Policy, Promotion, and Supporting Measures

3.3 Government Policy for Promoting Solar Power Generation
3.3.1 Power Purchase from RE Generation Under Feed-in Tariff (FiT) Scheme (2021-2030)

        FiT, is one of the measures promoting the purchase of electricity from renewable energy sources aiming to attract interested parties to participate in clean energy production. The FiT was determined as a fixed electricity purchase rate throughout the project’s contract, not subjected to changes in base electricity prices and fuel Adjustment Charge variable electricity costs (Ft).

        In 2022, the Energy Regulatory Commission (ERC) announced the power purchase from renewable energy generation under FiT scheme (2021-2023) project, in accordance with clean energy production expansion plan under PDP2018 rev.1 2021-2030. This program specified 2 solar power categories: ground-mounted solar installations with production capacity not exceeding 90 MW per project, with a total target capacity of 2,368 MW, and ground-mounted solar installations with battery energy storage systems (Solar+BESS) with production capacity at least 10 MW but not exceeding 90 MW, with a total target capacity of 1,000 MW.

        Table 3.2 presented solar energy electricity purchase targets and FiT rates according to the clean energy production expansion plan under PDP2018 rev.1 for 2021-2030. For Solar+BESS projects, PPA contracts will be made upon partial firm basis, which specifies electricity trading volumes at certain designated timeframes.

Table 3.2: Targets for Purchasing Electricity from Solar Energy According to the Clean Energy Production Expansion Plan Under PDP2018 rev.1 During 2021-2030
Type of Solar Power Plant Total FiT (THB/kWh) Contact (Years)
Ground-mounted + BESS 1,000 2.8331 25
Ground-mounted 2,386 2.1679 25

        This program gained positive response from propective developers. In 2023, ERC announced a total of 153 qualified applicants for solar power categories with total proposed production capacity of 3,363.06 MW. This consisted of 129 ground-mounted solar projects with a total production capacity of 2,368.00 MW and 24 ground-mounted solar with energy storage system projects with a total production capacity of 994.06 MW, as shown in Table 3.3.

Table 3.3: Result of 1st Phase Power Purchase from RE Generation Under Feed-in Tariff (FiT) Scheme in 2023
Category Target
(MW)
Applied Applicants Qualified Applicants
Project Proposed
(MW)
Project Proposed
(MW)
Biogas (Wastewater/Waste) 335 2 6.50 - -
Wind Power 1,500 94 5,618.97 22 1,490.20
Ground-mounted solar with BESS 1,000 51 2,160.19 24 994.06
Ground-mounted solar 2,368 482 9,226.27 129 2,368.00
Total 5,203 629 17,011.93 175 4,852.26
Source: Annual Report 2023, Office of Energy Regulatory Commission
3.3.2 Power Purchase from Solar Rooftop Projects for People in Household Sector

        ERC had continued the power purchase from solar rooftop project for people in household sector during 2021-2030, with a total target capacity of 90 MW with the FiT rate of 2.2 THB/kWh under 10 years contract.

        In 2023, there were 7,859 applicants with 43.15 MW power capacity. Among these, 6,410 projects had already achieved COD, with total install capacity at 35.21 MW (Table 3.4).

Table 3.4: Implementation of Residential Solar Projects during 2022-2023
Target
(MW)
Applied Applicants Projects that achieved (COD)
Number of Projects Installed Capacity Number of Projects Installed Capacity
cases MW cases MW
90 7,859 43.15 6,410 35.21
Source: MEA and PEA
Figure 3.2 Results of the Power Purchase Project for Solar Rooftop for People in Household Sector
Source: MEA, PEA
3.3.3 Targeted Renewable Energy Electricity Production Promotion Project (On-grid)

       OERC had supported the installation of solar power systems under the Targeted Renewable Energy Electricity Promotion Project, which was funded from Power Development Fund, pursuant to Section 97(4). The project gave support to agencies related to public health during the fiscal years 2021-2023. In 2021, the program supported 68 hospitals under the Ministry of Public Health (Phase 1), with an installed production capacity of 6.8 MW. In 2022, support was extended to 11 hospitals affiliated with Faculty of Medicine under the Ministry of Higher Education, Science, Research and Innovation, with an installed production capacity of 3.07 MW, as well as 10 hospitals under the Medical Service Department of Bangkok Metropolitan Administration, with an installed production capacity of 2.79 MW.

       In 2023, support was extended to 151 hospitals under the Ministry of Public Health (Phase 2), with an additional installed capacity of 29.91 MW. The OERC also signed a Memorandum of Understanding (MOU) for cooperation in promoting renewable energy electricity production for hospitals under the Army Medical Department (Phase 1). This agreement included the installation of solar power systems for 16 affiliated hospitals, with a total budget of 49.95 million THB and an installed capacity of 1.66 MW.

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Figure 3.3 Solar Power Generation System, Sai Noi Hospital , Sai Noi District, Nonthaburi Province,
with a production capacity of 100 kW
Source: The Standard (thestandard.co)
3.3.4 Policy for Driving Renewable Energy Usage by the Ministry of Public Health

       In 2023, the Ministry of Public Health announced solar power installation across 1,855 facilities under the Office of the Permanent Secretary of Public Health. This initiative aimed to achieve total installed capacity of 178.78 MW solar energy to raise awareness of using clean energy, to reduce CO2 emission, and to decrease electricity expenses. The project was implemented in collaboration with PEA, MEA, and OERC. As of 2023, 1,333 projects had already been completed, representing a total installed production capacity of 66.88 MW.

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Figure 3.4 Solar Power Generation System, at the Inpatient Building of Mae La Noi Hospital, Mae La Noi District,
Mae Hong Son Province, with a production capacity of 0.05 MW
Source: Health Service Support Center 1
3.3.5 Utility Green Tariff (UGT)

        The Utility Green Tariff (UGT) offered an alternative option for electricity consumers who desire to purchase green electricity certified with RECs. Under this measure, the government serves as an intermediary in the procurement and aggregation of green electricity under the regulation of the ERC.

        The NEPC had approved UGT framework on 7th November 2022, which consisted of

Type 1: UGT for non-source-specific consumers (UGT-1). This category applies REC from existing state-owned power plants. Users were not required to specify the source of electricity and RECs. For UGT-1, an additional “premium” charge will be added to regular utility tariffs in a unified rate across the country

Type 2: UGT for source-specific electricity consumers (UGT-2). This category involves provision of green eletricity from both new and existing renewable power plants operated by both public and private sectors. Users are required to specify sources of renewable power the desired portfolio. UGT-2 rate will be determined based on the cost of REC of each portfolio.

        Figure 3.5 illustrated guideline for determining UGT and sources of the electricity for both UGT-1 and UGT-2. In 2023, the ERC had conducted public hearing to gather feedback on the proposed framework. The announcement of UGT rate and criteria were scheduled to be published in the Royal Gazette in 2024.

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Figure 3.5 Guidelines for Determining Green Electricity Tariffs (UGT) and Sources of Green Electricity
Source: Thailand PV Status Report 2022
3.3.6 Floating Solar Power Plant Project integrated with Hydropower Plants

        EGAT set a target to integrate floating solar power with the existing hydropower plants. In 2022, a 24-MW floating solar power plant coupled with a 6 MWh lithium-ion battery energy storage system, covering 320 rai (approximately 51.2 hectares) was began to construct at Ubolratana dam in Khon Kaen province. The project was originally scheduled to commence commercial electricity supply in 2023. However, due to flooding in several areas of Khon Kaen the project was delayed and was expected to begin commercial operation in 2024. This system represented the second hybrid floating solar electricity generation project implemented under the PDP2018 rev.1 plan.

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Figure 3.6 Installation procedures of floating solar power system at Ubonratana dam,
Khon Kaen province.
Source: EGAT
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Figure 3.7 EGAT’s Hybrid Floating Solar Power Generation System Project According to PDP 2018 rev.1
3.3.7 Power Transmission System Development Plan

        EGAT had target to improve its power transmission systems to be able to accommodate power generation from renewable energy including solar PV and to support the ASEAN Power Grid (APG) infrastructure. The comprehensive plan included the construction of 500 kV and 230 kV transmission lines, the expansion of high-voltage substations, and the installation of transformers in different regions of the country such as:

Transmission System Improvement Project in the Northeastern Region, Lower Northern Region, Central Region, and Bangkok Metropolitan Area to Enhance Power System Security (TIEC)

Transmission System Improvement Project in the Upper Northern Region to Enhance Power System Security (TIPN)

Transmission System Improvement Project in the Lower Southern Region to Enhance Power System Security (TILS).

        Additionally, EGAT was also conducting a transmission system improvement project to support electricity purchases from Small Power Producers Phase 1 (SPP1) under the PDP2018 Rev.1, which was schedule to be completed in 2026.

3.3.8 Solar Energy Investment Promotion Measures by the Board of Investment (BOI)

        The Board of Investment (BOI) had implemented investment promotion measures for entrepreneurs who manufactured and implemented solar energy technologies. According to BOI Announcement No. 9/2022 regarding investment measures for industries crucial to national development, the BOI provided support to 3 categories of businesses:

1.

Manufacture of solar cells and/or raw materials for solar cells (Category 4.2.12.1)

2.

Manufacture of solar panels from solar cells manufactured in the same project (Category 4.2.12.2)

3.

Production of electricity or electricity and steam from renewable energy, such as solar energy, wind energy, biomass or biogas, etc. except from garbage or refuse derived fuel (Category 7.1.1.2)

        All categories were eligible for A2 category benefits, as detailed in Table 3.5. In accordance with BOI Announcements No. 17/2022, 18/2022 and 19/2022, additional incentives may apply to projects located in designated industrial estates or special economic development zones.

        Moreover, the BOI also supports broader renewable energy adoption under BOI Announcement No. 15/2022, which is outlined for the development of a Smart and Sustainable Industry.

        Table 3.6 presented an investment promotion applications information. In 2023, the total value of promotion applications in solar sector reached 71,143.7 million THB, a 25.29% increase from 2022. Of these, 10 projects were applied for support in solar cell manufacturing and solar cell raw materials with a total value of 26,252.50 million THB. The number of projects increased more than three fold compared to 2022, with a 30% increase in value.

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Table 3.5: Investment Promotion in the Solar Energy Industry by the Board of Investment (BOI)
Business Type Solar Cell and/or
Raw Material Production
(Category 4.2.12.1)
Solar panel manufacturers using
in house solar cell production
(Category 4.2.12.2)
Renewable eletricity or
steam producer entrepreneurs
(Category 7.1.1.2)
Conditions Minimum investment of 1 million THB, excluding land costs and working capital
For Small and Medium Enterprises (SMEs), minimum investment of 500,000 THB,
excluding land costs and working capital
Must follow approved production processes and meet
energy yield requirement
Minimum installed capacity of
200 kW solar PV at each electricity
distribution point
Investment Privileges A2
Corporate income tax exemption for 8 years, at 100% of investment value
excluding land costs and working capital (increased to 200% for SMEs)
Import duty exemption for machinery
Import duty exemption for materials imported for research and development purposes
Import duty exemption for essential raw materials or components in manufacturing for export
Table 3.6: Investment Promotion Application 2023
Category 2022 2023
Number of Projects Investment
(Million THB)
Number of Projects Investment
(Million THB)
4.2.12.1 Businesses producing solar cells
and/or raw materials for solar cells
3 20,471.60 10 26,252.50
4.2.12.2 Solar panel manufacturers using
in-house solar cell production
- - 1 55
7.1.2 Renewable eletricity or steam producer
entrepreneurs such as solar, wind, biomass,
biogas, etc., excluding waste or waste-derived fuels
471 36,308.40 431 44,836.20
Total 474 56,780 442 71,143.70
Source:
Investment Promotion Statistics by Sub-Business Category, Office of the Board of Investment