Major energy companies express readiness to sell clean electricity
Four key energy companies have expressed readiness to sell clean electricity in the second round of procurement following the announcement by the Provincial Electricity Authority (PEA) that it would purchase 2,100 megawatts.
The electricity procurement from renewable-energy sources under the Energy Regulatory Commission (ERC) in the form of feed-in tariffs (FiTs) for the years 2022 to 2030 has garnered significant interest from electricity producers, aligning with the increasing demand for renewable energy and the aim for net zero emissions.
The four private companies involved are Gulf Energy, EGCO, BAFS, and the RATCH Group.
In the first round of procurement, 5,000MW was initially announced, generating interest for 15,000MW of electricity for sale. Consequently, the government revealed plans to purchase an additional 3,000MW, followed by the latest round of 2,100MW, with more announcements expected.
Poolpat Leesombatpaiboon, ERC secretary general and PEA spokesman, said the purchasing conditions would be established on October 8, with selected applicants announced within 30 days and power purchase agreements signed within 180 days.
The PEA has set criteria for rights allocation to groups proposing wind and ground-mounted solar projects under the FiT scheme, with 198 groups qualifying for a total electricity purchase volume of 5,203MW.
The project has passed critical technical-readiness standards but had yet to be selected, as electricity supply met targeted levels.
Gulf Energy’s chief executive officer, Sarath Ratanavadi, indicated that the company is poised to submit proposals for the upcoming phase, hoping to secure at least 20% of the purchase project.
Ratthaphol Cheunsomchit, Gulf's deputy CEO, added that the company won about 3,000MW in the first round and anticipates seeing revenue commence next year. Gulf's five-year investment plan amounts to 90 billion baht, with 80% earmarked for renewable-energy initiatives.
M L Nathasit Diskul, president of Bangkok Aviation Fuel Services, noted that BAFS is ready to apply to sell clean electricity in Phase 2, leveraging its existing 40MW power plant and ongoing construction of additional solar projects, alongside a joint venture with Strengthening Power Corporation.
Dr Jiraporn Sirikum, president of EGCO Group, disclosed plans to increase the proportion of electricity generation from renewable sources to 30% by 2030, with more than 10 solar projects ready for submission.
Meanwhile, Nitus Voraphonpiput, CEO of RATCH Group, highlighted the need for the government to expedite the National Power Generation Development Plan to keep pace with increasing electricity demand.
RATCH plans to invest 10 billion baht in the latter half of 2024, targeting a renewable energy contribution of 30% by 2030 and 40% by 2035.
A source at the Ministry of Energy revealed that the second round of renewable-energy purchases totals 3,668MW, though there remains 1,500MW pending approval from a new board of the PEA, following the expiring terms of four board members at the end of September.
The source commented, “When the chairman leaves, an acting chairman must be appointed, which may delay proceedings. Therefore, the opening of the second round for clean-electricity procurement may need to wait for a fully empowered new board.”
