Businesses are repeating their call for the government to change the country's electricity trade from the decade-long enhanced single buyer (ESB) system because it does not facilitate increased use of renewable power.
Officials can partially or gradually change the ESB scheme, but they urgently need to consider taking action, said the Federation of Thai Industries' Renewable Energy Industry Club.
Under ESB, the Electricity Generating Authority of Thailand (Egat) serves as the single buyer that sells electricity to the public.
If power companies want to sell electricity produced by renewable resources, they are required to sell it to Egat and state power distribution agencies, which then distribute electricity through their grids to companies and households.
This system does not support peer-to-peer power trade between renewable power producers and business operators, as some factory owners want to buy electricity directly from power companies.
Multinational firms that relocate their production facilities to Thailand need more renewable power as they are committed to reducing carbon dioxide emissions from their businesses, said Natee Sithiprassasana, chairman of the Renewable Energy Industry Club.
Direct electricity sales between clean energy producers and customers are increasingly important as regulations on carbon dioxide emissions keep changing and growing more complex, causing manufacturers to demand a power supply system that can facilitate their shift towards renewable energy, he said. An alternative is adjustment of renewable power policies, said Mr Natee.
Some foreign companies set a goal for carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2035, ahead of the Thai government's time frame of 2050, he said.
Mr Natee said he does not think the ESB system is compatible with changes in companies' power management policies as concerns related to global warming are increasing.
In fact, ESB could weigh on foreign investors considering expansion of their businesses to Thailand, he said.
Mr Natee suggested the government allow companies to buy renewable power directly from producers.
"The state power distribution agencies -- the Metropolitan Electricity Authority and the Provincial Electricity Authority -- can impose a wheeling charge on peer-to-peer power trade," he said.
A wheeling charge refers to a fee collected from the use of the state transmission lines to deliver renewable power.
The government needs to change the ESB policy to serve companies that require more renewable energy, yet remain dependent on the state grid, with almost 70% of electricity supply coming from fossil fuels, said Mr Natee.
Changing the system is not difficult, requiring approval from only the National Energy Policy Council and the cabinet, he said. The ESB was approved by the cabinet in 2003.
Mr Natee suggested the government start piloting peer-to-peer power trade in the Eastern Economic Corridor, which covers parts of Chon Buri, Rayong and Chachoengsao.
The Energy Regulatory Commission is testing this type of electricity trade under its sandbox scheme, but it does not cover a large area and is not suited for large businesses, according to a source at the Energy Ministry who requested anonymity.
Peer-to-peer electricity supply is not included in the revised version of the national power development plan, but authorities will discuss this issue next week as part of efforts to promote renewable energy, the source said.
Egat and the state power distribution arms are ready for a partial change to ESB after the EU decided to enforce the Carbon Border Adjustment Mechanism to better control carbon-intensive manufacturing of imports, said Warit Rattanachuen, assistant Egat governor.