New renewable plants to receive B2.4 feed-in tariff
Energy policymakers announced new renewable power generators will have the same feed-in tariff as fossil-fuel power generators, 2.40 baht per kilowatt-hour, because their production cost is equal to or lower than their traditional peers. The new rate is effective for new power plants immediately.
Energy Minister Siri Jirapongphan said this move is aimed at making public power bills more affordable as the new rate is significantly below the adder rate (the rate state utilities pay operators) renewable power generators pay of 5-8 baht.
Mr Siri said the price renewable energy generators sell to state utilities should be equal or less than the price from the Electricity Generating Authority of Thailand.
Last month, policymakers decided to quit granting licences to investors using renewable resources for the next five years. The policy had caused some investors, particularly listed companies on the stock market, to diversify into renewable energy generation.
"A new condition will be added that not only will the feed-in tariff be lowered but also firms' power purchase agreements must be the corporate type or a stable resource of feed stock is available to operate the power plants," he said.
Policymakers expect the subsidy scheme for renewables will be suspended until 2022.
Mr Siri said this new policy would not affect some investors because some resources still have lower production cost, such as biomass and solar power, and can compete with fossil-fuel generated power.
The National Energy Policy Council (NEPC) updated the country's renewable power portfolio as of February, with total power for both operation and development totalling 9,855 megawatts, or 64.5% of policymakers' long-term goal of 16,780MW by 2036.
The NEPC said there are only 6,350MW left over that the policymakers can promote for new investment in the remaining years.
Categorised by type of renewable feed stock, biomass power plants control the largest capacity at 4,045MW, while solar power totals 3,285MW and wind farms 1,522MW.
Other renewables include biogas at 503MW and community and industrial waste-to-energy (361MW and 38MW, respectively).
Licences remain over the next decade for 2,715MW of solar power, 1,500MW of wind power, 944MW of biomass, 780MW of biogas, and 139MW and 12MW of community and industrial waste-to-energy, respectively.