Thailand Clean Energy Direct Purchase

The National Energy Policy Council (NEPC) has approved a pilot project for a Direct Power Purchase Agreement (Direct PPA), allowing businesses to directly purchase clean energy from renewable sources, including solar, wind, hydropower, and biogas not exceeding 2,000 megawatts through the Third-Party Access (TPA) systems. This project follows a discussion with U.S. Secretary of Commerce Gina Raimondo regarding a PPA during her recent visit to Thailand in March. The initiative is designed in part to meet the electricity demands of data centers, which are required to utilize 100 percent renewable energy for their operations. 

Thailand’s power generation is structured under an enhanced single-buyer model, and the Electricity Generating Authority of Thailand (EGAT) monopolizes high-voltage transmission and the wholesale electricity market.  Currently, if power companies want to sell electricity produced by renewable sources, they are required to sell it to EGAT under the feed-in-tariff system and state distribution agencies. 

The project is a significant development for Thailand’s electricity market, promising better management of energy costs, reductions in carbon dioxide emissions, and additional opportunities for renewable energy developers. 

Please contact Suttharud Liangwonnaporn, Commercial Specialist at the U.S. Commercial Service in Bangkok, to learn more about opportunities.