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Thailand’s Energy Regulatory Commission has approved a Feed-in-tariff (FIT) scheme for renewable energy, which carries the inclusion of utility-scale solar, battery energy storage, wind, and biogas.
“Given the lack of such in 2018-37,” says Moritz Stitcher, a senior adviser at Berlin-based consulting firm Apricum, “the initiative is rather believed to be unexpected.”
The regulation establishes a 25-year FIT of THB 2,1679 ($0.057)/kWh for solar and THB 2,8331/kWh for solar plus storage.
Between the years 2024 and 2030, the solar quota will be 100 MW per year. Solar and storage capacity will probably change to 190 MW in 2024, 290 MW in 2025, 258 MW in 2026, 440 MW in 2028, 310 MW in 2029, and 390 MW in 2030.
Stitcher also said that the solar radiation and solar plus storage quotas are not particularly ambitious. “Because merely a single project can be of up to 90 MW, only a few initiatives will be built each year,” he adds further.
Talking about the programme, applications will be initially screened based on land, technology, funding, and project planning capability. The applications with the highest scores will then be assigned to reach the intended annual capacities based on the regulations. After biogas and wind, solar and solar plus storage ranks third and fourth, respectively.
Apricum already informed that the scheme will most likely be highly oversubscribed due to a large number of unfinished projects in previous programmes, the desirable tariff, and the large variety of market participants. It is important for the solar producers to be 51% Thai-owned, as it restricts participation to already established Thai players or high-risk takers with legal flexibility.