Thailand’s Energy Regulatory Commission Sets Strategic Roadmap for 2025 to Drive Clean Energy Transition

Representational image. Credit: Canva

The Energy Regulatory Commission (ERC) has unveiled a comprehensive 2025 roadmap aimed at accelerating the country’s shift toward clean electricity while ensuring that electricity bills remain unaffected for the general public.

Dr. Poolpat Leesombatpaiboon, Secretary-General and spokesperson for the ERC, outlined the agency’s plans during a press briefing, highlighting several key initiatives:

  • In April 2025, the ERC will launch Utility Green Tariff 1 (UGT 1), a green electricity service sourcing power from non-specific renewable sources. This program, developed in collaboration with EGAT, MEA, and PEA, is expected to support an annual demand of approximately 2,000 million units. By June 2025, Utility Green Tariff 2 (UGT 2) will be introduced, catering to specific renewable sources with a capacity of about 8,000 million units per year. The initiative also includes setting international-standard guidelines for certifying green electricity.
  • The commission is moving forward with the regulation of electricity trading via Direct Power Purchase Agreements (Direct PPA). Working alongside the Energy Policy and Planning Office and the Board of Investment (BOI), the ERC plans to establish criteria and guidelines for setting service rates for third-party access to the electricity grid. These measures, part of a pilot project for renewable energy trading, are expected to be finalized by September 2025.
  • In the natural gas sector, the ERC will introduce Phase 2 of its liberalization initiative by developing guidelines for managing virtual LNG terminals (Virtual Inventory) and establishing a gas price information system known as Pool Gas. New engineering and safety standards for natural gas operations, set forth in the ERC Regulations on Engineering Standards and Safety in Natural Gas Business Operations B.E. 2024, will also be enforced by 2025.
  • The ERC is also focusing on future energy technologies by studying operational models for demand response, microgrids, renewable energy forecasting, battery storage, electric vehicles, and other disruptive technologies. This study, which will inform regulatory updates and the creation of an energy regulatory manual to support Thailand’s Smart Grid plan, is expected to be completed by September 2025.

Dr. Poolpat acknowledged the challenges ahead, noting that while renewable energy technologies such as solar and wind have become more cost-effective, others—including green hydrogen and large-scale energy storage—remain expensive for Thailand. He stressed that the country must balance its energy transition with economic realities, ensuring that clean energy initiatives do not lead to increased costs for ordinary consumers.

“In Thailand, where economic conditions differ from those in developed countries, it is crucial that any transition to clean energy is managed in a way that maintains affordability for the majority,” Dr. Poolpat said. He also pointed to global pressures, such as trade barriers and the Carbon Border Adjustment Mechanism (CBAM), which underscore the need for competitively priced clean energy solutions to attract multinational investments.

To achieve these goals, the ERC has set a framework that includes:

Ensuring that clean energy procurement does not raise average electricity costs for normal users.
Assigning additional costs solely to those opting for clean electricity.
Implementing a transparent service charge calculation with a reasonable ceiling.
Maintaining fair competition in the energy market.
Supporting Thailand’s broader economic, trade, and investment sectors through well-structured service rates.
With its ambitious 2025 plan, the ERC aims to modernize Thailand’s energy infrastructure, promote renewable energy, and strengthen the country’s position in the global energy transition while safeguarding the interests of its citizens.

 

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