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ADB + Gulf to fund solar projects in Thailand: The Asian Development Bank (ADB) and Gulf Renewable Energy Company, a subsidiary of Gulf Energy Development Public Company, have signed a USD 820 mn loan to finance the construction of 12 renewable energy projects across Thailand, according to a press release published last week. The portfolio includes eight ground-mounted solar PV plants with a contracted capacity of 393 MW and four ground-mounted solar PV plants with battery energy storage, offering 256 MW of capacity and 396 MWh of energy storage.
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About the package: The financing package — led by ADB as book-runners — includes USD 260 mn from ADB’s ordinary capital resource and a total of USD 529 mn from a consortium of institutions, including the Asian Infrastructure Investment Bank, Singapore’s KEXIM Global, Germany’s KfW subsidiary DEG, and the Export-Import Bank of China. ADB will also provide USD 31.35 mn in blended concessional finance from the Clean Technology Fund to address the higher risks associated with the energy storage projects
ADB is upping climate finance: The lender is funneling USD 160 mn into Masdar’s and Socar Green’s solar projects in Azerbaijan. During COP29, ADB committed USD 3.5 bn to a new program addressing the impacts of melting glaciers during COP29. The US and Japan also recently agreed to underwrite risks for ADB climate loans to support the bank in raising its climate lending by USD 7.2 bn.
The US hits Southeast Asian solar panel producers with new tariffs: The US Commerce Department imposed dumping duties between 21% and 271% on solar imports from Southeast (SE) Asia based on preliminary findings that the components are sold below production costs in the US, Reuters reported on Friday. The imports in question come from Cambodia, Malaysia, Thailand, and Vietnam, which together supply around 80% of US solar cells and modules.
The details: Jinko Solar got duties of 21.31% and 56.5% for products manufactured in Malaysia and Vietnam. Trina Solar faces a dumping margin of 77.9% for products from Thailand and 54.5% for those imported from Vietnam. Hanwha Qcells’ products from Malaysia presented no dumping margin and had the 14.72% duty imposed on the company earlier in October scrapped.
Market reax: American First Solar’s shares jumped around 3.8% while JinkSolar US’ dropped by up to 2.9%, Bloomberg reported on Friday. Foreign manufacturers and some smaller domestic renewable energy developers oppose the duties, arguing that the tariffs provide an unfair advantage to larger, established panel producers in the US, while raising the cost of solar power projects for consumers.
What’s next? The final decision on these duties is expected next April, and the rates could be adjusted based on the ongoing investigations.
REMEMBER- The US Commerce Department announced preliminary tariffs on solar imports from Southeast Asia in October on the claim that the panels are benefiting from illegal foreign subsidies to supply products at prices lower than their cost. The general rates were 8.25% for Cambodia, 9.13% for Malaysia, 23.06% for Thailand, and 2.85% for Vietnam, while company-specific rates were at 14.72% on Hanwha Q Cells Malaysia imports, 3.47% on imports from JinkoSolar Malaysian entities, 0.14% for Trina Solar, and 2.85% for some JA Solar Technology operations in Vietnam.
ICYMI- Some Chinese SE Asia-based solar makers are already making moves to evade the tariffs by relocating to other countries, like Indonesia, Laos, and as far as KSA.
