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Bangkok Post
Bangkok Post
Business

More sectors to use direct power deals

New participants in the direct PPA scheme are classified as 'special electricity users', with separate tariff calculations from those for general factories, says Mr Poonpat.

Authorities are preparing to broaden the pilot direct power purchase agreement (PPA) programme, initially designed for data centre operators, to include a wider range of industries seeking clean energy solutions.

The move comes as authorities aim to accelerate the country's energy transition and strengthen competitiveness in global trade.

The Energy Regulatory Commission (ERC) and the Board of Investment are jointly considering the expansion following approval by the National Energy Policy Council.

Speaking at the 2026 Huawei Thailand Digital & AI Summit yesterday, ERC secretary-general Poonpat Leesombatpiboon said the direct PPA framework must be redesigned to accommodate diverse industries with varying cost structures and energy demands.

Under the pilot scheme, businesses are allowed to bypass Thailand's prohibition on peer-to-peer power trading, enabling them to purchase electricity directly from producers.

He said prioritisation is necessary, with data centres remaining the immediate focus to ensure completion within this year.

Mr Poonpat cautioned that businesses joining the scheme must bear additional costs linked to power demand, including ancillary services for transmission usage.

Thailand's transmission network has limited transfer capacity, meaning further investment will be required, he said.

The expansion will likely be phased, depending on demand clarity.

Momentum for the push to adopt clean energy comes from the EU's Carbon Border Adjustment Mechanism, which imposes non-tariff barriers on carbon-intensive imports.

"We must secure clean energy for industries to avoid trade obstacles," Mr Poonpat said, stressing that direct PPAs address demand-side management and need not wait for the finalisation of the 2026 Power Development Plan.

Thailand is undergoing two parallel transitions: digitising its industries to become a regional digital hub and shifting its energy system from fossil fuels to renewables, he said.

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