The Board of Investment (BoI) has raised concerns that the government’s pilot project allowing renewable energy producers to directly sell 2,000 megawatts (MW) of electricity to businesses may not be sufficient to attract new investments.
Narit Therdsteerasukdi, secretary-general of the BoI, highlighted that potential investors not only require reliable infrastructure and skilled labor but also expect government support in securing renewable energy.
“Requests for renewable electricity keep rolling in weekly, meaning the 2,000MW supply may not be enough,” he stated during the “Ignite Thailand: Invest in Endless Opportunities” seminar. The increasing demand comes primarily from digital technology firms and other industries aligning with global carbon reduction initiatives.
The government is set to launch the direct power purchase agreement (direct PPA) project in October, following approvals from the National Energy Policy Council (NEPC) last year. The initiative aims to facilitate peer-to-peer renewable power trading, particularly benefiting sectors such as data centers and cloud services.
Authorities, including the BoI and energy agencies, are currently working on criteria for power companies participating in the project and determining power tariffs. Once finalized, businesses nationwide—not just those within the Eastern Economic Corridor—will have direct access to renewable electricity.
Prasert Sinsukprasert, permanent secretary for energy, noted that renewable energy’s share in the country’s total fuel mix is expected to rise to 51% by 2037. If the current 2,000MW allocation proves insufficient, further approvals from the NEPC will be required to expand the program.
The initiative is expected to play a crucial role in Thailand’s clean energy transition and efforts to enhance investment attractiveness.
