Thailand to Introduce Direct PPAs for Renewable Energy Procurement

Thailand is set to revise its energy procurement policies to allow businesses to directly purchase renewable energy from producers, such as solar farms. Government spokesman Chai Wacharonke confirmed on Wednesday that Prime Minister Srettha Thavisin issued a directive on this matter during a recent mobile Cabinet meeting in Phayao.

The initiative follows discussions between U.S. Commerce Secretary Gina Raimondo and Thai officials during her visit, where she highlighted the importance of direct power purchase agreements (PPAs) for businesses seeking to adopt green energy. In response, Srettha assured that a definitive PPA policy would be in place by the end of the year.

Currently, renewable energy producers in Thailand are required to sell their electricity to the state-run Electricity Generating Authority of Thailand (Egat) at pre-determined rates. To accelerate the transition, the Prime Minister has instructed the Energy Ministry to fast-track the development of a direct PPA framework and submit it for approval to the National Energy Policy Council (NEPC).

Earlier this month, the NEPC approved an expansion plan allowing Egat to procure an additional 3,668.5 megawatts of clean energy. The allocation includes 2,368 megawatts from solar energy, 1,000 megawatts from wind energy, and 6.5 megawatts from biomass, adding to the existing 5,203 megawatts purchased under established tariffs.

The proposed PPA framework is expected to provide businesses with greater flexibility in sourcing renewable energy, aligning with Thailand’s long-term sustainability and decarbonization goals.