Thailand hopes to receive a loan of US$3.1 billion from the World Bank for clean energy technology projects to help limit the impact of climate change, according to the Department of Alternative Energy Development and Efficiency (DEDE).

Krairit Nilkuha, director-general of the DEDE, said the department planned to use the money to help finance 70-80% of the total investment in clean energy technology, particularly by state-owned projects.

Privately owned projects will be screened by the Export Import Bank of Thailand and the Bank for Agriculture and Agricultural Co-operatives (BAAC).

He expects the World Bank will start to provide the loans under the Clean Technology Fund (CTF) early next year.

Thailand would be the fourth country in the world to receive CTF support, following Turkey, Mexico and Egypt, where funds are going to transport using clean technology.

Mr Krairit believes Thailand qualified because the country has "a clear direction to develop green energy projects in order to cope with climate change and has plentiful resources of materials".

The BAAC and the Exim Bank are expected to approve $800 million or 28 billion baht in loans to private companies' projects. Borrowers would be charged the minimum lending rate (MLR) plus 0.25%.

Candidates would include operators holding government concessions for $290 million worth of biomass energy projects in 340 communities.

More than 100 concession holders for wind-turbine and solar-power ventures could also seek CTF loans. By 2011, the Energy Ministry expects wind turbines to generate 115 megawatts of power and solar cells 50 MW, up from less than one MW at present.

Majority state-owned projects using clean technology include a 224-MW wind-power plant, solar cells and mini-hydro power plants worth a total of 579 million baht developed by the Electricity Generation Authority of Thailand (Egat).

The Provincial Electricity Authority (PEA), meanwhile, is working with the Forestry Industry Organisation (FIO), which is developing 100 biomass plants worth $230 million. These projects would use fuel wood and have a total capacity of 100 MW.

The PEA is also working with the DEDE to develop an offshore wind-turbine power plant and mini-hydro power plant.

"The CTF loans are different from the Energy Conservation Fund, which is focusing on research and development and providing loans for working capital in projects that aim to reduce energy consumption," Mr Krairit said.