Thailand Plans to Expand Public Solar Power Quota to 400 MW Annually, Awaiting PDP Plan Finalization

Representational image. Credit: Canva

Thailand’s Ministry of Energy is considering an expansion of the public solar power quota to approximately 400 megawatts (MW) per year. However, the decision will be reviewed annually based on feasibility. The electricity purchase process remains on hold as authorities await clarity on Phase 2 of the green electricity procurement and the finalization of the country’s updated Power Development Plan (PDP). Officials anticipate that the new solar power purchase scheme will be launched in 2025.

Ministry of Energy is evaluating the reopening of public solar power purchases following a suspension in July 2024. The suspension was triggered by overwhelming public interest in rooftop solar installations, which quickly filled the 90 MW purchase quota set by the Energy Regulatory Commission (ERC).

Given the rising demand for renewable energy, authorities are now considering increasing the quota to at least 400 MW per year—the highest allocation for public solar power to date. However, concerns remain about whether the electricity transmission infrastructure can support the additional supply.

The Ministry of Energy has indicated that any new solar power purchase initiative will depend on the completion of Thailand’s long-term PDP, which was initially planned as PDP 2024 but is now expected to be rebranded as PDP 2025. The revised plan will outline the country’s energy framework from 2025 to 2037.

Currently, the PDP update faces challenges, particularly regarding renewable energy procurement. In December 2024, the National Energy Policy Committee (NEPC) decided to halt Phase 2 of the green power purchase agreement to conduct an audit. The review focuses on whether 2,180 MW of renewable energy—part of the 3,668.5 MW green power allocation—should be reserved for entities that previously met qualification criteria but did not participate in the first round of procurement.

Due to ongoing legal examinations and policy revisions, the Ministry of Energy cannot yet finalize the allocation of renewable energy capacity within the PDP. Until the plan is completed, the government will not reopen the public solar power purchase program.

Thailand’s public solar project has faced participation challenges since its inception. Between 2019 and 2022, the initiative set an annual target of 100 MW but saw minimal uptake due to low purchase rates. The total electricity acquired under the scheme was just 260 MW, with only 9 MW successfully integrated into the grid.

  • 2019-2022: The government set a purchase price of 1.68 baht per unit, but only 3-4 MW was generated annually.
  • 2021: The purchase target was reduced to 50 MW, and the rate increased to 2.20 baht per unit, yet only 3 MW was sold to the program.
  • 2022: The quota was further reduced to 10 MW, but only 1.37 MW was produced at the 2.20 baht per unit rate.

To encourage participation, the Electricity Generating Authority of Thailand (EGAT) introduced a long-term 10-year purchasing framework (2021-2030) with a 90 MW quota. This adjustment, implemented in March 2023, increased public interest, leading to over 10 MW of electricity being fed into the grid. Additionally, 2,795 project participants with a combined installed capacity of 15.501 MW were awaiting commercial operation date (COD) approval.

By mid-2024, public interest surged further, and in June, 100 MW was registered under the program, with 89.8 MW passing qualification checks. This led to the program reaching full capacity, prompting another suspension in new applications until further quota expansion.

With increasing public interest and the government’s commitment to expanding renewable energy, the Ministry of Energy is expected to finalize a new purchase scheme in 2025. However, the final decision hinges on the completion of PDP 2025 and the resolution of regulatory hurdles surrounding green electricity procurement.

If approved, the expanded 400 MW quota would mark a significant milestone in Thailand’s transition to clean energy, supporting the country’s broader sustainability goals and enhancing energy security. Further updates are anticipated as policymakers assess infrastructure readiness and regulatory compliance for integrating additional renewable energy into the national grid.

 

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