UOB Thailand launches U-Energy, Asia’s first integrated financing platform to drive energy efficiency
UOB bank
Building owners, energy service companies and homeowners can reduce an average of 20 per cent in energy consumption by tapping UOB’s green financing for energy efficiency projects
UOB Thailand has today launched U-Energy, the first integrated financing platform in Asia, to drive the development and adoption of energy efficiency projects for buildings and residential properties in the country. With U-Energy, the Bank will help businesses and homeowners save on electricity bills, cut carbon emissions and achieve their sustainability goals.
The launch was officiated by Dr Prasert Sinsukprasert, Director General, Department of Alternative Energy Development and Efficiency, Ministry of Energy.
Dr Sinsukprasert said, “With increasing importance of and commitment to sustainability globally, one of Thailand’s fundamental priorities is to achieve our goal in becoming more energy efficient. As such, the Ministry of Energy plans to reduce energy intensity by 30 per cent by 2037, compared with 2010 levels.
The government’s plan aims to reduce expendable use of energy and to improve energy efficiency through tangible compulsory, voluntary and complementary strategies. Energy efficiency investment is essential to the achievement of our goal and we have put in place financial support schemes such as soft loans, direct subsidies and a network of Energy Service Companies (ESCO). ESCOs play a critical role in engaging entrepreneurs, financial institutions and the government to ensure the successful implementation of energy efficiency projects.
Today UOB has launched a significant financing programme with favourable and flexible terms and conditions. Innovative end-to-end platforms such as U-Energy will help connect the dots in our journey to become more energy efficient in the long term and support Thailand’s carbon-neutrality target.”
In Thailand, the industrial, commercial and residential sectors contribute 59 per cent share to energy consumption last year . Factory owners, building owners and homeowners are keen to take on energy efficiency projects to reduce energy consumption but often lack financing support and the expertise to find the right energy service companies. UOB has developed U-Energy to address this need in the market.
Mr Andy Cheah, Country Head of Wholesale Banking, UOB Thailand, said, “UOB strives to help our clients meet their sustainability goals through our simple and integrated sustainable financing frameworks. U-Energy is another end-to-end solution that helps our clients save on energy costs and reduce their carbon footprint. With our streamlined and transparent process and through our ecosystem partnerships, we can serve as a catalyst and play a part in forging a sustainable future with our clients.”
At launch, the U-Energy platform will have eight energy service companies that customers can tap for energy efficiency projects. These U-Energy partners can support common energy efficiency projects such as improving chiller and air conditioning efficiency, installing solar panels on rooftops, switching to LED lights, optimising energy and power management systems and changing the building facade to reflect direct sunlight to reduce heat absorption, as well as replacing elevators with energy-regeneration technology.
ESCOs play a key role in the ecosystem by providing technology and services such as project consultation, sustainable and cost-efficient design energy audit, as well as end-to-end implementation and management of the retrofits to buildings. On average, the energy service companies on the U-Energy platform will help customers cut down energy consumption by an average of 20 per cent.
Flexible financing options for building owners Commercial and industrial building owners can opt for a direct purchase of the energy-efficient equipment or system with UOB Thailand’s green financing. Under this scheme, building owners may obtain a loan of up to THB250 million with a maximum seven-year loan facility, subject to optimal equipment and system sizing by the U-Energy partners. To enable greater speed to market, loan applications of building owners who are existing UOB Thailand customers will be put on a fast-track approval process. Alternatively, building owners can take up the “energy-as-a-service” model where UOB will provide green loans to the U-Energy partners at no upfront cost to building owners.
For homeowners, UOB Thailand offers a zero per cent interest instalment plan of up to 36 months when UOB credit cards are used as the mode of payment for their energy efficiency retrofitting projects.
U-Energy is a part of UOB’s suite of Sustainable Financing solutions under the UOB Smart City Sustainable Finance Framework. UOB Thailand has also launched U-Solar, Asia’s first integrated financing platform for solar energy under the same framework. Aligned with the United Nations Sustainable Development Goals, UOB’s sustainable financing frameworks enable companies to apply for green or sustainability-linked banking products without having to develop their own financing framework.
First launched in 2021, U-Energy is also available in Singapore and Malaysia. For more information on U-Energy, please visit https://www.uobgroup.com/u-energy/thailand/index.page.
1 ที่Source: Data from Thailand’s Ministry of Energy’s Energy Policy and Planning Office, http://www.eppo.go.th/index.php/th/energy-information/static-energy/summery-energy
2 Indicative and dependent on scope of work and verification with U-Energy partners.
23 March 2022
For More information, please contact
Strategic Communications and Brand
United Overseas Bank (Thai) Pcl.
Orawee Wiriyathananon Tel. 0-2343-4040