NEPC approves 700MW purchase

NEPC approves 700MW purchase

ERC tasked with issuing regulations

Egat is expected to purchase surplus electricity from community-owned power projects.
Egat is expected to purchase surplus electricity from community-owned power projects.

The National Energy Policy Council (NEPC) has approved the purchase of 700 megawatts of power generation under the Energy for All community-owned power projects during 2020-21.

The council, chaired by Prime Minister Prayut Chan-o-cha, ordered the Energy Regulatory Commission (ERC) to issue regulations for this power purchase plan.

It also approved establishing a working committee to manage the purchasing contracts from the scheme.

Energy Minister Sontirat Sontijirawong said the community-owned power projects can generate electricity from renewable resources such as solar and agricultural waste.

"The purchasing plan will begin from past projects of the Quick Win initiative in 2020 and the government will purchase electricity from new power projects in 2021," said Mr Sontirat.

The council allows private companies to form joint ventures with local communities to operate renewable power projects in remote areas.

"Private companies can invest in the Energy for All scheme, and two state power enterprises -- the Electricity Generating Authority of Thailand [Egat] and the Provincial Electricity Authority -- are allowed to invest in community-owned power projects, while communities can hold shares ranging from 10-40%," he said.

Mr Sontirat said the government aims to strengthen local communities that have the potential to establish their own power plants.

"The communities are required to establish funds that will have revenue from selling the electricity so they can reduce power costs in the long run, consume the output and increase value for other businesses such as storage for farm and processed crop products," he said.

Project owners are required to provide resources for power plants and pay insurance prices for crop waste.

"Egat will purchase surplus electricity from the power projects, while communities can generate income by selling raw materials to be used as fuel in the plants," he said.

The council has ordered ERC to conduct a study of the appropriate price structure for electricity at charging stations and electric vehicles for mass transit.

The study is required to be submitted at the next meeting in February.

"The price structure is similar to power prices in the industrial sector. However, the new structure price should promote cheaper power for use in public transport," said Mr Sontirat.

The council also approved Egat importing 200,000 tonnes of liquefied natural gas (LNG) at spot prices to supply its power plants in December.

If Egat can manage lower electricity prices, the agency will allow new shipments of LNG.

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