The state's move to promote direct power purchase agreements (PPAs) is gathering momentum, with the authorities and business people to jointly conduct a study over a plan to support direct sales of renewable energy from producers to factories in the Eastern Economic Corridor (EEC), says the EEC Office.
Peer-to-peer power trade in the renewables category has not been permitted in Thailand, but the National Energy Policy Council wants to run a direct PPA pilot project to attract foreign investors, especially those in data centre and cloud service businesses, who demand a sufficient supply of clean energy for their operations.
The project would allow power companies to directly sell renewable energy to entrepreneurs.
"The study will look into issues, including regulations on the construction of a new grid network, its costs and the construction area," said Chula Sukmanop, secretary-general of the EEC Office.
The Energy Regulatory Commission said earlier that if power companies use the state grid under the Third Party Access Code (TPA Code), a wheeling charge would be imposed on electricity trade.
This refers to a fee collected from the use of state transmission lines to deliver renewable power.
The preparations for the joint study follow the signing of a memorandum of understanding on the state-private cooperation carried out yesterday. The business groups which have teamed up with the EEC Office are: the Association of Private Power Producers, the Clean Energy for People Foundation, and the Provincial Electricity Authority, the state power distribution arm.
"The TPA Code will be an essential part of a plan to promote free trade in the power market," said Harald Link, chairman of the Association of Private Power Producers and chief executive of B.Grimm Power.
The direct PPA will be an alternative for companies which need clean energy, and it will support the government's goal of achieving carbon neutrality by 2050, he said.
A greater use of clean power in Thailand is needed to draw foreign investment, which is committed to cutting carbon dioxide emissions to avoid non-tariff barriers being imposed on carbon-intensive manufacturing, said Suvit Toraninpanich, chairman of the board of the Clean Energy for People Foundation.
Thailand needs to speed up efforts to promote renewable energy or see foreign companies invest in neighbouring countries, he said.
