment Details
The International Finance Corporation (IFC), the private investment arm of the World Bank, is set to invest 1.48 billion baht (US$45 million) into CleanMax Energy (Thailand), a subsidiary of Clean Max Enviro Energy Solutions. This funding aims to improve access to reliable and affordable clean power for industrial businesses and was announced on July 30.
This investment is notable as it represents the IFC’s first debt investment in a Thai renewable energy developer exclusively serving the commercial and industrial (C&I) sector. The capital will facilitate the creation of 35 megawatt-peak (MWp) of greenfield solar capacity, refinance 41MWp of existing solar projects, and consequently enhance Thailand’s C&I solar capacity.
As the country progresses towards a more diversified energy mix, the industrial sector’s power demand propels the adoption of on-site solar solutions that offer cost advantages over traditional grid tariffs. The IFC predicts that the C&I solar market in Thailand could triple in the next decade.
The IFC previously invested over US$10 million in CleanMax Enviro Energy Solutions in 2017, alongside Warburg Pincus. This new investment strengthens their partnership, underlining the IFC’s ongoing commitment to expanding energy solutions in emerging markets.
CleanMax, a prominent renewable energy provider in the C&I sector, boasts 2.2 gigawatts of renewable assets across India, the Middle East, and Southeast Asia. The company offers various solutions, including rooftop solar, solar farms, and wind-solar hybrid farms, and has recently started providing renewable energy certificates.
Kuldeep Jain, managing director of CleanMax, expressed the company’s ambition to enhance clean energy access in Thailand through this partnership with the IFC. He stated, “We will strive to build a sizeable portfolio, attract interest from commercial lenders, and contribute to renewable energy asset development in Thailand.”
Riccardo Puliti, the IFC’s regional vice-president for Asia-Pacific, emphasized that this financial support would enable CleanMax to expand in accordance with market needs. He remarked, “Aligned with government efforts, this project will boost competitiveness in the distributed generation segment and broaden renewable energy solutions for the country.”
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