Wind farm contracts to be reviewed
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Wind farm contracts to be reviewed

'Relief plans' mulled for projects if face axe

A cassava farmer tends to his crop near giant turbines installed by Wind Energy Holding in tambon Huay Bong in Dan Khun Thot district of Nakhon Ratchasima. The 13 billion baht, 207-MW project is at risk, along with 18 others, after a court ruling that 'farm' land is for farmers, not wind farms. (Photo by Panumas Sanguanwong)
A cassava farmer tends to his crop near giant turbines installed by Wind Energy Holding in tambon Huay Bong in Dan Khun Thot district of Nakhon Ratchasima. The 13 billion baht, 207-MW project is at risk, along with 18 others, after a court ruling that 'farm' land is for farmers, not wind farms. (Photo by Panumas Sanguanwong)

All Sor Por Kor land lease contracts for wind energy projects will be reviewed to ensure they are not misused following the Supreme Administrative Court's ruling.

The Agricultural Land Reform (Alro) secretary-general Sompong Inthong said Thursday that officials are looking into details of every contract for Sor Por Kor land leased to companies that build wind farms to generate electricity in Chaiyaphum and Nakhon Ratchasima province.

The move came the day after the Nakhon Ratchasima Administrative Court ruled that the Chaiyaphum land reform committee's decision to lease the land to Thep Sathit Wind Farm Co was unlawful and ordered it revoked.

According to the court, the land lease for the company is in breach of the agricultural land reform law which requires that allowing Sor Por Kor land use for activities besides agriculture can be done only if those activities are in the interests of farmers.

For wind farms, even though generating electricity is in the interests of the public, it is also a profit-making business and does not offer direct benefits to farmers, the court said. The court upheld the lower court's decision.

Mr Sompong said land lease contracts for wind farm projects would be revised to comply with the court's ruling.

Any contracts which breach the law based on the court's verdict will be amended. Operators will be required to consider any interests and benefits their projects can provide to farmers and, if they have any, such promises will be added in their contacts.

Mr Sompong said so far, Alro has approved Sor Por Kor land lease contracts for 19 business operators in Chaiyaphum and Nakhon Ratchasima.

In Chaiyaphum, there are 12 companies which have leased land covering 345 rai. Of them four companies are operational, six are under construction and two have not begun construction.

In Nakhon Ratchasima, seven companies received approval to lease land covering 282 rai. Two of them are operating and the remaining five are under construction.

Meanwhile, Weerapol Chirapraditkul, a member of the Energy Regulatory Commission, said the commission will hold talks with Alro next week to discuss the misuse of Sor Por Kor land for wind farm energy projects.

If the projects need to be scrapped, a relief plan would be set up to help affected companies, he added.

Thai Wind Energy Association vice-president Sumeth Suthapati said the court's ruling will lead to strict rules regulating the use of Sor Por Kor land.

He urged the government to stipulate clear requirements for the use of Sor Por Kor land for private companies to follow.

The court case in Chaiyaphum, which has raised doubts over the fate of wind farm projects, came about after protests by 10 residents of tambon Ban Rai and the Association of Lawyers for Environmental Protection.

The group filed a lawsuit with the Administrative Court against officials for allowing the land to be leased to Thep Sathit Wind Farm Co.

On Sept 23, 2009, the land reform committee of Chaiyaphum province decided to rent the land to Thep Sathit Wind Farm Co.

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