Singapore-headquartered New Energy Capital Asia and Thailand-based UMC Metals have signed a power purchase agreement (PPA) for a 1.6MWp solar project in Thailand featuring both floating and ground-mounted solar installations.
New Energy Capital Asia is a provider of corporate and industrial solar energy solutions, while UMC Metals is a player in the metals industry. The project is set to power UMC Metals’ operations and help accelerate the company’s sustainability journey.
Under this 15-year agreement, New Energy Capital Asia will design, construct, and operate the solar project, aiming to generate 2,400 MWh of clean energy a year.
The partners aim to collectively reduce CO2 emissions by approximately 1,860 tons annually. The deal is deemed as “transformative” and the companies see the partnership as “a significant advancement in Thailand’s renewable energy landscape” .
A significant portion of the project is said to showcase floating solar panels, to capitalize on Thailand’s abundant water resources.
A recent report by Rystad Energy research writes that floating solar is primed to play a critical role in Southeast Asia’s solar expansion, overcoming limited land availability and presenting an opportunity to increase renewable energy generation without deforestation.
Operational FPV projects in Southeast Asia currently amount to around 500 MW combined, and, according to Rystad Energy’s data, an anticipated 300 MW of FPV capacity is expected to be added across Southeast Asia early this year alone.