Thai PM fast-tracks business access to clean energy direct purchase

WEDNESDAY, MARCH 20, 2024

Prime Minister Srettha Thavisin has ordered the Energy Ministry to speed up measures to allow businesses to buy clean energy directly from generators such as solar farms, the government spokesman said on Wednesday.

Chai Wacharonke said Srettha gave the order during the mobile Cabinet meeting in Phayao on Tuesday.

The prime minister said that US Secretary of Commerce Gina Raimondo had inquired about a direct power purchase agreement (PPA) during her visit to Thailand with a US business delegation last week.

In response, he assured her that his government would come up with a clear-cut PPA measure by yearend to help businesses transition to renewable energy.

Currently, renewable energy generators such as solar and wind farms must sell their electricity to the Electricity Generating Authority of Thailand (Egat) under the feed-in tariff.

Srettha instructed the ministry to propose a direct PPA to the National Energy Policy Council (NEPC) for approval as soon as possible.

Earlier this month, the NEPC approved a plan for Egat to purchase an additional 3,668.5 megawatts of clean energy on top of the current 5,203 megawatts through the feed-in tariff system.

Of the additional 3,668.5MW, 2,368 will come from solar farms, 1,000 from wind farms, and 6.5 from biomass power plants.