Key trends and regulatory changes in the industry:
– The Thai government updated its green energy agenda in March 2012 with the ambitious ‘Alternative Energy Development Plan’ (2012-2021). The plan states that 25% of total energy consumption would derive from alternative energy sources, and set targets of 2GW of solar capacity, 1.2GW of wind capacity and 3.63GW of biomass, all by 2021.
– On July 16, the Thai government introduced a FiT programme for up to 1,000MW of rooftop and village-based solar projects. These projects would qualify for 25-year power purchase agreements with tariffs as high as THB9.75/kWh.
– Construction on the controversial Xayaburi dam has restarted, despite opposition from Vietnam and Cambodia. The Thai government also affirmed a power purchase agreement for 95% of the dam’s electricity output in January 2012, going against the regional decision-making process.
– The Thai government is set to open bids for six gas-based independent power projects (IPPs) with a capacity of 5,400MW. This was announced after Thailand’s National Energy Policy Council approved the third revision of the country’s 2010-2030 power development plant. All IPPs use natural gas.
