Thailand, a net importer of fossil energy, is considering new models to promote renewable energy. In particular, it is looking at successful projects in Europe, where consumers are willing to pay higher rates to support renewable power.
There are many issues that require addressing if the country wants to support renewable power. Among them is the lack of interest among renewable power producers because of the low power purchase rates, which are pushing them to develop renewable power projects overseas instead.
According to Thailand's power development plan for 2015-36, energy policymakers have set the proportion of renewable power to 20% of the total power-generating system, or 19,634 megawatts, by 2036. The figure is relatively high compared with the current 7,490MW.
This implies there is a substantial amount of renewable power that needs to be developed.
Energy Minister Anantaporn Kanjanarat and senior officials observed a renewable power project in Denmark's Samso Island, where around 50% of the power used comes from renewable sources, mostly wind.
According to Samso Energy Academy, the island is on course to be free of fossil fuels by 2030. More than 50% of energy used for transport on the island is still from fossil fuels, while power for residential use is mostly sourced by wind turbines.
Mr Anantaporn said Denmark is one of the world's best countries at managing energy supply and consumption, with plentiful oil and gas resources. Denmark is an energy exporting country, yet still has a clear policy to rely on renewable energy and continue to support the use of renewable power despite higher costs.
The higher costs come from certain levies imposed by the Danish government on the renewable power-generating sector, which are accepted by the people.
"The Danes are willing to pay higher prices for renewable energy without asking for government subsidies," said Mr Anantaporn.
Wind turbines are among the sources of renewable energy utilised on Denmark's Samso Island.
In Samso Island, there are three biomass power plants that use agricultural waste from rapeseed to generate power for 300 families and two small hotels. Other major renewable power sources are solar and wind, generating power at an average price of around 14 baht per unit.
Fossil-generated power prices in Thailand are around four baht per unit, putting pressure on the government to try to lower renewable power prices to encourage consumers to switch from fossil.
Thailand tried to introduce a project similar to Samso Island in Koh Phaluai, located around 18 kilometres from Koh Samui. The project began in 2012 with the introduction of solar farm projects to the island with cooperation from major private firms. But experiment appears to have stalled.
Renewable power development in Thailand has weathered a vicious cycle of boom and bust, with the government providing room for private companies to step into the sector when oil prices surged and pushed other fossil fuel prices upwards.
Strong government support for the sector since 2000 has attracted several players to renewable energy. The attractive power purchasing rate of 8.5 baht -- in line with higher production costs -- lured many companies to the sector.
Some even diversified from other businesses into renewable energy and listed on the Stock Exchange of Thailand (SET) to raise more funds. Some players acquired licences from previous licence holders who failed to get loans.
However, subsequent unclear government policies left the sector in limbo.
And the power purchasing rate, also known as the feed-in tariff (FIT) rate -- the rate state utilities pay to solar farm developers -- stands at 4.12 baht per kilowatt hour as set last November, down almost 30% from 5.66 in 2013 and against 8.5 baht in 2006.
Increasing investment in the solar farm business has increased production, leading to lower power-generating costs, which has prompted energy policymakers to revise down the power purchasing rate from time to time.
Major players are now asking for a higher FIT rate, saying the current one is too low and deterring investors from launching new projects, even encouraging some to invest abroad.
Mr Anantaporn, the energy minister, however, poses a different argument over the issue.
"I don't understand why the [previous] government allowed such lucrative renewable power generating businesses with high returns to be operated by private firms. Why is the Electricity Generating Authority of Thailand (Egat) not allowed to do so?" he asked, indicating that Egat could provide power at a lower price due to the economies of scale the state enterprise would be able to generate.
Legal barriers also weigh on Thailand's renewable power development, as many laws relevant to the renewable power sector seem to be contradictory.
Energy Absolute Plc, a SET-listed renewable power developer and operator, last year experienced difficulties when its licence for a 260MW wind farm in Chaiyaphum was suspended as the company's project is located on Sor Por Kor land, designated for farming purposes only.
The Agricultural Land Reform Office finally settled the conflict, allowing all developers to continue the projects on Sor Por Kor lands.
However, the issue has raised concerns among wind farm developers over inconsistent government policy. It has also shaken investor confidence in the renewable energy business in Thailand, and leads to the broader question of whether the government will be able to promote clean energy any time soon.