Guide to successful
solar power plant projects
Sophisticated solutions in a complex legal environment.
Serious legal and tax advice in the land of smile.
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A huge demand for alternative energy projects:
Thailand Development Plan 2012-2021
Source: Department of Energy Business, Ministry of Energy
What makes Thailand to one of the best locations for a solar power project - except its sun? • Thailand was one of the first Asian countries with a comprehensive feed-in
tariff, or adder, program. The program has been in place for six years and gone through successive phases of adjustment, in particular in response to higher-than expected response by industry in the form of applications submitted for interconnection. As of December 2011, Thailand had about 8,000 megawatts of renewable energy projects in the pipeline seeking adder and about 1,000 megawatts already connected and selling power to the grid.
• Compared with other Southeast Asian countries, Thailand has the highest electricity demand, with plans for increasing imports from neighboring countries such as Laos, Myanmar, and China. The electricity consumption in 2010 was 150 billion kWh. Over the past ten years, electricity demand has been growing at about 3.2% per year. The current installed capacity is 32,000 MW, with the majority of energy sources from natural gas (66%) and coal (20%). Non-hydro renewable energy contributes a minor (around 5%) but increasing share of total electric power generation.
The major players in the Thailand energy
EGAT Electricity Generating Authority of Thailand is a state-owned company which controls 48.5% of the generating capacity, but 100% of the transmission system
EGAT generates and supplies electricity to the MEA and PEA for further distribution to consumers.
PTT Petroleum Authority of Thailand, PTTEP PTT Exploration and Production and Bangchak Petroleum are the three other major energy-related state enterprises, primarily in the oil and natural gas sector.
The IPP Independent Power Producer EGCO Electricity Generating Company and Ratchaburi Electricity Generating Holding are private sector competition in the power generation. 24% of the shares in EGCO are held by the Dutch TEPDIA Generating B.V., a joint venture between Tokyo Electric Power Company and Mitsubishi Corporation.
The structure of Thailand's electric power
Small power plant
more 10 MW, max 90
Independent power plant
more than 90 MW
Customers / users
Very small power plant
10 MW or less
Business framework and economics for the
solar energy investment in Thailand
• Under the current 2012 BOI regulations, solar power plants have been
promoted under Category 7.1.1 (production of electricity or steam power) • Under the new 2015 BOI regulations at least the same promotion • Alternative energy projects are typically cost-intensive. On an international level, engineering, procurement and construction costs for
✓ Biomass projects amount roughly US$ 1.5 million per MW
✓ Wind energy facilities amount roughly US$ 2,5 million per MW ✓ Solar energy plants amount roughly US$ 2 million per MW
• Thailand’s “adder” program, ensures guaranteed purchases...
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