Thailand commits to accelerating green energy trading liberalization by year’s end


The direction of Thailand's "Direct Power Purchase Agreement" is set to become clearer. Chai Wacharonke, spokesperson for the Thai Prime Minister's Office, stated that Prime Minister instructed to expedite the policy to liberalize green energy trading in the cabinet meeting on the 19th. This is aimed at enabling private enterprises to directly engage in Power Purchase Agreements (PPAs) with electricity producers.

(Photo: Thailand's Prime Minister office)

Prime Minister Srettha Thavisin said that the Thai government is prepared to support US companies in expanding their manufacturing bases in Thailand, particularly in clean energy and the green economy sectors, in a meeting with Gina Raimondo, the US Secretary of Commerce who visited Thailand on the 13th. This support includes establishing data centers, semiconductor facilities, electric vehicle factories.

Raimondo noted that Thailand's development aligns with the sustainability trends emphasized by American businesses. She urged the Thai government to promptly introduce regulations related to the "Direct Power Purchase Agreement." At that time, Thavisin pledged to formulate clear guidelines by the end of this year.

The Thai Ministry of Energy will first draft a proposal, which will then be submitted to the National Energy Policy Council for review. If green energy is opened for free trade, it will expand the green energy market and accelerate Thailand's energy transition.

The current green energy trading system in Thailand operates under the Feed-In Tariff (FIT) scheme, requiring electricity producers to sell green energy exclusively to the Electricity Generating Authority of Thailand (EGAT) at a predetermined price. This excludes sales to the public, resulting in a monopolistic and closed market. The future implementation of Direct Power Purchase Agreements (DPPAs) will mark a significant milestone in the liberalization of Thailand's green energy market.

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