BlackRock, a global investment management giant, has announced a groundbreaking partnership with Chow Energy Company Limited, a prominent renewable energy operator and developer in Thailand. This collaboration marks BlackRock Private Markets’ inaugural foray into Thailand’s renewable energy sector and signifies a significant step toward accelerating the growth of clean energy infrastructure in emerging markets.
Empowering Thailand’s Green Energy Revolution
The primary objective of this partnership is to support Chow Energy in realizing its ambitious goal of developing and expanding a greenfield commercial and industrial (C&I) solar capacity exceeding 1 gigawatt (GW). This substantial portfolio is projected to contribute to the reduction of over 1 million metric tons of carbon dioxide emissions over its operational lifespan.
Addressing Thailand’s Energy Landscape
Thailand’s energy landscape is characterized by high electricity consumption, driven by a substantial industrial sector consisting of established blue-chip firms. The country has established a framework that encourages private sector participation in power generation through power purchase agreements (PPAs) with government utilities. Given the escalating costs of gas and electricity, stemming from a heightened liquefied natural gas environment, this venture is poised to play a pivotal role in facilitating the adoption of cost-effective and eco-friendly electricity solutions for businesses and corporations.
A Winning Combination
This collaboration leverages BlackRock’s extensive scale and financial expertise alongside Chow Energy’s local knowledge and capabilities. Together, they aim to solidify Chow Energy’s position as a key player in Thailand’s energy transition while supporting the nation’s target of achieving 30% renewable capacity by 2037.
Valerie Speth, APAC Co-Head of Climate Infrastructure at BlackRock, expressed enthusiasm, stating, “We are delighted to make our first venture in Thailand, one of the early movers for renewables in the region.” Speth emphasized the importance of mobilizing capital into climate-related investments in emerging markets to expedite the transition to a low-carbon economy.
Isabella Pacheco, Director of APAC Climate Infrastructure at BlackRock, commended Chow Energy’s commitment to Thailand’s renewables market and its alignment with BlackRock’s dedication to promoting renewable-driven electrification in the region.
A Milestone for Chow Energy
Cristobal Chin, CEO of Chow Energy, described the partnership as a milestone for the business and a testament to the company’s success in Thailand’s renewable energy sector. Chin emphasized Chow Energy’s commitment to delivering customized solutions and contributing to job creation and economic stability in local communities.
About the Climate Finance Partnership (CFP)
CFP is a unique blended finance vehicle established in collaboration between BlackRock and the governments of France (AfD), Germany (KFW), and Japan (JBIC), as well as leading U.S. impact organizations and institutional investors. CFP’s mission is to mobilize substantial blended capital into climate infrastructure projects, targeting non-OECD countries in Asia, Latin America, and Africa.
BlackRock’s Commitment to Climate Solutions
BlackRock’s Infrastructure Equity platform manages over US$25 billion in client assets across its Climate and Diversified Infrastructure franchises. The platform comprises a team of over 140 infrastructure specialists who offer investors tailored global investment solutions to capitalize on the vast investment opportunities within the energy transition. BlackRock has been an early advocate of energy transition investing, commencing its investments in renewable power in 2012. Since then, it has developed leading strategies to assist clients in investing in climate solutions and advancing the transition to a low-carbon economy.
