New power purchase agreement regulations in pipeline
text size

New power purchase agreement regulations in pipeline

Energy authorities are preparing to discuss direct power purchase agreement (PPA) regulations with local and foreign investors to facilitate companies demanding clean electricity to run their businesses.

The preparations follow the approval by the National Energy Policy Council (NEPC) for a pilot direct PPA project that would allow businesses, particularly electricity-intensive data centre operators, to directly buy electricity from producers.

Peer-to-peer power trade in the renewables category has not been permitted in Thailand.

The officials will work with ambassadors of countries in Asia and Europe, along with the US to push ahead with discussions with prospective foreign investors, said Poonpat Leesombatpiboon, secretary-general of the Energy Regulatory Commission.

The commission was earlier asked to draft new regulations for direct PPAs, including a wheeling charge to be imposed on electricity trade.

This refers to a fee collected from the use of state transmission lines to deliver renewable power.

Mr Poonpat said the officials are also considering where the pilot PPA project would be carried out and what its development phases would be.

The meeting of the NEPC last month, chaired by Prime Minister Srettha Thavisin, resolved to approve electricity trade not exceeding 2,000 megawatts under direct PPAs.

The prime minister earlier announced the government's support for investment in data centres in Thailand.

Potential foreign investors are interested in data centre projects but are awaiting clarity on the direct PPA policy to facilitate renewable power trade among firms, according to media reports, citing the premier.

Do you like the content of this article?
7 0
COMMENT

By continuing to use our site you consent to the use of cookies as described in our privacy policy and terms

Accept and close