UOB Thailand has announced the launch of U-Energy, the first comprehensive energy conservation loan platform in Asia, designed to drive the development and promotion of energy conservation projects for buildings and residences in Thailand. This initiative aims to reduce electricity costs and greenhouse gas emissions, helping businesses and homeowners achieve their sustainability goals. The project launch event was honored by Dr. Prasert Sinsukprasert, Director-General of the Department of Alternative Energy Development and Efficiency, Ministry of Energy, as the chairperson.

 

Dr. Prasert Sinsukprasert stated, “As the world increasingly prioritizes and commits to sustainability, one of Thailand's key issues is achieving more efficient energy use. Therefore, the Ministry of Energy has announced a plan to reduce energy intensity by 30% by 2037 compared to the levels in 2010.”

“The government is committed to promoting energy conservation by aiming to reduce unnecessary energy consumption while enhancing energy conservation through concrete strategies, including mandatory, voluntary, and hybrid approaches. Thus, investment in energy conservation is crucial to achieving this challenging goal. The government has various support measures, such as low-interest loans (soft loans), direct subsidies for energy conservation equipment upgrades, and a network of Energy Service Companies (ESCOs) that play a vital role in connecting operators, financial institutions, and the government to successfully implement energy conservation projects.”

“I am very pleased that today, UOB has introduced tools to access funding with flexible and beneficial terms for customers. The U-Energy comprehensive loan platform will serve as a crucial link in supporting Thailand's long-term energy conservation efforts, including the goal of achieving carbon neutrality.”

In the past year, the industrial, commercial, and residential sectors in Thailand accounted for 59% of total final energy consumption. Although factory owners, building managers, and homeowners have shown interest in energy conservation projects to reduce energy consumption, they often lack financial support and expertise in finding suitable energy management companies. UOB has developed the U-Energy project to meet this demand.

 

Mr. Andy Cheah, Deputy Managing Director of Wholesale Banking at UOB Thailand, stated, “UOB is committed to helping customers achieve their sustainability goals by offering a sustainable funding framework across various sectors. The U-Energy project is another comprehensive loan solution that helps customers save on energy costs and reduce their carbon footprint through a modern and transparent working process, combined with collaboration with partners in the energy industry as a mechanism to drive sustainability in the country.”

At this initial stage, U-Energy has partnered with 8 energy management companies for customers to choose from to initiate energy conservation projects in various areas, including improving the efficiency of cooling and air conditioning systems, installing rooftop solar panel systems, switching to LED lighting, optimizing energy management systems, and using materials that reflect sunlight to reduce heat absorption, as well as upgrading to elevators equipped with energy recovery technology.

Energy management companies play a crucial role in this ecosystem as they provide various technologies and services, such as consulting, energy assessments for sustainable design, cost-effectiveness analysis, as well as comprehensive implementation and management of building equipment upgrades. On average, energy management companies partnering in the U-Energy project can help customers reduce energy consumption by an average of 20%.

Flexible Funding Access Options for Building Owners

Commercial and industrial building owners can directly purchase energy conservation equipment or systems under UOB Thailand's green funding access, which allows them to apply for loans of up to 250 million baht with a maximum term of 7 years, depending on the size of the equipment and systems deemed appropriate by U-Energy project partners. Existing UOB customers will receive special privileges to apply for loan approval through expedited channels or may choose the “Energy-as-a-service” model, where the bank provides loans to project partners without any upfront costs for building owners.

For homeowners, UOB offers an interest-free installment plan for up to 36 months when paying for energy conservation equipment upgrades through UOB credit cards.

The U-Energy project is one of UOB's sustainable funding access solutions under the UOB Smart City Sustainable Finance Framework. Previously, UOB Thailand launched the U-Solar project, the first comprehensive funding access platform for solar energy projects in Asia under the same framework. This framework, which aligns with the United Nations Sustainable Development Goals, enables companies to access green banking products or sustainability-related products without having to develop their own funding access frameworks.

The U-Energy project was first launched in 2021 in Singapore and Malaysia and will be introduced in Indonesia in the near future. For more information about the U-Energy project, visit https://www.uobgroup.com/u-energy/thailand/index.page.