Thai Government targets B720bn of clean energy investments

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Energy Minister Auttapol Rerkpiboon (photo: Energy Ministry)

Thai Government targets B720bn of clean energy investments

The Energy Ministry aims to generate 720 billion baht in investment for energy development projects, notably solar power and carbon capture storage, putting Thailand on a fast track towards its net-zero goal, achieving it 15 years sooner than the target date.

Government targets B720bn of clean energy investments
The projects are meant to reduce carbon dioxide emissions and stimulate the economy under the ministry’s “Quick Big Win” energy campaign, aligning with the policy of the Anutin Charnvirakul government that wants to see Thailand strike a balance between greenhouse gas emissions and absorption by 2050.

Former prime minister Prayut Chan-o-cha told the UN Climate Change Conference four years ago that Thailand’s net-zero target would be attained by 2065.

“The combined projects are expected to create 16,000 jobs and reduce carbon dioxide emissions by 10 million tonnes a year,” said Energy Minister Auttapol Rerkpiboon.

Among the tasks is a push for solar-powered water pumps for farmers in areas spanning 700,000 rai of land nationwide.

He said authorities will encourage communities and companies to co-invest in developing solar farms to sell electricity to the government.

Mr Auttapol also plans to speed up a project to have the Electricity Generating Authority of Thailand install floating solar farms at its three dams: Bhumibol, Vajiralongkorn and Srinagarind.

The government is also granting tax reductions for 90,000 households that install rooftop solar panels.

In addition, authorities plan to invest in installing carbon capture systems worth 540 billion baht to help Thailand reduce carbon dioxide emissions.

According to Mr Auttapol, the ministry will step up efforts to launch a pilot project for a direct power purchase agreement (PPA) next month.

Known as a direct PPA, the agreement is a form of electricity trade that lets power companies directly sell clean power to clients, particularly electricity-intensive data centre operators.

Peer-to-peer power trade in the renewables category remains banned in Thailand.

The direct PPA scheme with power generation capacity of 2 gigawatts in the first phase requires an investment budget of 65 billion baht.

“Foreign investors in digital tech businesses, especially data centres, still depend on electricity from fossil fuels, but they will demand more clean energy in the future,” he said.

“We should seize this opportunity to increase investment.”

Mr Auttapol said authorities are also drafting a new version of the power development plan, which will guide the country’s long-term power supply management, with a greater focus on renewable power.

Source: https://www.bangkokpost.com/business/general/3117896/government-targets-b720bn-of-clean-energy-investments