The Thai government is facing growing calls to renegotiate power purchase agreements (PPAs) with renewable energy producers to ease the financial burden on consumers and businesses. The proposal, led by Energy Regulatory Commission (ERC) member Worawit Srianunraksa, suggests adjusting electricity purchase prices to reflect actual generation costs, potentially reducing electricity bills by 0.17 baht per kilowatt-hour.
Under current agreements, the Electricity Generating Authority of Thailand (Egat) purchases renewable energy at 3.29 baht per unit, including a bonus tariff, through PPAs that typically last 25 years with indefinite renewal options. However, critics argue that these agreements result in inflated electricity prices despite declining production costs.
According to data from the Energy Policy and Planning Office (EPPO), the cost of electricity generation is 2.16 baht per unit for solar farms and 3.1 baht per unit for wind farms—significantly lower than the rates locked in under existing PPAs. Worawit has called on the National Energy Policy Council, chaired by Prime Minister Paetongtarn Shinawatra, to revise PPA pricing in line with actual generation costs rather than terminating agreements, which could lead to legal disputes and regulatory delays.
Meanwhile, an anonymous energy official warned that efforts to lower PPA tariffs may face opposition from power companies with political connections. The official suggested that the Administrative Court could be consulted to determine whether price adjustments are in the public interest.
Currently, 500 renewable energy firms, both publicly listed and private, operate under PPA licenses in Thailand. These companies initially benefit from adder and feed-in tariffs to support clean energy development. However, once these incentives expire, they continue to receive bonus tariffs, raising concerns over long-term electricity pricing structures.
As Thailand seeks to balance energy affordability and renewable energy expansion, policymakers face increasing pressure to reassess the financial sustainability of its current power purchasing framework.
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