The Federation of Thai Industries (FTI) has demanded a clear policy framework for purchasing renewable power, stressing that the feed-in tariff (FiT) rate should stay above 3 baht per kilowatt-hour (kWh), not 2.44 baht as the Energy Ministry requires.
Supant: Burden-free power bills optimal
The higher rate, the FTI argues, is justified because green energy production has higher costs than its fossil-fuel counterparts.
The proposal came after Energy Minister Siri Jirapongphan announced that the government would stop purchasing electricity from renewable power generators for the next five years.
Such projects, Mr Siri contended, have caused retail electricity tariffs to jump by 20-25 satang per unit, and in his view the electricity system has enough installed capacity for now.
The previous policy, which aimed to promote the development of the country's renewable energy sector over the last four years, was "too much", he said. The policy had tripled the country's power supply volume from 3,000 to 9,000 megawatts (MW) as of last year.
The higher-production costs of renewable energy are passed on to consumers, while Thailand's bigger price tag will inevitably reduce the country's competitive capacity against other Asean countries, Mr Siri said.
If any renewable energy companies want to continue producing, they have to sell their products at a price not higher than that for natural gas or coal, which bear production costs of 2.44 baht per kWh.
The FTI met with Mr Siri last Friday to discuss the decision to stop purchasing renewable power for the next five years.
FTI chairman Supant Mongkolsuthree said the energy minister insisted the state would never outright suspend purchasing renewable power. Rather, Mr Siri reportedly said the FiT rate should be equal to or less than the grid parity rate, adding that the 2.44-baht rate is based on small power producers under firm-power purchase agreements (SPP Hybrid firm).
State utilities have shifted to purchasing unlimited capacity under power purchase agreements, but this policy does not include waste-to-energy power plants.
"The FTI has always advocated that people should not have any burden from their electricity bills from any power resources," Mr Supant said.
The fuel tariff rate for renewables is charged at 18 satang per kWh for energy bills, while the state utilities buy at a FiT rate of 4-7 baht.
Suwat Kamolpanus, chairman of the FTI's renewable energy industry club, said the FTI wants policymakers to announce the actual FiT rate so that investors can plan accordingly.
"At the moment, we only understand that the 2.44-baht rate is an estimate, but only large power plants can support this rate, not small- or medium-sized ones," he said. "Policymakers should specify the rate this year so there's a fair policy for everyone."
Mr Suwat said investors just want to know that renewable energy is still worth their money, otherwise they will go abroad.
The National Energy Policy Council has updated the country's renewable power portfolio as of February, with total power for both operations and development totalling 9,855 megawatts.