Thailand’s Utility Green Tariff set to be launched next month


The floating solar power plant in Prachinburi province, Thailand. (Photo: National Power Supply Company)

The public hearing on the Energy Ministry’s Utility Green Tariff (UGT) project is expected to be held this month, with the tariff anticipated to be implemented in February, as announced by Thailand’s Energy Minister Pirapan Salirathavibhaga on Jan 15.

The ministry estimates that the power price under the project, designed to promote the use of clean energy in the industrial sector, would be set at 4.55 baht per unit. This estimate is based on the suggestion of the Energy Regulatory Commission, which has previously announced project regulations and criteria for participants.

The project aims to boost the ratio of clean energy used in the industrial sector, with the government purchasing electricity generated from renewables under Power Development Plan and selling it to industrial users under regulated prices.

It also allows buyers to choose green power from either specified or unspecified sources to complement their goal of achieving carbon neutrality, with all power producers being certified by the ministry under international standards, Pirapan said.

He said, “Once the UTG is launched, Thailand will be the first ASEAN country to provide comprehensive services in green power for industrial use, ranging from producing, procurement and certification.”

The project will also assist in attracting foreign companies looking to establish manufacturing facilities in Thailand, as well as enhance the competitiveness of Thai business operators affected by the Carbon Border Adjustment Mechanism (CBAM) implemented by the European Union since May.

Data from the Industrial Estate Authority of Thailand shows that the demand for green energy from unspecified sources among operators in industrial estates is approximately 10,000 MW.

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