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As solar power costs continue to decline, Thailand is reviewing electricity purchase prices under legacy renewable energy contracts. (Photo: iStock)
Thailand’s energy regulator is reviewing electricity purchase prices under legacy renewable energy contracts, as the government seeks to align older tariffs with the sharp decline in solar power costs.
Poonpat Leesombatpiboon, secretary-general of the Office of the Energy Regulatory Commission, said the review is not intended to cancel existing power purchase agreements, but to bring their purchase rates closer to current market conditions.
Under Thailand’s earlier adder incentive scheme, some solar producers received total payments of around THB 8 to THB 11 (USD 0.24 to 0.33) per kilowatt-hour during the subsidy period. After the incentive expired, they continued selling electricity at approximately THB 3.10 (USD 0.093) per kWh, compared with the current solar purchase price of THB 2.16 (USD 0.064) per kWh.
Unlock the full article to explore three key takeaways:
Thailand's committee has resolved to reduce electricity purchase prices for two groups of legacy renewable contracts, covering a combined capacity of approximately 3,878 MW.
Approximately 561 contracts targeting expired and post-adder projects face price reductions to 2.16 baht per unit, with automatic renewals discontinued for the first group.
The renewable energy industry has warned against unilateral changes, and proposed redirecting post-adder capacity toward direct PPAs with industrial users as an alternative path to lowering electricity costs.
