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Alternative energy and the carbon market

The Energy Industry Act, BE 2550 (2007) came into force on December 11 2007 and established a new regulatory regime for electricity and natural gas businesses. Its objectives include the promotion of the use of renewable energy. The members of the new Energy Regulatory Commission were appointed on February 1 2008. The Office of Energy Regulatory Commissions was established as a state agency with the status of a juristic person.

The new Commission has broad powers over energy businesses. Its powers regarding licensing were clarified in six regulations and notifications issued on December 4 2008.

On January 28 2009, the cabinet approved a 15-year alternative energy plan, and on March 9 2009, the National Energy Policy Committee approved additional tariff adders for certain categories of alternative energy. The announced goal is for renewable energy to constitute up to 20% of total energy consumption by 2022.

During the 14th ASEAN Summit in Thailand, from February 28 to March 1 2009, the meeting recognised the challenge of climate change and agreed to cooperate on energy security, ASEAN energy cooperation and the development of renewable and alternative energy.

There is a growing market for carbon market finance. Thailand established a Designated National Authority (DNA) to manage CDM projects, the Thailand Greenhouse Gas Management Organisation. Ninety-four letters of intent have been received, and 57 letters of approval for CDM projects have been issued. There are 13 registered Thai CDM projects as of February 13 2009.

Energy Policy and Planning Office: www.eppo.go.th

Department of Alternative Energy Development and Efficiency: www.dede.go.th

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