This content is from: Local Insights

Support for Thai solar energy

Since 2006, Thailand has approved policies to promote the purchase of power from projects using renewable energy. The 2009 National Energy Policy Committee (NEPC) approved additional tariff adders for certain categories of alternative energy, including solar power.

In 2010, both EGAT and PEA issued notifications suspending receipt of applications for sale of power from solar projects due to over subscription for projects.

In 2011 the NEPC approved a 10-year 25% renewable and alternative energy development plan (2012-2021), with the same tariff adders.

On July 16 2013, the NEPC approved two feed-in tariff policies, which would lead to reopening support of solar power for two packages:

  • Rooftop: total quota 200MW. All projects to be installed by December 2013. Special FiT to be made for 25 years.
  • Community ground-mounted solar: 1MW per village, total quota 800MW. All projects to be installed by December 2014.

Subsequently, the Energy Regulatory Commission issued a regulation on August 30 2013, and notification regarding the purchase of power from rooftop solar PV panels on September 6 2013, together with forms of application, power purchase agreements, and other documents setting forth requirements for each project. Applications will be accepted from September 23 to October 11 2013.

The implementation of these policies is certain to encourage local developers of solar projects, and introduce a need for adapting traditional project financing models to suit the numerous smaller projects. No date has been announced for lifting the suspension of receipt of applications for larger solar projects.

Al Chandler

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