Thailand is currently carrying out pilot projects for the development of an advanced grid system to better manage the grid volatility that accompanies the introduction of renewable energy. The private sector is also pursuing opportunities to develop projects with battery energy storage system (BESS) Contact online >>
Thailand is currently carrying out pilot projects for the development of an advanced grid system to better manage the grid volatility that accompanies the introduction of renewable energy. The private sector is also pursuing opportunities to develop projects with battery energy storage system (BESS) technologies.
Regulations in Thailand already permit behind-the-grid technologies such as rooftop solar and storage to be deployed, subject to the Energy Regulatory Commission (ERC)''s licensing regime. However, many small to medium-sized buildings are not attractive behind-the-meter developers, since excess power cannot be sold to the grid or to third
PPAs for ground-mounted solar + battery storage will be on a "Partial-Firm" basis, and project must be capable of generating the following amounts of electricity: 9.00 am to 4.00 pm: 100% of the MW capacity specified in the PPA;
There are no regulations or requirements concerning carbon capture and storage technology currently. Energy reform is being carried out under PDP 2018 (2018-2037), which emphasizes the use of renewable energy.
The Energy Regulatory Commission of Thailand has passed a regulation to set up a FIT scheme for renewable energy, including utility-scale solar, battery energy storage, wind, and biogas.
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Power purchase agreements for up to 5,203 MW will be allocated across four types of renewable energy projects:
The ERC has the ability to adjust power purchase targets, however the published targets are based on the scheduled commercial operation date ("SCOD") to be specified in the power purchase agreement ("PPA") for the purchase of electricity generated by the project.
A Very Small Power Producer ("VSPP") holds a PPA for the sale of electricity with a capacity for sale of electricity with a capacity of 10 MW or less and a Small Power Producer ("SPP") holds a PPA for the sale of electricity with a capacity exceeding 10 MW but not more than 90 MW.
Ground-mounted solar + battery storage projects are available only to SPPs, but all three other types of projects are available to both VSPPs and SPPs.
The following FiTs are offered³, with an additional FiTPremium of THB 0.50 per kWhr for projects located in the southern border provinces (Yala, Pattani, Narathiwat and the Chana, Thepha, Saba Yoi and Na Thawi districts in Songkhla).
PPAs for all projects other than ground-mounted solar + battery storage will be on a "Non-Firm" basis, meaning that the applicant will be paid for whatever amount of electricity is generated up to the MW capacity specified in the PPA and with no penalty if the amount of electricity generated falls below that capacity.
PPAs for ground-mounted solar + battery storage will be on a "Partial-Firm" basis, and project must be capable of generating the following amounts of electricity:
Applicants must be corporate entities registered in Thailand and foreign shareholding is limited to 49%. At least half of the applicant''s directors and shareholders must be Thai, and directors authorised to bind the company must also be Thai. Exemptions from the foreign shareholding and director requirements are available to companies eligible for mode 3 and mode 4 specific commitments under international agreements or exempted under other laws, although in practice, the availability of exemptions is likely to be limited.
The minimum capital requirement of THB2,000 per kW of capacity imposed by the current PPA scheme would require an applicant for a 50 MW PPA to have a registered capital of THB100m (approximately US$2.7m), effectively preventing thinly capitalised companies from applying. Even though Thai companies can be established with only 25% of the registered capital actually paid up, the requirement for applicants to place a guarantee of THB 1,000 per kW of capacity would require an applicant for a 50 MW PPA to have at least THB50m in cash or immediately available funds (approximately US$1.35m).
Applicants must also have identified a point of interconnection to the Grid by submitting the request to the Electricity Authority by 28 October 2022 and have obtained confirmation that the Grid has the ability to handle the electricity generated by the project being proposed by the applicant, with results being announced by 11 November 2022.
The new round of PPAs represents one of the best opportunities for traditional energy companies to enter the renewable energy sector and for existing renewable energy companies to expand their existing portfolios, provided they have identified a suitable point of interconnection are able to satisfy the project "technical readiness" criteria.
Applications will be assessed against the following five areas of technical readiness, with scores being given for each area, and applicant will need to meet a minimum score in order to be eligible for a PPA. The criteria are more detailed than in any previous round of PPAs.
Satisfying the technical readiness will require a substantial amount of technical input and applicants will need to display an understanding of the regulatory permitting process for renewable energy projects.
Thailand''s abundance of land with high insolation is likely to result in applications for solar PPAs exceeding yearly targets and potentially creating bottlenecks at Grid interconnection points, however the selection process prevents solar from cutting off access to other technologies.
If there are a large number of project applications for a given connection point to a part of the Grid with capacity limitations, the renewable energy types will be priorities in the following order of decreasing priority:
Applications will open from 4 November 2022, 12.01 am. to 25 November 2022, 12.00 pm. through the RE Proposal system on the Office of the ERC''s information network system (). Applicants are required to submit their offer for the sale of electricity to the state electricity authority together with evidence of placing a guarantee within three business days following the date on which the applicant has confirmed an offer for the sale of electricity through the RE Proposal system, but no later than 25 November 2022, 12.00 pm.
Qualified applicants will be announced by 2 December 2022, and applicants who satisfy technical readiness will be announced by 18 January 2023 respectively. Successful projects will be announced by the ERC by 15 March 2023.
As applications will require a substantial amount of technical input to satisfying the technical readiness requirements, the best time to commence the application process may have been "months ago". The next best time is now.
(1) Regulations of the Energy Regulatory Commission on the procurement of electricity from renewable energy in the form of Feed-in Tariff (FiT) in 2022 – 2030 (B.E.2565 – 2573) for the Group of No Fuel Cost 2022 (B.E.2565) published in the Government Gazette September 27, 2022 (B.E.2565)(2) The Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority or the Provincial Electricity Authority(3) By resolution of the National Energy Policy Council in the Meeting No. 3/2565 on 6 May 2022
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Take advantage of our market research to plan your expansion into the ThailandRenewable Energy market. This guide includes information on:
Thailand has long been promoting and supporting energy development, especially in the field of renewable energy and energy efficiency. The Thai government has been promoting renewable energy to reduce the use of fossil fuels, especially natural gas, and reduce the environmental impact from traditional energy sources. Renewable energy development in Thailand includes solar, wind, small and large hydropower plants, biomass, biogas, municipal solid waste (MSW), geothermal power, and biofuels (ethanol, biodiesel).
Under the Alternative Energy Development Plan (AEDP) 2018,integrated into the Power Development Plan (PDP) 2018 Rev.1, the Thai government is striving to develop more renewable energy power plants over the next 20 years. The government’s goal is to increase the proportion of renewable energy to 30% (including imported hydropower) of total energy consumption by 2037. The renewable energy purchasing target will be maintained at 18,696 megawatts.
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