The Energy for All renewable scheme faces yet another setback as the Energy Regulatory Commission (ERC) cited force majeure to postpone the signing of power purchase agreements (PPAs) between the government and companies who won an auction last year.
The PPAs were supposed to be signed between the bid winners and the state power distribution arm, Provincial Electricity Authority, yesterday to kick-start the development of power plants, scheduled to operate within three years after the signing.
"Because of unexpected events which are beyond the jurisdiction of the Provincial Electricity Authority, the power purchase agreement signing cannot proceed as planned," the ERC said on its website.
Its announcement, signed by ERC acting secretary-general Kittipong Pinyotrakool, stated the signing will be delayed 30 days.
Chatchaphol Prasopchoke, chief executive and president of UAC Global Plc, said the delay stems from technical problems slowing the legal oversight process for the Council of State.
He hopes the problems can be solved soon, allowing the PPA signing to resume.
UAC is among 43 winners in an auction held in September last year.
The company was awarded the right to develop a 3-megawatt power plant in the northeastern province of Khon Kaen.
Its project proposals in Maha Sarakham and Roi Et, also located in the Northeast, failed to win at auction.
The winners are divided into two groups: 16 to develop biomass power plants with combined electricity generation capacity of 75MW, and 27 to build biogas power generation facilities with capacity of 74.5MW.
Introduced in November 2019, Energy for All is designed to have businesses and communities jointly invest in biomass and biogas-fired power plants.
The scheme has faced several delays caused by the pandemic, the cabinet reshuffle and the revision of its conditions and business model.