A reservoir by EGAT that combines hydropower and floating solar power. (Photo: EGAT)
To encourage businesses to use renewable energy, Thailand has officially launched the Utility Green Tariff (UGT), setting the rate at 4.21 THB per kWh (about 0.12 USD), slightly higher than the current rate for conventional electricity. Local demand for corporate green electricity subscriptions has already reached 600 million kWh.
2 billion kWh of green electricity to be supplied in Q1
According to regulations, businesses interested in purchasing green electricity at this rate must sign a one-year purchase agreement with either the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), or the Provincial Electricity Authority (PEA), and complete their subscription registration between Jan. 2 and Feb. 28.
The 4.21 THB per kWh rate for green electricity is 0.06 THB (about 0.0018 USD) higher than conventional electricity. According to Poonpat Leesombatpiboon, Secretary-General of the Energy Regulatory Commission (ERC), the total green electricity available for subscription from Jan. to April this year is 2 billion kWh.
The ERC has named this rate UGT1, which is available to small and medium-sized businesses. They can meet carbon reduction requirements through actual electricity supply and green certificates without specifying the source of the green electricity. Currently, UGT1’s green electricity is sourced from seven hydropower plants under EGAT, with an estimated stable supply of 2 billion kWh annually.
UGT2 to create new renewable energy projects
The UGT2 rate, designed for large electricity users, is still under review. This rate will focus on the development of new renewable energy projects and will allow businesses to specify the source of their green electricity through utilities such as MEA or PEA.
Poonpat further explained that future green electricity supplies will mainly come from power plants collaborating with the ERC’s first-phase renewable energy program, with an expected capacity of up to 4.8 GW.
ERC of Thailand launched the UGT1 program tailored for small and medium-sized enterprises, while the upcoming UGT2 tariff will target large power uses. (Image: ERC)
Since 2021, the Thai government has been researching ways to increase green electricity supply in response to the demands of RE100 investors. Although the UGT program, originally scheduled to launch in 2023, has faced delays, it is now officially open for subscription. This is expected to help businesses reduce carbon emissions and is hoped to attract foreign investment to establish factories in Thailand.
Deputy Prime Minister Pirapan Salirathavibhaga has stated that Thailand will become the first ASEAN country to offer a comprehensive green electricity service with the implementation of UGT.
Source: Bangkok Post(1), (2)
