Thailand has started imposing the utility green tariff (UGT) for the first time, requiring companies to pay 4.21 baht per kilowatt-hour (unit) if they opt to use renewable power.
The UGT, which is 0.06 baht higher than the power tariff of 4.15 baht a unit, targets businesses implementing campaigns to reduce carbon dioxide emissions and is not related to households, said Poonpat Leesombatpiboon, secretary-general of the Energy Regulatory Commission (ERC).
The 4.15-baht tariff, which is applicable from January to April, is used to calculate monthly power bills.
Companies interested in buying renewable power at 4.21 baht a unit must sign power purchase agreements that last for one year with the Electricity Generating Authority of Thailand (Egat), the Metropolitan Electricity Authority (MEA) or the Provincial ElectricityAuthority (PEA).
Energy authorities are preparing 2 billion units of renewable electricity for sale by April, said Mr Poonpat.
The three electricity agencies started registering companies that want to buy clean power at this rate from Jan 2. The registration period runs until Feb 28.
Companies have already submitted requests for renewable power amounting to 600 million units, he said.
They include electronic, chemical and petrochemical firms that buy electricity from the PEA, as well as malls and financial companies in service areas overseen by the MEA.
According to the ERC, the 4.21-baht rate is called "UGT 1", referring to the UGT 1 category of renewable power with unspecified sources.
Electricity in this category comes from seven hydropower dams across Thailand operated by Egat. They have a combined power generation capacity of 1,135 megawatts.
These seven dams ensure the supply of 2 billion units of renewable electricity a year.
The ERC is working on determining renewable power prices in the UGT 2 category, which refers to renewable power with specified sources, said Mr Poonpat.
Electricity in this category mainly comes from power plants under the ERC's first-phase renewables scheme, with total capacity of 5.2 gigawatts.
He said he expects 4.8GW from the scheme can be supplied to users who agree to buy electricity at the UGT 2 rate.
Egat is also planning to supply renewable power from its floating solar farms, said Tawatchai Sumranwanich, deputy governor for strategy at Egat.
The authority aims to develop 17 total solar farms with a capacity of 2,725MW at the reservoirs of its six hydropower dams.
The construction of two floating solar farms at the Sirindhorn Dam in the northeastern province of Ubon Ratchathani and the Ubonrattana Dam in Khon Kaen, also in the Northeast, were completed and the facilities are in operation.
The development and operation of the other 15 solar farms are planned for 2025 to 2030, said Mr Tawatchai.