Thailand

Thailand
Renewable Energy Business Opportunities
26 February 2021
Thailand - Renewable energy business opportunities 1
Note to Readers
Disclaimer
The Foreign, Commonwealth & Development The report highlights key findings on the research
Office (FCDO)’s ASEAN Prosperity Fund team has performed, key information available or address
commissioned this series of reports to Ernst & matters. This study relied on a combination of
Young LLP (EYLLP) where EYLLP has undertaken research sources (e.g., reports, presentations and
a market study for six countries in ASEAN. Noted new articles) and local knowledge, we have not
that Indonesia version was initially written by Tetra verified the accuracy, reliability or completeness of
Tech ES Inc in 2019 then updated by EYLLP in 2021. such information or sources. With respect to market
The summary of the findings are included in this estimates referenced throughout the report, there
report (hereafter “report”). This report is only for will usually be differences between estimated and
general information. It doesn’t intend to provide actual results, because events and circumstances
or should not be considered for accounting, tax or frequently do not occur as expected and those
other professional advice. On any specific matter, differences may be material.
reference should be made to the appropriate
The views reflected here are the views of the
advisor.
EYLLP and do not necessarily reflect the views of
the global EY organisation or its member firms.
Moreover, they should be viewed in the context of
the time they were expressed.
2 Thailand - Renewable energy business opportunities
About DIT
Department for International Trade (DIT)
The Department for International Trade is the specialist
Government department that supports:
• Foreign companies seeking to set up or expand in the UK,
and
• UK-based companies to trade internationally.
The Department for International Trade provides a fully
integrated advisory service, delivering the latest business
intelligence through a global network of commercial teams
worldwide. DIT also works in close partnership with investment
and economic development agencies in England, Scotland,
Wales and Northern Ireland to help overseas companies to
maximise their business objectives in the UK.
For more information, please contact dit.thailand@fcdo.gov.uk
Table of Contents
Note to Readers 1
About DIT 3
Abbreviation & Acronyms 10
Executive Summary 11
1. About The Study 14
2 Thailand Energy Industry Background 16
2.1 Socio-Economic Landscape 16
2.2 Key Government Stakeholders 18
2.3 Other Key Stakeholders in The Power Sector 21
2.4 Major Government Policies and Programme 24
2.5 Overview of Power Market 28
3 Renewable Energy Market Characteristics 34
3.1 Major Government Policies and Programmes 34
3.2 Cost and Technical Considerations 40
3.3 Project Development Cycle 41
3.4 Financing and Incentives 45
3.5 Ownership 51
4 Market Conditions for Solar Photovoltaics (PV) Development 52
4.1 Utility-Scale, Ground-Mounted Systems 56
4.2 Floating Hydro-Solar PV (Hybrid) Projects 57
4.3 Rooftop Solar PV 58
5 Market Conditions for Wind Power Development 64
5.1 Onshore Wind 66
5.2 Offshore Wind 66
6 Market Conditions for Hydropower Development 70
6.1 Large-Scale Hydropower 70
6.2 Small-Scale Hydropower 73
7 Market Conditions for Bioenergy Power Development 76
7.1 Biomass 77
7.2 Biogas 81
7.3 Waste To Energy (WTE) 83
7.4 Biofuels 85
8 Market Conditions for Electrical Networks and Storage 94
8.1 Smart Grid Systems 94
8.2 Battery Energy Storage Systems (BESS) 99
9 Top Business Opportunity Areas For UK Companies 101
9.1 Existing Players in The Renewable Energy Sector 101
9.2 Business Opportunities for UK Companies 103
9.3 Upcoming Renewable Energy Projects 109
9.4 Top UK Companies Ready to Export 110
10 Appendix 113
Appendix 1: UK Low-Carbon Capabilities 113
Appendix 2: Upcoming Projects 122
Appendix 3: List of References 141
Figures
Figure 2.1 GDP Per Capita in Select Southeast Asian Countries (Nominal US$, 1990–2025 Forecast) 17
Figure 2.2 Accumulative Net Inflows of FDI Between 2014 and 2019 (US$ billion) 17
Figure 2.3 Overview of The Electricity Market in Thailand 20
Figure 2.4 Key Government Agencies Relevant to The Power Sector 20
Figure 2.5 System Installed Generating Capacity by Ownership (%, November 2020) 21
Figure 2.6 Structure of Power Market In Southeast Asian Countries (2019) 24
Figure 2.7 Total Electricity Generation and Electricity Generation Per Capita (2018) 28
Figure 2.8 Electricity Demand Consumption in Thailand (GWh, 2005–35) 28
Figure 2.9 Electricity Generation in Thailand by Fuel Sources (GWh, 2005–19) 29
Figure 2.10 Electricity Mix by Generation (GWh, 2018–19) 29
Figure 2.11 Share of System Installed Generating Capacity in 2019 (%) 30
Figure 2.12 Electricity Mix by Generation by Power Producer Type (GWh and %, 2018–19) 30
Figure 2.13 Components of The Tariff Structure 32
Figure 2.14 Factors Affecting Tariff Components 33
Figure 2.15 Movement of Fuel Adjusted Tariff (THB Per kWh) 33
Figure 3.1 Energy Supply by Source According in 2037 as Per to PDP 2018 Plan (%) 34
Figure 3.2 Planned Additions to Renewable Energy by 2037 35
Figure 3.3 Recently Announced Initiatives Shaping The Renewable Energy Sector in Thailand 37
Figure 3.4 LCOE Ranges for Various Technologies In Thailand (US$ Per MWh) 40
Figure 3.5 Overview of Selection Process 43
Figure 4.1 Solar Irradiation Across Thailand 52
Figure 4.2 Map of Solar Power Plants in Thailand 53
Figure 4.3 Ground-Mounted Cumulative Installed PV Capacity (MW) 54
Figure 4.4 Egat Plans For 2,725mw Floating Solar Over 18 Years To 2037 57
Figure 4.5 Grid Connected Rooftop Capacity (MW) 59
Figure 5.1 Wind Potential Across Thailand 64
Figure 5.2 Map of Wind Power Plants in Thailand 65
Figure 6.1 Map of Hydro Power Plants in Thailand 71
Figure 7.1 Map of Biomass Power Plants in Thailand 78
Figure 7.2 Map of Biogas Power Plants in Thailand 82
Figure 7.3 Map of WTE Power Plants in Thailand 84
Figure 9.1 Summary of Business Opportunities for UK Companies 101
Figure 9.2 Market Opportunity for Renewables Investment in Thailand (US$ million) 108
Table
Table 2.1 Major Project Developers in Thailand 22
Table 2.2 Key Features of Prominent Acts and Policies Governing Power Sector in Thailand 27
Table 2.3 Small Power Producer (SPP) Tariff Mechanisms 31
Table 2.4 Wholesale Electricity Rates in Thailand (2017) 32
Table 3.1 Planned Additional Capacity by Fuel Type In Power Development Plan (PDP, 2018–37) 35
Table 3.2 Adder Rates for Various Installed Capacities of Renewable Energy 36
Table 3.3 FiT for VSPP of Renewables (2020) 38
Table 3.4 SPP and VSPP Generation and Pricing Characteristics 39
Table 3.5 Other Recently Announced Initiatives Shaping The Renewable Energy Sector in Thailand 39
Table 3.6 Procurement Results of The First Competitive Bidding: Biomass 43
Table 3.7 Contribution Rates to The Power Development Fund (PDF) Imposed on
Electricity Generation Licensees During Commission 44
Table 3.8 Green Bonds for Renewable Energy Issued in Thailand 46
Table 3.9 Key Features of Esco Revolving Fund 47
Table 4.1 Manufacturing Capacity in Thailand (MW) 55
Table 4.2 FiT Rates for Solar VSPPS and SPP Hybrid Firm (THB Per KWh) 60
Table 4.3 VSPP and SPP Solar Projects (Non-Exhaustive) 61
Table 4.4 Investment Potential for Solar Power in The Coming Years 62
Table 4.5 Supply Chain and Financing Analysis for Solar PV (%) 62
Table 4.6 Supply Chain and Financing Analysis for Solar PV (US$ million) 62
Table 4.7 Upcoming Solar Power Projects (As of January 2021) 63
Table 5.1 FiT Rates For Wind VSPP (2020) 67
Table 5.2 VSPP and SPP Wind Projects (Non-Exhaustive) 67
Table 5.3 Investment Potential for Wind Energy in The Coming Years 68
Table 5.4 Supply Chain and Financing Analysis for Wind Energy (%) 69
Table 5.5 Supply Chain and Financing Market Value Analysis for Wind Energy (US$ million) 69
Table 5.6 Upcoming Wind Energy Projects (As of February 2021) 69
Table 6.1 Feed-in Tariff rates for hydropower VSPP(2020) 73
Table 6.2 VSPP and SPP Hydro Projects (Non-Exhaustive) 74
Table 6.3 Investment Potential for Hydropower in The Coming Years 74
Table 6.4 Supply Chain and Financing Analysis for Hydropower (%) 75
Table 6.5 Supply Chain and Financing Market Value Analysis for Hydropower (US$ million) 75
Table 6.6 Upcoming Hydropower Projects 75
Table 7.1 Planned Additional Capacity For Bioenergy in PDP (2018–37) 76
Table 7.2 VSPP Bids for Biomass in 2014 77
Table 7.3 SPP Hybrid Firm Bids for Biomass in 2017 79
Table 7.4 VSPP and SPP Biomass Projects (Non-Exhaustive) 80
Table 7.5 VSPP Bids for Biogas in 2014 81
Table 7.6 VSPP Biogas Projects (Non-Exhaustive) 81
Table 7.7 WTE FiT Rates (2020) 83
Table 7.8 VSPP WTE Projects (Non-Exhaustive) 83
Table 7.9 Top Upcoming Biofuel Projects 85
Table 7.10 Table 7.10: Feed- in Tariff rates for Bioenergy VSPP (2020) 87
Table 7.11 Investment Potential for Biomass In The Coming Years 90
Table 7.12 Supply Chain and Financing Analysis for Biomass (%) 90
Table 7.13 Supply Chain and Financing Market Value Analysis for Biomass (US$ million) 90
Table 7.14 Investment Potential for Biogas in The Coming Years 91
Table 7.15 Supply Chain and Financing Analysis for Biogas (%) 91
Table 7.16 Supply Chain aand Financing Market Value Analysis for Biogas (US$ million) 91
Table 7.17 Investment Potential for WTE In The Coming Years 92
Table 7.18 Supply Chain and Financing Analysis for WTE (%) 92
Table 7.19 Supply Chain and Financing Market Value Analysis for WTE (US$ million) 92
Table 7.20 Upcoming Biomass, Biogas and WTE Projects (As of February 2021) 93
Table 9.1 Summary of Business Opportunities for UK Companies 103
Table 9.2 UK’s Companies Involved in Renewable Energy Projects and Green Financing
(Non-Exhaustive) 109
Table 9.3 Summary of UK’s Expertise Across Sectors and Services (Number of Companies) 110
Table 9.4 UK Companies Involved in Renewable Energy Projects and Green Financing
(Non-Exhaustive) 111
Abbreviation & Acronyms

Abbr. Description Abbr. Description
AEDP Alternative Energy Development Plan IRENA International Renewable Energy Agency
ALRO Agricultural Land Reform Office LCOE Levelised cost of electricity
BESS Battery energy storage systems MEA Metropolitan Electricity Authority
BIPV Building-integrated photovoltaics MOE Ministry of Energy
BNEF Bloomberg New Energy Finance MSW Municipal Solid Waste
BOI Board of Investments MW Megawatt
BOO Build Own Operate MWh Megawatt hour
BOOT Build, Own, Operate and Transfer NBTC National Broadcasting and Telecommunications
Commission
BOP Balance of Plant
NDC Nationally Determined Contributions
COD Commercial Operations Date
NEPC National Energy Policy Council
CTF Clean Technology Fund
ODI Oversees Direct Investments
DEDE Department of Alternative Energy Development
and Efficiency O&M Operations and maintenance
DIT UK Department for International Trade ONEP Office of Natural Resources and Environmental
Policy and Planning
EEP Energy Efficiency Plan
P2P Peer to Peer
EGAT Electricity Generating Authority of Thailand
PCD Pollution Control Department
ENCON Energy Conservation Fund
Fund PDF Power Development Fund
EPC Engineering procurement and construction PDP Power Development Plan
EPPO Energy Policy and Planning Office PEA Provincial Electricity Authority
ERC Energy Regulatory Commission PPA Power Purchase Agreement
ESB Enhanced Single Buyer PV Photovoltaic
ESCO Energy Service Company R&D Research and Development
FBA Foreign Business Act RFP Request for Proposals
FDI Foreign Direct Investment SELCO Self-consumption
FiT Feed-in-Tariff SPP Small Power Producers
FCDO Foreign, Commonwealth and Development THB Thai Baht

Office TIEB Thailand Integrated Energy Blueprint
Ft Fuel adjustment cost TWh Terawatt hour
GWEC Global Wind Energy Council UPS Uninterruptible power supply
GWh Gigawatt hour US$ United States Dollar
IEAT Industrial Estates Authority of Thailand VSPP Very Small Power Producers
IPP Independent Power Producers WTE Waste-to-Energy
Executive Summary
Socio-economic landscape of Thailand
Thailand is an upper-middle income country Power Development Plan (PDP) (2018–37) was
underpinned by steady economic progress. Foreign released. In the PDP (2018 to 2037), the country’s
direct investment (FDI) has been an important power production capacity is estimated to rise
catalyst for Thailand’s economic development. In from 46,090MW in 2017 to 77,211MW in 2037.
the ASEAN region, it ranks fifth behind Indonesia, Approximately 25,310MW will be retired between
Vietnam, Malaysia and the Philippines for net 2019 and 2037 from discontinuing old power
inflows of FDI. The UK ranks eighth largest FDI plants that expire during this time frame. New
provider to Thailand, investing approximately capacity additions are estimated to be 56,431MW
US$339 million in 2019. over the same period. Of the target additions of
approximately 37% or 20,766MW will come from
Overview of power sector renewable energy by 2037.
The Thai government has implemented various Renewable energy market
initiatives to increase the competitiveness and
efficiency of the power market. Private sector players Thailand has a high potential of refocusing its
who wish to enter the power generation market energy mix toward renewable sources. With high
can do so by enrolling in the independent power solar irradiation and an abundance of bioenergy
producers (IPPs), Small Power Producers (SPP) or potential, the capacity mix for renewables is
Very Small Power Producers (VSPP) schemes. targeted to increase from 12% to approximately
30% by 2037. This increase is likely to be driven
At present, the state-owned enterprise — Electricity by additions in solar power capacity through solar
Generating Authority of Thailand (EGAT), retains floating projects. EGAT is planning to develop 16
a large market share of the power generation solar farms with a combined capacity of more than
market and holds a monopoly over the transmission 2.7 gigawatts (GW) in nine of its hydroelectric dam
of electricity. The enhanced single buyer (ESB) reservoirs.
procurement process allows EGAT to purchase
electricity from IPPs and SPPs for sale to Thailand also has a high potential for biopower,
distribution entities. arising from an abundance of feedstock resources
for biomass, biogas and biofuels. It is anticipated
Electricity demand in Thailand is projected that this sector will see rapid growth and support
to increase approximately 30% from 2020 to from the government to power the renewable
2035. To sustain the growing electricity demand, energy transition.
Potential of renewable energy project in Thailand’s energy mix
Hydro
Solar Wind (small) Geothermal Biomass Marine
Priority
Source: EY analysis
High Low
Regulations and issues

To meet the renewable energy capacity addition Electricity producers can avail of a number of
targets laid out in the PDP 2018, the government tax and nontax incentives from Thailand’s Board
has implemented two programme: the FiT schemes of Investment (BOI). The tax incentives include a
and additional tax and investment incentives corporate income tax holiday of six years to eight
through the Thailand Board of Investments (BOI). years, depending on the type of power production
used in electricity generation. Tax incentives also
The FiT scheme ensures that energy producers include custom duty exemptions for the import of
receive a fixed price for energy sold to EGAT, new equipment.
Metropolitan Electricity Authority (MEA) or
Provincial Electricity Authority (PEA). The EGAT, The commercial loan market is well established in
MEA or PEA set up power purchase agreements Thailand for renewable energy projects, especially
(PPAs) with the energy producers to guarantee solar and biogas projects. Local banks are familiar
the FiT for a fixed period of time to promote with and are active in providing project financing.
investment. However, based on experience in other There is also a vibrant green bond market in
markets in ASEAN, as renewable energy sources Thailand, with two major green bond issuances in
become more competitive and achieve grid parity, the past two years. Local investors are willing to
FiT schemes may not continue. invest in renewable energy and green projects.
Funding for other renewable energy technologies,
such as Waste to Energy (WTE) is relatively harder
due to their small scale and lack of credit rating.
Conclusion Market value for renewable energy projects

At the moment, Thailand’s renewable energy sector The total market value for renewable energy is
is in a rapidly developing stage where the policies, estimated at US$8.2 billion between 2020 to 2025,
plans and actions are directed toward ramping based on an analysis of Thailand’s energy policies,
up renewable energy capacity in the energy mix. masterplan and current market conditions.
There exists significant opportunities for investors
In general, there are six types of renewable
to provide green finance and technical expertise to
energy sources: solar, wind, hydro, geothermal,
boost efficiency and accelerate renewable energy
bioenergy and marine. However, there are no active
adoption.
projects in marine in Thailand as of December
2019. Additionally, while moderate geothermal
resources exist, the government has not set targets
to develop this sector. Due to the current lack of
feasibility and uncompetitive nature of pricing for
projects under marine and geothermal, market
values of investment potential for these renewable
energy resources have been excluded. There is an
abundance of opportunities in other renewable
energy sources and their investment potential have
been explored in the report.
Estimated market value of renewable energy and related projects (US$ million, 2020–25)
Technology Market size Foreign share in market size
Solar PV 812 707
Wind 541 438
Hydropower 93 47
Biomass 2,492 1,196
Biogas 2,797 1,930
Waste to energy (WTE) 1,460 1,254
Total 8,194 5,571
Source: EY Research
1. About The Study

Background Step 1: Estimating the value of the market
The UK has provided leadership in addressing the
challenges of climate change and in supporting the A B
C
shift toward a low-carbon economy in the UK and = Installed = Project
X = = Market
the rest of the world. Since the Paris agreement capacity cost (US$
value (US$)
(MW) per MW)
on climate change in 2016, the world has been
transitioning toward low-carbon technologies. This
represents opportunities for UK companies with US$1.5
US$300
wide-ranging expertise in policy and regulation Example: 200MW X million =
million
and technological know-how such as research, per MW
innovation, manufacturing, engineering, and
renewable energy technologies.
Installed capacity (2020–25)
Purpose of this study
The Thailand PDP 2018–371 published capacity
A greater understanding of the ASEAN renewable additions for each renewable energy technology
energy market would support UK companies in type for the period of 20 years, beginning from 2018
tapping on the opportunities, particularly, the till the end of 2037. The annual growth rate required
export of the UK’s low-carbon capabilities. This to meet these target additions was calculated. Based
study provides an overview of the power market on current installed capacity and the estimated
in Thailand and details of the renewable energy growth rate, the capacity additions over the period
market, including major government policies and of 2020–25 was calculated.
programmes, ownership and financing. Market
opportunities for foreign investments are then Project cost
assessed and identified. Project costs are determined based on estimates of
Study approach levelised cost of electricity (LCOE) or actual project
costs, where information is available. Sources used
This study analyses the Thailand electricity market include research agencies, such as Bloomberg New
with respect to the areas of opportunity for Energy Finance (BNEF), International Renewable
seven broad types of renewable energy projects: Energy Agency (IRENA).
solar, wind (onshore and offshore), marine, hydro,
geothermal, bioenergy (including biomass, biogas Step 2: Estimating the market value for each
and biofuels) and electrical networks and storage supply chain input
(including smart grids). Cost breakdown by supply chain input was assessed
As of December 2019, there are no active projects using data from market sources (e.g., our knowledge
under geothermal energy and marine energy in of local markets) and research sources (e.g., IRENA,
Thailand. Due to the current lack of feasibility and Tetra Tech report for Indonesia market).
uncompetitive nature of pricing for projects under
marine and geothermal, these renewable energy E
D
resources have been excluded from our report. The = Market
C = Market
value of
report focuses on renewable energy resources and = Market X share per =
a specific
technologies that play a significant role in the Thai value (US$) supply chain
supply chain
input (%)
power landscape, i.e., solar, wind, hydro, biomass, input (US$)
and electrical networks and storage.
Market size estimation 20% (for
consulting
The size of the renewable energy market in Thailand Example:
US$300
X and =
US$60
was assessed between 2020 and 2025 and further million million
engineering
broken down by technology type, supply chain value services)
add, and foreign or domestic share.
1
Thailand Power development plan”, Energy Policy and Planning Office, 2016, http://www.eppo.go.th/index.php/en/policy-and-plan/en-tieb/tieb-pdp .
Step 3: Estimating the foreign market share of Exchange rate

each supply
Where otherwise stated, the exchange rate used
The contributions from foreign and domestic in the report is the rate announced by the Bank of
businesses for each supply chain input were Thailand on 29 January 2021:
allocated based on our knowledge of local market
US$1= THB29.99
and available data.
Opportunities for the UK companies
This study then identifies top business
E G opportunities for the UK companies by analysing
= Supply F = Market their strengths and weaknesses, current market
chain input X = Foreign = value of positioning and mapping these against the
market share (%) foreign
share (US$) share (US$)
respective markets and supply chain components.
Sources of information
This study relied on a combination of research
sources (e.g., reports, presentations, news articles)
US$60 US$42 and general knowledge of the local markets. A list
Example: X 70% =
million million
of references, including publications, presentations,
articles for this study is provided at the end of the
report.
2. Thailand Energy Industry

Background
2.1 Socio-Economic
Landscape of Thailand
Over the last 40 years, Thailand has rapidly contribute of approximately 55% of the GDP,
progressed in its social and economic development, while the manufacturing sector which comprises
moving from a low-income country to an upper- predominantly electrical and electronic equipment
middle income country within a generation. Thailand and automotive production and sales, accounts for
has successfully curtailed poverty rates and has approximately 35%1 of the GDP.
experienced steady growth.
Due to its location beside Myanmar, Laos, Cambodia
The Thai economy is driven primarily by the and Malaysia, Thailand plays an important role as a
services and industry and manufacturing corridor for long-distance transmission of electric
sectors. The services sectors which consist power in the ASEAN region.
of finance and banking, retail and tourism
Thailand: country overview Population (2019): 69 million

GDP (2019): US$529 billion
Annual GDP growth (2017–19): 3.7%
Bangkok
(capial)
Source: Oxford Economics, Bank of Thailand

World Bank, https://www.worldbank.org/en/country/thailand/overview
Thailand has been one of the region’s stable Compared with other Southeast Asian countries,
economies with a moderate average GDP growth Thailand’s GDP per capita is high when compared
rate of 3.7% over the last three years (2017–19) with other emerging economies in the region. As of
lagging behind the Asia Pacific average of 4.6%. 2019, Thailand’s GDP per capita is ranked number
GDP per capita has gone to US$7,810 per capita in four in the region after Singapore, Brunei and
2019, from a mere US$1,571 in 1990. Malaysia. In mid-term (2020 to 2025), it is projected
that Thailand’s economy with keep growing at the
pace of 4.3% annually. GDP per capita is forecast to
grow 4.8% annually to US$8,965 in 2025.
1
Bank of Thailand, Thailand’s key macroeconomic chart pack, February 2020, https://www.bot.or.th/Thai/Statistics/Graph/Chart_Pack/Chart%20Pack.pdf
Figure 2.1: GDP Per Capita in Select Southeast Asian Countries (Nominal US$, 1990–2025 Forecast)
Thailand in the period of 2020–25

• GDP annual growth rate: 4.3%
• GDP per capita annual growth rate: 4.8%
20,000 Indonesia Philippines

Malaysia Thailand
16,000
Myanmar Vietnam
12,000
8,000
4000
1990 1995 2000 2005 2010 2015 2020 forecast 2025 forecast
Source: Oxford Economics
Thailand moderately lags its regional peers in the country’s GDP.2 Singapore and Japan contribute
attracting FDI ranking fifth behind Indonesia, Vietnam, close to half of FDI inflows to Thailand, while Hong
Malaysia and the Philippines in net FDI inflows. Kong, the Netherlands, Germany, Mauritius and the
UK closely follow. The UK ranks eighth among all the
In 2018, Thailand’s FDI inflows reached US$10.49
FDI providers to Thailand, investing approximately
billion with its cumulative FDI stock, which is the total
US$339 million in 2019.3
level of direct investment at a given point in time
from foreign firms, reached approximately 48.9% of
Figure 2.2: Accumulative Net Inflows of FDI Between 2014 and 2019 (US$ billion)
114
79
60
48 44
17
Indonesia Vietnam Malaysia Philippines Thailand Myanmar

Source: World Bank – Databank
1
Thailand doing business report, https://www.doingbusiness.org/content/dam/doingBusiness/country/t/thailand/THA.pdf
2
UNCTAD world investment report 2019, https://investmentpolicy.unctad.org/
3
Bank of Thailand, https://www.bot.or.th/App/BTWS_STAT/statistics/ReportPage.aspx?reportID=654&language=eng
2.2 Key Government

Stakeholders
Regulators State-owned enterprises (SOEs)
The Ministry of Energy (MOE) is the governmental The power sector is dominated by three state-
authority responsible for oversight of the overall owned enterprises, namely EGAT (Energy
operation of the energy sector, including fossil Generating Authority of Thailand), MEA
fuels, electric power, rural energy supply and the (Metropolitan Electricity Authority) and PEA
Thailand oil fund. It proposes energy policies and (Provincial Electricity Authority).
regulations, formulates energy plans and strategies
EGAT is managed by MOE and owns most of the
and supervises its implementation.
country’s power generation capacity and all of the
The National Energy Policy Council (NEPC) transmission network (500kV, 230kV and 115kV
reviews and approves proposals pertaining to lines, including the 300kV high-voltage direct
national energy policy and regulation, energy current (HVDC) link in the south with Malaysia).
sector management and development plans and EGAT also purchases electricity from private power
strategies. producers (PPPs) and neighbouring countries.
The Energy Policy and Planning Office (EPPO) is EGAT sells electricity to two other state-owned
the operational body of the NEPC. It is responsible enterprises — MEA and PEA. The MEA and PEA
for providing recommendations for national energy own the distribution network in their operating
policy and strategies, providing technical support areas and are responsible for power distribution to
and overseeing the implementation of various consumers (retail, commercial and industrial). MEA
policies and plans put into force by NEPC. EPPO is has the exclusive rights to distribute and sell power
responsible for drafting PDP. to end-users in the Bangkok metropolitan area and
PEA distributes power to all other provinces. EPPO
Department of Alternative Energy Development
regulates the price at which EGAT sells electricity to
and Efficiency (DEDE), under the MOE, plays a
MEA and PEA.
significant role in setting policy direction for energy
security in Thailand by considering all forms of
alternative energy, such as conventional fuel
sources to renewables. DEDE is responsible for
drafting the alternative energy development plan
(AEDP) in Thailand.
The Energy Regulatory Commission (ERC) regulates
the energy industry operation, including the
electricity industry, the natural gas industry and
the energy network industry, to ensure compliance
with the energy industry act.
Figure 2.3: Overview of The Electricty Market in Thailand
ERC was established in 2008 under

the energy industry act
Cabinet
Policy frameworks
NEPC
Electricity and natural gas
Policy and regulatory MOE

institutions ERC
EPPO DEDE
Office of the Energy
Regulatory Commission
(OERC)
ERC provides comments or recommendations related to the
energy industry operation to the Minster and the cabinet
Combine together own majority of generation, however,

EGAT has stake in some IPPs
Generation
Imports (Laos, IPPs SPPs VSPPs
EPPO Malaysia) (Co-gen) (Co-gen, RE) (RE)
Single buyer, owner

of all transmission EGAT
Transmission
(Regulated) assets and network
systme operator
Distribution
MEA PEA
(Regulated)
Bangkok
metropolitan area Other provinces
Neighboring utilities, EGAT

End users End users Industrial customers
and direct customers
Source: MOE, EGAT, DBSVTH
Note:
• Most of the generation is sold to EGAT, however, generation by SPPs may also • ERC: Energy Regulatory Commission
be sold directly to local industrial customers. • OERC: Office of the Energy Regulatory Commission
• VSPPs do not sell to EGAT and sell directly to the distribution authorities. • IPP: Independent power producer
• Imports are mainly from Laos PDR and Malaysia. • SPP: Small power producer
• Abbreviations used are expanded below: • VSPP: Very small power producer
• MOE: Ministry of Energy • EGAT: Energy Generating Authority of Thailand
• NEPC: National Energy Policy Council • MEA: Metropolitan Electricity Authority
• EPPO: Energy Policy and Planning Office • PEA: Provincial Electricity Authority
• DEDE: Department of Alternative Energy Development and Efficiency • RE: Renewable energy
Figure 2.4: Key Government Agencies Relevant to The Power Sector
Key government Role relevant to electricity sector

stakeholders
Ministry of Energy (MOE) Responsible for oversight of the overall operation of the energy sector, including fossil fuels,
electric power and rural energy supply and Thailand oil fund
National Energy Policy The principal government agency that reviews and approves national energy policy and
Council (NEPC) regulation, energy sector management and development plans and strategies
Energy Policy and Planning Operational body of the NEPC and is responsible for formulating proposals on national energy
Office (EPPO) policy and strategies
Department of Alternative Promotes energy security, renewable energy adoption and energy efficiency measures
Energy Development and
Efficiency (DEDE)
Energy Regulatory Grants licenses to privately-owned power producers, regulates energy networks and sales and
Commission (ERC) distribution of electricity and ensures fair competition among bidders
Energy Generating EGAT owns generation assets. It also purchases electricity from private operators under long-
Authority of Thailand term PPA. EGAT also owns and operates the transmission system.
(EGAT)
Metropolitan Electricity Purchases electricity from EGAT and is responsible for distributing in Bangkok Metropolitan
Authority (MEA) Area (Bangkok, Nonthaburi and Samutprakarn)
Provincial Electricity Purchases electricity from EGAT and is responsible for its distribution to all provinces apart
Authority (PEA) from Bangkok, Nonthaburi and Samutprakarn
Other government Role relevant to electricity sector

stakeholders
Office of Natural Resources Develops environmental and natural resources conservation policies and plans, monitors and
and Environmental Policy assesses environmental impact of public or private projects through impact assessments
and Planning (ONEP)
Pollution Control Advises on the formulation of national policy and plans for the promotion and conservation of
Department (PCD) environmental quality for pollution control
Thailand Board of Offers various incentives and promotions for investments into renewable energy e.g.,
Investment (BOI) exemption from corporate income tax, exemption from import duties and eased foreign land
ownership
2.3 Other Key Stakeholders

Private sector power generators1 Figure 2.5: System Installed Generating Capacity
The sector is heavily regulated by the government, by Ownership (%, November 2020)
with currently only the generation segment open
to private players. Private players in the generation
IPPs, SPP and 100%
segment are classified as IPPs, SPPs or VSPPs. EGAT: 35.26% (45.5GW)
(16GW) X Imports: 64.74% =
The leading private players in Thailand are: (29.4GW)
Electricity Generation Public Company (EGCO),
Ratch, Global Power Synergy Company (GPSC), B.
Grimm Power and Gulf Electric. Source: System Installed Generating Capacity, EGAT, https://www.
egat.co.th/en/information/statistical-data?view=article&id=80,
accessed 5 January 2020
1
Thailand Association of power producers, http://www.appp.or.th/en/membership.php
Table 2.1: Major Project Developers in Thailand
Company Business description Capacity in

Thailand
Ratch Group • Ratch Group is one of the leading Thermal IPP developers in Thailand with 45% stake held 5,224MW
by EGAT
• As of the third quarter of 2020, a total capacity of 6,330MW has been in commercial
operations with additional 1,578MW under development across Thailand, Lao PDR,
Australia, China and Indonesia
GPSC • GPSC is a subsidiary of Petroleum Authority of Thailand PLC (PTT), which owns 22.81% 5,031MW
stake in GPSC
• As of 2019, GPSC’s current electricity generating capacity based on Equity MW is 5,031MW
of electricity across natural gas, hydro, coal, solar and waste
• Long-term target is to increase the share of renewables in the portfolio to 30% from 11%
EGCO Group • As of November 2020, EGCO Group runs 28 operating power plants with total equity 3,019MW
contracted capacity of around 5427.5MW in six countries across Asia Pacific region —
Thailand, Lao PDR, Philippines, Indonesia, Australia and South Korea. Three projects with a
total equity contracted capacity of 321MW are under construction
• The company’s power plants generate electricity using several fuel sources, such as natural
gas, LNG, coal, biomass, hydro, solar, wind, geothermal and fuel cell. Approximately 9% of
the portfolio consist of renewable energy
Banpu Power • Banpu Power Public Company Limited (BPP) is an independent power producer with 1,434MW
experience across several energy markets in Asia (*BPP share
50%)
• The company targets to increase its equity-based power generation capacity from 2.7GW in
2020 to 5.3GW by 2025
Glow Energy • Glow Energy Group is a group of energy companies, with its core business in generating and 2,942MW
Group supplying electricity, steam, clarified, demineralised and chilled water to its customers
• Glow group has total generating capacity of 3,094MW of electricity, 1,116 tons per hour of
steam, 5,292m3/h of processed water and 3,400 refrigerated tons of chilled water
• As of 31 December 2019, GPSC directly and indirectly holds 99.83% in Glow Energy group
Gulf Energy • Gulf Energy Development Public Company Limited or Gulf Energy is a leading energy 2,619MW
Development producer with a portfolio of electricity, steam and chilled water generating projects and
other related business (together called the Gulf Group)
• Gulf Energy has 6,409MW across 29 power projects in operation across Thailand, Vietnam
and Germany. Equity contracted capacity in operation is approximately 2,959MW. In
addition, approximately 7,976MW is under construction or development
Company Business description Capacity in

Thailand
B.Grimm • B. Grimm is a Thailand-based energy company that focuses on the development, financing, 1,441MW
construction and operation of green-field power plants
• As of October 2020, B. Grimm has a total equity capacity of 2,590MW of which around
1,905MW is in operation. 71% of the portfolio is conventional power and remaining
comprises of renewables across Thailand, Vietnam and Lao PDR
• By 2022, B. Grimm targets to increase capacity to over 5000MW across ASEAN
BCPG • BCPG, established in 2015, is a renewable energy developer across solar, wind, geothermal 171.5MW
and hydropower
• BCPG has projects across Thailand, Japan, Lao PDR, the Philippines and Indonesia with a
total installed capacity of over 861.9MW (in operation and construction)
• The company has been awarded the most innovate renewable energy company in 2019 from
UK’s leading financial magazine — International Investor Magazine
National • National Power Supply Public Co., Ltd. or NPS is the main operating energy business under 726MW
Power Double A Power group, one of the leaders in energy and renewable energy business with
Supply more than 30 years of experience
Public Co.
• The company is primarily active in bioenergy sectors
Energy • Energy Absolute Public Company Limited is a Thailand-based company engaged in the 784MW
Absolute renewable energy businesses.
• The company develops solar and wind project across Thailand.
SPCG • SPCG Public Company Limited (SPCG) is a listed company on the Stock Exchange of 260MW
Thailand under the Energy sector
• The company has developed over 36 solar projects across 10 provinces in Thailand. SPCG
has also invested in Japan and developed over 30MW of solar capacity
Thai Solar • Thai Solar Energy is a public listed company, which generates and distributes renewable 113MW
Energy energy for its clients in Thailand and in Japan
• As of October 2020, the total installed capacity exceeds 268MW across over 16 projects in
Thailand and Japan
TPC Power • TPC Power Holding Public Company Limited is a renewable energy company that is in 114.5MW
the business of production and distribution of electricity from various types of renewable
energy
• The company has 114.5MW of renewable energy projects in commercial operations
Gunkul • The Group operates a business of generating and distributing power from renewable energy 321.5MW
sources (RES) for supplying to government sector
• The company is developing projects across Japan, Malaysia and Vietnam with a target to
develop over 1,000MW by 2022
2.4 Major Government

Policies and Programmes
Since the early 1990s, various reforms, laws energy industry act, have played a decisive role in
and regulations were passed to improve the shaping the legislative framework and laying the
competitiveness and efficiency of the energy legal foundation for the national power sector.
sector. Various acts, as amended and alongside the
Figure 2.6: Structure of Power Market in Southeast Asian Countries (2019)
Vertically integrated Single buyer model Wholesale spot Retail Electricity future
regulated utilities with IPPs market competition market*
Malaysia Vietnam Philippines Singapore
Thailand Thailand has adopted the ESB model with EGAT as the major electricity
supplier to PEA and MEA, which are the two largest electricity distributors
to end users.
Indonesia
Myanmar
Source: IRENA — Southeast Asia renewable energy market analysis (2018), Singapore’s EMA, EY analysis
(*) According to Singapore’s Energy Market Authority, the electricity futures market enables the entry of independent electricity retailers and
facilitates new business models. As of February 2020, all households in Singapore can freely choose electricity provider.
Private sector participation in generation and VSPPs

ESB framework1
The VSPP scheme was launched in 2002 to allow
Private sector participation in generation small scale renewable energy projects of up to
commenced in 1994. Thailand has adopted an 10MW to connect to the distribution network and
ESB model, where EGAT acts as the bulk buyer for sell electricity directly to MEA and PEA on rates
electricity from other power producers including determined by applicable FiTs and released by ERC.
IPPs, SPPs and from other neighboring power The cap was revised up to 10MW in 2006 from
utilities (mainly from Lao PDR and Malaysia). initially 1MW. To date, over 181 VSPP projects (with
capacity over 1,172MW) have been awarded.2 VSPP
IPPs
plans predominantly use biomass, solar, wind, biogas
The IPP scheme was introduced by the government and waste as fuel. VSPPs are able to sell power to
as a measure to liberalize the sector. The IPP the distribution utility only.
scheme allowed open bidding for thermal power
National energy plan and power sector blueprint
projects. This scheme was set up to accommodate
for the fast growing domestic power demand at The current overarching national energy plan is the
that time and also to reduce EGAT’s investment Thailand Integrated Energy Blueprint (TIEB) 2015
burden into generation. to 2036, a plan that combines and synchronises
the five plans, namely PDP, Energy Efficiency Plan
SPPs
(EEP), AEDP, oil plan and the gas plan. TIEB aspires
In addition to IPP scheme, the government to ensure supply security and cost competitiveness
introduced the SPP scheme. The SPP scheme while ensuring sustainable socio-economic
enabled developers to propose projects with development. The key acts and legislations that
capacity of up to 90MW to EGAT. Any additional shape the power sector in Thailand are discussed in
capacity could be used for internal consumption the table below.
or be sold to industrial customers located near
the power station. As of November 2020, EGAT
purchases power from approximately 9.5GW
installed capacity from SPPs, which accounts for
20.8% of the installed generation capacity in
Thailand.1 SPPs can be split into (i) firm type SPPs,
which agree to 25-year contracts to supply power
to EGAT and which generally generate power from
burning natural gas or coal (ii) “non-firm” SPPs,
which agree to five-year contracts (extendable
in five-year increments) and which usually use
renewable sources of energy, such as solar, wind
and biomass. In 2017, ERC also launched hybrid —
firm SPPs, which could combine different sources
of renewable energy sources to offer a minimum
quantum of firm supply (e.g., solar plus storage).
The hybrid PPA offered a 20-year term.
1
”System Installed Generating Capacity”, EGAT, https://www.egat.co.th/en/information/statistical-data?view=article&id=80, accessed 9 January 2021.
2
“Thailand Industry Outlook 2020-22 – Power Generation”, Krungsri Research, https://www.krungsri.com/bank/getmedia/755b2ec9-429b-4090-9975-e3967a289fbc/IO_Power_
Generation_200730_EN_EX.aspx, July 2020
Table 2.2: Key Features of Prominent Acts and Policies Governing Power Sector in Thailand
Key features
National Energy It determines the mandates, powers and duties of the NEPC. It deﬁnes the scope of energy sources,
Policy Council Act renewable energy sources, nonrenewable energy sources and fuel, to be used as references in, for
instance, the energy industry act.
Energy The act lays down provisions relating to development and promotion of renewable energy sources. In
Development And particular, the Department of Energy Development and Promotion shall have the authority to conduct
Promotion Act surveys, collect data, analyze and examine energy activities. These include different sources of energy
production, transformation, transportation and utilization. The Act sets out in detail the department’s
authorities, duties, operational mechanism and principles that should be followed.
Energy It is focused on key energy end-use sectors, including industrial and buildings sectors, with respect to
Conservation energy conservation and efficiency improvement. It guides policy, strategy and programme development
Promotion Act for energy conservation.
Energy Industry It established a new regulatory framework, with independent performance of energy policy making,
Act regulation, formulation and implementation, for the electric power and natural gas sectors.
The key objectives were to encourage engagement of the private sector and the general public through
active participation and increased competition. It promoted the efficient and environmentally responsible
use of energy resources and also promoted the use of renewable energy sources.
It established the ERC and deﬁned its authorities and duties.
Power It is an official study and projection of the electricity demand and supply in Thailand over a 20-year period.
Development Plan It formulates the power system development framework and outlines national energy mix targets.
(PDP)
It is drafted by EPPO and approved by the NEPC and the Cabinet. The latest PDP 2018-37 was released in
January 2019. A revision to the PDP was issued in October 2020.
Alternative The latest AEDP (2018–36) would target to increase the renewable energy share in final energy
Energy consumption to 20% by 2036 in line with the latest PDP. AEDP (2018–36) is currently under amendment.
Development Plan Public hearing organised by DEDE, were held in August 2019. The plan also states the strategies to
(AEDP) promote renewable energy development, which include R&D in energy storage, restructuring transmission
system to accommodate electricity from renewable energy, net metering and development of renewable
energy act.
Energy Efficiency It lays out the efficiency improvement projects and the economical use or reduced expendable use of
Development Plan energy.
Oil Plan It lays out the long-term plan to support fuel management in line with the goal of energy conservation
plan and AEDP.
Source: IRENA Thailand renewable energy landscape overview

2.5 Overview of The Power

Market in Thailand
Thailand is ranked third after Vietnam and advanced economies, such as the UK or Singapore,
Indonesia in the region in terms of electricity Thailand’s electricity generation per capita is
generation and fourth in terms of electricity relatively low, indicating potential demand for
generation per capita. Compared with other power generation in upcoming years.
Figure 2.7: Total Electricity Generation and Electricity Generation Per Capita (2018)
1.0 2.4 2.8 5.0 0.9 0.4 8.9 9.3 4.8
345
285
241 204 168
99
53
22 4
Indonesia Vietnam Thailand Malaysia Philippines Myanmar Brunei Singapore UK
Total electricity generation (terawatt hour (TWh)) Source: International Energy Agency, Worldbank
Electricity generation per capita (megawatt hour (MWh) per capita) (*) Data for UK is as of 2018
Electricity demand
The average annual growth of electricity demand in economic growth rate of around 4% per annum and
Thailand has been 3.4% between 2005 and 2019. In expected population growth -0.2% per annum, the
2019, the total electricity demand in Thailand was electricity demand is projected to grow by 3% per
212,050GWh.1 Considering the forecasted long-term annum. 2
Figure 2.8: Electricity Demand Consumption in Thailand (GWh, 2005–35)
+3%
348,302
303,138
+3%
261,100
212,050 219,946
192,246
164,829
134,798
2005 2010 2015 2019 2020 2025 2030 2035
Source: EPPO, EPPO, PDP 2018–37

1
EGAT website
2
PDP 2018-37, IEA, Data tool, Energy supply by electricity source, https://www.iea.org/data-and-statistics?country=THAILAND&fuel=Energy%20supply&indicator=Electricity%20
generation%20by%20source
Electricity supply
Electricity generation by fuel source
Natural gas dominates the energy mix in electricity (excluding large hydropower) has rapidly grown from
generation in Thailand, followed by coal. Electricity 1,765GWh in 2005 to 21,402GWh in 2019, translating
generation with renewable energy sources to a growth of approximately 20% per year.
Figure 2.9: Electricity Generation in Thailand by Fuel Sources (GWh, 2005–19)

Coal and Lignite Hydro electricity
GWh
Natural gas Imports
250,000
Oil Renewable energy
200,000
150,000
100,000
50,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: EPPO Statistics, Power Generation by fuel type, http://www.eppo.go.th/index.php/en/en-energystatistics/electricity-statistic?orders[publi

shUp]=publishUp&issearch=1, accessed 28 February 2020.
Figure 2.10: Electricity Mix by Generation (GWh, 2018–19)
+4% Legend 2018 share 2019 share
204,305 212,050
6,310
7,579 Hydropower 4% 3%
17,800 21,402
25,547
26,669 Renewable 9% 10%
35,825 enegry
35,796
Coal 18% 17%
116,442 122,965 Import 13% 12%
Oil and gas 56% 58%
2018 2019
Source: EPPO Statistics, Power Generation by fuel type, http://www.eppo.go.th/index.php/en/en-energystatistics/electricity-statistic?orders[publi
shUp]=publishUp&issearch=1, accessed 28 February 2020.
Electricity generation by type of producer Figure 2.11: Share of System Installed Generating
Capacity in 2019 (%)
The total installed capacity in Thailand is about
49GW, generated by a combination of IPPs, SPPs,
EGAT, VSPPs and imports. Of the total installed
capacity, IPPs (thermal power plants) and EGAT 8%
account for the largest share at approximately 30%
each, followed SPPs (including cogeneration and 12% EGAT
renewable energy) at 19%. Approximately 11GW 31%
of installed capacity (roughly 23%) comprises of IPP
renewable energy.
SPP
Thailand also imports power from the neighboring 49,606MW
countries and has entered into Memorandums Import
of Understanding (MoUs). As of February 2020, 19%
12.55% of system installed generation capacity VSPP
comes from import. This is equivalent to 5.7GW. Key
deals currently in place include:1
30%
• Xayaburi Hydroelectric Power Project – which
targets to import approximately 1220MW of
electric power from Laos, for 29 years. EGAT
Source: Energy statistics of Thailand, 2020, https://drive.google.com/
also imports hydropower and thermal power file/d/1zhiH0TcZWUAuReQA_TPdCelhWjH3lTPP/view
from other power plants in Laos.
• Thailand — Myanmar’s Energy Cooperation
— which targets to purchase approximately
1,500MW of electric power from coal and
hydropower projects in Myanmar.
• Electricity Trade between Thailand and
Malaysia, which currently entails the transfer
of approximately 330MW of electric power
between Thailand and Malaysia.
Figure 2.12: Electricity Mix by Generation by Power Producer Type (GWh and %, 2018–19)
204,428GWh 212,050GWh
5% 5% 100%
24% 26%
27% 26%
VSPPs
SPPs
45% 43%
IPPs
EGAT
2018 2019
Source: EPPO Statistics, Power Generation by fuel, http://www.eppo.go.th/index.php/en/en-energystatistics/electricity-statistic?orders[publishUp

]=publishUp&issearch=1
1
Compiled from various sources. “Xayaburi Hydropower Plant starts supplying electricity to EGAT”, EGAT website, https://www.egat.co.th/en/news-announcement/news-release/xayaburi-hydropow-
er-plant-starts-supplying-electricity-to-egat; “Thailand – Myanmar’s Energy Cooperation Projects”, EPPO, http://www.eppo.go.th/index.php/en/energy-information-services/thailand-myanmar-s-ener-
gy-cooperation-projects; “Electricity Trade between Thailand and Malaysia”, EPPO, http://www.eppo.go.th/index.php/en/energy-information-services/electricity-trade-between-thailand-and-malaysia.
Electricity tariff structure in Thailand1 Wholesale tariff

Thailand’s electricity tariff structure comprises: Wholesale tariffs consist of generation and
transmission costs. Electricity supply generated
i. Wholesale tariffs for bulk electricity supply,
by IPPs and SPPs are sold to EGAT as single buyer
mainly the electricity generated by EGAT and
through 20 years to 25 years PPAs. Generally
sold to the two state-owned enterprises i.e.,
the PPAs allocate fuel supply risk to EGAT, which
MEA and PEA
is passed to MEA and PEA and eventually to end
ii. Retail tariffs for end users, including the consumers.
industrial sector and household users
There are two type of power purchase rates for
Generally, both types of tariffs share a common SPPs — firm (cogeneration contacts) and non-firm
calculation principle, which is EGAT’s marginal costs (renewable energy contracts) power. Thailand has
of generation and transmission. These components also introduced a SPP-hybrid firm scheme where
are regulated by ERC. the PPAs for renewables shall also be “firm” in
order to reduce the intermittency of renewables. 2
Table 2.3: SPP Tariff Mechanisms
SPP firm SPP non-firm
Type of Cogeneration or renewable energy Cogeneration or renewable energy

energy
Availability • Obliged to guarantee availability of electricity • Availability of power plants is not guaranteed
supply during the system peak months and the electricity is sold whenever it is available
(solar, wind and biomass)
• Firm fossil fuel-fired SPPs must operate for
at least 7,008 hours per year and they must
generate power during the months of March,
April, May, June, September and October
Tariff — • Unbundled base tariff, which comprises a capacity • Conventional cogeneration SPPs is subject to
conventional payment, an energy payment and a fuel savings the Energy Payment, based on EGAT’s avoided
energy payment energy costs
Tariff — • Projects procured before 2015 has a base tariff • Non-firm contracts before 2015 were procured
renewable plus two additional components: a fixed one, based on time of use (TOU) rate, adjusted for
energy called the renewable energy source promotion peak and off-peak hours, plus the fuel adjustment
and another one that is specified for each type of (Ft) charge plus adder that was dependent on the
renewable energy, as known as “adder” type of renewable energy
• From 2015, the government has changed the tariff • Contracts after 2014 were procured on FiT basis
scheme from adders to fixed FiT for 20 years. In
2017, SPP hybrid renewable energy projects were
procured with firm contracts. Tariff was based on
bidding a discount to the FiT ceiling
1
“Thailand Sector overview”, ADB, https://www.adb.org/sites/default/files/linked-documents/49087-001-so.pdf
2
Thailand’s hybrid firm PPA scheme, Watson Farley and Williams, 3 October 2017, https://www.wfw.com/articles/thailand-hybrid-ppa-scheme/.
VSPPs are paid FiT as per the applicable renewable Time of consumption and voltage power level also
energy technology and the size of the power plant. determine the applicable rate. The tariff rates are
There may be an applicable premium for certain also subject to factor charge and value-added tax
provinces. (VAT). EGAT charges the bulk tariff to MEA and PEA
and its direct customers.
Table 2.4: Wholesale Electricity Rates in Thailand (2017)

Generation Transmission Total
Voltage
Peak Off-peak Peak Off-peak Peak Off-peak
230kV 3.1192 2.3316 0.2730 - 3.3922 2.3316
69kV–115kV 3.1286 2.3341 0.4913 - 3.6199 2.3316
End of the line 69kV–115kV 3.1948 2.3555 0.8528 - 4.0476 2.3555
11kV–33kV 3.2017 2.3567 1.0226 - 4.2243 2.3567
Source: EGAT, MOE, DBS Vickers Securities Thailand power Industry report
Peak: 09:00 am-10:00 pm Mon-Fri
Off-Peak: 10:00 pm-09:00 am Mon-Fri and 00:00 am-11:59 pm (24hrs) Sat-Sun, Labor day, and Public holidays (except compensation holidays
and Royal Ploughing Ceremony Day)
Retail tariffs
Retail tariffs are the rates offered to end-users, Retail electricity tariff consists of base tariff and
including industrial sector and household users. fuel adjustment charge (Ft) power fee and pipeline
Electricity tariffs charged by MEA and PEA are tariff for natural gas that realistically reflect the
regulated by ERC. economy, actual investment costs and expenses on
technology.
Figure 2.13: Components of The Tariff Structure
Distribution
Generation Transmission
and retail O&M of ROIC of
Base rate = expansion of + expansion of + expense of + 3 SOEs + 3 SOEs
EGAT EGAT
MEA and PEA
Adjusted every three to five years

Electricity
Fuel cost purchased from
Variable rate = EGAT + IPP +SPP+ + Policy cost
import
Adjusted every four months
7% of (Base
VAT = rate + variable
rate)
Reconcile Investment Ft-1 (actual) -

item = claw back + Ft-1 (in force)
Source: ERC
The base tariff is a bulk supply tariff, comprising The fuel adjustment charge adjusts the tariffs
the wholesale tariff that EGAT charges MEA and to reflect factors in the base-case assumptions
PEA (including generation and transmission) and that are beyond the control of EGAT, MEA and
the fixed retail expense that MEA and PEA charge PEA e.g., changes in fuel price costs compared
power consumers during each regulatory period. with forecasted price assumed in the base tariff
The base tariff is set every three to five years. calculations, foreign exchange rates, policy cost
It includes the expenses for power generation, including power development fund and subsidies
transmission and distribution. It also considers for renewable energy, seasonality of electricity
the capital expenditures by EGAT, MEA and PEA, generation. It is adjusted every four months.
and a return on invested capital. The factors used
The distribution utilities charge different base
to calculate the base tariff include forecasts of
tariffs for different consumers, based on their
the demand for electricity; fuel prices; and the
consumption levels and time of use.
estimated expenses.
Figure 2.14: Factors Affecting Tariff Components
Base rate Variable rate
Fuel cost
Economic conditions and Purchased from IPPs, SPPs
= energy price + FX +
seasons = Energy price + FX
Generation mix
Actual vs. planned
investment of three SOEs
Purchased from imports Policy costs (adder, FiT,
= FX + seasons power development fund)
Source: ERC
Figure 2.15: Movement of Fuel Adjusted Tariff (THB per kWh)
0.7
0.6
0.5
0.4
0.3
0.0
0.1
0.0
Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19
-0.1
-0.2
-0.3
-0.4
0.5
Source: MOE, “ERC raising Ft rate by 1.2% to cover higher fuel costs”, Bangkok Post, 9 November 2018, https://www.bangkokpost.com/
business/1572738/erc-raising-ft-rate-by-1-2-to-cover-higher-fuel-costs.
3. Renewable Energy Market

Characteristics
3.1 Major Government
Policies and Programmes
Renewable energy source targets
The PDP 2018-37 targets for approximately 20% In the PDP 2018-37, the country’s power production
of energy consumption to be met from renewable capacity is estimated to rise from 46,090MW
energy sources, as shown below. Renewable in 2017 to 77,211MW in 2037. Approximately
energy is projected to be 30% of the total 24,310MW will be retired between 2018 and 2037
capacity mix by 2037. from discontinuing old power plants that expire
during this time frame. New capacity additions are
estimated to be 56,431MW from 2018–37.
Figure 3.1 Energy Supply by Source According in 2037 (%)
0%
6% Energy efficiency
9% Imported hydropower
Coal and lignite

11%
Renewable energy*
53%
Natural gas
21%
Others
Source: PDP 2018-2037- rev 1, BOI, https://www.boi.go.th/index.php?page=electricity&language=ja.
The PDP2018-37 plans for majority of the baseload The total renewable energy electricity capacity
power to be met by natural gas, the proportion additions target for 2018- 2037 is 18,696MW, of
of which was increased from 37% to 53%. Of the which 65% or 12,015MW is planned to come from
planned additions between 2018 and 2037, majority solar power. Majority of solar electricity generation
of the capacity is planned to come from renewable capacity additions up to 2037 are expected to be
energy. Apart from renewable energy, combined from rooftop and ground mounted solar as seen
cycle and natural gas plants are also expected to in Figure 3.2. Capacity additions from solar are
contribute to new capacity additions as seen in expected to increase significantly from 2028.
Table 3.1.
Source: “Power development plan 2018”, EPPO, Thai-German solar PV update, https://www.thai-german-cooperation.info/admin/uploads/
publication/45c3eb4b5a04e780c1aa27816b0c822den.pdf.
Table 3.1: Planned Additional Capacity by Fuel Type in Revised PDP (2018–37)
Sources PDP (2018–37) in MWs Proportion

About 3,500MW is expected to be
developed from biomass power
Renewable energy 18,833 33% plants. This includes the Pracharat
biomass power plant project which
Community power plant 1,933 3% was delayed. Around 1,933MW will
Hydro power from EGAT 500 1%
be developed through community
based power plants (from biomass,
Cogeneration 2,112 4% biogas, waste water, and solar hybrid
systems). Community biomass
Combined cycle (EGAT or IPP) 15,096 27% plant additions of about 720MW
are expected in the short-term until
Coal or lignite (EGAT or IPP) 1,200 2%
2024, with the remaining 2780
planned in between 2025 and 2037.
Imports 5,857 10%
Compared to the first draft of the
New or replacement plants PDP, the target for solar energy
6,900 12%
(EGAT or IPP)
has been reduced slightly from
Energy Efficiency Plan (EEP) 4,000 7% the earlier goal while the target
for EGAT’s small and micro hydro
Total 56,431 100%
projects has been increased.
Source: PDP 2018 rev1, MOE
Figure 3.2: Planned Additional Capacity by Type of Renewable Energy Source in AEDP (2018–37)
18,696MW
MW
10,000 - 8,740
8,000 -
6,000 -
4,000 - 3,725 3,500

1,485
2,000 - 1,183
444
69
0 -
Solar Floating solar Wind Biomass Biogas Industrial Hydro
and hydro waste
Source: AEDP 2018, EGAT
Energy for all scheme

The “Energy for all” scheme aims to develop communities, particularly in remote villages to
community-owned power generation projects using participate in the renewable energy development
renewable energy technologies, such as WTE and and supplement household incomes by allowing
solar particularly in remote areas. The NEPC has local villagers to supply agricultural waste for
approved purchase of 700MW of renewable based biomass and biogas plants. At the same time, the
power generation until 2021. The overall target scheme aims to improve electricity access while
under the scheme is around 1,000MW by 2022. enabling private companies to form joint ventures
ERC regulations for this new purchase plan are with local communities in remote areas.
imminent. The programme aims to encourage local
Renewable energy programme

To meet the 20% renewable energy electricity The adder scheme was a feed-in premium,
supply target by 2037, the government has implemented by way of adding up the applicable
implemented few promotion schemes for producers rate on to the normal wholesale tariff (base
of renewable energy: the FiT schemes and tariff plus Ft charge). The adder rates varied for
additional tax and investment incentives through installed capacity of the SPPs or VSPPs and the
Thailand’s BOI. type of renewable power plant. These are shown in
table below. The scheme stopped in 2014 for new
The FiT scheme, launched in 2015, replaced the
projects.
previously offered “adder” scheme (approved by
the Cabinet in 2006 and put into effect in 2007 and
revised in 2009 to 2010).
Table 3.2: Adder Rates for Various Installed Capacities of Renewable Energy
Additional
for projects
Initial adder Revised adder Additional for
in the three
(2007) (2009) diesel substitution Period (years)
most Southern
(THB per kWh) (THB per kWh) (THB per kWh)
provinces (THB
per kWh)
Biomass
Installed cap. <=1MW 0.3 0.5 1 1 7
Biogas (all sources)
Waste
Wind
Installed cap. <=1MW 3.5 4.5 1.5 1.5 10
Installed cap. <=1MW 3.5 3.5 1.5 1.5 10
Hydro (mini or micro hydro)
Solar 8 6.5 1.5 1.5 10

Source: ERC, MOE
Feed-in Tariffs (FiTs)

In 2014, the policy was shifted to FiT to accurately FiT set as the ceiling price. In 2017, competitive
reflect the LCOE and remove uncertainty over bidding for SPPs Hybrid firm were carried out with
long-term tariffs to be paid as the adder scheme discount to FiTs.
only catered for 7 to 10 years period.
This minimised over-subsidising the renewable
With declining investment cost across various energy sector and discovered the real price from
renewable energy technologies especially the market players. The scheme was tested with
solar and onshore wind installation, in 2015 the bioenergy project before nationwide adoption. The
government moved to competitive bidding with FiTs depends on the technology and the size of
the projects. All FiTs cover a 20-year period, with
the exception of landfill gas projects where the FiT
applies for 10 years.
Figure 3.3: Recently Announced Initiatives Shaping the Renewable Energy Sector in Thailand
Total installed renewable energy projects (MW)
0.4% 3% 1% 3% 2%
Hydro
10% 8%
Biomass 16%
/Biogas 27% 31%
100% 99.6% 45% 26%
Solar 35% 43%
34% 16%
Wind
Waste 2,937MW 3,501MW 7,908MW 11,369MW 35,892MW
FiT program rate approved by NEPC for ground-mount solar, solar

PV rooftop, waste, biomass, biogas, wind and hydropower
Launched VSPP First competitive bidding for biomass and biogas projects
scheme
Current PDP
Renewable energy development
(2018–37)
1992 2002 2006 2007 2009 2013 2014 2017 2018 2019 2037
Revised adder Adjusted variable

EGAT allowed to
program FiTs to reflect core
purchase
FiT (solar PV rooftop) inflation
nonconventional
energy from IPP NEPC approved was introduced for
and SPP the adder household, business
program for SPP building and factories Second competitive FiT bidding
and VSPP, solar, based on first come, for SPP hybrid firm 300MW
wind, biomass, first served Commercial operations date
biogas and hydro (COD) with 2020 — discount to FiT
Currently, only SPPs and VPPs who can provide firm and semi-firm generating capacity from renewable
energy sources will be eligible to participate in FiT bidding.
Table 3.3: FiT for VSPP of Renewables (2020)
FiT(F) 1 FiT (v2018) 2 Total calculated FiT Period of support

Type of renewable energy source
(THB per kWh) (THB per kWh) (THB per kWh (years)
Biomass
Capacity <=1MW 3.13 2.25 5.38 20
Capacity >1–3MW 2.61 2.25 4.86 20
Capacity >3MW 2.39 1.88 4.27 20
Biogas (waste water and other waste)
All size 3.76 - 3.76 20
Biogas (energy crop)
All size 2.79 2.60 5.39 20
Municipal solid waste (MSW)
Capacity <=1MW 3.13 3.27 6.40 20
Capacity >1–3MW 2.61 3.27 5.88 20
Capacity >3MW 2.39 2.74 5.13 20
MSW (landfill) 5.60 - 5.60 10
Industry waste (VSPP new plant) 3.39 2.74 6.13 20
Wind
All size 6.06 - 6.06 20
Hydropower
Capacity <=200 kW 4.9 - 4.90 20
Solar
Solar farm 5.66 - - -
Rooftop (residential)
Capacity 0–10kWp 6.85 - - 25
Rooftop (building or factory)
Capacity >10 kWp–250 kWp 6.40 - - 25
Capacity >250 kWp–1,000 kWp 6.01 - - 25
SPP hybrid firm* 1.81 1.88 3.69 20
*Please note: The projects are procured through competitive bidding and at a discount to the capped FiT
Source: EPPO, ERC
1
FiT is fixed component e.g., cost of electricity plant construction, operating or maintenance expense and land rent.
2
FiT(v2018) is variable component for some type of renewable energy, which is adjusted depending on feedstock cost and inflation. SPP hybrid firm are not VSPPs
Table 3.4: SPPs and VSPPs Generation and Pricing Characteristics
SPP hybrid firm VSPP semi firm
Participation requirement Only new power plants Only new power plants
Type: all kind of renewables Type: biomass, biogas (sewage or
waste) and biogas (energy crops)
Contracted capacity 10–50MW <10MW
Firm model Firm all year Semi firm for six months (covering
Mar–Jun) while the other six months
are non firm
Characteristics of firm model Peak 100% (during 09:00–22:00) and 65% Peak 100% (during 09:00–22:00) and
off-peak (during 22:00–09:00) 65% off-peak (during 22:00–09:00)
Sources proportion of mix sources >= one type(s) Only one type
No proportion determined No hybrid
Purchased price mechanism Single FiT rates for all kinds of fuel type FiT rates by each type of fuel with
with competitive bidding mechanism competitive bidding mechanism (FiT
Premium only for firm duration)
Source: ERC, MOE
Tax incentives
Electricity producers can avail of a number of used in electricity generation. Tax incentives also
tax and nontax incentives from Thailand’s Board include custom duty exemptions for the import
of Investment (BOI). The tax incentives include of new equipment. Details of the BOI scheme for
a corporate income tax holiday of six or eight each renewable source are set out in the following
years, depending on the type of power production sections for each renewable energy resource and
section 3.4 on financing.
Table 3.5: Other Recently Announced Initiatives Shaping The Renewable Energy Sector in Thailand
Sector Policies and targets
Energy Efficiency Plan (EEP) Aims to reduce energy intensity by 25% in 2030, compared with that in 2005 or
equivalent to reduction of final energy consumption by 20% in 2030
Smart grid master plan Outlines the strategies to deploy smart grids in Thailand from 2015–36, including the use of
BESS. About 20 projects are under development and expected to come online by 2021
Sustainable transportation plan Increase electric vehicles by 1.2 million and introduce 690 charging stations by 2036
Waste management master plan Establishes proper disposal methods for municipal solid waste and household
hazardous waste and encourages the population to reduce, reuse, recycle
Environmental quality management Aims to balance natural resources management and enhance environmental quality
through protection, rehabilitation and increasing efficiency of natural resources use
ERC Sandbox Programme ERC has setup ERC Sandbox as a platform to promote and pilot new technologies
including microgrids, test new business models and to inform energy regulation in
Thailand
3.2 Costs and Technical

Considerations
LCOE is often used to determine the overall Steeply declining costs of solar PV modules are
competitiveness of different generating driving solar power toward grid parity in Thailand.
technologies. In Thailand, at present conventional Similar advancements in technology for biomass
energy sources are still more cost-efficient than and other biofuels can help accelerate Thailand’s
renewable energy technologies over the lifespan of journey to a greener energy mix by 2037.
the projects that have similar characteristics (e.g.,
firm PPA outputs).
Figure 3.4: LCOE Ranges for Various Technologies in Thailand (US$ per MWh)
US$ per MWh EGAT LCOE
280
260 265
260
240
220
200 185
185
180
160
140
120 110 95
100 90
87 103
80 90
85
60 70 71
60
40
35
20
0
Wind PV CCGT Coal Biomass Geothermal Hydro
onshore non-tracking incineration flash small
solar PV
Source: EY research based on various proprietary databases
According to Wood Mackenzie, solar power has • Wind onshore LCOE will drop by 38% but from
become competitive with gas in 2019 and its costs a much higher level than solar. Low wind speeds
will keep falling to become competitive against coal and capacity factor limit wind power in Thailand.
by 2025. The following is forecasted for Thailand.1
• Coal and gas LCOE increase by 8% and 21%,
• Solar LCOE will drop by 50% between 2019 respectively, between 2019 and 2040.
and 2040, falling to a level 42% below fossil
fuel by 2040.
1
“Battle for the future: Asia Pacific renewable power competitiveness report 2019”, Wood Mackenzie, woodmac.com.
3.3 Project Development

Lifecycle
Licensing
To be able to operate in the energy industry with In granting a License, the Commission shall take into
1,000kVA or more, energy producers are required to consideration:
apply for an electricity generation license though the
• Benefits to consumers, customers, industry,
ERC.
economy, state security and public interest, as
The application must include details on:1 well as justified competition.
• Power generating site, site map, showing routes • Financial potential, administration and
and location of the plant; business plan; capital management capability to operate the business
for the establishment and operation; objectives with stability and continuity
of power generation
• The suitability of and compliance with the PDP,
• Power purchase agreement if the intention is to energy network system expansion plan, as the
generate electricity for distribution to Energy case may be
Industry
• Potential in securing sources of funds for
• Details of power generation procedures, types investment plan either in normal or unexpected
and sources of energy, quantity of energy used situations
per year and machinery and equipment used in
• Reasonable technical plan complying with
power generation must be included
service plan enhancing efficient use of natural
• Drawings used in electricity industry operation resources
including list of calculations with detailed
• Safety standards and environmental impact
drawings of power plant building, layout of
machinery, list of machinery and equipment, with Tenure of all types of Electricity Industry Licenses
an authorized signature of an engineer according are not more than 25 years from the date of
to law of engineering professionals issuance. For activities not requiring an energy
generation license, the applicant must submit a
• Design of fire extinguishing system and
single line diagram of the system layout, certified by
emergency operation plan in case of accident or
an engineer according to the relevant laws, showing
fire
the power generation system, security or protection
• Electricity industry scheme covering site and energy control systems.
map and boundaries of power plants, single
In addition, all electricity generation plants must
line diagram showing diagram of electricity
obtain a factory operation license from the ERC with
generation system, protection system and
the following exceptions:2,3
electricity control system
• Energy production through rooftop solar
• Copy of the document issued by local
photovoltaic installation at a maximum production
administration organization showing that a piece
of 1,000 kWh
of land for construction of a power plant is not
prohibited by law on town planning and can be • Wind farm power plant
used for construction of power plants • Hydropower energy production
• Environment impact assessment If the plant is on an industrial estate, it must obtain
Once the application for Energy Industry License a permit to use the land and perform industrial
is submitted, the ERC reviews the application and activities. The relevant parties must also notify
reverts in 30 days. the appropriate authorities at the Department of
Industrial Works within 15 days from commencing
operations.
1
“Commentaries of Law related to the Energy Industry”, ERC, https://www.erc.or.th/ERCWeb2/Upload/Document/CommentariesOfLawRelatedToEnergyIndustry.pdf.
2
UK Thomson Reuters, https://uk.practicallaw.thomsonreuters.com/1-628-5906?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1
3
EPPO website on renewable energy rules and regulations
Procurement method for SPPs1

Renewable power projects have been procured under In addition to these details, the technical proposals
various schemes. From 2007, projects were procured and financial proposals will be examined as well. The
under the adder scheme, which provided eligible technical proposals will examine conformance to RFP
projects with a feed-in premium on top of the base requirements and technical suitability. If the technical
tariff payment. Once the adder scheme was replaced proposal does not pass this first stage, the bidder’s
with a FiT scheme, initially projects were procured on financial proposal will not be examined.
the basis of a first-come, first-served system, but that The financial proposals are subsequently reviewed
has been replaced with a competitive bidding process based on the lowest bidding price.
that is structured as a reverse auction in which the bid
is submitted as a discount to the FiT. Once the technical and financial considerations are
complete, the Commission invites the selected bidder
Competitive bidding processes generally specify: to negotiate the contract of sale for electricity and
• Regional capacity quotas other related details as appropriate.
• The eligible technology types The Commission then submits the results of the
negotiations to the MOE for approval, before allowing
• The size and project structure i.e., IPP, SPP or
the Electricity Generation Authority of Thailand to
VSPP
then sign the PPA.
• Whether the power contracted will be “firm” or
“non-firm”
• The scheduled commercial operation date
ERC manages the procurement of power generation
capacity, in line with the PDP. For each procurement,
the Commission announces rules and methodologies
for the request for proposals (RFP).
Based on past RFPs, proposals are generally expected
to include:
• Method of purchase of electricity
• Characteristics of the power producer
• Quantity of electricity to be purchased
• The procedures and duration for the proposal
submission
• The type of fuel to be used in the power
generation
• Characteristics and type of technology to be used
in the power generation
• Type and operational system for the power
generation
• The rules for calculating the electricity sale price
proposals
• Any other related rules and conditions
1
ERC, Commentaries of Law related to the Energy Industry Volume 1 and 2 accessed from ERC website
Procurement method for VSPP1

VSPPs are power producing entities or individuals electricity. MEA or PEA have the right to inspect
intending to generate electricity through renewable or request the VSPP to inspect, modify or improve
energy technologies to sell directly to MEA or PEA. electrical supply equipment as and when necessary.
The amount of power sold to the network is capped The first competitive bidding for discount to FiT
at 10MW. occurred in 2014 for biomass and biogas in three
A VSPP who intends to register and sell electricity southern border provinces area for VSPP projects.
to MEA or PEA must comply with safety standards The target was to procure 36MW of biomass and
and system connection standards in the Electricity 10MW of biogas.
Grid Regulations and related specifications on Biomass was fully subscribed with average bid price
material properties, equipment type and permitted lower by US$5.57 cents per kWh than the ceiling
solar PV rooftop electricity generation installations price. Only 5.95MW of Biogas was awarded with
that have been announced for the purchase of average bid price US$1.67 cents per kWh lower than
the ceiling price.
Table 3.6: Procurement Results of The First Competitive Bidding: Biomass

Rank MW % discount Year 1–8 (US$ cents per kWh) Year 9–20 (US$ cents per kWh)
1 9.9 81.17 9.39 8.48
2 9.90 81.17 9.39 8.48
3 9.90 77.19 9.70 8.79
4 6.30 67.78 10.36 9.45
Average bid price 9.70 9.79
Source: ERC
Second competitive bidding took place in 2017 for The procurement process looked like as follows:
SPPs with hybrid firm category. The target was
to procure 300MW with a 50MW capacity limit on Figure 3.5: Overview of Selection Process
each bid. The FiT cap as THB3.66 per kWh ( US Basic conditions
cents 11.09 per kWh). The 300MW included regional Land right
quotas, with flexibility to reallocate the quotas Technology
Submission
to other region if they are not subscribed. Total Fuel supply agreement
capacity remained at 300MW. 85 proposals were Financial ability
received in total. Connection assessment
Other conditions for SPP hybrid firm contract included Not

passed
• “Firm operation” with penalty Sealed technical proposal Not
• “Hybrid” for any type of renewable energy with qualified
Pass
UMM
• “Energy storage system” can be installed to Sealed bid price proposal
support “firm” (% discount from Fit)
• “New generation”
• Fossil fuel allowed only for starting up Appeal files
• 20% of Biomass supply required for energy Award
Granted Not
crop plantation
granted
• Scheduled Commercial Operation Date: 2020 to
2021 upon transmission line plan Not selected
Source: ERC
ERC highlights the following experience from SPP Contributions to the Power Development Fund
hybrid firm bidding1 (PDF) for the electricity industry
• Hybrid is more flexible and attractive as the Electricity producers must also contribute to the
average selected bid price is THB1.22 per kWh PDF, which is set up to:
(US$4 cents per kWh), (–33%) lower than the
• Support affected communities
ceiling price
• Most of the rewarded projects were in biomass, • Promote the use of renewable energy
bagasse and woodchip, which means they • Create fairness to consumers
can guarantee “firm” operation and are still
The contributions can be divided into two cases, such as:
abundant in Thailand
• The lowest-price bidders (99.99% discount) • During the plant construction, at a rate of
were sugarcane producers who had their own THB50,000 (US$1,667.50) per MW, per year and
fuel supply treated as a by-product for power must be no less than THB50,000 per year
generation • During the plant commission, at a rate classified
• Firm contract reduces the variation in by fuel type used for power generation, ranging
intermittent energy sources from 1 to 2 satangs per kWh (or satangs per unit),
effective since January 2011
The specific regulations relating to the PDF are
found in the regulation on procurement of the power
development fund for development or rehabilitation
of localities affected by power plant operation and
other regulations relating to consumer protection
promulgated by the ERC. Other than the PDF, there
are no mandatory private insurance schemes
specifically for producers imposed by law or
regulation.
From the COD, the contribution to PDF must be sent
to the fund within 45 days from the last day of each
month. The calculation of remittance will be made
based on the quantity of energy produced for sale
and self-consumption (SELCO) as follows:
Table 3.7: Contribution Rates to The PDF Imposed on Electricity Generation Licensees During Commission
Fuel Satang* per kWh
Wind power and solar energy 1
Hydropower energy 2
Renewable energy (biogas, biomass, etc.) 1
*Please note: 100 Satangs = THB1
1
ERC presentation on competitive biddings of renewable energy projects in Thailand at the Asian Clean Energy Forum in 2018
3.4 Financing and

Incentives
This section sets out key financing instruments Though there is no prescribed local green
active in Thailand and other incentives for bond standard in Thailand, Thai Bond Market
renewable energy investment. Association has rolled out an incentive scheme
Commercial lending1 for green, social and sustainability bond issuance
in Thailand.4 The scheme offers issuers a rebate
The commercial loan market is well established in on application fees for issuing green, social and
Thailand for renewable energy projects, especially sustainability bonds. The rebate is estimated to be
solar and biogas projects. Nonrecourse financing no less than THB50,000 (US$1,667.50) per year.
for renewable energy projects is available in Thai The scheme is currently ongoing and will run until
baht and US dollar. Main local banks active in mid-2020.
renewable energy project financing include local
banks, such as Siam Commercial Bank, Krung Green bonds and sustainable bonds are also
Thai Bank (KTB), Kasikorn Bank, Bangkok Bank prevalent in other sectors apart from renewable
and Thai Military Bank (TMB). Active International energy. ADB is also assisting the Thai government
banks include Mizuho Bank, HSBC, SMBC, JBIC in designing, issuing, and implantation of
and Credit Agricole Group amongst others. innovative capital market instruments to
support the country’s recover post COVID-19.
Multilateral financial institutions active in ADB’s technical assistance through the ASEAN
financing include the Asian Development Bank Catalytic Green Finance Facility (ACGF) includes
and GuarantCo. 2 Climate Investment Funds’ Clean a framework for bond development. The support
Technology Fund (CTF) administered by ADB included support for the first-of-kind issuance
is also active in renewable energy financing in in Southeast Asia for a sustainability bond. The
Thailand. bond was issued by MOF in two tranches totaling
Green bond3 30 billion baht (approximately US$1 billion). The
first tranche amounting to 10 billion baht will be
The first green bond in Thailand was issued by used to finance green infrastructure through the
TMB bank in June 2018 followed by a second Mass Rapid Transit orange line project. In 2020,
green bond issued by B. Grimm, a Thai power BTS Group also issued green bonds to support
company in December 2018. investment in Bangkok’s monorail line.
Though there is no prescribed local green
bond standard in Thailand, Thai Bond Market
Association has rolled out an incentive scheme
for green, social and sustainability bond issuance
in Thailand.4 The scheme offers issuers a rebate
on application fees for issuing green, social and
sustainability bonds. The rebate is estimated to be
no less than THB50,000 per year. The scheme is
currently ongoing and will run until mid-2020.
The first green bond in Thailand was issued by
TMB bank in June 2018 followed by a second
green bond issued by B. Grimm, a Thai power
company in December 2018.
1
EY Research
2
GuarantCo transactions, https://guarantco.com/portfolio/thai-biogas-energy-company/
3
IRENA, renewable energy market analysis, 2018, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Jan/IRENA_Market_Southeast_Asia_2018.pdf
4
ASEAN Green Finance State of the market, 2018, https://www.climatebonds.net/files/reports/asean_sotm_18_final_03_web.pdf
Table 3.8: Green Bonds for Renewable Energy Sources Issued in Thailand1,2
Issuer (year) Amount Standards Investors Use of proceeds
TMB Bank US$60 million NA Subscribed fully by IFC Solar, WTE, biomass and bagasse projects
(Jun 2018)
B. Grimm THB5 billion Climate Bonds ADB as sole investor Solar power plants with total capacity of
(Dec 2018) (US$167 million) Standard 67.7MW and seven solar power plants that
are under construction, with total capacity
of 30.8MW
Energy Absolute THB3 billion Climate Bonds ADB invested THB3 260MW Hanuman wind farm in Thailand
(Jul 2019) (US$100 million) Standard billion (US$100 million)
across the three issues
Energy Absolute THB4 billion Climate Bonds of Energy Absolute 260MW Hanuman wind farm in Thailand
(August 2019) (US$133 million) Standard issues
Energy Absolute THB3 billion Climate Bonds 260MW Hanuman wind farm in Thailand
(Oct 2019) (US$100 million) Standard
Other renewable energy support schemes

There are other government led support schemes • The industrial liaison sub-programme offers
to promote the development of renewable energy financial support for energy demonstration
projects and technologies as described below3: projects. The programme includes proven
Energy conservation fund (ENCON fund)4 technologies and the application of the
results from research projects and focuses on
ENCON, introduced in 1992, is the energy applications involving the provision of technology
conservation promotion fund that was established to small industries. The programme aims to
to provide financial support for the development of increase the industrial sector’s capacity to
new and renewable energy technologies. ENCON was generate energy-efficient and renewable energy
established to grant funds for energy conservation equipment in Thailand by providing technical and
development through enhanced awareness, energy- financial assistance for the development of a new
efficient technologies and the development of energy market
renewable energy sources.
• The fund has supported more than 50 R&D
The programme has different schemes, focusing on projects for energy technology, development and
various groups and sectors. Under the voluntary conservation undertaken by various government
programme, the ENCON fund provides financial agencies and academic institutions.
support for developing renewable energy sources
through three sub-programme addressing renewable There are three major financial programme to
energy sources and rural industry, industry liaison stimulate investment in renewable energy projects
and R&D. and energy efficiency under ENCON fund, namely
(i) tax incentives; (ii) energy service company fund
• The renewable energy sector and rural industry (ESCO fund); and (iii) EE revolving fund. ENCON
sub-programme focuses on opportunities to fund provides funding for all these programme.
promote fuel substitution and the introduction of The ENCON fund is managed by the ENCON fund
renewable energy technology. The programme committee, which consist of ministerial level
provides project owners with grants covering personnel from various departments and ministries.
the complete operational costs and financial The MOE keeps the fund’s assets and cash and
assistance in the form of interest subsidies handles the procedures of fund disbursement.
1
TMB website, https://www.tmbbank.com/en/sustainability/economic/responsible-lending.html
2
Bangkok post, https://www.bangkokpost.com/business/1592138/b-grimm-issues-green-bonds
3
GuarantCo transactions, https://guarantco.com/portfolio/thai-biogas-energy-company/
4
UNDP, http://www.undp.org/content/dam/rbap/docs/Research%20&%20Publications/environment_energy/ncf/APRC-EE-2012-NCF-CaseStudy-Thailand.pdf
Energy service company fund1

The ESCO fund aims to encourage investment in credit market and a credit guarantee facility. The
energy conservation and develop the renewable ENCON fund was launched to encourage renewable
energy market through project financing energy projects with an investment scheme of THB1
mechanisms. These include equity investment, billion (US$33 million).
venture capital, equipment leasing, creating a carbon Some of the key features of the ESCO fund are
described below:
Table 3.9: Key Features of ESCO Revolving Fund
Fund objectives:
1. To stimulate more than THB1,250 million (US$42 million) investments in renewable energy
projects and energy efficiency
2. To encourage more than 10 ktoe annual energy saving or valuing THB250 million (US$8.4 million)
per year
3. To promote and support private investments through energy service company (ESCO)
4. To assist entrepreneurs in minimising their energy cost and achieving revenues from carbon credit
5. To provide financing to energy efficiency and renewable energy businesses
1
ESCO revolving fund, http://www.efe.or.th/escofund.php?task=&sessid=&lang=en
Investment services:
10%–50% of total equity but limited to THB50 million (US$1.67 million) per project
Size of equity investment
and not to be the major shareholder
Investment period No longer than seven years

Equity
investment Exit method Share sale to lead developer or new investor
Exit price As per shareholder agreement
Board As required
A maximum of 100% of equipment cost but limited to THB25 million (US$0.83

Lease feature
million) per project
Repayment duration No longer than five years

Equipment
leasing Interest rate 3.5% per annum (flat rate)
Grace period No longer than six months
Other features Project evaluation cost not charged by fund manager
10%–30% of registered capital but limited to THB50 million (US$1.67 million) per
Size of equity investment
project and not to be the major shareholder
Investment period No longer than seven years

ESCO
venture
Exit method Share sale to project owner
capital
Exit price As per shareholder agreement
Board As required
Facilitate project owners in developing project documents and liaison with the
GHG project
Key features relevant authority to ensure that they can benefit from greenhouse gas emission
facility
reduction activity
Provide support and cooperate with financial institutions or credit guarantee

Credit
agencies to assist entrepreneurs in accessing to the long-term loan from bank
guarantee Key features
by providing credit guarantee depending on the project risk and limited to THB10
facility
million (US$0.33 million) at low premium rate
Technical
Key features Provide technical assistance, such as walk-through audit and co-inspection services
assistance
Soft loans: revolving fund Tax incentives and import duty waivers through
the Board of Investment (BOI)
The revolving fund aims to encourage commercial
investment in energy-efficient projects and The BOI provides import duty waivers and corporate
familiarise banks with the provision of loans for tax exemption for new investment in:
renewable energy technologies. The revolving
• Energy conservation businesses
fund offers loans at a lower interest rate to
enhance energy-efficiency and renewable energy • High-efficiency machinery and renewable energy
projects. The budget for the soft loan was equipment manufacture
granted from ENCON, with an initial amount of • Solar PV manufacture
THB7 billion (US$233 million). The approval and
loan processes are undertaken by banks, while • ESCO
DEDE provides technical support for project • Renewable energy production businesses
assessment and execution.
• Alcohol or fuels from agricultural products
• Electricity or steam generation
According to the programme regulations, units
manufacturing solar cells, energy-saving machinery
and renewable energy equipment and machinery
are eligible for a corporate income tax exemption,
covering a period of eight years. The government
also provides a tax exemption of eight years, for
energy generated from alternative sources and to
energy service consulting firms providing consulting
services related to the use or installation of energy-
saving machinery and equipment.
The programme has the following key elements:
• An import duty waiver on equipment imports for
renewable energy projects and raw materials
• Corporate tax holiday for eight years
• A 50% reduction in income tax for corporations
on net profit for five years after the expiry of the
tax holiday
• Deduction from net profit for installation
and construction not exceeding 25% of the
total capital investment, in addition to the
depreciation deduction
3.5 Ownership
Under Thai law, a company with more than 50% of In addition to the BOI approval for foreign
its capital owned by Thai stakeholders (individual companies to carry out businesses in Annex 2 and
or legal entities) is considered a Thai company. Annex 3, a certificate from the Foreign Business
In contrast, if foreigners own 50% or more of Division is also required.
the capital, such a company will be regarded as Electricity generation and sale are considered a
a foreign company and is subject to certain legal manufacturing activity and are not subject to the
restrictions under the Foreign Business Act (FBA). above restrictions set by the FBA. This implies
As per the FBA regulations, 43 types of businesses that foreign investors can own up to 100% of a
are restricted for investment by foreign companies renewable energy generating company in Thailand
listed in its annexures: and are not obligated to seek FBA approvals.
• Annex 1 sets out business segments that are However, there are restrictions on land ownership
closed for foreign investment for foreign companies under the Thailand land
code. A BOI promotion certificate is required to
• Annex 2 sets out activities prohibited for non-
secure land for renewable energy projects. Grant
Thai companies unless prohibited from carrying
of promotion certificate is contingent on securing
activities unless permission is granted by the
all relevant approvals, such as a generating license
cabinet and Minister of Commerce
and a signed PPA.
• Annex 3 sets out activities that may be
Restrictions on equity transfer
conducted by a foreign company subject to
the grant of a license from the commercial The lead developer (or the entity holding more than
registration department with an approval from 50% stake in the project SPV) at the time of PPA
the Foreign Business Operations Committee signing is required to retain its stake for a period
of at least three years post COD of the project and
However, there are two common exceptions to the
is not permitted to sell its interest in the Project if
above regulations:
such a change would result in:1
• An exemption can be obtained from BOI or the
• Number of original shares becoming less than half
Industrial Estates Authority of Thailand (IEAT)
• Percentage of the shares held by the original
• A US company or a subsidiary of a US entity
shareholders being less than 51%
or US nationals who can avail the US–Thailand
Treaty of Amity
1
Conventus Law Thailand, http://www.conventuslaw.com/report/renewable-energy-in-thailand/
4. Market Conditions for Solar

PV Development
Thailand is endowed with an abundance of solar Figure 4.1: Solar Irradiation Across Thailand
energy. The northeast and central parts of the
country, which cover one-quarter of the total land
area, receive high amounts of solar irradiation with
the peak density of solar radiation in these areas
being in the range of approximately 1200 to 1400
kWh/m2/year. Seasonal peaks occur in April, with
troughs in December.
The cumulative installed capacity of solar grew
tenfold and more from 2011 to the end of 2018.
As of 2020, the installed capacity of solar stood
at 2,982MW. This growth can be attributed to
Thailand’s attractive feed-in premiums under the
adder programme and other forms of incentives
for renewable energy development in Thailand.
Following the global trend, declining cost of solar PV
modules and familiarity of technology in financial
sector also contributed to the growth of solar energy
in Thailand.
Source: Global Atlas © 2019 The World Bank,

global solar atlas 2.0, solar resource data: Solargis
Figure 4.2: Map of Solar Power Plants in Thailand

PDP (2018 to 2037) lays a target of achieving total The target includes approximately 9,290MW for
installed capacity of 28,004MW by end of 2037. solar (utility scale and rooftop solar and hybrid solar)
The revised PDP targets an additional capacity of and 2,725MW of floating solar capacity.
12,015MW of solar is targeted in the 10-year period.
Figure 4.3: Ground-Mounted Cumulative Installed PV Capacity (MW)

MW
30,00 3,000
2,827
2,663
2,500
2,282
2,000
1,500 1,389
1,269
1,000
794
500 357
0
2012 2013 2014 2015 2016 2017 2018 2019
Source: National survey report, 2018; Power plant database through Global Data 2019
Unit costs and production1,2

Thailand has rapidly emerged as a hub for PV testing Half of them are capable of producing both cells
services and PV technology and has potential and modules with 3,850MW of production capacity
for export of solar technologies. Thailand has no and only fabricating the modules was 475MW of
production of feedstocks, ingots and wafers for production capacity as per the national survey
crystalline silicon industry but can produce PV cells report, 2018.
and modules (including TF and CPV). There are total Production capacities of the various companies are
15 companies that produce PV modules in Thailand. summarized below.
1
UNEF report 2018, https://unef.es/wp-content/uploads/dlm_uploads/2018/04/solar-energy-task1_thailand_2018-1.pdf
2
Solar power in Thailand, Netherlands Embassy in Bangkok, https://www.rvo.nl/sites/default/files/2017/03/FACTSHEET-SOLAR-POWER-IN-THAILAND.pdf
Table 4.1: Manufacturing Capacity in Thailand (MW)
Maximum Maximum
Production for Production for
Manufacturer Technology capacity for cell capacity for
cell (MW) module (MW)
(MW) module (MW)
Canadian Solar Sc-Si, mc-Si - - 1,000 800
Ekarat Solar Sc-Si, mc-Si - 4 - 50
Fullsolar Sc-Si, mc-Si - 8 - 50
G.K. assembly Sc-Si, mc-Si - 80 - 84
Gintech Sc-Si, mc-Si - 650 1,000
Irradiance Solar Sc-Si, mc-Si - 6 - 6
Jetion Solar Sc-Si, mc-Si 140 250 140 250
Pornjaroen Sc-Si, mc-Si - 30 - 30

Tempered Solar
Schutten Solar Sc-Si, mc-Si - 12 - 30
Solar Power Sc-Si, mc-Si - 3 - 25

Technology
Solar PPM Sc-Si, mc-Si - - - 200
Solartron Sc-Si, mc-Si - 180 180 200
TaleSun Sc-Si, mc-Si 850 800 850 800

technology
Traina Solar Sc-Si, mc-Si - - 700 500
Yingli Solar Sc-Si, mc-Si - - - 300
Source: IEA National survey report of solar PV developments in Thailand, 2018; Power plant database through Global Data 2019
4.1 Utility-Scale,
Ground-Mounted
Systems
Utility-scale solar projects (>1MW) in Thailand are Maximum capacity per bid was restricted to 50MW
named as solar farms and ground-mounted PV (and >10MW). The SPPs were required to follow
under the governmental agency and agricultural grid code and network availability. The SCOD was
cooperatives programme (agro policy). set between 2020–21.
Solar farms procured through SPPs (>10MW and Solar farms procured through VSPPs (>1MW and
<90MW) were traditionally procured under the <10MW), sell surplus electricity directly to the
adder programme on first-come, first-served basis, distribution utilities. They are paid applicable FiT
which in 2014 was replaced with a FiT programme of THB5.66 per kWh (US$18.88 cents per kWh) for
based on a selection process. From 2017, SPPs for a period of 25 years as per the rates released in
renewables undergo competitive bidding. These 2018.
projects sign a 20-year PPA with EGAT and are
VSPPs were also built through the tie up with
paid applicable bid price, which is at a discount to
certain government agencies and agricultural
the FiT ceiling.
cooperatives under the agro policy, first
In the last SPP-hybrid competitive bidding in 20171 announced in August 2014. It proposed solar
for 300MW of renewable energy, the FiT ceiling farms, with a maximum size of 5MW. The target
was set as THB3.65 per kWh (US$12.17 cents per was to achieve 800MW power, separated in two
kWh). The FiT was broken into two components — a phases. Application for Phase 1 was announced in
fixed and variable, with the variable portion to be November 2015, with an FiT rate of THB5.66 per
annually adjusted by core inflation after 2017. The kWh (US$18.88 cents per kWh) for 25 years. Phase
competition is a two envelope process. On passing 2 was launched in 2017, with an FiT rate of THB4.12
the technical proposal, bid price ranking was per kWh (US$13.74 cents per kWh) for 25 years.
done by percentage discount proposed to fixed FiT rates declined by as much as 27% between
portion of the FiT. Projects were awarded on this the phases, primarily driven by a decline in solar
basis. The awarded projects under this round that technology costs globally.
included solar are as following:
• 12MW solar project in central Thailand at a
bid price of THB2.54 per kWh (US$8.47 cents
per kWh). This solar project included energy
storage system.
• 16MW biogas plus solar project at a bid price of
THB2.88 per kWh (US$9.60 cents per kWh) in
Eastern Thailand.
• 13.31MW biomass plus solar at a bid price of
THB2.73 per kWh (US$9.10 cents per kWh) in
Northern Thailand.
1
Competitive bidding renewable energy projects in Thailand, OERC accessed from https://d2oc0ihd6a5bt.cloudfront.net/wp-content/uploads/sites/837/2018/06/Khomgrich-Tantravanich-
Competitive-Biddings-Renewable-Energy-Projects-in-Thailand-SPP-Hybrid-Firm.pdf
4.2 Floating Fydropower

Solar PV (hybrid)
Projects
The PDP 2018-37 announced the development stretches to 2037. Once the above capacity is
of floating solar plants, alongside rooftop solar commissioned, floating solar will account for
projects to fill the gaps in its power generation one-tenth of the country’s clean energy sources.
capacity. While floating solar PV projects are Though the government intends to encourage
estimated to be more efficient by 7.5%–12.5%, local companies to participate in floating solar
they also tend to be 15%–20% more expensive to hydropower projects under the PDP (2018–37),
build than ground-mounted solar PV projects. they will be open for international players.
ERC has tasked EGAT to develop 2,725MW of The first pilot project is the Sirindhorn Dam in
floating solar capacity. This capacity will be Ubon Ratchathani Province. This project involves
developed from 16 projects spread across EGAT’s a floating solar farm on the dam reservoir with a
nine hydroelectrical dam reservoirs (Sirindhorn 45MW capacity, in addition to the existing 12MW
Dam, Ubonrat Dam, Bhumibol Dam, Srinagarind hydropower plant. In June 2019, EGAT invited
Dam, Vajiralongkorn Dam, Chulabhorn Dam, Bang international companies to submit EPC bids on the
Lang Dam, Rajjaprabha Dam and Sirikit Dam) pilot project. The project was awarded to B Grimm
The projects will be developed and owned by Power and Energy China consortium in January
EGAT. However, engineering, procurement 2020. The project cost is estimated to be THB1.87
and construction (EPC) would be tendered via billion (US$62 million). There is THB2.44 per kWh
competitive bidding, taking into account the (US$8.14 cents per kWh) ceiling on the electricity
electricity price per unit. The targeted COD cost. B Grimm anticipates commissioning by the
end of 2020.
Figure 4.4: EGAT Plans for 2,725MW Floating Solar Over 18 Years to 2037
Commercial Operating Date
Flotating solar assets (MW) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Sirindhorn Dam 45
Ubol Ratana Dam
Bhumibol Dam 1 24
Srinagarind Dam 1 158
Vajiralongkorn Dam 1 140
Bhumibal Dam 2 Surpasses China Three 280
Gorges’ Rmb 1 billion, 150MW 300
Vajiralongkorn Dam 2
floater in Huainan, Anhui
Chulabhorn Dam 300
Bang Lang Dam 40
Bhumibol Dam 3 78
Rajjaprabha Dam 1 320
Sirikit Dam 1 140
Rajjaprabha Dam 2 325
Sirikit Dam 2 100

175
Total by year 45 0 0 24 0 0 298 50 0 280 300 250 300 438 140 325 100 175
Source: IJ Global
4.3 Rooftop Solar

The solar rooftop policies in Thailand apply to In October 2019, it was reported that the MOE
projects with installation capacity less than 1MW. was considering allocating part of the 10,000MW
As per the PDP (2018–37), an initial 1000MW is rooftop solar target toward community WTE
allocated to the household rooftop solar scheme projects under the energy-for-all programme.
to be achieved in the next ten years (until 2028). This was regarded as the household solar rooftop
More capacity may be allocated toward rooftop scheme and had only 121 participants generating
solar from the 9,290MW that is allocated to 685 kilowatts, far lower than the government’s
solar technology. To meet the above target of target of 100MW. It was reported that the ministry
1000MW, in March 2019 Thailand’s ERC launched a may also consider raising the FiT from the current
net energy metering scheme to offer an FiT THB1.68/kWh (US$5.60 cents per kWh).
of THB1.68/kWh (US$5.60 cents per kWh) for
Thailand permits rooftop solar projects under the
household rooftops for 10 years, with an initial
following models:
pilot of 100MW capacity. Under the scheme,
only excess energy after self consumption would 1. Consumer-owned - solar service providers
be sold back to the grid. This was a move away install, operate and maintain solar panels
from FiT where all the energy was sold to the on commercial and industrial rooftops. The
grid, without any self consumption for the grid rooftop owners retain the ownership of the
connected rooftop solar. solar panels and consume the generated
electricity.
The 100MW target was divided into 10MWp for
households and 40MWp for commercial use for 2. Solar leasing - solar service providers
MEA and PEA each (i.e., 50MWp in total for MEA install, operate and maintain solar panels
and PEA each). Each household had a limit of on commercial and industrial rooftops. The
10KWp that they could produce, while commercial system is leased to the rooftop owner under a
producers had a limit of 1,000KWp. 100MW of leasing agreement. A main player in the solar
solar would be purchased every year until 2028 leasing segment is SPCG.
and the annual capacity will rise thereafter until 3. Corporate PPA - Another way is to lease the
the completion of the planned capacity. rooftop to the solar developer. The developer
Under the scheme, residential buildings will be installs, owns, operates, maintains the solar
encouraged to install solar panels with a capacity panels, and sells the rooftop owner’s power
of up to 10kWp or 15% of the transformer under a corporate PPA. Main players offering
capacity. While selling electricity back to the grid, Corporate PPA in Thailand include Cleantech
prosumers would be charged a transmission fee Solar, Constant energy and Impact Solar.
for retail power trading. Structuring the project will generally be influenced
by commercial appetite to assume investment
costs and regulatory considerations.
To promote competition in private power There is also an interest in business-to-business

producers, it is reported that Thailand will also energy trading and is supported by a behind-the-
leverage wheeling of electricity from 2020 onward meter energy trading project at the T77 Precinct
and may allow offsite-PPAs, which is the transfer in Bangkok. The project is deployed by Power
of electricity from a grid to loads outside the Ledger in partnership with MEA and the Thai
grid boundaries. This will enable utilities and renewable energy company BCPG. It is the first
prosumers to address power shortages in specific such project in the market that enables peer-to-
areas of the country through over-the-grid trading. peer energy trading between four commercial
buildings.
Figure 4.5: Grid Connected Rooftop Capacity (MW)
MW
599
600
500
400 360
300
200
130
100
0
2016 2017 2018
Source: IEA national survey report of solar PV developments in Thailand, 2018, Solaris solar rooftop developments: https://www.solaris.co.th/25-
english/news/182-thailand-s-new-solar-rooftop-developments
Financing Local content requirements

Thailand’s financial markets are mature enough There are no specific local content requirements
to lend for solar power projects. There is an mandated for the development of renewable
increasing trend for issuing green bonds. Thailand projects.
remains an attractive market for both domestic and
BOI promotion
international financing.
As mentioned in earlier sections, solar energy
Rooftop solar projects are financed by the owner or
producers and manufacturers for solar cells and
the developer under the solar leasing service.
other related technologies can avail of the eight-year
For more details, refer to section 3 – Financing corporate tax holiday and custom duty exemptions.
Foreign ownership restrictions Regulatory treatment
There appears to be no restrictions on foreign The Electricity Industry Act governs solar PV. ERC
ownership at the moment. provides regulatory oversight.
For more details, refer to section 3 – Ownership Pricing
The FiT rates for solar PV are mentioned in the table
below.
Table 4.2: FiT Rates for Solar VSPPs and SPP Hybrid Firm (THB/kWh)
FiT(F) 1 FiT (v2020) 2 Total calculated FiT Period of support

Type of renewable energy source
(THB per kWh) (THB per kWh) (THB per kWh (years)
Solar
Solar farm 5.66 -
Rooftop (residential)
Capacity 0 kWp–10 kWp 6.85 - 25
Rooftop (building or factory)
Capacity >10 kWp–250 kWp 6.40 - 25
Capacity >250 kWp–1,000 kWp 6.01 - 25
SPP hybrid firm* 1.81 1.86 3.67 20
Previously awarded projects

Previously awarded VSPP / SPP projects are illustrated in the table below. Further details may be
obtained from ERC website, subject to information availability.
1
FiT is a fixed component and covers cost of electricity plant construction, operating or maintenance expense and land rent.
2
FiT(v2020) is a variable component for some type of renewable energy, which is adjusted depending on feedstock cost and inflation
*Please note: The projects are procured through competitive bidding and at a discount to the capped FiT.
Table 4.3: VSPP and SPP Solar Projects (Non-Exhaustive)

Type of Capacity COD
Company Location
plant (MW) date
BCPG Company Limited SPP Bang Pa-in Phra Nakhon Si Ayutthaya Province 34.3 2012
EA Solar Nakhon Sawan Company Limited SPP Tha Tako District, Nakhon Sawan Province 126.1 2013
B.Grimm Solar Power 1 Company Limited VSPP Nong Chok District, Bangkok 5 2018
Electrica Asia Power Company Limited VSPP Nong Chok District, Bangkok 5 2018
Bang Bua Thong Agricultural Cooperative VSPP Bang Bua Thong District, Nonthaburi Province 3.35 2016
Limited
TPS Commercial Co., Ltd. VSPP Wang Muang District, Saraburi 8 2015
Gunkul Chubu Power Gen Co., Ltd. VSPP Sam Ngam District, Phichit Province 5.04 2013
Source: “ERC Project database”, ERC., http://www.erc.or.th/ERCSPP/Default.aspx.
Only a small sample of projects is illustrated in the table above. The complete list of projects can be accessed from the ERC website.
PPA terms
For firm PPAs, the concession term is 20 to 25 years1. Major developers and equipment and service
EGAT provides guarantees to purchase a minimum of providers (solar)
80% of the SPP’s capacity except for force majeure The major developers active in Thailand include
or other risk events beyond control (natural disasters Electricity Generation Public Company (EGCO), Ratch,
etc.). The offtaker for producers less than 10MW is Global Power Synergy Company (GPSC), B. Grimm
MEA or PEA 1. Power, Gulf Electric, Cleantech Solar, Total Solar,
VSPP PPAs are for 25 years for solar. Solartron, KPN Green Energy Solution, Impact Solar
Terms for Corporate PPA for rooftop solar projects and Constant Energy
concerning the tariff structure (fixed and discount The solar module producers include Sharp
to utility) and the PPA term would depend on the Corporation, REC Solar, Powerway Renewable Energy,
arrangement between the developer. Payment Wuxi Suntech Power, Phono Solar Technology, LDK
terms will be typically be governed by the overall Solar, Sun Edision, Canadian Solar, Ekarat Solar and
creditworthiness of the customer as well as the Fullsolar
projected energy demand. Typical payment structures EPC contractors include Black & Veatch, Italthai
include ‘take and pay’, ‘take or pay’, or a discount to Engineering and CBD Energy Limited and Poyry PLC.
the retail tariff. Estimated market size
For more details, refer to chapter 3 – project Data on projected installed capacity was obtained
development cycle section from the revised PDP 2018–37’s projected renewable
Procurement method energy capacity. We assume that the government can
For more details, refer to chapter 3 – project achieve its target of having approximately 12,000MW
development cycle section solar by 2037. The majority of the capacity additions
Key decision makers are expected to be in ground-mounted solar, with
some capacity additions in solar rooftop programme
ERC announces tenders, reviews and selects bidders
and floating solar programme.
for solar PV projects. EGAT releases tenders for
floating solar. The project costs were obtained from various
databases for the Thai market. The project cost
Land and permitting
compositions were triangulated from different
100% foreign ownership is permitted for companies sources, including BNEF, IRENA and Tetra Tech.
involved in power generation. However, the project Assumptions for a foreign and domestic share of
company is not permitted to own land that is required the market come from the estimated involvement of
for the project. Renewable energy projects can avail foreign companies in each component of the supply
incentives under the investment promotion law as chain.
described in earlier sections 2.
1
VSPP PPA from MEA website, Regulations for the Purchase of Power from Very Small Power Producers (for the Generation Using Renewable Energy) 2 “Renewable energy snapshot – Thailand”,
Norton Rose Fulbright, July 2019, https://www.nortonrosefulbright.com/en/knowledge/publications/2f5545da/asia-renewables-snapshot-Thailand.
Table 4.4: Investment Potential for Solar Power in The Coming Years
2019 installed 2025 installed Additions Project cost Market size

Technology
capacity (MW) capacity (MW) (2020–25) (US$ million/MW) (US$ million)
Solar PV 2,827 3,608 781 1.04 812
Costs are based on 2020 estimates. However costs are expected to decline in coming years.
Planned capacity additions are as per the capacity additions planned in the PDP 2018-37. The capacity additions expected are conservative.
The PDP plans rapid increase in capacity after 2028.
Table 4.5: Supply Chain and Financing Analysis for Solar PV (%)
Share in cost (%) Domestic (%)* Foreign (%)
Project developer or sponsor 10% 4.9% 5.1%
Consulting engineering 5% 2.5% 2.6%
Engineering design 5% 0.1% 5.0%
Major electromechanical equipment 60% 0.6% 59.4%
Balance of system 15% 0.2% 14.9%
Construction 5% 5.0% 0.0%
Total 100% 13% 87%
Source: IRENA, EY Research
Note: (*) While there are no local content requirements, we have assumed that 49% project development will require domestic players
as this will help with ease of business, 49% of consulting engineering can be carried out by local players, engineering design will be
predominantly 98% will require foreign involvement as they have superior technologies and know-hows, major electromechanical
equipment will require 90% of foreign involvement due to the specialist nature of equipment needed and construction can be done by
domestic players entirely.
Table 4.6: Supply Chain and Financing Analysis for Solar PV (US$ million)
Total market size Domestic share Foreign share
Project developer or sponsor 81 40 41
Consulting engineering 41 20 21
Engineering design 41 1 41
Major electromechanical equipment 487 5 482
Balance of system 122 2 121
Construction 41 41 -
Total 812 108 707

Upcoming projects
Several opportunities are expected in the coming years, particularly in floating solar. Some of these
opportunities are presented in the following table.
Table 4.7: Upcoming Solar Power Projects (As of January 2021)

Non-exhaustive
Total capacity Year
Power plant name Type of project State or province Status
(MW) online
Bhumibol Dam Solar Park Floating solar Tak 778 Announced 2026
Srinagarind Dam Solar Park Floating solar Kanchanaburi 720 Announced 2026
Sirikit Dam Floating Solar Park Floating solar Uttaradit 500 Announced 2035
Vajiralongkorn Dam Solar Park Floating solar Kanchanaburi 300 Announced 2027
Rajjaprabha Dam Floating Solar Floating solar Surat Thani 240 Announced 2034
Banglang Dam Floating Solar Floating solar Yala 78 Announced 2033
Sirindhorn Dam Hybrid Solar Floating solar Ubon Ratchathani 58.5 Permitting 2020
Chulabhorn Dam Floating Solar Floating solar Chaiyaphum 40 Announced 2033
Ubonratana Dam Floating Solar Floating solar Khon Kaen 24 Announced -
Ubol Ratana Dam Hybrid Solar Floating solar Khon Kaen 24 Announced 2023
Blue Solar Suphan Buri Solar PV Park Ground mounted solar Suphan Buri 42 Announced -
CPF Solar PV Park Ground mounted solar Bangkok 40 Permitting -
Blue Solar Farm 1 Ground mounted solar Suphan Buri 35.6 Permitting 2021
Tesco Lotus Solar PV Park Ground mounted solar - 15.3 Permitting -
Enmax Pantai Khok Kham Solar Ground mounted solar Bangkok 10 Under -
construction
S Kijchai Solar PV Park Ground mounted solar Rayong 7 Permitting -
Udon Thani Solar PV Park Ground mounted solar Udon Thani 5 Permitting -
Wang Noi Solar PV Park Ground mounted solar Phra Nakhon Si 2.6 Permitting -
Ayutthaya
Map Ta Phut Solar PV Park Ground mounted solar Rayong 2 Permitting -
IKEA Store Bang Yai Solar Park Ground mounted solar Nonthaburi 1.5 Permitting -
Map Ta Phut Industrial Estate Ground mounted solar Rayong 1.4 Permitting -
Source: Global Data, EY analysis

5. Market Conditions for Wind

Power Development
Thailand experiences low to medium wind speed Figure 5.1: Wind Potential Across Thailand
of 6m/s on average (at a height of 90m). The
estimated potential of wind energy is between Wind speeds2 (m/s)
13GW and 17GW depending on the turbine
considered for estimation. The potential is
dependent on the technological developments
in low wind speed turbines. The wind potential is
geographically located in the northeast, western
and southern regions of Thailand, which are
generally far away from the loads.
Offshore wind potential along the coast of the
Gulf of Thailand is estimated as 7GW 1. The PDP
2018-37 set a target of approximately 3GW of wind
capacity by 2037. The current plan is focused on
onshore wind.
The Global Wind Energy Council (GWEC), was in
consultation with Thai governments in December
2019. The council believed that an additional
5GW2–10GW2 can be realized (in addition to
the current target of (3GW installed capacity)
with systematic interventions to encourage the Source: IRENA Global Atlas
development of the sector.
1
Wind energy potential analysis for Thailand: Uncertainty from wind maps and sensitivity to turbine technology, research gate: https://www.researchgate.net/publication/315099637_Wind_
Energy_Potential_Analysis_for_Thailand_Uncertainty_from_Wind_Maps_and_Sensitivity_to_Turbine_Technology
2
Wind industry calls for an additional 7GW of wind energy to be installed in Thailand by 2037 - https://gwec.net/wind-industry-calls-for-additional-7-gw-of-wind-energy-to-be-installed-in-
thailand-by-2037/
Figure 5.2: Map of Wind Power Plants in Thailand

5.1 Onshore Wind 5.2 Offshore Wind

The wind development over the last decade has Offshore wind across the Gulf of Thailand is still
led to a mature Thai wind industry, with several in nascent stages of development. Currently,
strong local and international industry players. there are various studies in place to assess
Thai wind industry players are now leveraging offshore wind potential. The Thai government has
their local experience to pursue opportunities in not released any targets specific to offshore wind
other ASEAN countries, mainly Vietnam and the energy development, but have demonstrated
Philippines. interests to assess and research its potential.
The industry was initially held back with legal Thailand has strong fundamentals for wind
problems over the use of certain types of land. power to take off, including a mature investment
Following the government’s initiatives to resolve environment for clean energy and sizable
the issues in 2016, the number of wind-powered volumes of wind projects installed and in the
projects almost doubled over the course of pipeline. Focusing efforts on long-term system
next year. By the end of 2018, the total installed integration will allow it to build upon the progress
capacity was 1,018MW. achieved to date.
As of December 2019, Thailand is half way to Regulatory treatment
meet its wind energy capacity target for 2037
Wind energy is governed by the Electricity
with a total installed capacity of wind projects
Industry Act. The ERC provides regulatory
estimated to be 1.5GW. As per the PDP (2018–37),
oversight. DEDE studies the development and
1,485MW of additional wind capacity is to be
assessment potential. Wind turbines require an
added 1 .
energy generation license from the ERC and must
However, the PDP (2018–37) does not foresee any follow comprehensive plan regulations and ERC
new wind capacity in the immediate future. The regulations regarding operations. Regulations are
current challenges facing wind energy in Thailand issued in line with the comprehensive plan of the
include policy, procurement and grid expansion. relevant city by the local department.
The GWEC reported that the government Pricing
removed FiTs for wind in 2018, forcing any new
The FiT rates for wind energy is:
wind projects to compete on the same playing
field as traditional energy sources if they want to
secure a PPA. The rising price competitiveness of Table 5.1: FiT Rates for Wind VSPP (2020)
onshore wind was cited as the reason2.
Type of FiT(F) 3 FiT Total Period
Important players in Thailand wind energy market renewable (THB/ (v2018) 4 calculated of
that are publicly listed include Energy Absolute energy kWh) (THB/ FiT support
source kWh) (THB/kWh) (years)
and Gunkul.
Wind
All size 6.06 - 6.06 20
1
Chandler MHM Wind energy in Thailand, 2019, https://www.chandlermhm.com/content/files/pdf/publications/Wind.pdf
2
EC An Industry Perspective on Strengthening Onshore Wind Development in Thailand, 2019, https://gwec.net/market-to-watch-thailand/
3
FiT is a fixed component and covers the cost of electricity plant construction, operating and maintenance expense and land rent.
4
FiT(v2020) is a variable component for some type of renewable energy, which is adjusted depending on feedstock cost and inflation.
PPA terms Nonetheless, it is typical for renewable energy

projects to apply for investment incentives under
The firm PPA lasts for 20 years and EGAT will
the Investment Promotion Law. The law permits up
purchase electricity for no less than 80% of the SPP’s
to 100% foreign ownership in the project company
capacity, except in the cases (natural disasters and
and enables the project company to own the land
misfortune) of where that will not be possible.
on which the project is located. This is despite the
In the case that a prospective power producer intends restriction that otherwise applies under the Land
to produce a net output of less than 10MW, then the Code2.
power producer must enter into an agreement with
For wind projects on agricultural land, the Agricultural
MEA or PEA 1. Once an application is submitted, the
Land Reform Office (ALRO) permits the business of
process for approval with EGAT takes close to 90 days,
electricity generation by wind power (wind turbine)
while the process with MEA or PEA takes 45 days.
for a lease term not to exceed 27 years under the
For more details, refer to chapter: 3 – project notification of agricultural land reform and renewable
development cycle section. energy project rules on prescription of term for lease,
Procurement method utilization under the regulations of the agricultural
land reform commission renewable energy rules,
For more details, refer to chapter: 3 – project procedures and conditions for granting of approval
development cycle section. and compliance by approval grantee in relation to the
Key decision makers utilization of land or immovable property for business
in support of or related to agricultural land reform
The ERC announces bids, reviews submissions and dated 27 June 20003.
selects bidders for wind projects.
Land and permitting
Previously awarded VSPP / SPP projects are
Assuming that the project company is solely engaged illustrated in the table below. Further details may be
in the business of power generation, 100% foreign obtained from ERC website, subject to information
ownership is permitted. However, the project availability.
company is not permitted to own land required for the
project.
Table 5.2: VSPP and SPP Wind Projects (Non-Exhaustive)

Type of Capacity COD
Company Location
plant (MW) date
Greenovation Power Company Limited SPP Dan Khun Thot District, Nakhon Ratchasima Province 67.5 2018
(Saran Lom Wind Farm Project)
Krisana Wind Power Company Limited SPP Dan Khun Thot District, Nakhon Ratchasima Province 90 2018
EA Wind Hat Khun 3 Company Limited SPP Ranot District, Songkhla Province 36 2017
Theppana Wind Farm (Watabaek 2) VSPP Thep Sathit District, Chaiyaphum Province 6.9 2013
Lom Ligor Co., Ltd. VSPP Huasai District, Nakhon Si Thammarat Province 9 2019

1
Wind industry calls for an additional 7GW of wind energy to be installed in Thailand by 2037 - https://gwec.net/wind-industry-calls-for-additional-7-gw-of-wind-energy-to-be-installed-in-thailand-
by-2037/.
2
“Renewable energy in Thailand”, Lorenz Partners, 2019, https://lorenz-partners.com/download/thailand/NL210E-Renewable-Energy-in-Thailand-Jul19.pdf.
3
VSPP PPA from MEA website, Regulations for the Purchase of Power from Very Small Power Producers (for the Generation Using Renewable Energy)
4
“Renewable energy snapshot – Thailand”, Norton Rose Fulbright, July 2019, https://www.nortonrosefulbright.com/en/knowledge/publications/2f5545da/asia-renewables-snapshot-Thailand.
5
“Wind energy development in Thailand”, Chandler MHM, 2019, https://www.chandlermhm.com/content/files/pdf/publications/Wind.pdf.
Financing Major developers and equipment and service

providers (wind)
Banks and lenders in Thailand have a mature
outlook on renewable energy sources and have The major developers include: Energy Absolute,
displayed greater willingness to underwrite clean Aeolus Power, Chubu Electric Power Korat BV,
energy investments when well supported 1. Long- Ratch Group PCL and Wind Energy Holdings.
term and non-recourse project financing in THB
Wind turbine and major equipment producers
is generally available from most domestic banks
include: Siemens Gamesa Renewable Energy SA, GE
and some international banks are also active in
Renewable Energy, Max Bogl Wind AG and Winergy
Thailand.
and CS Wind.
Foreign ownership restrictions
EPC contractors include: Demco PCL, K2
There appears to be no restrictions on foreign Management AS, Rev1 Renewables, Global Wind
ownership at the moment. Service AS, MS Enertech S.L. and ALE UK Holdings.
For more details, refer to section 3 – Ownership Estimated market size
Local content requirements Data on projected installed capacity was obtained
from the revised PDP 2018–37’s projected
There are no specific local content requirements
renewable energy capacity. We assume that the
mandated for the development renewables
government can achieve its target of having
projects.
approximately 2,989MW of wind capacity by 2037.
BOI promotion
The project costs were obtained from various
The production of electricity from wind power databases for the Thai market. The project cost
receives eight years of corporate income tax compositions were triangulated from different
exemption (capped at the amount of total sources, including BNEF, IRENA and Tetra Tech.
investment), as well as exemption from import Assumptions for a foreign and domestic share of
duties on machines and raw materials. the market come from the estimated involvement
of foreign companies in each component of the
supply chain.
Table 5.3: Investment Potential for Wind Energy in the Coming Years

Technology
Wind energy 1,488 1,774 206 1.89* 541
*Costs are based on 2020 estimates. However costs are expected to decline in coming years.
1
“An Industry Perspective on Strengthening Onshore Wind Development in Thailand”, GWEC, 2019
Table 5.4: Supply Chain and Financing Analysis for Wind Energy (%)
Share in cost (%) Domestic* (%) Foreign (%)
Development cost 3% 1.5% 1.5%
Towers 10% 0.1% 9.9%
Major electromechanical equipment 45% 0.5% 44.6%

Balance of plant (BOP) 22% 2.2% 19.8%
Construction 10% 10.0% 0.0%
Total 100% 19% 81%

as this will help with ease of business. 50% of development can be done by domestic players. Due to lack of low wind turbine tower
capabilities in Thailand, we believe that foreign players can capture up to 99% of this sector. Due to the foreign market expertise in major
electromechanical equipment and BOP systems, we believe foreign players can capture up to 90% of the market. Construction can be done
locally and entirely by domestic players.
Table 5.5: Supply Chain and Financing Market Value Analysis for Wind Energy (US$ million)
Development cost 16 8 8
Towers 54 1 54

BOP 119 12 107
Construction 54 54 -
Total 541 104 438
Upcoming Projects
Although endowed with considerable wind remains modest in the absence of a clear
potential, the installed onshore wind capacity at roadmap for procurement as shown in the table
the end of 2019 was around 1.5GW. The pipeline below.
Table 5.6: Upcoming Wind Energy Projects (As of January 2021)

Power plant name State or province Total capacity (MW) Status Year online
Romklao Wind Farm Nakhon Ratchasima 24 Under construction 2021
Lam Takong Dam II Mukdahan 16 Under construction 2021
Bo Thong Wind Farm Mukdahan 8 Under construction 2021
Bo Thong Wind Farm Mukdahan 8 Under construction 2021
6. Market Conditions for

Hydropower Development
There are abundant water resources in Thailand
namely 25 river basins with 254 sub-basins with 6.1 Large Hydropower
rainwater being one of the most important sources. The country has conventional hydropower
The Chao Phraya and the Mekong are the primary plants as well as pumped-storage schemes,
river basins which support the irrigation and which help to generate electricity during times
agriculture of the economy. The Mekong is a of peak demand on a short-term basis. In 2018,
prominent river system with one third of the a hydropower project for pumped storage was
nation’s rivers flowing into it. About 35% of the started at Lamtakhong. The total installed large
Mekong river’s flows through Laos. It is estimated hydropower capacity was 2,906.40MW in 2018.
that by the end of 2020, over 28GW of capacity will During the development of the AEDP 2015,
be developed through the development of over 100 a strategic decision was made to limit future
hydropower plants. Given the strategic interest, capacity additions in large hydropower. Therefore
Thailand is one of the main investors in hydropower future capacity additions are expected to be
in Lao PDR. The US$3.6 billion Xayaburi dam in limited to small hydropower projects, considering
Laos will be the first mainstream dam on the lower the environmental implications of developing large
Mekong. The project is funded by Thai banks and hydropower projects.1
will be developed by a Thai construction company.
EGAT is committed to offtake 95% of the electricity
produced from the project.
1
World Bank Thailand Environment Monitor, 2011
Figure 6.1: Map of Hydro Power Plants in Thailand

6.2 Small Hydropower

The northern region of Thailand which consists of Regulatory treatment
the Ping, Wang, Yom and Nan river basins has the
Hydropower is governed by the electricity industry
highest potential for small hydropower development.
act. Regulatory oversight is by the Energy
The total installed capacity of small hydropower
Regulatory Commission.
projects in 2018 stood at 188MW, including off-grid
power generation. The target capacity as per PDP Pricing
(2018–37) was set as 376MW. Most of these projects The FiT rates for small hydropower are mentioned
are used to sell power to the local communities and in the table below.
involve small-scale dams and levees. State purchases
of small-hydroelectricity projects from the private
sector is not extensive.
Table 6.1: Feed- in Tariff Rates for Hydropower VSPP(2020)

FiT(F) 1 FiT (v2018) 2 Total calculated FiT Period of
Type of renewable energy sources
(THB/kWh) (THB/kWh) (THB/kWh) support (years)
Hydropower
Capacity <=200 kW 4.9 - 4.90 20
PPA terms Key decision makers

The firm PPA lasts for 20 years and EGAT will The ERC announces bids, reviews submissions and
purchase electricity no less than 80% of the SPP’s selects bidders for hydropower projects.
capacity, except in the cases (natural disasters and
Land and permitting
misfortune) of where that will not be possible.
Assuming that the project company is solely
In the case that a prospective power producers
engaged in the business of power generation,
intends to produce a net output of less than 10MW,
100% foreign ownership is permitted. However,
then the power producer must enter into an
the project company is not permitted to own land
agreement with MEA or PEA 3.
required for the project.
Once an application is submitted, the process for
Nonetheless, it is typical for renewable energy
approval with EGAT takes close to 90 days, while
the process with MEA or PEA takes 45 days.
the Investment Promotion Law. The law permits up
For more details, refer to chapter 3 – project to 100% foreign ownership in the project company
development cycle. and enables the project company to own the land
on which the project is located. This is despite the
Procurement method
restriction that otherwise applies under the Land
For more details, refer to chapter 3 – project Code 4.
development cycle.
illustrated in the table below. Further details may be
obtained from ERC website, subject to information
availability.
1
FiT is fixed component and covers the cost of electricity plant construction, operating and maintenance expense and land rent.
2
FiT(v2020) is a variable component for some type of renewable energy, which is adjusted depending on feedstock cost and inflation.
3
4
Table 6.2: VSPP and SPP Hydropower Projects (non-exhaustive)

Capacity COD
Company Type of plant Location
(MW) date
Department of Alternative Energy Development and Efficiency SPP Makham District, 23 2011
(Khiri Than Dam) Chanthaburi Province
Metropolitan Waterworks Authority (Lad Phrao Pumping Station) VSPP Laksi District, Bangkok 0.4 2008
Mae Tien Dam (PEA) VSPP - 2.3 -
Mae Thei Dam (PEA) VSPP - 2.1 -
Nam San Hydroelectric Power Plant VSPP - 6 -

Financing Small hydropower turbine and major equipment

providers include Tianjin Tianfa Heavy Machinery
Due to the small sizes of the projects and relative
& Hydro Power Equipment Manufacture, ST Power
infancy stage of small hydropower penetration in
Engineering, Gilbert Gilkes & Gordon (for 1MW small
the market, it is challenging to raise debt and most
hydropower plant on Mae Ya run-of-river), Flovel
projects are self financed through equity.
Energy (for 2.5MW small hydropower plant at Klong
Foreign ownership restrictions Tron) and Kaplan.
There appears to be no restrictions on foreign EPC contractors include TEAM Consulting Engineering
ownership at the moment. and Management and Power 9 engineering.
For more details, refer section 3 – Ownership Estimated market size
Local content requirements Data on projected installed capacity was obtained
There are no specific local content requirements from the revised PDP 2018–37’s projected
mandated for the development renewables projects. renewable energy capacity. We assume that the
government can achieve their target of having
BOI promotion 256MW of small hydropower capacity by 2037.
The production of electricity from hydropower The project costs were obtained from various
receives eight years of corporate income tax databases for the Thai market. The project cost
exemption (capped at the amount of total investment), compositions were triangulated from different
as well as exemption from import duties on machines sources, including BNEF, IRENA and Tetra Tech.
and raw materials. Assumptions for a foreign and domestic share of
Major developers, equipment and service providers the market come from the estimated involvement
(small hydro) of foreign companies in each component of the
supply chain.
The major developers include Sinohydro and Italian-
Thai Development PCL.
Table 6.3: Investment Potential for Hydropower in the Coming Years

Technology
Hydropower 152 187 35 2.65* 93
Table 6.4: Supply Chain and Financing Analysis for Hydropower (%)
Share in cost (%) Domestic (%) Foreign (%)
Project developer or sponsor 2% 1% 1%
Consulting engineering 4% 2% 2%
Engineering design 4% 4% 0%
Major electromechanical equipment 60% 30% 30%
Balance of system 20% 2% 18%
Construction 10% 10% 0%
Total 100% 49% 51%
as this will help with ease of business, 50% of consulting engineering will require domestic player expertise, 50% of civil works for small
hydropower can be sourced from local companies, 80% of powerhouse equipment will need to be sourced from foreign companies as small
hydropower is relatively nascent in Thailand, while transmission and construction can be entirely done by local players.
Table 6.5: Supply Chain and Financing Market Value Analysis for Hydropower (US$ million)
Engineering design 4 4 0
Balance of system 19 2 17
Construction 9 9 0
Total 93 45 47
Table 6.6: Upcoming Hydropower Projects

Total capacity Year
Power plant name State or province Status
(MW) online
Man Fai Phaya - 2 Announced 2034
Lam Pao Kalasin 2.5 Announced 2032
Mae Wong Hydropower - 12 Announced 2032
Samong Creek Dam - 1 Announced 2028
Chulabhorn Pumped Storage Prachin Buri 800 Announced 2026
Kamalasai Weir - 1 Announced 2026
Thap Salao Dam Kalasin 2 Announced 2025
Pranburi dam Uthai Thani 2 Announced 2025
Maha Sarakham Weir Prachuap Khiri Khan 1 Announced 2022
Pha Dam Neck - 14 Announced 2022
Khlong Tron Maha Sarakham 2.5 Announced 2021
Chulabhorn Dam Hydropower plant Uttaradit 1.25 Under construction -
Yasothon Weir Uttaradit 4 Under construction -
Chulabhorn Dam Hydropower plant Chaiyaphum 1.25 Under construction -
Yasothon Weir Yasothon 4 Announced -
7. Market Conditions for Bioenergy

Power Development
Bioenergy (biomass, biogas and other waste The biomass resource base is estimated to be 60
products) represent a significant slice of Thailand’s million tons2 comprising of rice, sugarcane, rubber
renewable energy mix. Bioenergy currently sheets, palm oil and cassava. Rice mills utilise the
accounts for nearly 50% of the renewable power paddy husks for producing steam while bagasse
capacity but the share is expected to reduce to and palm residues are used for producing steam
34% by 20301 due to higher growth rate for solar. for on-site manufacturing process. Organic waste
and wastewater are also used to generate energy.
This includes biomass from agricultural products,
biogas from pig manure, waste water from the Based on the revised PDP 2018–37, power
processing of agricultural products and crops generation of 5,127MW in total is targeted from
grown specifically for the purpose, WTE from biomass, biogas, WTE and industrial waste energy
community or industrial waste and biofuels. sources. The solid biomass component is the most
significant in terms of set target.
Table 7.1: Planned Additional Capacity for Bioenergy in The PDP (2018–37)
Sub-technology type Planned capacity addition (2018–37)
Biomass (including community plants) 3,500
Biogas (including community plants) 1,183
WTE 444
Total 5,127
Source: PDP 2018, rev 1, MOE
1
Global Data Thailand Biopower Industry Analysis 2019
2
IRENA Thailand renewable energy market outlook
7.1 Biomass
The biomass power market in Thailand witnessed According to a survey and assessment of biomass
rapid growth during the period 2010–18. It reached potential by the DEDE Thailand’s unutilised biomass
4.2GW in 2018 from 1.8GW in 2010 at a CAGR of potential is estimated to exceed 3,940MW. Most of
11.5%. The cumulative installed capacity is expected the potential 1,647MW arises from sugarcane leaves
to reach 7GW by 2030 growing at around 3.7% p.a. and tops which are concentrated in the north-
between 2019–301. eastern region. Rice straw is estimated to have a
potential of 942MW of electricity. By-products from
The biomass target of 3,376MW until 2037
corn production, including tops, leaves and stalks
refers to production of electricity in conventional
are estimated to potentially generate 610MW of
steam power plants using solid biomass, such as
electricity. Further, other biomass sources, such as
sugarcane bagasse, rice husks, empty fruit bunches
tapioca roots, oil palm leaves, fronds and empty
from biomass harvesting and processing. Co-
palm bunches can generate electricity equivalent
generation for production of electricity and heat
to 226MW, 201MW and 112MW2, respectively. This
is the most common. In most cases the biomass
is indicative of significant potential which remains
plants are also associated directly with an industrial
underutilised.
operation that produces the biomass residue like a
sugarcane mill. The first bidding for VSPPs biomass projects
took place in 2014. The bids were invited for both
IPPs and SPPs buy residue from third parties.
biomass and biogas for non-firm contracts. Of the
Key biomass energy players in Thailand include
total 46MW to be procured, 36MW was allocated
Absolute Clean Energy, Asia Biomass, Gulf Group,
to Biomass projects. The table below shows the
TPC power and KPN Greens.
winning bids for Biomass projects. The average
According to the Office of Agricultural Economics price was THB1.83/kWh (US$6.10 cents per kWh)
of Thailand, the agricultural residue, such as rice lower than the ceiling price. The biomass FiTv will
husk, cassava and bagasse are mostly distributed be annually adjusted by core inflation.
in the central, northern and northeastern regions,
while oil palm residues exist largely in the southern
provinces.
Table 7.2: VSPP Bids for Biomass in 2014

Capacity
No. % discount to FiT Bid price year 1-8 Bid price year 9-20
(MW)
1 9.90MW 81.17 % THB3.1/kWh (US$10.33 cents per kWh) THB2.8/kWh (US$9.34 cents per kWh)
2 9.90MW 81.17 % THB3.1/kWh (US$10.33 cents/kWh) THB2.8/kWh (US$9.34 cents per kWh)
Year 1-8: ceiling price: US$15.27 cents/kWh

Year 9-20: Ceiling price: US$14.36 cents/kWh
*Numbers in brackets are US$ cents/kWh
1
2
Bioenergy and the Road to Sustainable Growth, SCB Economic Intelligence Center, 2016, https://www.scbeic.com/en/detail/file/product/2683/ei7njbsxoe/Insight_ENG_BioEnergy_2016.pdf
Figure 7.1: Map of Biomass Power Plants in Thailand

In the last SPP-hybrid competitive bidding in 20171 was a two-envelope process. On passing the
for 300MW of renewable energy, the FiT ceiling was technical proposal, the bid price ranking was done
set as THB3.65/kWh (US$12.17 cents per kWh). The by percentage discount proposed to fixed portion
FiT was broken into two components – a fixed and of the FiT. Projects were awarded on this basis. The
variable, with the variable portion to be annually awarded projects under this round, that included
adjusted by core inflation after 2017. The competition Biomass are as following:
Table 7.3: SPP Hybrid Firm Bids for Biomass in 2017
No. RE type Region Capacity (MW) Bid price
1 Biomass and solar Northern 13.31MW THB2.7/kWh (US$8.3 cents/kWh)
2 Biomass Northern 13.29MW THB2.9/kWh (US$8.7 cents/kWh)
3 Biomass Northern 21MW THB3.2/kWh (US$9.61 cents/kWh)
4 Biomass Northern 23.42MW THB3.4/kWh (US$10.24 cents/kWh)
5 Biomass North Eastern 27MW THB1.9/kWh (US$5.61 cents/kWh)
6 Biomass North Eastern 13.64MW THB1.9/kWh (US$5.61 cents/kWh)
9 Biomass North Eastern 11.29MW THB2.4/kWh (US$7.24 cents/kWh)
10 Biomass Western 16MW THB2.2/kWh (US$6.64 cents/kWh)
11 Biomass Southern 21.50MW THB2.2/kWh (US$6.64 cents/kWh)
12 Biomass Southern 21.50MW THB2.2/kWh (US$6.64 cents/kWh)
13 Biomass Southern 24MW THB2.2/kWh (US$6.64 cents/kWh)
14 Biomass Southern 20MW THB/kWh (US$6.67 cents/kWh)
15 Biomass Southern 13.85MW THB/kWh (US$7.16 cents/kWh)
The maximum capacity per bid was restricted to Biomass generation is experiencing competition for
50MW (and >10MW). The SPPs were required to inputs in terms of acquisition, pricing and objections
follow the grid code and network availability. The from local communities to the siting of biomass
SCOD was set between 2020–21. plants nearby and this has led to a large number
of operators cancelling their contracts to supply
The transmission infrastructure capacity limits the
EGAT. It was reported that in 2014–15, 300 projects
development of new plants which have not been
with potential capacity of 2,900MW cancelled their
able to keep pace with new additional capacity of
contracts to supply power to the grid. Almost all of
the power plants. As a result, some new plants
these projects have applied for support under the
were unable to sell the electricity they generate.
added scheme.
Recognising these challenges, the government
has started to dictate where power plants can be
constructed based on the availability of transmission
and substations. As a result, such change has limited
the location selection of power plant and intensify
the competition among developers.
1
2
Bioenergy and the Road to Sustainable Growth, SCB Economic Intelligence Center, 2016, https://www.scbeic.com/en/detail/file/product/2683/ei7njbsxoe/Insight_ENG_BioEnergy_2016.pdf.

Previously awarded VSPP / SPP projects are illustrated in the table below. Further details may be obtained
from ERC website, subject to information availability.
Table 7.4: VSPP and SPP Biomass Projects (Non-Exhaustive)

Capacity COD
Company Type of plant Location
(MW) date
Gulf Chana Green Company Limited SPP Chana District, Songkhla Province 23 2020
Thai Biopower Agriculture Company SPP Takhli District, Nakhon Sawan Province 60 2013
Limited
Thai Lukkak Power Company Limited SPP Uttaradit City District, Uttaradit Provinc 50 2016
Saraburi Sugar Company Limited SPP Wang Muang District, Saraburi Province 29 2002
Mitr Phol Bio-Power (Dan Chang) SPP Dan Chang District, Suphanburi 48 2004
Company Limited (Project 1) Province
Ruampol Biopower Company Limited SPP Mueang Nakhon Sawan District, 25 2017
(Project 1) Nakhon Sawan Province
Ruampol Biopower Company Limited SPP Mueang Nakhon Sawan District, 13 2020
(Project 2) Nakhon Sawan Province

7.2 Biogas
The revised PDP 2018-37 targets 1,1836MW capacity The first bidding for VSPPs biogas projects took
in the 20-year timeframe. The development plan place in 2014. The bids were invited for both
considers two areas under biogas energy: the biomass and biogas for non-firm contracts. Of the
production of biogas from biomass wastes and the total 46MW to be procured, 36MW was allocated
use of energy crops for biogas production. to biogas projects. The table below shows the
Northeast Thailand is the biggest market for biogas winning bids for biogas projects. The average
generating companies accounting for a third of price was THB1.83/kWh (US$ 6.10 cents per kWh)
the market in 2017, swiftly followed by Central and lower than the ceiling price. The Biomass FiTv will
Southern part. Heavy presence of a number of host be annually adjusted by core inflation.
industries was the key driver.
Table 7.5: VSPP Bids for Biogas in 2014

Biogas projects and Capacity (MW) % discount to FiT Year 1-8 (ceiling price: Year 9-20 (ceiling price:
VSPP bidding in 2014 US$15.27 cents/kWh) US$14.36 cents/kWh)
Biogas
1 3.00 23.33 11.76 10.24
2 2.00 10.25 13.24 11.73
3 0.95 10.05 13.27 11.76
During the SPP hybrid firm bidding in 2017, of the and more than 50 projects, totaling 100MW in
300MW procurement only one biogas project of generating capacity. It was halted in 2014 after a
combined with solar was awarded. The project was change in policy by the previous government.
accepted at a bid price of THB2.88/kWh (US$9.60
cents per kWh) and is located in Eastern Thailand.
It was reported by the Thai Biogas Trade
illustrated in the table below. Further details may be
Association (TBTA) that the association has
obtained from ERC website, subject to information
proposed 33 quick-win projects with a total
availability.
capacity of 80MW driven by energy crops, such as
Napier grass. This involved both completed plants
Table 7.6: VSPP Biogas Projects (Non-Exhaustive)

Company Type of plant Location Capacity (MW) COD date
Biogas Engineering Co., Ltd. VSPP Ang Thong Province 1.25 2015
anchanadit Palm Oil Co., Ltd. VSPP Surat Thani Province 2.13 2014
Natural Energy Harvesting Co., Ltd. VSPP Chumphon Province 1.4 2018
Kaen Charoen Co., Ltd VSPP Khon Kaen Province 1.2 2015
KKR Clean Energy VSPP Nakhon Ratchasima Province 2.15 2015
Chanthaburi Bio Plus Co., Ltd. VSPP Chanthaburi Province 4.2 2014

Figure 7.2: Map of Biogas Power Plants in Thailand

7.3 Waste to Energy (WTE)

A further priority under bioenergy is Municipal As of December 2018, there were about 33
Solid Waste. Management of Municipal Solid Waste operational WTE plants in Thailand with an
is a national priority while bioenergy is often installed capacity of 283MW. A recent WTE plant
viewed as a by-product. According to the PCD of commissioned in December 2019, with an installed
Thailand, the volume of Municipal Solid Waste has capacity of 4.8MW. The project has been developed
been increasing, along with the growing population, by Progress Interchem (Thailand) Co. Ltd. in which
improving living standards and expanding tourism B. Grimm holds a 48% stake. The project company
industry in Thailand. In 2015, about 73,560 tons of has signed a 20-year PPA with PEA for the output
Municipal Solid Waste was generated per day1. of the plant. The facility uses pyrolysis technology
to generate energy from industrial waste
In this context, the target for WTE from Municipal
Solid Waste was raised to 400MW, in the It is to be noted that there are concerns regarding
recent PDP (2018–37). Thai Energy Regulations the hazardous environmental pollution and possible
Commission is also determining business and health effects caused by large scale WTE plants.
investment conditions to provide licenses for WTE Most of the projects are smaller than 10MW and
power generation under the PDP. therefore exempted from conducting environmental
impact assessment.
Table 7.7: WTE FiT Rates (2020)
Energy source Capacity FiTF FiTV Total Support FiT FiT premium
FiT period premium for for southern
(years) bio-energy province
THB/kWh (US$ cents/kWh) THB/kWh (US$ cents/kWh)
Industrial waste– - 3.39 2.74 6.13 20 0.7 0.5
Waste (incineration, gasification) ≤1MW 3.13 3.27 6.40 20 0.7 0.5
Waste (incineration, gasification) >1MW ≤ 3MW 2.61 3.27 5.88 20 0.7 0.5
Waste (incineration, gasification) >3MW 2.39 2.74 5.13 20 0.7 0.5
Waste (landfill gas) - 5.60 0 5.60 10 0 0.5
Source: EPPO, ERC presentation

Previously awarded VSPP projects are illustrated in the table below. Further details may be obtained from
ERC website, subject to information availability.
Table 7.8: VSPP WTE Projects (Non-Exhaustive)
Company Type of plant Location Capacity (MW) COD date
West 4 Power Co., Ltd. VSPP Nakhon Pathom Province 8.5 2017
Alliance Clean Power Co VSPP Khon Kaen Province 6 2016
SCG Paper Energy VSPP Ratchaburi Province 9.9 2018
Earth Tech Environment Co. VSPP Saraburi 9.4 2017
SCG Cement Co., Ltd. VSPP Rayong Province 8 2019

1
Solid waste management in Thailand: an overview and case study (Tha Khon Yang sub-district)”, De Gruyter, 11 January 2017, https://doi.org/10.1515/reveh-2016-0061; “Waste Management in ASEAN
countries”, UNEP, https://environment.asean.org/wp-content/uploads/2020/03/Summary-Report-Waste-Management-in-ASEAN-Countries-UNEP.pdf. Thailand generates about 26.77 million tonnes/
year and is the second-highest generator of municipal solid waste.
Figure 7.3: Map of WTE Power Plants in Thailand

7.4 Biofuels
Palm oil derived feedstock, such as crude palm oil, government will subsidies the price to attract the use
refined bleached deodorised palm oil, palm stearin of B10. Meanwhile, the government intends to lower
and free fatty acids of palm oil are the main sources price subsidy incentives for B20 but maintain the
of biodiesel1. In 2019, biodiesel production increased mandatory 6.6%–7.0% blending rates as an option
by 12% and is forecast to grow by further 11% in for some vehicles that might be better fit for the B7
coming years. Factors that are leading to increasing (7% mix rate with diesel) use. All biodiesel produced
biodiesel demand are growing diesel consumption in Thailand is used for domestic consumption.
needs, higher mandatory biodiesel blending rates Bioethanol is produced primarily from molasses and
and surges in B20 (20% mix rate with diesel) cassava. In the new AEDP 2018 plan, the government
consumption. Currently, the average national on- has lowered the ethanol consumption target to 2.4
road blend rate has steadily risen since 2017 to 7.2%. billion litres in 2037 from the initial target of 4.1
After introducing B10 (10% mix rate with diesel) billion in the ADEP 2015 report. This adjustment
supplies to the market in early 2019, the government was made largely due to uncertainty in feedstock
announced in October 2019 that B10 supplies will availability. Due to more consumer awareness in the
be available for all gasoline stations across the market, the current average ethanol-gasoline blend
country on 1 March 2020. It is anticipated that the level rose from E12 in 2017 to E13.5 in 2019.
Table 7.9: Top Upcoming Biofuel Projects

Power plant name State or province Total capacity (MW) Status Year online
Krabi Biopower Project Krabi - Active 2016
Krabi Biopower Project Krabi 5.2 Partially active 2016
Khonburi Sugar Cogeneration Plant Nakhon Ratchasima 40 Announced -
T.P.K.Ethanol_Nakhon Ratchasima Biomass Nakhon Ratchasima 20 Dormant -

Power Plant
Krabi Biopower Project Krabi - Permitting -
Source: Global Data
“Thailand Biofuels Annual 2018”, USDA Foreign Agricultural Service, 2018, https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Biofuels%20
1
Annual_Bangkok_Thailand_12-19-2018.pdf.
Regulatory treatment Pricing

Bioenergy production is governed by the electricity The VSPPs FiT rates (2018) for bioenergy are
industry act. Regulatory oversight is by the ERC. mentioned in the table below.
Table 7.10: Feed- in Tariff rates for Bioenergy VSPP (2020)
Type of renewable energy source FiT(F) 1 FiT (v2020) 2 Total calculated FiT Period of
(THB/kWh) (THB/kWh) (THB/kWh) support (years)
Biomass
Capacity <=1MW 3.13 2.25 5.38 20
Capacity >1–3MW 2.61 2.25 4.86 20
Capacity >3MW 2.39 1.88 4.27 20
Biogas (waste water and other waste)
All size 3.76 2.60 5.39 20
Biogas (energy crop)
All size 2.79 2.56 5.35 20
MSW
Capacity <=1MW 3.13 3.27 6.40 20
Capacity >1–3MW 2.61 3.27 5.88 20
Capacity >3MW 2.39 2.74 5.13 20
MSW (landfill) 5.60 - 5.60 10
Industry waste (VSPP new plant) 3.39 2.74 6.13 20
PPA terms
The firm PPA lasts for 20 years1 and EGAT will For WTE plants, the following sources are considered
purchase electricity for no less than 80% of the for electricity generation1,3:
SPP’s capacity, except in cases (natural disasters and • Agricultural waste or residues or residues from
misfortune) where that will not be possible. agricultural or industrial production processes
In the case that a prospective power producer • Products converted from agricultural waste
intends to produce a net output of less than 10MW, or residues or residues from agricultural or
then the power producer must enter into an industrial production processes
agreement with MEA or PEA3.
• Municipal waste
Once an application is submitted, the process for
approval with EGAT takes close to 90 days, while the • Dendrothermal (wood from fuel tree plantation)
process with MEA or PEA takes 45 days.
1
“EGAT PPA for renewable energy”, EGAT, http://www.ppa.egat.co.th/sppx/images/SPP_Document/Regulation/FirmRenew/Reg_FirmRenew_50(52).pdf.
2
“Thailand’s Hybrid Firm PPA conditions”, Watson Farley and Williams, 3 October 2017, https://www.wfw.com/articles/thailand-hybrid-ppa-scheme/.
3
A very small power producer (VSPP) that uses Foreign ownership restrictions
any of the WTE sources listed above, is permitted
There appears to be no restrictions on foreign
to use oil, natural gas and coal as supplementary
ownership at the moment.
fuel. However, the accumulated thermal energy
contributed from the commercial fuels in a given For more details, refer to section 3.
year must not exceed 25% of the total thermal Local content requirements
energy used for electricity generation in that year.
There are no specific local content requirements
For firm PPAs, the concession duration is 20 years1, mandated for the development of renewable energy
except in the case of waste produced energy from projects.
landfill gas, where the duration is expected to be
10 years. EGAT will purchase electricity for no less BOI promotion
than 80% of the SPP’s capacity, except in cases The production of electricity or fuel from bioenergy
(natural disasters and misfortune) where that will receives eight years of corporate income tax
not be possible. exemption (capped at the amount of total
Procurement method investment), as well as exemption from import
duties on machines and raw materials.
For more details, refer to chapter 3 – project
development cycle The production of biomass briquettes and
pellets receives five years of corporate income
Key decision makers tax exemption (capped at the amount of total
The ERC announces bids, reviews submissions and investment), as well as exemption from import
selects bidders for biomass projects. duties on machines and raw materials. The
production of fuel from agricultural waste receives
Land and permitting
eight years of corporate income tax exemption
Assuming that the project company is solely (capped at the amount of total investment), as well
engaged in the business of power generation, as exemption from import duties on machines and
100% foreign ownership is permitted. However, raw materials.
the project company is not permitted to own land
Major developers, equipment and service
required for the project.
providers
Nonetheless, it is typical for renewable energy
Biomass
the investment promotion law which permits up to The major developers include Abolute Clean
100% foreign ownership in the project company. Energy, PTS Energy Company, A-Power Energy
It also enables the project company to own the Generation Systems Ltd, Seema Energy, Betagro
land on which the project is located, despite the Group, Central Sugars Refinery and New Krung
restriction that otherwise applies under the Land The steam turbine and major equipment producers
Code 1. include Harbin Electric and China National Electric
Financing Engineering
As most biogas companies have long-term build, EPC contractors include China Datang Technologies
own, operate and transfer (BOOT) contracts with & Engineering Co. Ltd., SEPCOIII Electric Power
their parent companies who operate feedstock Construction Co. Ltd., Huafeng Weiye Company and
farms, a large proportion of financing is through Owl Energy Consultants Ltd.
equity. Project financing is available for biogas
projects.
Biomass projects lack access to financing due to
uncertainty on feedstock.
WTE projects are mostly financed by way of equity.
1
Biogas Estimated market size (biomass)

Developers include: BioGasclean, Sebigas UAC and Data on projected installed capacity was obtained
Thai Biogas Energy from the revised PDP 2018–37’s projected
renewable energy capacity We assume that the
Biogas equipment producers include: CTCI Thailand
government can achieve their target of having
EPC contractors include: Italthai Engineering and 4,694MW of biomass capacity by 2037.
Asia Biogas (Thailand)
The project costs were obtained from various
WTE databases for the Thai market. The project cost
Developers include: Chonburi Clean Energy Co. Ltd., compositions were triangulated from different
Global Power Synergy Public and C&G Environmental sources, including BNEF, IRENA and Tetra Tech.
Protection Holdings Assumptions for a foreign and domestic share of
the market came from the estimated involvement
Waste treatment major equipment producers of foreign companies in each component of the
include: JFE Engineering and Hitachi Zosen supply chain.
EPC contractors include: China National Electric
Engineering, Marubeni, Jurong Engineering, C&G
Environmental Protection Holdings and New Sky Energy
Table 7.11: Investment Potential for Biomass in The Coming Years

Technology 2019 installed 2025 installed Additions Project cost Market size
capacity (MW) capacity (MW) (2020–25) (US$ million/MW) (US$ million/MW)
Biomass 2,008 2,782 782 3.22 2,492

*Costs are based on 2020 estimates. However costs are expected to decline in coming years. Planned capacity additions are as per the capacity
additions planned in the PDP 2018-37. The capacity additions expected are conservative. The PDP plans rapid increase in capacity after 2028.
Table 7.12: Supply Chain and Financing Analysis for Biomass (%)
Share in cost (%) Domestic (%)* Foreign (%)
Civil works 17% 8.5% 8.5%
Powerhouse equipment 70% 35.0% 35.0%
Transmission lines 3% 2.0% 1.0%
Total 100% 52.0% 48.0%

Note: (*) While there are no local content requirements, we have assumed that 50% project development will require domestic players as this
will help with ease of business, 80% of consulting engineering will require domestic player expertise, 50% of civil works for biomass can be
sourced from local companies, 50% of powerhouse equipment can also be sourced from local players as biomass is a relatively established sector,
although foreign companies have the scope to step in and provide specialist expertise and advance technology, transmission line connection can
be 67% covered by domestic players.
Table 7.13: Supply Chain and Financing Market Value Analysis for Biomass (US$ million)
Civil works 424 212 212
Powerhouse equipment 1745 872 872
Transmission lines 75 50 25
Total 2,492 1,296 1,196

Numbers are rounded
Estimated market size (Biogas)

Data on projected installed capacity was obtained The project costs were obtained from various
from the revised PDP 2018–37’s projected databases for the Thai market. The project cost
renewable energy capacity We assume that the compositions were triangulated from different
government can achieve their target of having sources, including BNEF, IRENA and Tetra Tech.
1,565MW of biogas capacity 2037. Assumptions for a foreign and domestic share of
the market come from the estimated involvement
supply chain.
Table 7.14: Investment Potential for Biogas in The Coming Years

Technology Installed capacity as of Installed capacity Additions Project cost Market size
Jun 2019 (MW) in 2025 (MW) 2020–25 (MW) (US$ million/MW) (US$ million/MW)
Biogas 366 496 130 3.50* 2,797

Planned capacity additions are as per the capacity additions planned in the PDP 2018-37. The capacity additions expected are conservative and
includes both private SPPs and community developed projects.
Table 7.15: Supply Chain and Financing Analysis for Biogas (%)

Civil works 30% 9.0% 21.0%
Total 100% 31% 69.0%

Note: (*) While there are no local content requirements, we have assumed that 50% project development will require domestic players as this will
help with ease of business, 90% of consulting engineering can be done by domestic players, 70% of civil works can be done by foreign players due
to their superior technology and know-how, 90% of powerhouse equipment can also be sourced from foreign companies due to their specialist
expertise and advance technology and the transmission line connection can be predominantly (80%) done by domestic players.
Table 7.16: Supply Chain and Financing Market Value Analysis for Biogas (US$ million)

Powerhouse equipment 1,258 126 1,133
Total 2,797 867 1,930

Numbers are rounded
Estimated market size (WTE)

Data on projected installed capacity was obtained The project costs were obtained from various
from the revised PDP 2018–37’s projected databases for the Thai market. The project cost
renewable energy capacity we. assume that the compositions were triangulated from different
government can achieve their target of having sources, including BNEF, IRENA and Tetra Tech.
828MW of WTE capacity by 2037. Assumptions for a foreign and domestic share of
the market come from the estimated involvement
supply chain.
Table 7.17: Investment Potential for WTE in The Coming Years

Technology 2019 installed capacity 2025 installed Additions Project cost Market size
(MW) capacity (MW) (US$million/MW) (US$million/MW)
WTE 325 784 (2020–25) 3.18* 1,460

Planned capacity additions are as per the capacity additions planned in the PDP 2018-37. The capacity additions expected are conservative and
includes both private SPPs and community developed projects.
Table 7.18: Supply Chain and Financing Analysis for WTE (%)

Civil works 15% 4.5% 10.5%
Total 100% 14% 86%
Note: (*) While there are no local content requirements, we have assumed that 50% project development will require domestic players as this will
help with ease of business, 80% of consulting engineering will require foreign players’ involvement as this technology sector is relatively nascent
in Thailand, 90% of civil works and powerhouse equipment will need foreign player involvement due to their superior expertise and know-how and
transmission line connection can be predominantly 80% done by domestic players
Table 7.19: Supply Chain and Financing Market Value Analysis for WTE (US$ million)

Powerhouse equipment 1,095 109 985
Total 1,460 206 1,254
Numbers are rounded
Table 7.20: Upcoming Biomass, Biogas and WTE Projects (As of January 2021)
Power plant name State or province Total capacity Status Year

(MW) Online
Nong Ruea Biomass Power Plant Khon Kaen 97 Under construction / -

partially active
Khonburi Sugar Cogeneration Plant Nakhon Ratchasima 40 Announced -
Kumphawapi Biomass Power Plant Udon Thani 40 Permitting 2021
Khlong Thom Biomass Power Plant Krabi 30 Permitting 2021
Mueang Phrae Biomass Power Plant Phrae 30 Permitting 2021
Taphan Hin Biomass Power Plant Phichit 26 Permitting 2021
Thung Yai Biomass Power Plant Nakhon Si Thammarat 25 Permitting 2021
Thung Yai Biomass Power Plant II Nakhon Si Thammarat 25 Permitting 2021
Lipasango Biomass Power Plant Pattani 23 Under construction -
Mueang Ranong Biomass Power Plant Ranong 23 Permitting 2021
Pathio Biomass Power Plant Chumphon 20 Permitting 2021
Si Satchanalai Biomass Power Plant Sukhothai 17 Permitting 2021
Sawi Biomass Power Plant Chumphon 16 Permitting 2021
Uttaradit Biomass Power Project Uttaradit 9.5 Permitting -
Muang Nakhon Ratchasima Garbage Nakhon Ratchasima 9.3 Permitting -

Fuelled Power Plant
Nong Ruea Biomass Power Plant Khon Kaen 27 Permitting 2021
Krabi Biopower Project Krabi 3 Permitting -
Udon Thani Biogas Plant Udon Thani 1 Permitting -
Phetchaburi Waste to Energy Plant Phetchaburi 9.9 Permitting 2022
Amphur Mueang Waste to Energy Project Rayong 9.8 Permitting -
Tha Laeng Energy From Waste Plant Phetchaburi 7.9 Under construction -

8. Market Conditions for Electrical

Networks and Storage
8.1 Smart Grid Systems
In 2017, Thailand’s NEPC approved a national smart Figure 8.1: Smart Grid Master Plan
grid plan which aims to enhance the reliability of the
Preparation stage (2015–16)
country’s grid. Under the approved smart grid plan,
state-owned utilities (EGAT, MEA and PEA) will spend • Set up a committee to execute the master plan
up to THB200 billion (US$6.7 billion) in implementing and draft an action plan.
smart grid projects through to 2036. The US$6.7
• Set up a working group to oversee, monitor and
billion will fund the deployment of up to five smart
drive the development.
grid pilot projects under the guidance of the MOE.
• Set up a working group to connect to the
The focus of the plan is based on three pillars across
network, communicate and exchange information
five areas:
between the three electricity authorities, such as
• Demand response(DR) and energy management EGAT, PEA, MEA.
systems (EMS)
• Set up a working group to determine platform of
• Wind and solar power forecast the development.
• Microgrids and energy storage system (ESS). • Set up a committee to improve the requirements
of connecting power network system to
The short-term target of 2021 across these three
accommodate renewable energy.
pillars include1 :
• Provide funding for academic institutions, train
1. Demand response (DR) and energy management
personnel and funding for initial studies.
system (EMS): This includes home energy
management systems (HEMS), factory energy • Provide capacity building to government
management systems (FEMS) and building agencies and related ministries.
energy management systems (BEMS). The target
Short term (2017–21)
is to promote smart grid projects to help EGAT,
MEA and PEA reduce energy usage by 350MW • Provide funding to support pilot projects on
and set up an Automated Demand Response smart grid, such as:
system. The MEA & PEA smart grid pilot focuses • HEMS, BEMS or FEMS
on this 2,3.
• DR
2. Wind and solar energy forecast: To set up a
reliable renewable energy forecast system for • Mircrogrids
distribution and efficient management – The • Energy storage
EGAT Smart Grid Pilot focuses on the wind and
solar energy forecast. • Study and review the appropriateness of the use
of the smart grid technology in the pilot projects
3. Microgrid and energy storage system (ESS): that were undertaken. This is for evaluating
This is integrated with the whole Smart Grid and coming up with a process to develop an
to help combat power outage when the main appropriate and effective smart grid system.
grid is down. This requires a collaboration
between EGAT, MEA and PEA. As reported,
MEA was working on two projects. These are its
commitment to decrease the development of
peak plant by 100MW via the demand response
system as part of the 350MW peak reduction
plan and microgrid pilot project.
1
Smart Grid Plan and Project Implementation: Lesson Learned in Thailand accessed from https://www.smartgrid.or.kr/IMAGE/sub/pdf/Thailand.PDF
2
ERIA report on Distributed Energy Generation accessed from https://www.eria.org/uploads/media/6_Distributed_Energy_System_in_Thailand.pdf
3
PEA report on Microgrid development Project at Mae Sariang District accessed from https://www.pea.co.th/Webapplications/tor/Attachments/1e35400b-8cf1-49cb-8d45-
b65811da1837/Book%201%20Project%20overview_W.pdf
Medium term (2022–31) Long term (2032–36)

• Support having real time pricing (RTP) or having • Set measures for EGAT to invest in the
TOU in a variety of forms. development of technology, such as intelligent
• Establish a data center for electricity forecasting electric vehicle charging in the transmission
from renewable energy sources and energy system that can connect to distribution systems,
storage systems. forecasting renewable power, transmitting high-
voltage power and equipment to control power,
• Issue measures to determine the proportion load and demand response to power generation.
of local content for investment projects in the
smart grid. • Set measures for PEA or MEA to invest in the
development of technology, such as energy
• Issue measures to support the private sector to storage, intelligent electric vehicle charging in
develop software and hardware related to smart the distribution system, microgrid, load response
grid. and demand response in power distribution.
• Issue tax and financial support measures to the • Incentivise power users in all sectors to install
private sector that operate in the smart grid technology for managing a comprehensive
network system. utilisation of power.
• Support EGAT to invest in the development of
basic infrastructure for smart grid technology.
• Support PEA and MEA to invest in the
development of basic infrastructure for smart
grid technology in power generation.
Pilot projects on smart grid

The pilot programme included in the plan comprised The project aims to enhance the generation and
of the following three project which included smart distribution systems of renewable energy so that
grids, microgrids and battery energy storage locals will have sufficient and stable power for use.
systems (BESS): The team form Chulalongkorn University conducted
a feasibility study. The location of the projects allows
1) Mae Hong Son smart grid, Muang district, Mae the operation and control of the system together
Hong Son province, operated by EGAT 1,2 : with the PEA microgrid system at Mae Sariang.
The province does not have electricity transmission The possible solutions include BESS linkage to PEA
system of EGAT. Electricity is generated from various distribution system. The project has commenced
sources - a diesel power plant, a solar power plant operations in 2020.
and a hydropower plant and distributed through
PEA’s 115kV and 22kV distribution system. The area
has many power failures. EGAT and PEA signed an
MOU to study technical aspect of Smart Grid Pilot
Project in Mae Hong Son Province.
Figure 8.2: Mae Hong Son Smart Grid, Muang District, Mae Hong Son Province and Operated by EGAT
2x2.5 MW, 2x2.6 MW Mini Hydro

2
0.5 + 3.0 (plan) MW Solar Farm

+ BESS: 4 MW, 2MWh
Source: EGAT
1
ERIA report on Distributed Energy Generation accessed from https://www.eria.org/uploads/media/6_Distributed_Energy_System_in_Thailand.pdf
2
PEA report on Microgrid development Project at Mae Sariang District accessed from https://www.pea.co.th/Webapplications/tor/Attachments/1e35400b-8cf1-49cb-8d45-
b65811da1837/Book%201%20Project%20overview_W.pdf
2) Micro Grid project in Mae Sariang district, 3) Smart Grid project in Pattaya area Chonburi
Mae Hong Son province, operated by PEA: province, operated by PEA
The power system in Mae Sariang district in Mae The smart grid project in Pattaya City Area in the
Hong Son province is supplied from Hod substation, Chonburi Province is the first smart grid project of
which is about 110km away and through the forest. PEA. Pattaya City also has a policy to develop into
These areas are supplied with electricity from a smart city and therefore the infrastructure of the
several sources, such as the PEA’s diesel power communication system is quite ready in that area.
plant, the small hydropower plant of the Department PEA is said to have contracted with Itron for the
of Alternative Energy Development and Efficiency procurement of 100,000+ smart meters.
(DEDE), the solar power plant of VSPPs, diesel
In March 2017, the PEA announced its plans to
emergency generators of large consumers and so
deploy smart grid projects in five Thailand cities
on. However, these power sources have unstable and
namely Pattaya, Chiang Mai, Phuket, Nakhon
inadequate generation capacity, resulting in poor
Ratchasima and Hat Yai. In September 2020, PEA
power quality and causing frequent power failure.
has announced a THB200 billion (US$6.7 billion)
Gunkul Engineering Public Company Limited has spending plan for investments in smart technology.
been awarded the THB132.9 million (US$4.43 Recent announcement also indicate that PEA
million) project. The microgrid system includes plans to develop smart grids in Thailand’s Eastern
a microgrid controller, converters for solar farm, Economic Corridor (EEC). 1
energy storage, diesel engine, hydropower plant,
communication system, measurement system and
protection system.
Figure 8.3: Microgrid Project in Mae Sariang Figure 8.4: Smart Grid Project in Pattaya area
District, Mae Hong Son Province, Operated by PEA Chonburi Province, Operated by PEA
Source: EPPO 2017

1
Smart Energy International, Thailand invests 2b toward smart grid rollout, 27 March 2017 – https://www.smart-energy.com/regional-news/asia/thailand-2bn-smart-grid-rollout/
4) MEA Smart Metro Grid Platform ERC Sandbox

MEA has partnered with CyanConnode and ERC has setup ERC Sandbox as a platform to
partners JST and Forth to deploy a Smart Metro promote and pilot new technologies including
Grid platform1,2. This project aims to improve power microgrids, testing new business models and to
availability and reliability, utilise data analytics on inform energy regulation in Thailand. The eligible
areas, such as distribution losses, automate meter applicants for ERC sandbox are government
reading and increase customer satisfaction. agencies or juristic person registered in Thailand or
educational institution that would like to introduce
CyanConnode will deploy its Omnimesh technology
energy innovation which is either unprecedented or
which has been integrated into Forth’s electricity
involved new technology to increase the efficiency
meters and Oracle’s meter data management
of existing products or services. This means a
solution. The RF module technology will use the
foreign company would need to partner with a local
narrowband frequencies (442MMHz and 447MMHz)
company to participate in the application process.
which are being integrated into Forth’s meters.
Eligible categories for the sandbox included (1) new
CyanConnode, formerly Cyan Holdings is a UK-
market structures such as peer-to-peer trading,
based company specialising in the design and
(2) new tariff structures such as net metering,
development of RF mesh networks Omni Internet of
(3) new technologies such as energy storage
Things (IoT) communications and have a wealth of
solutions, (4) new power systems like microgrids,
expertise and experience in smart technology. The
and (5) new energy business models like supply
project is an example of the UK’s expertise in this
and load aggregation. Through the ERC sandbox
space.
programme, Thailand has created a platform for
The smart meters will be piloted with 33,000 units testing new energy solutions.
being rolled out first. Upon successful deployment,
An example of a sandbox project is the peer-to-peer
a further 200,000 units will be rolled out. MEA
(P2P) project launched by BCPG. BCPG and Power
hopes to eventually deploy the smart metering
Ledger have developed Thailand’s first P2P energy
systems to 4 million residents in the central
trading system using blockchain technology on a
Bangkok area and two adjacent provinces2.
pilot basis in Sansiri’s Town 77. The pilot project
consists of a distributed energy system connected
through the MEA’s grid allowing the residents to
become prosumers as they consume and produce
electricity. Any excess electricity generated will also
be sold back into the grid. The project is expected
to generate about 10-15% savings in utility bills and
save approximately 530 tons of CO2.
B. Grimm Power, a prominent Thai Small Power
Producer is also aiming to become a pioneer in
the field of smart grid and energy storage system.
Amata PCL, the leading industrial estate operator
in SEA region is also planning to implement smart
metering systems to its Amata City Chonburi
Industrial Estate – an area that has 760 factories 3.
1
PDP 2018
2
MEA website
3
Team Finaland, Thailand’s smart grid development and bioleaps, https://www.marketopportunities.fi/home/2019/thailands-smart-grid-development-taking-big-leaps/
8.2 Battery Energy Storage

Systems (BESS)
Battery storage is picking up pace in Thailand in It is envisioned that the battery energy storage
the past few years. In 2016, the EPPO provided will work in conjunction with the smart grid. EGAT
funds of about US$23 million as research grant can use information technology to manage and
to fund research and development in energy ensure continued and stabilised power distribution
storage systems, through its ENCON fund. In for the area. It is forecasted that when the project
2017, the SPP hybrid firm competitive bidding completes, the power failure period will be less
for renewable energy capacity of 300MW saw a than 500 minutes per year from its maximum
firm contract of 12MW of solar in central Thailand at 2,614 minutes per year. More recent projects
at a bid price of 2.54 THB/kWh (US$8.47 cents are using energy storage systems comprising
per kWh). This solar project included a Energy of lithium-ion batteries, which will enable rapid
Storage System. response executing within milliseconds, high-
EGAT has initiated studies on battery energy efficiency, long life cycle and space-saving
storage in order to promote usage in stabilising installation. BCPG is also developing the first wind
the electricity system. EGAT has developed a project with BESS in southern Thailand. In May
4MW BESS project in Mae Hong Son. The project 2020, the Asian Development Bank (ADB) also
consists of four planned storage installations supported a wind and battery storage project.
and will be operated near solar power projects to The ADB approved a US$7.2 million loan to fund a
counter the intermittency from solar power. Mae 10MW wind energy project with 1.88MWh battery
Hong Son Province was chosen as a key location storage capacity. The project is expected to
for a majority of the projects due to the lack of generate 14,870MWh of electricity per year while
transmission lines in the area. The project has reducing 6,364tons of CO2 1
commenced operations in 2020.
1
“ADB Finances First Wind Power and Battery Storage Project in Thailand”, ADB, https://www.adb.org/news/adb-finances-first-wind-power-and-battery-storage-project-thailand
An evidence of the pace with which BESS is As per the 2019 annual report1 , the company
picking up in Thailand is evident in Energy has been granted promotion privileges from
Absolute (EA)’s current investment focus. EA the Board of Investment (BOI) for its lithium-ion
started investing in energy storage business battery (high-density battery) manufacturing
since the year 2000. The investment was made business according to the investment promotion
in manufacturing of lithium-ion batteries. The act, promotion certificate no. 62-1184-1-18-1-0
subsidiary Amita Technologies manufactures high approved by the board on 22 October 2019 with
power batteries for EVs, e-scooters and power a production capacity of approximately 100,000
plants. Main clients of the company include UPS modules per year (6,415,200 cells per year).
units, power banks, power tools, battery-powered Major privileges and benefits are as follows:
vehicles and energy storage.
1. Exemption of import duty for machinery as
The company in 2017 announced investment in approved by the BOI.
manufacturing of 50GWh energy storage factory.
2. Exemption of corporate income tax for
In May 2017 and April 2018, an MOU was signed
net profit from the promoted business for
between the Industrial Technology Research
a period of eight years from the date of
Institute (ITRI), EA and Amita, Taiwan to co-
starting income generation from the business
develop new technology of battery with high
operation.
safety for EA’s new battery factory, the 50GWh
factory. 3. Exemption of having dividend from the
promoted business included in the income for
The phase one of the project was to produce
calculation of income tax, except corporate
1GWh and serve power plants to stabilise the
income tax, throughout the promotion period.
system and to electric vehicles, such as car and
ferry. In the 2019 annual report, the company 4. 50% reduction of corporate income tax for
announced that it is now ready to invest in the net profit from investment for a period of five
phase two - lithium manufacturing plant project years from the end of the period in Item two
with a generating capacity of 50GWh per year. above.
5. Exemption of import duty for raw materials
and necessary materials imported from
overseas for production for export for a
period of one year from the date of first
import.
In 2019, the group also started designing and
launching electric cars under the MINE Mobility
brand, SPA1 model. It is a multi-purpose electric
car which is 100% driven by electricity using
batteries manufactured by the company.
1
“Annual report 2019”, Energy Absolute, 2020, https://www.energyabsolute.co.th/annual/an_ea_2019_E.pdf
9. Top Business Opportunity

Areas for UK Companies
This section identifies areas where the UK’s
renewable energy capabilities match the needs 9.1 Existing Players in The
of the Thai market. The largest market segments
identified are also the segments where there is
Renewable Energy
existing presence of foreign companies. Hence UK Sector
companies would also need to consider innovative As mentioned in the earlier sections, there are
ideas to be competitive in the local market. a number of domestic players in the renewable
UK companies can invest in Thailand in several ways, energy sector, such as B Grimm, BCPG, GPSC, Gulf
such as establishing a new enterprise, acquiring Energy and so on. Apart from Thailand, a number of
or investing in an existing enterprise, setting up a companies are also investing in projects across Asia.
local branch or representative office, licensing or The capabilities of domestic companies to invest
franchising models or through direct contractual and develop projects abroad indicate the strong
arrangements. UK companies will need to consider domestic capabilities for developing renewable
several factors, such as nature, quantum and time energy projects.
horizon of the proposed investment, prevalence of
any foreign ownership restrictions in the relevant
sector, potential value addition of a local Thai
partner and tax implications.
Figure 9.1: Thai Companies Pursuing Opportunities Outside of Thailand (Non-Exhaustive)
Lao PDR
• EGCO (hydro)
• GPSC (hydro)
Vietnam
Cambodia
• B Grimm (solar)
• B Grimm
• Gulf Energy (solar)
(transmission lines)
The Philippines
• EGCO (coal)
Indonesia
• EGCO (geothermal)
• Ratch group (natural
gas)
Strong domestic and international experience has Strong presence of domestic companies signals
positioned the Thai market to be ahead of several price competition to win in the market. UK’s
other ASEAN countries in terms of both company companies would therefore need to explore
and market maturity. Developers and financiers are potentials for collaboration through discussions
well-equipped to develop renewable energy projects with local companies. There could be opportunities
and have sufficient experience in investment for export to Thailand directly or given the active
appraisals and other activities of the project role of Thai companies across the ASEAN region,
development value chain. there could be a collaboration for joint export or
investment to other ASEAN countries.
Apart from domestic companies, several
international developers and lenders are also active Recent examples of collaboration include the
in the market. Companies like Cleantech Solar, Total JV between Osaka Gas and Thai Solar Company
and Osaka Gas, among others are also actively Energy Pro Corporation Limited.
present in the market. As identified by UK DIT,
success for export companies in Thailand is driven
by strong relationships in the local market which Box 2- Foreign companies entering into JVs
often take sometime to develop. with local developers
In July 2019, Japan’s Osaka Gas subsidiary
has formed a JV with Energy Pro to
participate in the Thai solar market.
The new entity (OE Solar Ltd.) will target to
Box 1- DIT guidance on doing business in support industrial and commercial clients
Thailand to develop solar rooftop projects. The solar
panels will be installed at no upfront costs. The
Most UK’s companies that are successfully renewable energy produced will be supplied
doing business in Thailand have local under direct PPAs for 15–20 years.
representation. This is either through
appointing agents, distributors or by Osaka Gas holds 49% of the newly formed JV
establishing their own offices. while the Thai Energy Pro holds 51%.
DIT guide on Doing Business in Thailand - Osaka Gas Press release dated 3 July 2019
Business scheme
New Company Customers
The New Company installs solar panels (that it owns)

on customer-owned roofs or other surfaces.
Power
generation
The New Company

supplies electricity
OE Solar Co., Ltd. generated from
(provisional name) Power purchase solar energy to
agreements customers.
Reference
photo
Customers pay for the electricity to
New Company
9.2 Business Opportunities

for UK Companies
The most attractive sectors for value addition in development of renewable energy projects. In
the short term appear to be in solar, bioenergy terms of sectors, offshore wind, small hydro,
and small hydro. solar and waste are the sectors with extensive UK
expertise.
In UK DIT’s assessment, the strongest
capability for UK companies is in services (such The subsequent sections describe UK capabilities
as consulting, design, engineering) for the across the key sectors identified in Thailand.
Table 9.1: Summary of Business Opportunities for UK Companies
Sectors UK expertise5 Estimated opportunities (US$ million)

Detailed Construction, Operations and
Pre- Estimated Foreign potential
design and installation and maintenance UK potential
development1 market potential share
development2 commissioning3 (O&M)4
Solar 812 707 162
Wind 541 438 108
Small hydro 93 47 32
Bioenergy6 6,748 4,380 1,711
Electrical networks
*** *** ***
including storage
Competitive or Capable but not world-leading Little to no

world-leading or the most competitive capability
The above analysis is based on the review of the and foreign potential is as determined in previous
information provided by FCDO. We understand that chapters. The potential UK share of the opportunity
in 2017, DIT carried out an extensive assessment is then determined as per the potential export share
of UK’s renewable energy capabilities across identified by FCDO in detail. The subsequent sections
different sectors and identified areas of significant explore the sectors in greater detail.
export potential. The estimated market potential
1
Predevelopment includes all pre-development activities of the project, such as strategy, policy development, resource assessments, site surveys, site selection, licensing and consents, grid
connection assessments, preliminary environmental impact assessment, other professional services and more.
2
Detailed design and development includes activities related to specific project, such as FEED studies, procurement plan, site-specific studies like seabed studies, wind speed studies. It also
includes ancillary project development activities, such as financing.
3
Construction, installation and commissioning includes activities related to the actual engineering and build of the project until full commercial operations is achieved
4
O&M includes routine or periodic maintenance, project inspections and reviews. Professional services during O&M period can include activities, such as insurance, audit, tax, independent
engineer on projects and so on.
5
Colours indicate the strength of UK’s expertise: Green = competitive or world-leading; Amber = capable but not world-leading or the most competitive; Red = little to no capability. Further, the
UK’s expertise in green financing spans both sector and stages and are hence not separately identified
6
Bioenergy includes biogas and WTE technologies
*** In certain sectors, the market in Thailand is at a relatively nascent stage and pipeline for projects is not available. The opportunities in the sector may develop in upcoming years and could
materialize into significant opportunities in future.
* Specific project details are unavailable. Presence is considered based on a local office or representative in Thailand.Source: EY analysis, UK DIT capability statement – renewable energy
Solar power capacity adept at providing a range of professional services

As per the plan, Thailand envisions almost tripling including the design of policy, incentive structures
the installed solar capacity. Although, the number for solar projects, general technical design,
of projects issued has tapered in recent times, engineering and PMC services. The UK has limited
the momentum in the sector is expected to be capabilities on supplying BOP equipment, such as
strong. UK capabilities in solar are primarily inverters, cables, panel frames and bespoke building-
through overseas direct investments (ODI) where integrated photovoltaics (BIPV) panels. The UK does
UK developers develop, own and operate medium not have expertise in manufacturing solar panels 1.
to large-scale projects (>50MW) and integrated A number of foreign companies are forming
hybrid solutions with energy storage and mini grid partnerships with local companies to meet their
options where a generation system, such as rooftop power needs through renewable energy. With more
solar can be integrated with battery storage to companies committing to develop renewable energy
create stand-alone island systems - an attractive projects under programme like RE100, there is scope
proposition for remote rural areas. Ability to for the development of opportunities in the direct
participate will be driven by the competitiveness PPA segment.
of UK companies when compared to local or other
overseas participants. UK companies are also
Box 3 – Direct PPAs could present Box 3 – Direct PPAs could present
sizeable opportunities for foreign sizeable opportunities for foreign
companies companies
Total aims to develop 25MW solar rooftop TESCO Lotus partners with Cleantech
programme in Thailand Solar (Singapore) for solar rooftop
Total has signed a binding contract to programme in Thailand
provide 25MWp of solar rooftop programme TESCO Lotus has signed PPAs with
for 24 facilities of Betagro - one of Thailand’s Cleantech Solar to provide renewable energy
largest food companies. equipment for 19 stores across Thailand.
Each facility has a 20 year PPA. The The agreement is expected to generate
agreement constitutes one of the largest nearly 21.5GWh of renewable electricity per
corporate PPA portfolios in Thailand and year, helping shrink its carbon footprint and
is expected to generate nearly 38GWh of support in meeting TESCO Lotus’ target to
renewable electricity per year, helping source 100% renewables by 2030.
Betagro shrink its carbon footprint while
providing about 15% of its energy needs. - Cleantech Solar press release
- Renewable Energy Magazine, article dated
9 March 2020
1
UK Capability Statement: Renewable Energy, dated 2020
A number of UK’s companies, such as Lightsource, Wind

Solarcentury and Proinso have the capabilities
The latest PDP doesn’t target significant additions
to develop large utility scale power plants.
in wind power until 2029, despite strong potential
Developers, such as Solar Securities and British
for wind in Thailand. There are efforts by industry
Solar Group which largely have domestic and
groups to discuss strategies to strength the
regional experience may consider venturing into
development of onshore wind in Thailand4. One
new markets.
of the main suggestions identified is for the
Given the overall maturity of solar PV, particularly government authorities to consider a revision in
manufacturing capabilities of other countries, the wind targets and set up policy frameworks
opportunities for UK export are limited in large for efficient development. Industry associations
scale PV projects (>50MW), unless mandated by also seek a clear and transparent procurement
export finance requirements (20% in UKEF). The process. ThaiWEA together with GWEC are actively
potential can go up to 34% for smaller projects lobbying for further promotion of the wind
(in the range of 2.25MW 1). There are number energy sector. Hence, although the outlook and
of programme for participation, such as solar opportunities identified are low at the moment,
rooftop programme and floating solar programme. wind remains a sector to watch for in Thailand.
The process followed in the recent floating solar
Onshore is a mature technology and able to
project in Thailand could be representative of the
compete on price in many markets internationally.
process going forward. Around 16 floating solar
The UK has leading manufacturers (Gaia Wind and
farms with a combined capacity of more than
BritWind) exporting small-scale turbines and are
2.7GW is being planned in the coming years until
also active in component supply to larger turbine
2037 2,3. Given limited provider for solar panel and
manufacturers. The most attractive segment in
floats in the domestic market, there is scope for
Thailand for UK’s companies will be in the project
foreign players. The second round of the solar
development and financing stage during the pre-
rooftop programme launched in 2019 with an
construction and construction phases. Moderate
annual target of 100MW can unlock opportunities
strength is estimated for UK export potential in
for companies like GBSol, Sunfixings and SunSolar
areas, such as grid integration, component supply
services who provide turnkey solutions for
and turbine towers. While ODI potential is limited,
rooftops.
UK’s companies have potential in the export of
Considering the overall estimated market potential professional services and providing assistance
for the sector in Thailand and the potential to local developers in securing finance for new
opportunities for foreign companies (and areas projects4.
where UK companies have strong expertise),
Considering the overall estimated market potential
the estimated opportunity for UK companies
for the sector in Thailand and the potential
is approximately US$162 million. Opportunities
opportunities for foreign companies (and areas
in the sector are also emerging from a number
where UK companies have strong expertise),
of sources, such as private PPAs, solar rooftop
the estimated opportunity for UK companies is
programme for self consumption and peer-to-
approximately US$108 million.
peer trading and battery-backed energy storage
options. Germination of such opportunities will
require strong local presence and relationships.
1
2
GlobalData – renewable energy policy
3
As per news reports a consortium of BGRIM Power – Energy China comprising of B Grimm Power Plc (BGRIM) and China Energy Engineering Group Shanxi Electric Power Engineering Co. Ltd.
(Energy China) have signed an EPC contract to for the world’s largest floating solar hybrid project at Sirindhorn Dam
4
The GWEC, Thailand Wind Energy Association (ThaiWEA) and United States Agency for International Development (USAID) organized a roundtable discussion attended by Thai government
stakeholders and industry players on 13 December 2019 to discuss the opportunities and challenges in the wind sector.
Bioenergy Hydro
Bioenergy is one of the largest renewable energy The national plans envision moderate additions
sources in Thailand. With a target of over 5GW for renewable power when compared to other
of bioenergy projects in the revised PDP 2018- technologies. The UK has strong expertise across
2037 and programme like ‘Energy for all’ and the the value chain for small-scale hydro. Generally
‘Quick Win Scheme’ are expected to accelerate the the UK’s involvement overseas is limited to various
deployment of bioenergy plants. It is envisioned that consulting, engineering activities and has not been
the scheme is expected to attract an investment of typically involved in end-to-end development of
THB116 billion (US$3.87 billion) to develop capacity large scale projects. In small-hydro, the UK excels
of over 1933MW between 2020–24 1. at large scale design and technical engineering,
efficient and reliable technology for small scale
The national plans set ambitious targets for
hydropower through companies, such as Gilkes,
renewable energy generation both for electricity
intake screens, electrical systems and financing
generation and transport sector. Energy from
support through UKEF. 2
waste projects across the various types of projects
including biomass, biogas and WTE are supported Though UK solutions may appear slightly more
by FiTs. There is an abundance of feedstock supply expensive when compared to other markets,
to develop such projects. Though around waste coupled with direct lending support, the UK
collection rates are around 86%, only 36% of offering for small – medium scale hydropower is
waste is disposed using sustainable processes, strong, with capability to deliver up to 35% of
such as incineration, composting or landfilling, project costs are comprised of consultancy, civil
indicating immense opportunities in the sector. engineering and systems.1 Considering the PDP’s
UK’s expertise in this sector lies in designing and approach of moderate capacity additions and the
implementing the policy and incentive structure potential opportunities for foreign companies (and
required to make energy from waste facilities areas where UK companies have strong expertise),
economically viable, implementation of including the estimated opportunity for UK companies is
design, build and operation for anaerobic approximately US$32 million.
digestion and WTE facilities and the supply of
Electrical networks
waste collection vehicles. Further, the UK has
limited ODI potential given that majority of the The transition of the power sector with greater
developers investing in the UK across the waste contribution from renewable energy is a
sector are foreign companies. It is estimated that challenge for the national grid. The grid needs
UK companies have export potential of around to ensure that there is sufficient capacity to
15% for WTE technologies and up to 40% in absorb additional renewable capacity as well
anaerobic digestion technologies. Considering as ensure that electricity supply is reliable. The
the overall estimated market potential for the PDP 2018 identifies several opportunities for
sector in Thailand and the potential opportunities expansion and improvements in the transmission
for foreign companies (and areas where UK grid in the period up to 2037. Several grid
companies have strong expertise), the estimated improvement projects are being planned by EGAT.
opportunity for UK companies is approximately Opportunities linked to modernisation of the
US$219 million to US$1,119 million. The bioenergy grid and transmission systems of SOEs are also
sector appears to be the most promising sector emerging. Grid enhancement projects have yielded
in Thailand over the next few years. However to results with decrease in wind curtailment from
succeed in the market, UK companies would need 17% in 2009 to 0.5% in 2014. 3 As these projects
to offer price-competitive solutions. Strong local germinate, we expect a clear pathway for UK
partnerships with domestic players can support in company participation.
market entry particularly for the development of
VSPP plants.
1
“Community scheme spreads wealth”, Bangkok Post, 19 Feb 2020, https://www.bangkokpost.com/business/1860684/community-scheme-spreads-the-wealth.
2
3
EGAT
The UK has considerable design and delivery The active buzz in the sector is indicative of the
experience, both in traditional transmission value that can be unlocked for UK companies
and distribution systems as well as in off- through partnerships with Thai conglomerates.
grid and mini-grid systems where small-scale The application of such technologies could expand
distributed generation, such as rooftop solar, beyond renewable energy sector and support
can be integrated with energy storage solutions other sectors like electric vehicles, thereby
to provide reliable supply on a self-sufficient contributing to Thailand’s Integrated Energy
basis. Specific areas of the UK’s expertise include Blueprint and smart cities programme.
consultancy services, technical services (e.g.,
Other sectors
network analysis, standards, codes and specific
manufacturing equipment), general design, In other sectors as well, the UK’s expertise is
engineering and construction, protection and predominantly in providing consulting services,
control systems, monitoring, etc.1 Opportunities design, finance and limited construction
are expected for companies like Schneider Electric support, project management and supervision.
UK, Bowers Electricals, Siemens UK, Babcock and In DIT’s assessment, in largely mature sectors,
Lucy Electric, among others. UK’s companies would need to be highly price
competitive. 3 The UK’s companies may explore
Energy storage solutions
opportunities where collaboration with UKEF could
A number of the UK’s companies operate in the unlock opportunities for investment, finances and
BESS market, primarily in the UK and Europe. associated services.
Given the challenges with the existing national
Green financing
grids with the increasing share of renewable
energy in the system, energy storage is a sector Green finance is defined as funding any means
that can be of importance in Thailand in the of reducing carbon emission or raising resource
near future. As per recent announcements, efficiency. Green funding in itself is not generally
EPPO is planning to study the ESS concept over considered as an export, but as an enabler
three years. In addition, the government is also for the development of renewable energy
considering to update relevant regulation, which projects. Thailand is an attractive market for
can support the development of the energy green financing and there is greater scope for
storage concept. 2 collaboration in the development of innovative
financing instruments, given the relative maturity
Thai companies are enthusiastic about the
of the lenders. The UK is well placed to support
opportunities that energy storage could offer.
and can potentially enable projects that would
For instance, a subsidiary of Banpu Plc (a listed
not otherwise happen, particularly in emerging
company in Thailand) has acquired Durapower
markets. The associated services, such as legal,
Technology (a lithium-ion battery maker) and
accounting and insurance, which could be around
Sunseap Group (an energy service provider) to
1%–5% of the project value, is considered as
strengthen its capability in the energy solutions
export and is a domain where UK’s companies
space. Similarly, Thai conglomerate GPSC has
excel.1
partnered with 24M Technologies (a US company)
to manufacture and deploy Li-ion batteries. 2
1
Insight based on statements from government official and private sector participants.
2
Insight based on press announcements.
3
UK Capability Statement: Renewable Energy, dated 2020.
Summary of market opportunity in Thailand

The renewable energy opportunity in Thailand is Through its network of officers deployed in
estimated to be in excess of US$8.2 billion across Thailand and UK-based trade advisors, the DIT
solar, wind, bioenergy and hydropower sectors. can support UK companies wishing to expand
The largest opportunity for UK companies is in into Thailand. The DIT helps businesses export
the bioenergy and solar sector. The wind sector and grow into overseas markets by providing
holds promise and could emerge as a sector of pragmatic advise, contacts and insight into the
importance in the future. Similarly, technologies overseas market. UK companies can leverage the
like battery storage solutions, P2P trading etc., UK’s existing knowledge of doing business and
are increasingly drawing interest with several providing strategic assistance to Thailand while
pilot projects underway. Wide-scale commercial developing their market entry strategy. Interested
application opportunities are expected to emerge parties are encouraged to reach out to the DIT at
in the future. dit.thailand@fcdo.gov.uk.
Figure 9.2: Market Opportunity for Renewables Investment in Thailand (US$ million)
6,748
1,711
2,668
Potential for UK companies
Estimated share of foreign

2,369 812
162 541
Estimate share of local 330 93 33
544 108
106 103 45 15
Bioenergy Solar Wind Small hydro
Source: EY analysis
1
9.3 Upcoming Renewable

Projects
The PDP is the main guiding document that sets out relatively more difficult. For already awarded
the expected capacity additions in the coming years. projects, UK companies can still pursue financing
opportunities and ancillary professional services
By the time projects are awarded, it is expected (e.g., audit, tax, legal services and financing). Some
that developers would already have some clarity opportunities are highlighted in the following table.
on suppliers and financiers making participation
Table 9.2: UK’s Companies Involved in Renewable Rnergy Projects and Green Financing (Non-Exhaustive)
No Project Capacity Target Technology Status Foreign service potential

(MW) COD
1 Khon Kaen Solar 40 - Solar PV At planning Other professional services

Power Plant stage (UK company Smart Green
Energy – identified as operator)
2 Roi Et Solar Power 12 - Solar PV At planning Other professional services

Plant, Roi Et stage (UK company Smart Green
Energy – identified as operator)
3 Suphanburi Biomass 49 - Biopower Approved Financing, insurance and other

Power Plant, Mueang professional services
4 Singburi Biomass 30 - Biopower Approved Financing, insurance and other

Power Plant, Bang professional services
Rachan
5 Nakhon Si Thammarat 30 - Wind At planning Other professional services

Wind Power Plant, Hua stage (UK company Smart Green
Sai Energy – identified as operator)
6 Sirindhorn Dam 45 2021 Floating solar Pre-financing Financing, insurance and other
Floating Solar PV Farm professional services
7 Bhumibol Dam Solar 778 2026 Solar PV Announced Development, financing,

PV Park insurance and other professional
services
8 Pha Dam Neck 14 2022 Small Under Other professional services

hydropower construction
9 Mueang Ranong 23 2021 Biopower Permitting Financing, insurance and other

Biomass Power Plant professional services
Source: BMI database, GlobalData

Note. There are challenges on data availability of upcoming projects in Thailand. Project pipeline information does not appear to be routinely
updated. The PDP 2018 identifies a long list of projects that are likely to be developed in the period until 2037. It is recommended to actively
engage with the domestic market to acquire market insight and the latest details on the active projects and procurements.
A lot of business correspondence and announcements of projects and schemes are made in Thai. It is
recommended to form local alliances for UK’s companies to be able to react quickly to opportunities in
the market.
9.4 Top Companies Ready

to Export
UK expertise lies in providing services with firms are able to provide advisory services across
differentiating experience in hydro, bio and wind all technologies. British consulting companies like
sectors as shown in the figure below. Consulting EY, Mott Macdonald and Atkins have a presence
in Thailand.
Table 9.3: Summary of UK’s Expertise Across Sectors and Services (Number of Companies)
Service area Solar PV Wind Hydroelectric Geothermal Bioenergy Marine Storage

/sector andsmart
grid
Consulting
Manufacturing
EPC services
O&M services
High Low
Source: EY analysis based on information provided in UK Tetra Tech report

A company may be active across multiple sectors and services and hence would appear in more than one segment above.
The above heat map indicates the presence of UK’s companies in the various renewable sectors and service areas, with a darker shade indicating a
higher presence (in terms of the number of companies) and vice versa.
The table below identifies some companies in illustrative purposes only. Companies identified
the renewable energy sectors based on the in the above table should not be considered
information compiled by FCDO who have the to be exclusive in respective sectors or as the
potential to participate in renewable energy only companies with export potential. Further
projects in Thailand. Appendix 1, includes the engagement would be needed to assess if
long list of identified companies. The table below Thailand is a target market for identified UK
is non-exhaustive and is intended to be for companies.
Table 9.4: UK Companies Involved in Renewable Energy Projects and Green Financing (Non-Exhaustive)
Company name Description Sector Expertise
Adrian Laycock • Plans and designs small and micro-hydropower schemes, Hydropower Consultancy
with sizes ranging from 50 kW to 1MW or more
Advanced Pump and • Provides advice and solutions for hydropower projects, Hydropower Manufacturer
Hydro Systems Ltd. from the initial idea through to commissioning and
generation
• Uses new, innovative, cost-effective technologies, such as
plastic generator screws and low-head Kaplan turbines
Aggreko Plc Group • Engineering and construction firm specialising in Wind, energy EPC, O&M
wind (planning and infrastructure, construction, pre- storage, biogas
commissioning, testing and commissioning and O&M
for both on- and offshore facilities), battery storage for
solar PV (design and build) and biogas (employing new
technology)
Battery Energy • Energy storage company that owns and operates a portfolio Energy storage Developer, O&M
Storage Solutions Ltd. of battery sites
• Provides a range of services from frequency balancing to
reserve power
Border Hydro • Designs, installs and maintains grid-connected and stand- Hydropower, Manufacturer,
alone wind turbines, a range of hydropower turbines and wind installation and
controllers and control panels service
Cumulus Energy • Manufacturer and developer of grid-level energy storage Energy storage Manufacturer,
Storage Ltd. batteries with the lowest levelized cost of storage globally developer
• Copper or zinc battery offers scalability, low cost, low
energy density, long life, 90% availability and round-trip
efficiency of over 80%
CWind • Constructs, commissions, operates and maintains large- Wind (offshore) Project design and
scale offshore wind projects and offers range of services planning, EPC, O&M
including pre-project planning and cable installation, blade
repair, subsea surveys, power cable storage, training and
inspection and maintenance
EDS HV Group • Designs, connects, tests, commissions and operates Wind EPC, O&M
onshore and offshore wind projects
EGS Energy • Provides comprehensive development services for Geothermal Consulting,

extracting the energy located in deep granite rocks exploration, drilling,
• Offers engineering services including well design and design, engineering
drilling engineering. and management
Company name Description Sector Expertise
Gaia Wind • Turbine manufacturer capable to perform at wind speeds Wind (onshore) Manufacturer
between 3.5 m/s – 25 m/s
Geothermal • Geothermal engineering and construction company that Geothermal Consulting,

Engineering is developing the UK’s first large-scale geothermal energy exploration
plan in Cornwall
Gilbert Gilkes & • Manufactures hydropower turbines with capacities up to Small hydro Manufacturer
Gordon Ltd. 20MW
• Exports to over 85 countries
Hallidays Hydropower • lobal hydropower consultants specialising in the delivery Small Consulting, EPC
Ltd. and maintenance of low-head, fish-friendly, run of river hydropower and O&M
hydropower schemes (run of river
• Offers services, including providing support from concept systems)
through feasibility, design, licensing, installation and
commissioning
• Provides a maintenance programme for installed facilities
Hotspur Geothermal • Develops and constructs geothermal projects, focusing on Geothermal Consulting,
large-scale projects, typically over 10MW, as well as smaller- exploration
scale direct use heat and power project
• Offers services, including potential resource identification,
exploration and drilling and advancing projects to
development
• Is targeting geothermal development in Indonesia
Lyndex • Design and manufacturer of waste recycling machinery Waste Manufacturer
N-ERGY Limited • Experienced in the design, development, operation and Solar, wind, EPC, O&M
maintenance of solar plants and wind farms energy storage
• In the area of energy storage, provides battery maintenance
PROINSO UK Ltd • Integrates and distribute solar PV products, supplying such Solar Developer, EPC
components as inverters, modules, structures and complete
balance of system
• Develops a wide range of rooftop and ground-mount
structures (PROINSO PV Rack)
RES group • ndependent renewable energy company with over 16GW Wind, solar, Development, O&M
portfolio and the expertise to develop, engineer, construct, storage,
finance and operate projects electrical
networks
ROMAG • Manufactures solar panel kits that can be fitted to almost Solar Manufacturer
any roof
TNEI • Specialist energy consultancy, combining power systems Solar, wind, Professional
analysis, renewables integration, environmental services energy storage services
and noise assessment
Source: EY analysis based on UK FCDO renewable energy capability statement

The above table is non-exhaustive and is intended to be for illustrative purposes only. Companies identified in the ab ove table should not
be considered to be exclusive in respective sectors or as the only companies with export potential. Appendix 1 identifies a long list of UK’s
companies active in the renewable energy space.
10. Appendix
Appendix 1:
UK Low-Carbon Capabilities
The UK has strong capabilities in many low-carbon architectural design, engineering design and
and resource-efficient services, technologies environmental consulting. In energy technologies,
and processes that have the potential for export. processes and operations and maintenance, UK
Leveraging past work prepared by Carbon Trust energy industries encompass solar PV, wind, hydro,
(2013 and 2018), the UK’s strongest low-carbon geothermal, bioenergy, marine and energy storage
services are in the areas of financial, legal, policy, and smart grid.
UK companies involved in renewable energy projects and green financing
Company Sector Service area Description
Absolute Solar PV or Finance • Independent investment platform focused on renewable energy projects
Energy Capital hydroelectric • Offers investment or co-investment opportunities as well as business
development potential to industrial and financial clients
• Develops and deploys market-based solutions for rural electrification
and energy efficiency
Acropora Solar PV or EPC, finance • Investment and development company that develops renewable energy
Capital green finance projects, primarily in the Middle East and Africa
• Specialises in fundraising for the development, construction, operation
and maintenance of developed assets and provides access to very
attractive markets, which are otherwise difficult to enter
Adrian Hydroelectric Consulting, • Plans, designs and constructs small and micro-hydropower schemes,
Laycock EPC with sizes ranging from 50 kW to 1MW or more
• Specialises in micro-hydropower in environmentally sensitive areas
Advanced Hydroelectric Manufacturing • Provides advice and solutions for hydropower projects, from the initial
Pump and and bioenergy idea through to commissioning and generation
Hydro • Uses new, innovative, cost-effective technologies, such as plastic
Systems Ltd. generator screws and low-head Kaplan turbines
• Exclusive UK and Ireland agents for Bombas iDeal, which offers a
wide range of pump products and Wangen pumps, which manufacture
progressive cavity pumps
AES UK Storage and Manufacturing • Offers a world-class battery-based energy storage system, Advancion®
smart grid • Introduced the first grid-scale advanced battery in commercial power
market service in 2008
• Operates the largest fleet of battery-based storage assets in service
today, working with customers to integrate energy storage into eight-
power markets globally
Aggreko Plc Solar PV, wind EPC • Engineering and construction firm specialising in the wind (planning
Group and bioenergy, and infrastructure, construction, pre-commissioning, testing and
storage and commissioning and O&M (for both on- and offshore facilities), battery
smart grid storage for solar PV (design and build) and biogas (employing new
technology
AquaFloat Solar PV Manufacturing • A 2018 startup that has opened a 12MW manufacturing facility for
floating solar systems in Brampton, Cumbria
• Awarded with ISO 9001:2015 and ISO 14001:2015 certification
Arup Solar PV, wind, Consulting, • An independent firm of designers, planners, engineers, architects,
geothermal, EPC consultants and technical specialists working across every aspect of
bioenergy, the built environment, including offshore wind, solar, WTE, as well as
storage and hydrogen and electric cars
smart grid
Atkins Solar PV, wind, Consulting, • Provides design, engineering and project management consultancies
hydroelectric, EPC • Produced the outline designs for breakwaters, turbine houses and
bioenergy or ancillary works and supported the tender process by helping develop
marine documents and reviewing responses and detailed designs for Tidal
Lagoon Swansea Bay Plc, the power-generating tidal lagoon in Wales
Barclays Green finance Finance • Offers green loans to fund a range of environmental and sustainability
projects in energy efficiency, renewable energy, green transport,
sustainable food, agriculture and forestry, waste management and
greenhouse gas emission reduction
Battery Storage and O&M and • An energy storage company that owns and operates a portfolio of
Energy smart grid others battery sites
Storage • Provides a range of services from frequency balancing to reserve power
Solutions Ltd.
Belectric Solar PV, EPC, O&M • Develops and constructs utility-scale solar power plants and energy
Solar and storage and storage systems
Battery GmbH smart grid • Offers BESS and hybrid power solutions, which combines technologies to
autarkic systems
• One of the largest O&M providers globally
Biffa Group Bioenergy O&M and • One of the largest municipal, industrial and commercial waste
others management fleets in the UK
• Offers construction waste management, logistics waste solutions,
recycling and hazardous waste management
Bioenergy Bioenergy EPC, O&M • In establishing one of the UK’s largest portfolios of biomass and WTE
Infrastructure facilities
Group • Has over 100MW of operational and late-stage construction assets that
will divert over 1 million tonnes per annum of waste from landfills
Border Hydro Wind, EPC, O&M • Designs, installs and maintains grid-connected and stand-alone wind
hydroelectric turbines, a range of hydropower turbines and controllers and control
panels
Cumulus Storage and Manufacturing • Manufacturer and developer of grid-level energy storage batteries with
Energy smart grid the lowest levelized cost of storage globally
Storage Ltd.
CWind Wind EPC, O&M • Constructs, commissions, operates and maintains large-scale offshore
wind projects, including technician and engineering support, training and
inspection and maintenance
Deep Sea Solar PV, Manufacturing • Electronics manufacturer of control solutions

Electronics hydroelectric • Provides gensets for solar and marine applications and mains decoupling
and marine relays suitable for hydropower applications
Doosan Bioenergy Manufacturing • Equipment manufacturer specialising in biomass co-firing and

Babcock conversion, including fuel handling and milling, dedicated burners and
combustion systems and integrated steam turbine retrofitting
Dulas Ltd. Solar PV, wind, Consulting, • Renewable energy consultancy and installation on energy storage for
hydroelectric, EPC, O&M industrial solar, hydropower and wind applications
storage and • Offers services, including planning and application support, site design,
smart grid through to project management, installation, O&M and long-term service
optimization
Eaton Solar PV, wind, Consulting, • Power management company with 2016 sales of US$19.7 billion
Electrical marine, storage manufacturing • Provides research, development and implementation of energy-efficient
and smart grid solutions
• Is a leading supplier of products and services for renewable energy
distribution and automation and offers programmable logic controllers
to regulate photovoltaic power plants worldwide
EcoMachines Storage and Finance, • Invests in technology companies that are working to meet energy
Ventures smart grid others demand and make the supply of energy secure and stable
• Focus on innovative proprietary technologies, energy efficiency and
smart tech
EDS HV Wind EPC, O&M • Designs, connects, tests, commissions and operates onshore and
Group offshore wind projects
• Offers services, including installation, fault management, advisories, HV
safety, asset management and commissioning
Ellergreen Hydroelectric Consulting, • Provides feasibility studies, design and consenting, construction and
Hydro Ltd EPC project management
• Constructs and operate its own schemes and community-owned
schemes
Engie Solar PV, wind EPC, O&M • Energy services firm that sources and supplies green gas (sourced from
and bioenergy, generation plants that produce biogas from anaerobic digestion or
storage and landfill waste gas)
smart grid • Designs and installs battery storage solutions for small and large
businesses
EPS UK Storage and EPC, O&M • Offers a broad range of services, including switchgear and circuit
smart grid breaker design, rapid prototyping, 3D printing, finite element analysis-
based design improvement and contract CAD design services
• Offers services, including design of low-voltage automation products,
design of medium-voltage equipment (up to 72.5kV) and transformer
condition monitoring
FCC Wind and O&M • Operates WTE facilities and makes use of existing sites around the UK,
Environment bioenergy such as reclaimed areas of landfills, to build small wind turbines
Ltd.
Fichtner Solar PV, wind, Consulting, • Specialises in the due diligence, procurement and engineering of
Consulting hydroelectric, EPC, others renewable energy technologies throughout all project phases, from
Engineers geothermal, feasibility studies through to full operation
Ltd. marine, • Evaluates the impacts and optimises the design of renewable energy
storage and projects
smart grid
Flexitricity Storage and Consulting • Created the first demand response portfolio in Great Britain. Pioneered
smart grid open-market aggregated demand-side services for electricity system
balancing
• Provides aggregated STOR and FCDM, Footroom and demand turn-
up, post-fault dispatch for distribution networks, demand-side smart
frequency control and balancing mechanism access for demand-side
assets
Geothermal Geothermal EPC • Geothermal engineering and construction company that is developing
Engineering the UK’s first large-scale geothermal energy plan in Cornwall
Gilbert Gilkes Hydroelectric Manufacturing • Manufactures hydropower turbines with capacities of up to 20MW
& Gordon Ltd. • Exports to over 85 countries
• Has supplied over 6,700 hydroelectric turbines worldwide
Glen Hydro Hydroelectric Consulting, • Developers and consultants who design, install, operate and own
EPC hydroelectric schemes
• Advise on the economic viability and technical feasibility of watercourse
as a hydropower investment
• Focus on developments over 100 kW and up to 2MW in capacity
Green Hydroelectric Consulting, • Independent hydropower project developer, operator and owner
Highland EPC, O&M, • Offers services, including potential identification, design and licensing,
finance O&M, financing, construction and commissioning
Green Green finance Finance • Part of the Macquire Group

Investment • Offers a full suite of financial services, including development funding,
Group financial close, construction phase equity and debt and asset financing
across both established (offshore wind, onshore wind, solar, hydro, inter-
connectors, waste and biomass) and emerging technologies through all
stages of the project lifecycle: development, construction and operations
Hallidays Hydroelectric Consulting and • Global hydropower consultants specialising in the delivery and
Hydropower O&M maintenance of low-head, fish-friendly, run of river hydropower schemes
Ltd. • Offers services, including providing support from concept through
feasibility, design, licensing, installation and commissioning
Hotspur Geothermal EPC • Develops and constructs geothermal projects, focusing on large-scale
Geothermal projects, typically over 10MW, as well as smaller-scale direct use heat
and power projects
• Services include potential resource identification, exploration and drilling
and advancing projects to development
• Is targeting geothermal development in Indonesia
HSBC Bank Green finance Finance • Launched a range of new green finance products for UK businesses –
from small and medium enterprises to large corporations – including a
green loan, green revolving credit facility and a green hire, purchase,
lease and asset account as part of HBSC’s commitment to providing £76
billion in sustainable financing and investment by 2025
Hydroplan Hydroelectric Consulting and • Offers hydropower consulting, in-house design, due diligence,
O&M hydropower scheme operations and maintenance, survey services,
feasibility studies, hydro engineering, tunnelling and HV electrical
JDR Cables Wind and Consulting, • Develops inter-array submarine electric cables for offshore wind, wave
marine EPC and tidal energy projects
• Offers front-end engineering and design, project implementation,
product engineering and installation and asset management
Kingspan Solar PV Consulting, • Provides evacuated tube collectors and flat plate solar panel
EPC technologies, consulting and engineering studies and solar thermal
system servicing
M.A.M. Hydroelectric EPC • Provides engineering and construction on hydroelectric schemes

Contracting
MannPower Hydroelectric EPC, O&M • UK’s first supplier of Archimedean screw hydropower turbines
• Provides feasibility and design studies, detailed project plans,
construction and installation, commissioning and remote management
MHI Vestas Wind Manufacturing • Manufactures offshore wind turbine blades and offers operations and
Offshore Wind maintenance and project management services
• Offers the world’s largest commercially proven rotor, 174m
MLM Group Wind, Consulting, • Privately-owned engineering, environmental and building control
bioenergy and EPC consultancy
marine • Provides full-design services for WTE plants
• Offers design services in biomass, wind farms and wave generation
Moixa Storage and Manufacturing • Provides smart grid batteries and smart battery hardware and GridShare
smart grid software to facilitate smart energy storage and sharing
• Specialises in batteries for solar storage
Mott Solar PV, wind, Consulting, • Experienced in all types of renewable energy generation and power
MacDonald hydroelectric, EPC, finance transmission and distribution technologies
geothermal,
bioenergy and
marine, storage
and smart grid
N-ERGY Solar PV, wind, EPC, O&M • Experienced in the design, development, operation and maintenance of
Limited storage and solar plants and wind farms
smart grid • In the area of energy storage, provides battery maintenance
NOJA Power Storage and Manufacturing, • Provides medium-voltage reclosers and related products to the
smart grid EPC international market
• Has installed more than 50,000 NOJA Power OSM series Automatic
Circuit Reclosers in 87 countries
Open Energi Storage and Consulting • Offers specialist consultancy services in decentralised, digitalised energy
smart grid management to help businesses assess and value project opportunities
• The company’s Dynamic Demand 2.0 software dispatches assets for
capacity reserve schemes in line with market obligations, by minimising
costs and maximising income opportunities during peak periods by
reducing consumption or dispatching generation assets in response to
price signals
Orbital Marine Marine Manufacturing • Pioneered floating tidal stream turbines in Orkney, Scotland
Power • The orbital O2 turbine represents a move toward commercial operation
• Is developing tidal arrays at Lashy Sound orkney
Organics Solar PV, wind EPC, O&M • Provides services in landfill gas extraction and utilization, anaerobic
Group plc and bioenergy digestion, refuse-derived fuel and advanced thermal processing
(pyrolysis and gasification)
• Constructed three biogas plants in Indonesia
• Environmental protection services cover enclosed low-emission flare
systems, thermal ammonia removal systems, odor control, wastewater
treatment and soil decontamination
• Develops and operates solar PV, wind, biogas and biodiesel projects
Osbit Wind Manufacturing • Provides design, manufacturing, integration and support services for
floating offshore wind plants
• Is supplying its MaXccess T-18 access system for Japan’s first off-shore
wind farm to allow engineers safe access to the 2MW downwind floating
turbine and the 66kV floating sub-station, which are situated in deep
and rough waters, 20km off the coast of Japan
OXTO Energy Storage and Manufacturing • Has developed an innovative flywheel energy storage system to enable a
smart grid sustainable, low-carbon future
• Designed to work alongside renewable technologies, such as wind
and solar, allowing an intermittent renewable generation to continue
generating, even when the energy is not necessarily required
• Excess energy gets stored in OXTO’s steel flywheels and then released
when demand increases
Pegasus Solar PV, wind, Consulting, • Experienced in solar power, on- and offshore wind (turbine schemes,
Group hydroelectric, others from single turbines to wind farms), bio-energy (biomass, from small to
bioenergy and commercial scale), tidal power, energy from waste, anaerobic digestion
marine and hydropower
• Offers services, including site assessment and feasibility studies,
environmental impact assessments and mitigation design
Peter Bioenergy Manufacturing • Designs, manufactures and services steam turbines and turbine
Brotherhood generator sets up to 40MW applicable for biomass powerplants and WTE
plants
• Has installed thousands of steam turbines in more than 140 countries
• The only producer in the UK for steam turbines with outputs up to
40MW
Plan B Bioenergy Consulting, • Environmental management consultancy providing management and

Management EPC technical support services to the waste management industry
Solutions • Offers services, including procurement, interim project and data
management, procurement and work programming
PlanET Biogas Bioenergy O&M • Provides biogas services in planning, new construction, re-powering,
UK technical (remote maintenance, support for CHP units, on-site
replacement and advisories on new technologies), biological (operations
stability and substrate treatment) and biomethane
PM PROjEN Bioenergy Consulting, • Engineering design and project management firm focusing on the design
EPC and building of anaerobic digestion, biogas, biomass and liquid biofuels
plants
• Installed the UK’s first large-scale biodiesel plant
PROINSO UK Solar PV EPC, O&M • Integrates and distribute solar PV products, supplying such components
Ltd as inverters, modules, structures and complete balance of system
• Also develops a wide range of rooftop and ground-mount structures
(PROINSO PV Rack)
• Project development services range from identifying project sites to
contracting, construction and O&M
• Offers full support for engineering, procurement and management
Pure Energy Solar PV, wind, Finance • Helps create, finance and build new renewable energy businesses
Professionals bioenergy and • Offers project services, including co-development, financing,
Ltd. marine procurement and construction management, operations and asset
management, acquisitions, disposal, power purchase agreements and
green credit marketing
• Specialises in joint ventures in wind, solar, biomass and marine energy
Ramboll Solar PV, wind, Consulting, • Engineering and consulting firm

hydroelectric, EPC • Solar: has been involved in more than 20 solar heating projects in 10
geothermal, countries, covering over 200,000m2 in total
bioenergy and • Wind: has completed projects in 21 countries in offshore wind projects
marine and 60 countries onshore
• Hydro: optimises power stations, designs, monitors and assures the
quality of investments, both retrofits and new plants
• Geothermal: specialises in seismic, geological and geophysical studies
and investigations, including modelling and reservoir hydraulic
calculations and evaluation
• Bioenergy: establishes major modern anaerobic digestion (biomass) and
biogas facilities using a variety of feedstocks and has delivered over
60 biomass power, heat and CHP facilities using a full spectrum of fuel
types
• Marine: is working on a 10MW tidal test array from concept study to
detailed design for both foundation design and installation methodology
ROMAG Solar PV Manufacturing • Manufactures solar panel kits that can be fitted to almost any roof
• Offers a new lightweight and most efficient PV panel, the RSM 6 (60), for
roof mounting
Siemens Wind, storage Manufacturing • A leading supplier of wind power solutions (on- and offshore wind
Gamesa UK and smart grid turbines), has installed products and technology in more than 90
countries, with a total capacity base of over 89GW
• Offers hybrid power solutions to allow for the integration of one or more
renewable power generation assets with tailored energy storage systems
– heat or battery storage
SIMEC Marine Manufacturing, • Designs, supplies and maintains tidal turbines and subsea connection
Atlantis O&M equipment
Energy • Has more than 1,000MW of tidal stream marine projects in various
stages of development
• As lead developer, also works with consortiums to secure development
rights for marine power projects
• Is the majority owner of MeyGen, the world’s largest tidal stream energy
project
• Has a formal agreement with GE to hire resources for the ongoing
development of utility-scale tidal energy generation and associated
energy storage solutions
Suez Bioenergy Consulting and • Part of the Suez Group

Environment O&M • Handles over 10 million tons of waste in the UK
UK • We make a significant and growing contribution to the circular economy
and sustainability by recovering value from these waste materials
• Provides waste auditing and site assessments and recycling and
recovery services
Tidal Lagoon Marine EPC, O&M • Develops, constructs and operates tidal lagoon power plants in the UK
Power plc and internationally
• Is currently developing a national fleet of six tidal lagoons to meet up to
8% of UK electricity demand or power for around 30% of UK homes, as
well as moving on a number of potential projects overseas
TLS Hydro Hydroelectric EPC, O&M • Develops, constructs and operates hydropower sites
• Renovates older sites which are no longer operational
TNEI Solar PV, wind, Consulting • Specialist energy consultancy, combining power systems analysis,
Storage and renewables integration, environmental services and noise assessment
smart grid • Works in distributed renewable generation and the integration of low-
carbon technology
• Provides a range of technical services, from GIS to civil engineering and
energy market analysis
Trade Link Hydroelectric Finance • Offers financial and commercial advice in accrediting renewable
Solutions generation plants, trading electricity, hydropower generation and
feasibility studies
UKSOL Ltd. Solar PV Manufacturing • Produces high-quality solar PV modules that come with a 30-year British
warranty
• Provides procurement and global support
• Exports into over 39 countries
• Has installed 2MW solar panels on a factory rooftop in Manila,
Philippines and 300 kW modules on a new office block in Ho Chi Minh
City
Veolia UK Bioenergy O&M and • Provides a comprehensive range of waste, water and energy
others management services, including commercial waste collection, hazardous
waste collection and treatment and low-carbon heating for districts and
communities
Viridor Bioenergy O&M • Has 300+ advanced recycling, energy recovery and landfill diversion
(Pennon facilities and 10 energy recovery facilities that maximize resource
Group) efficiency for non-recyclable waste
• One of the UK’s largest independent power generators from waste, with
274MW of operating capacity from ERFs, anaerobic digestion, solar and
landfill gas (including joint ventures), exporting 1.5TWh of power during
2018–19
Xero Energy Storage and Consulting and • Independent transmission and distribution industry expert with
Limited smart grid O&M expertise in micro-grids, private wire systems and smart grids, from
small domestic systems through to higher-voltage distribution networks
and transmission
• Offers a broad range of expert services, including engineering, technical,
commercial and regulatory expertise on grid and electrical systems
Zenobe Storage and Others • Works with network infrastructure companies, such as power grids
Energy smart grid • Identifies innovative ways to reduce or eliminate reinforcement
expenditure, increase reliability and improve the environment for
customers through energy storage
• Delivers large-scale projects, which transform returns for investors and
benefits for consumers
Source: UK FCDO data provided in TetraTech report.

Appendix 2:
Upcoming Projects
The landscape for projects in the region is A consolidated summary of upcoming projects
dynamically changing. Projects are not always presented in each chapter is included in the following
developed through a structured procurement table. More detailed information is available for
process, but include a combination of unsolicited and selected projects*.
sponsor initiated projects. UK’s companies interested
in the sector must actively engage in the market and
market participants to explore leads and develop
opportunities.
Summary of upcoming projects
Power plant name Type of project State or province Total capacity Status Year
(MW) online
Srinagarind Dam Solar Park* Floating solar Kanchanaburi 720 Announced 2026
Sirikit Dam Floating Solar Park Floating solar Uttaradit 500 Announced -
Vajiralongkorn Dam Solar Park Floating solar Kanchanaburi 300 Announced 2027
Rajjaprabha Dam Floating Solar Floating solar - 240 Announced -
Banglang Dam Floating Solar Floating solar Yala 78 Announced -
Sirindhorn Dam Hybrid Solar Floating solar Ubon Ratchathani 58.5 Permitting 2020
Chulabhorn Dam Floating Solar Floating solar Chaiyaphum 40 Announced -
Ubonratana Dam Floating Solar Floating solar Khon Kaen 24 Announced -
Ubol Ratana Dam Hybrid Solar Floating solar Khon Kaen 24 Announced 2023
Bhumibol Dam Solar Park Floating solar Tak 158 Announced 2026
CPF Solar PV Park Ground mounted solar Bangkok 40 Permitting -
Blue Solar Farm 1 Ground mounted solar Suphan Buri 35.6 Permitting 2021
Tesco Lotus Solar PV Park Ground mounted solar - 15.3 Permitting -
Enmax Pantai Khok Kham Solar* Ground mounted solar Bangkok 10 Under -
construction
S Kijchai Solar PV Park Ground mounted solar Rayong 7 Permitting -

(MW) online
Udon Thani Solar PV Park Ground mounted solar Udon Thani 5 Permitting -
Wang Noi Solar PV Park Ground mounted solar Phra Nakhon Si 2.6 Permitting -
Ayutthaya
Map Ta Phut Solar PV Park Ground mounted solar Rayong 2 Permitting -
IKEA Store Bang Yai Solar Park Ground mounted solar Nonthaburi 1.5 Permitting -
Map Ta Phut Industrial Estate Ground mounted solar Rayong 1.4 Permitting -
Romklao Wind Farm* Wind energy Mukdahan 44.85 Under -

construction
Lam Takong Dam II* Wind energy Nakhon 24 Under -

Ratchasima construction
Bo Thong Wind Farm Wind energy Mukdahan 16 Permitting 2020
Bo Thong Wind Farm Wind energy Mukdahan - Permitting 2020
Bo Thong Wind Farm Wind energy Mukdahan - Permitting 2020
Man Fai Phaya Hydropower - 2 Announced 2034
Lam Pao Hydropower Kalasin 2.5 Announced 2032
Mae Wong Hydropower Hydropower - 12 Announced 2032
Lamtakong Hydropower - 1.5 Announced 2029
Samong Creek Dam Hydropower Prachin Buri 1 Announced 2028
Chulabhorn Pumped Storage Hydropower - 800 Announced 2026
Kamalasai Weir Hydropower Kalasin 1 Announced 2026
Thap Salao Dam Hydropower Uthai Thani 2 Announced 2025
Pranburi dam Hydropower Prachuap Khiri 2 Announced 2025

Khan
Lam Ta Southbank Dam Hydropower - 1 Announced 2024

(MW) online
Maha Sarakham Weir Hydropower Maha Sarakham 1 Announced 2022
Pha Dam Neck* Hydropower Uttaradit 14 Under 2022

construction
Khlong Tron* Hydropower Uttaradit 2.5 Under 2021

construction
Chulabhorn Dam Hydropower plant* Hydropower Chaiyaphum 1.25 Under -

construction
Yasothon Weir Hydropower Yasothon 4 Announced -
Khonburi Sugar Cogeneration Plant Biomass Nakhon 40 Announced -

Ratchasima
Kumphawapi Biomass Power Plant Biomass Udon Thani 40 Permitting 2021
Khlong Thom Biomass Power Plant Biomass Krabi 30 Permitting 2021
Mueang Phrae Biomass Power Plant Biomass Phrae 30 Permitting 2021
Taphan Hin Biomass Power Plant Biomass Phichit 26 Permitting 2021
Thung Yai Biomass Power Plant* Biomass Nakhon Si 25 Permitting 2021

Thammarat
Thung Yai Biomass Power Plant II* Biomass Nakhon Si 25 Permitting 2021
Thammarat
Chana Songkhla Biomass Power Biomass Songkhla 25 Under 2020

Plant * construction
Lipasango Biomass Power Plant* Biomass Pattani 23 Under 2020

construction
Mueang Ranong Biomass Power Biomass Ranong 23 Permitting 2021

Plant
Surin Electric Biomass Power Plant Biomass Surin 22 Permitting 2020
Korach Industrial Biomass Power Biomass Nakhon 22 Permitting -

Plant Ratchasima
(MW) online
Mueang Udon Thani Biomass Power Biomass Udon Thani 20 Permitting 2021
Plant
Pathio Biomass Power Plant Biomass Chumphon 20 Permitting 2021
Si Satchanalai Biomass Power Plant Biomass Sukhothai 17 Permitting 2021
Sawi Biomass Power Plant Biomass Chumphon 16 Permitting 2021
Budi Biomass Power Plant* Biomass Yala 9.9 Under -

construction
Budi Biomass Power Plant II* Biomass Yala 9.9 Under -

construction
Uttaradit Biomass Power Project Biomass Uttaradit 9.5 Permitting -
Muang Nakhon Ratchasima Garbage Biomass Nakhon 9.3 Permitting -

Fuelled Power Plant Ratchasima
Bang Por Biomass Power Plant* Biomass Narathiwat 6.3 Under 2020
construction
Nong Ruea Biomass Power Plant Biomass Khon Kaen 27 Permitting 2021
Krabi Biopower Project Biomass Krabi 3 Permitting -
Udon Thani Biogas Plant Biogas Udon Thani 1 Permitting -
Phetchaburi Waste to Energy Plant WTE Phetchaburi 9.9 Permitting 2022
Amphur Mueang Waste to Energy WTE Rayong 9.8 Permitting -

Project
Tha Laeng Energy From Waste WTE Phetchaburi 7.9 Under -

Plant* construction
Subject to information availability, further details public domain. It is recommended to form local
of the projects are presented in subsequent relationships and partnerships with developers,
pages. The market is relatively complex and to succeed in the market.
very limited information is available in the
Detailed project information
Project name Bhumibol Dam Solar PV Park
Project type Floating solar
Installed capacity 778 (phase 1 + 2 + 3)
Project location Tak
Developer Electricity Generating Authority of Thailand (EGAT)
PPA status -
Tariff -
Financing Yet to be decided
Financing sources Public
Permits Under consideration – project has just been announced
PPA off taker -
Feasibility study Under consideration – project has just been announced
Other studies -
Any other issues -
Developer track record -
Other stakeholders -
Notes • This is a hybrid project through combining hydropower at Bhumibol Dam (Hydro
plant capacity is 608.2MW).
• The project is the part of EGAT’s plan of installing floating solar panels at five
hydropower plants in five provinces.
• The project cost is not decided yet. However, similar kind of project is also planned
at Sirindhorn dam where the development cost is decided as US$1 million/MW for a
45MW plant.
Business opportunities • Potential to participate in tender

• Provide services
Information sources • GlobalData

• Bangkok post
Project name Enmax Pantai Khok Kham Solar PV Park
Project type Solar PV
Installed capacity 10MW
Project location Bangkok, Thailand
Developer Enmax Holding (Thailand) Co. Ltd.
PPA status -
Tariff -
Financing Financing is in progress.
Financing sources Private
Permits Completed – under construction
PPA off taker -
Feasibility study Completed – under construction
Other studies -
Any other issues Delay in construction – The project was expected to be finished before 15 December 2016.
Developer track record Enmax is an energy service company focusing on renewable energy projects and energy
conservation. In renewable energy, they are a full-service solar power provider serving
the government, commercial and residential sectors. In energy conservation, they
provide solutions to help businesses and factories reduce their electric consumption
by means of LED lighting replacements, intelligent use of resources and energy
management.
Other stakeholders GCL System Integration Technology Co. Ltd. provided inverters and mounting system
for the plant.
Notes • Total capital expense (CapEx) for the project is US$16.87 million
• TMB Bank approved and accepted this project
• This project is comprised of two power plants located in Pantai and Khok Kham,
two surrounding areas of Bangkok
• GCL System Integration Technology Co. Ltd. (GCL-SI) entered into partnership with
Enmax Holding (Thailand) Co., Ltd. (Enmax) to work on a 10MW photovoltaic (PV)
ground power station project in Thailand
• The 10MW PV power station project utilises GCL-SI’s GCL-P6/60G modules, noted
for their maximum output of 260 W and average annual electricity output of
15,552MWh
• Enmax holding (Thailand) Co. Ltd. is the owner of the project
Business opportunities Professional services

• Posharp
Project name Romklao Wind Farm
Project type Wind farm
Installed capacity 44.850MW
Project location Romklao - Mukdahan, Thailand
Developer Developers for the project are Wind Energy Holding Co. Ltd. as the owner and Winchai
Co. Ltd. as the operator.
PPA status EGAT International Co. Ltd. signed PPA with the developers to purchase power from the
plant for a tenure of 10 years from the date of operation (not clearly mentioned about
the date) and a value of US$10.5 cents per kWh.
Tariff -
Financing Financing is in progress
PPA off taker EGAT International Co. Ltd.
Other studies -
Any other issues -
Developer track record Wind Energy Holding Co., Ltd. (Wind Energy) is a renewable energy-producing company,
based in Thailand. The company produces and develops wind farm power plant projects.
It also produces electricity through wind energy. It was established in the year 2009.
Wind Energy is headquartered in Bangkok, Thailand.
Other stakeholders • Ale Project Ltd. provided transportation, craneage and installation services.
• Vestas Wind Systems AS will serve as O&M provider.
Notes • Total CapEx for the project is US$101.30 million.

• Romklao Wind Power Company Limited is a SPV (100%) formed for the project by
Wind Energy Holding Company Limited.
• The turbines order was placed by Winchai Co. Ltd. for the wind farm.
• IEC International Engineering consultants provided Wind Turbines Foundation
Design.
• Wind Energy Holding Co. Ltd. is the owner of the project as an IPP (100% stake).
Business opportunities • Professional services

Project name Pha Dam Neck
Project type Hydro
Project location Ban Khlong Na Pong - Uttaradit, Thailand
Developer Electricity Generating Authority of Thailand
PPA status -
Tariff -
PPA off taker -
Other studies -
Any other issues -
Developer track record Electricity Generating Authority of Thailand (EGAT) is a state-owned power utility.
It generates, procures, transmits and distributes electricity. The authority produces
energy using hydro, coal, natural gas, wind, solar, geothermal, diesel, fuel oil and palm
oil, among others. EGAT procures electricity from neighboring countries and domestic
IPPs and SPPs on wholesale basis. It supplies energy to the MEA, PEA, legal power users
and neighboring utilities.

• Average output of project is 74GWh.
• The ownership of the project belongs to Electricity Generating Authority of
Thailand.

Project name Amphur Mueang Waste to Energy Project
Project type Biomass power plant
Installed capacity 9.8MWe
Project location Pattani, Thailand
Developer Global Power Synergy Public Co. Ltd.
PPA status -
Tariff -
Financing -
Financing sources -
Permits Underway
PPA off taker Electricity Generating Authority of Thailand
Feasibility study Permitting
Other studies -
Any other issues -
Developer track record Global Power Synergy Public Co. Ltd. (GPSC) an affiliate of PTT Global Chemical Public
Company Limited, is a power utility that generates and supply electricity and thermal
energy.
Notes • Total CapEx for the project – US$24.17 million

• EPC contract awarded to Thai Jurong Engineering Ltd.
• The plant will be built next to the refuse derived fuel (RDF) production plant in
Amphur Mueang
• The project aimed to power 6700 homes

Project name Banglang Dam Floating Solar PV Park
Project type Floating solar
Project location Yala, Thailand
Developer -
PPA status Transaction announced
Tariff -
Financing -
Permits -
PPA off taker -
Feasibility study -
Other studies -
Any other issues -
Other stakeholders EGAT
Notes
Business opportunities • Potential to participate in tender

• Provide services

Project name Lipasango Biomass Power Plant
Installed capacity 23MWe
Project location Pattani, Thailand
Developer TPC Power Holding Public Co. Ltd. as IPP
PPA status Electricity Generating Authority of Thailand (EGAT) signed a PPA agreement with TPC
Power Holding Public Co. Ltd. to purchase power from the plant for a tenure of 5 years
from the date of operation (date not given clearly).
Tariff -
Financing sources Public money
Other studies -
Any other issues -
Developer track record TPC Power Holding Public Company Limited operates its core business by holding
shares in other companies (holding company) that operate in the production and
distribution of electricity from various types of renewable energy projects and provide
support services for the operations of subsidiaries and jointly controlled businesses of
the company.

• Pattani Green Company Limited, a subsidiary of TPC Power Holding Public
Company Limited is owner of the plant.

Project name Budi Biomass Power Plant
Project location Budi - Yala, Thailand
PPA status PEA signed a PPA agreement with TPC Power Holding Public Co. Ltd. to purchase
power from the plant for a tenure of 20 years from the date of operation (date not
given clearly).
Tariff -
PPA off taker PEA
Other studies -
Any other issues -
the company.

• TPCH Power 1 Company Limited, a subsidiary of TPC Power Holding Public
Company Limited is owner and developer of the plant.

Project name Khlong Tron
Project type Hydro
Project location Uttaradit, Thailand
Developer Electricity Generating Authority of Thailand
PPA status -
Tariff -
PPA off taker -
Other studies -
Any other issues -
Developer track record Electricity Generating Authority of Thailand (EGAT) is a state-owned power utility.
It generates, procures, transmits and distributes electricity. The authority produces
energy using hydro, coal, natural gas, wind, solar, geothermal, diesel, fuel oil and palm
oil, among others. EGAT procures electricity from neighboring countries and domestic
IPPs and SPPs on wholesale basis. It supplies energy to the MEA, PEA, legal power users
and neighboring utilities.
Other stakeholders Right Tunneling Co. Ltd. served as the main contractor for the project.

• Average output of the project is 54.020GWh.
• The ownership of the project belongs to Electricity Generating Authority of
Thailand.
• Flovel Energy Private Limited received an order to supply 2 x 1.25MW Horizontal
Francis Turbines, generators for the project. Their scope of work also includes
supervision of erection, testing and commissioning.
• The EGAT signed a memorandum of understanding (MoU) with the Royal Irrigation
Department (RID) of Thailand to construct two hydropower plants totaling 8MW
capacity. The two plants will be in Uttaradit and Lampang provinces. The company
intends to produce 5.5MW of electricity from Kiu Kho Ma dam and the rest 2.5MW
will be from Khlong Tron dam.

Project name Bang Por Biomass Power Plant
Project location Bang Por - Narathiwat, Thailand
PPA status PEA signed a PPA agreement with TPC Power Holding Public Co. Ltd. to purchase power
from the plant for a tenure of 20 years from the date of operation (date not given
clearly).
Tariff -
PPA off taker PEA
Other studies -
Any other issues -
the company.

Company Limited is owner of the plant.
Business opportunities Other professional services

Project name Tha Laeng Energy From Waste Plant
Project type Biopower
Project location Tha Laeng - Phetchaburi, Thailand
Developer A consortium of Hitachi Zosen Corp and KPN Green Energy Solution Co. Ltd.
PPA status PEA signed a PPA agreement to purchase power from the plant.
Tariff -
Financing sources Private money
PPA off taker PEA
Other studies -
Any other issues -
Developer track record • Hitachi Zosen Corp is an industrial and engineering company. It designs, constructs
and operates refuse incineration and recycling facilities, pressure vessels, marine
diesel engines and press machines and other process machines.
• KPN Green Energy Solution Co. Ltd. operates a full range of design, procurement,
construction and installation services.
Other stakeholders Civil construction services by Italian-Thai Development PCL

• WPGE Phetchaburi Co., Ltd. (WPP) is a joint venture company between WP Green
Energy Co., Ltd. (WPGE) and STP&I Services Co., Ltd.
• A consortium formed by Hitachi Zosen Corporation and KPN Green Energy Solution
Co., Ltd. (KPN) received an order from WPGE Phetchaburi Co., Ltd. (WPP) for
an energy-from-waste plant comprising a stoker-type waste incinerator with a
processing capacity of 476 tons per day and power output of 7,900kW.
• Hitachi Zosen is responsible for designing the plant and supplying key equipment.

Project name Budi Biomass Power Plant II
Project location Budi - Yala, Thailand
PPA status PEA signed a PPA agreement with TPC Power Holding Public Co. Ltd. to purchase power
from the plant for a tenure of 20 years from the date of operation (date not given
clearly).
Tariff -
PPA off taker PEA
Other studies -
Any other issues -
the company.

Company Limited is owner and developer of the plant.

Project name Thung Yai Biomass Power Plant
Project location Nakhon Si Thammarat, Thailand
Developer -
PPA status -
Tariff -
Permits Under Consideration – Permitting stage
PPA off taker -
Feasibility study Under Consideration – Permitting stage
Other studies -
Any other issues -

• Si Chao Phraya Company Limited is owner of the plant.
• Out of 25MW, 21.5MW will be supplied to the grid at US$6.64 cents per kWh

Project name Thung Yai Biomass Power Plant II
Project location Nakhon Si Thammarat, Thailand
Developer Bio Power Plant Co., Ltd.
PPA status -
Tariff -
Permits Under consideration – permitting stage
PPA off taker -
Feasibility study Under consideration – permitting stage
Other studies -
Any other issues -

• Bio Power Plant Co., Ltd. is owner of the plant.
• Out of 25MW, 21.5MW will be supplied to the grid at US$0.0664/kWh.

Project name Chana Songkhla Biomass Power Plant
Installed capacity 25MWe
Project location Songkhla, Thailand
Developer Gulf Chana Green Co. Ltd. as IPP
PPA status Electricity Generating Authority of Thailand (EGAT) signed a PPA agreement with Gulf
Chana Green Company Limited to purchase 20.6MW for a tenure of 25 years from the
date of operation at a value of US$0.003/kWh.
Tariff The project will receive a tariff incentive of THB0.3 per kWh (US$0.009) for utilizing
biomass and THB1 per kWh (US$0.03) for investing in southern Thailand.
Financing Complete
Other studies -
Any other issues -
Developer track record Gulf Chana Green Company Limited is a special purpose vehicle wholly owned by Gulf
Energy Development.
Other stakeholders • Asian Development Bank as Finance provider

• Sino-Thai Engineering & Construction Public Co. Ltd. as EPC Contractor
• Poyry’s providing complete contractor’s engineering services for the project,
including process and plant engineering, plant layout design, civil and structural
design, mechanical and piping design, control and instrumentation design,
electrical design and procurement and tendering services
Notes • Total CapEx for the project is US$35 million.

• The plant will use rubber waste as fuel.
• The net capacity of the plant is 20.6MW.
• Poyry PLC is engineering service provider.
• This biomass power plant is being implemented under Thailand’s Small Power
Producer (SPP) scheme.
• Gulf Chana Green Company Limited, a special purpose vehicle wholly owned
by Gulf Energy Development Co. Ltd. (GED), has completed project financing of
THB1,109 million (US$36.99 million) for the construction and development of the
project. The financing was provided by The Asian Development Bank (ADB).
Business opportunities Professional services related to review of projects

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https://www.dbd.go.th/index.html,[Access: 28 February 2020]
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https://www.bot.or.th/App/BTWS_STAT/statistics/ReportPage.aspx?reportID=654&language=eng, [Access:
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https://www.adb.org/sites/default/files/linked-documents/49087-001-so.pdf
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https://gwec.net/market-to-watch-thailand/
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“IRENA Thailand Renewable Energy Landscape overview 2017”,

https://www.irena.org//media/Files/IRENA/Agency/Publication/2017/Nov/IRENA_Outlook_Thailand_2017.
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https://iea-pvps.org/wp-content/uploads/2020/01/NSR_2019_Thailand_draft_Complete.pdf
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https://www.nortonrosefulbright.com/en/knowledge/publications/2f5545da/asia-renewables-snapshot-
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http://www.ppa.egat.co.th/sppx/images/SPP_Document/Regulation/FirmRenew/Reg_FirmRenew_50(52).
pdf
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https://pugnatorius.com/solar/
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http://www.conventuslaw.com/report/renewable-energy-in-thailand/, [Access: 28 February 2020]
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https://lorenz-partners.com/download/thailand/NL210E-Renewable-Energy-in-Thailand-Jul19.pdf
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https://www.nortonrosefulbright.com/en/knowledge/publications/2f5545da/asia-renewables-snapshot-
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https://www.tmbbank.com/en/sustainability/economic/responsible-lending.html, [Access: 28 February
2020]
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https://pugnatorius.com/solar/,[Access: 28 February 2020]
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https://unef.es/wp-content/uploads/dlm_uploads/2018/04/solar-energy-task1_thailand_2018-1.pdf
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https://www.rvo.nl/sites/default/files/2017/03/FACTSHEET-SOLAR-POWER-IN-THAILAND.pdf
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https://www.irena.org//media/Files/IRENA/Agency/Publication/2018/Jan/IRENA_Market_Southeast_
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https://www.egat.co.th/en/information/statistical-data?view=article&id=80, [Access: 28 February 2020]
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https://guarantco.com/portfolio/thai-biogas-energy-company/, [Access: 28 February 2020]
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https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Biofuels%20
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https://www.doingbusiness.org/content/dam/doingBusiness/country/t/thailand/THA.pdf
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https://www.egat.co.th/en/images/about-egat/PDP2015_Eng.pdf
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https://www.thai-german-cooperation.info/admin/uploads/
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https://www.bot.or.th/Thai/Statistics/Graph/Chart_Pack/Chart%20Pack.pdf
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http://www.appp.or.th/en/membership.php
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https://unef.es/wp-content/uploads/dlm_uploads/2018/04/solar-energy-task1_thailand_2018-1.pdf
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Renewable Energy Business Opportunities

Abbreviation & Acronyms

ALRO Agricultural Land Reform Office LCOE Levelised cost of electricity

BESS Battery energy storage systems MEA Metropolitan Electricity Authority

BIPV Building-integrated photovoltaics MOE Ministry of Energy

BNEF Bloomberg New Energy Finance MSW Municipal Solid Waste

BOI Board of Investments MW Megawatt

BOO Build Own Operate MWh Megawatt hour

EPC Engineering procurement and construction PDP Power Development Plan

ERC Energy Regulatory Commission PPA Power Purchase Agreement

ESB Enhanced Single Buyer PV Photovoltaic

ESCO Energy Service Company R&D Research and Development

FBA Foreign Business Act RFP Request for Proposals

FDI Foreign Direct Investment SELCO Self-consumption

FiT Feed-in-Tariff SPP Small Power Producers

FCDO Foreign, Commonwealth and Development THB Thai Baht

Potential of renewable energy project in Thailand’s energy mix

Regulations and issues

Conclusion Market value for renewable energy projects

Technology Market size Foreign share in market size

Solar PV 812 707

Wind 541 438

Biomass 2,492 1,196

Biogas 2,797 1,930

Waste to energy (WTE) 1,460 1,254

Total 8,194 5,571

1. About The Study

Step 3: Estimating the foreign market share of Exchange rate

2. Thailand Energy Industry

Thailand: country overview Population (2019): 69 million

Source: Oxford Economics, Bank of Thailand

Thailand in the period of 2020–25

20,000 Indonesia Philippines

Indonesia Vietnam Malaysia Philippines Thailand Myanmar

2.2 Key Government

Figure 2.3: Overview of The Electricty Market in Thailand

ERC was established in 2008 under

Policy and regulatory MOE

Combine together own majority of generation, however,

Single buyer, owner

Neighboring utilities, EGAT

Source: MOE, EGAT, DBSVTH

Figure 2.4: Key Government Agencies Relevant to The Power Sector

Key government Role relevant to electricity sector

Other government Role relevant to electricity sector

2.3 Other Key Stakeholders

Table 2.1: Major Project Developers in Thailand

Company Business description Capacity in

Company Business description Capacity in

2.4 Major Government

Figure 2.6: Structure of Power Market in Southeast Asian Countries (2019)

Malaysia Vietnam Philippines Singapore

Private sector participation in generation and VSPPs

Source: IRENA Thailand renewable energy landscape overview

2.5 Overview of The Power

1.0 2.4 2.8 5.0 0.9 0.4 8.9 9.3 4.8

Figure 2.8: Electricity Demand Consumption in Thailand (GWh, 2005–35)

2005 2010 2015 2019 2020 2025 2030 2035

Source: EPPO, EPPO, PDP 2018–37

Figure 2.9: Electricity Generation in Thailand by Fuel Sources (GWh, 2005–19)

Source: EPPO Statistics, Power Generation by fuel type, http://www.eppo.go.th/index.php/en/en-energystatistics/electricity-statistic?orders[publi

Figure 2.10: Electricity Mix by Generation (GWh, 2018–19)

+4% Legend 2018 share 2019 share