Thailand is set to introduce a direct power purchase agreement (PPA) framework, allowing businesses to buy renewable energy directly from producers, such as solar farms. The move aims to accelerate the country’s transition to clean energy and create a more competitive energy market.
Prime Minister Srettha Thavisin has directed authorities to develop the PPA framework with a completion target set for the end of the year. The announcement was made during a mobile Cabinet meeting in Phayao, where the government reiterated its commitment to advancing clean energy initiatives.
The decision follows discussions between U.S. Commerce Secretary Gina Raimondo and Thai officials during her recent visit. Raimondo underscored the importance of direct PPAs in enabling businesses to lower their carbon footprint and access renewable energy more efficiently. In response, Srettha assured that a clear PPA policy would soon be in place to support both international and domestic enterprises in their sustainability efforts.
Under the current system, renewable energy producers in Thailand are required to sell electricity to the state-run Electricity Generating Authority of Thailand (Egat) at fixed rates, limiting market flexibility. The introduction of direct PPAs is expected to allow businesses to negotiate energy contracts directly with producers, fostering a more dynamic and open market.
The government’s move is expected to drive investment in Thailand’s renewable energy sector while positioning the country as a regional leader in clean energy adoption.
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