The country’s latest solar energy project is expected to spur investment of around 18 billion baht this year, which should help support the sluggish economy, the country's energy regulator said on Tuesday.
Some 67 farm cooperatives along with several listed companies won the right to sell a combined 281.32 megawatts of solar power to the national grid last week.
The move, after a delay of almost a year, is seen as crucial step for Thailand to go ahead with other renewable energy sources such as biomass in the South, analysts said.
Among the winners are Global Power Synergy, Superblock, Bangchak Petroleum and Solartron.
They are required to sign power purchase contracts with state electricity agencies within 120 days and start operations by Dec 31, Viraphol Jirapraditkul, director and spokesman for the Energy Regulatory Commission, said in a statement.
The 25-year contract offers feed in tariff rate at 5.66 baht per unit, while companies will share revenue with the cooperatives, the regulator said.
The project is part of the government's drive to raise solar power capacity to 6,000MW by 2036 from 2,768 MW in January.
Thailand uses natural gas for 65% of its power generation, but wants to reduce its dependence to 40% over the next two decades and focus more on renewable power.