By Chandler MHM Limited

On 16 December 2019, the National Energy Policy Committee approved, in principle, the purchase of 700 MW of power generated from renewable resources under a Feed-in Tariff Scheme from community-based power projects (“Projects”).

Community-based projects included in the approval, and purchase prices for each, are as follows:

Resources Price (Bt/Unit)
Solar 2.90
Bio-mass ≤3MW: 4.8482 >3MW: 4.2636
Bio-gas (wastewater/waste) 3.76
Bio-gas (energy crops) 5.3725
Bio-gas (hybrid energy crops and wastewater/waste) 4.7269

Power Purchase Agreement

Power purchase agreements for Projects will be non-firm agreements, whereby the power producer will not be obliged to supply a fixed amount of power to the power purchaser. The power producer will be prohibited from using fossil fuel to support power generation.

Scheduled Commercial Operation Date

The Scheduled Commercial Operation Date for these Projects will be as follows:

  1. for participating power projects that are currently under construction (Quick Win), within 2020; and
  1. for other participants, from 2021 onwards.

Selection Criteria

The selection committee will consider offers from the bidders of the Projects based on following criteria:

  1. the contracted capacity is not more than 10 MW;
  1. benefits and returns that the community will receive (from the highest to the lowest); and
  1. projects under Quick Win will be given priority.

Partnership with Community

The bidders (private companies, or joint investments between private companies and state entities) will be required to jointly invest in the Projects with local communities. The local communities can hold shares in the Project ranging from 10-40%. The bidder must implement a profit sharing scheme whereby revenue from the sale of electricity, before deduction of expenses, has to be distributed to the local communities’ fund in the following ratios: for bio-mass and bio-gas, not less than 25 satang/unit; and for hybrid solar, not less than 50 satang/unit. The bidder will also be required to enter into a resources purchase agreement, in a form of ‘Contract Farming’, with the local communities to ensure the quantity, quality and price of the resources to be supplied by the local communities.

This partnership will result in the local communities benefiting from revenue generated

Key Contacts

Jessada Sawatdipong
Tel: +66-2-266-6485 Ext 205 (

Hiroki Kishi
Tel: +66-2-266-6485 Ext 327 (

Sarunporn Chaianant
Tel: +66-2-266-6485 Ext 204 (

Suphachok Saengarun
Tel: +66-2-266-6485 Ext 206 (

Chandler MHM Limited
36th Floor, Sathorn Square Office Tower
98 North Sathorn Road, Silom, Bangrak, Bangkok 10500, Thailand
Tel. 66 2009 5000
Fax. 66 2009 5080

by the Projects from supplied resources, the Projects’ dividends and electricity price reductions.

The Energy Regulatory Commission (“ERC“), the Electricity Generating Authority of Thailand and the Department of Alternative Energy Development are now discussing the locations and the feeders for the Projects before considering the criteria applicable to the Projects. Once those details are settled, the ERC will promulgate a notification to purchase power from the Projects.

Chandler MHM will continue to monitor issues that may arise, or further development with regard to the community-based power projects.


This publication is intended to highlight an overview of key issues for ease of understanding, and not for the provision of legal advice. If you have any questions about this publication, please contact your regular contact person(s) at Mori Hamada & Matsumoto or Chandler MHM Limited, or any of the Key Contacts listed in the far-right column.

Related Articles by Firm
New regulation on the prohibition of sales of alcoholic beverages online
In line with evolving trends in technology, certain entrepreneurs and retailers have started using online channels to sell alcoholic beverages, which makes it difficult to ensure the sale of such beverages is in accordance with existing laws ...
Nok Air Rehabilitation Proceedings – Updates for Creditors and Lessors
As the global travel industry continues to grapple with the effects of COVID-19, many companies are now beginning to seek protections under various insolvency regimes ...
Thai data privacy act exemptions
A cabinet resolution has approved a draft Royal Decree on temporary exemption of PDPA enforcement for some organisations and businesses.
Procurement of power from community-based power projects
These projects are intended to help generate and distribute income to local communities and promote their participation in local power projects.
Updated standards for e-meeting security
The Emergency Decree requires that electronic meetings follow the security protocols set forth under a notification from the Ministry of Information and Communication Technology.
Waste to energy projects in Thailand
A brief overview of the legal issues related to the development of a municipal solid waste to energy project.
Scrutinising CP Group’s acquisition of Tesco
The decision of Thailand’s competition authorities will set a precedent regarding merger control and provide clarity on market definitions.
PPP projects in Thailand’s EEC
Thailand will continue to aggressively move forward with legislation that streamlines implementation of important PPP projects. This legislative trend presents new opportunities for foreign and local investors alike, with a focus particularly in Thailand’s infrastructure sector ...
Thailand Plus incentives under BOI
The two new incentives encourage companies to move from overseas to Thailand.
Thailand’s OTCC issues first industry-specific conduct guidelines
Guidelines on the conduct between wholesale and retail business operators and their trade partners announced by the Office of Trade Competition Commission.
Amendment to the Consumer Protection Act 
The Act strengthens the law relating to the safety of products and services.
Personal Data Protection Act published in the Government Gazette
Business operators should ensure that their businesses comply with the PDPA.
Amendment to Thai Arbitration Act
The Amendment expands the ability of foreign arbitrators and representatives to act in arbitral proceedings.
Update on Stamp Duty regulating electronic transactions
A new notification requires parties who enter certain electronic transactions to pay stamp duty in cash.
Ministerial Regulation removing back office services from the Foreign Business Operations Act announced
Certain back office service businesses will no longer require a foreign business licence.
Developments in Thai M&A
Corrupt practices, environmental breaches and merger filing are becoming more significant priorities for clients ...
Thailand: Projects and Energy
Commentary on the latest developments in the Thai projects and energy sector ...
Secondary laws under the Trade Competition Act BE 2560
The enactment of these five Notifications represents a significant leap of progress.
Thailand Update: Amendment to Work Permit Law
In response to criticism, the government decided to amend the Emergency Decree on Managing of Foreigners with relaxed penalties ...
Leasing of residential buildings − A contract-controlled business
The Contract Committee of The Consumer Protection Board recently announced a new Notification which designates the lease of residential property as a “contract-controlled business”.
New Mining Regulations for Thailand
On 30th January 2018, the Ministry of Industry issued a new notification regarding prohibited actions for foreigners ...
Mergers and acquisitions in Thailand
A number of factors are making Thailand a target of choice for international and regional investment ...
Thailand Anti-Corruption Update
National Anti-Corruption Commission Guidelines to Supplement Section 123/5 of the Organic Act on Counter Corruption ...
Amendment to the Thai Civil and Commercial Code
Part IX: Combination of Limited Companies ...
Thailand: Amendment to the Public Company Act
The National Council for Peace and Order has considered the lack of clarity on conditions, procedures and time limitations related to the laws governing business operations ...
Thailand: The Act on the Amendment to the Civil Procedure Code (No. 30) B.E. 2560 (2017)
There are a number of amendments to the current Civil Procedure Code (CPC) as part of its legal execution ...
Projects & Energy Special Report: Thailand: New Minerals Act
A new Minerals Act (BE 2560 (2017) was published on March 2, 2017 and took effect on August 30, 2017 (180 days after the publication date) ...
Thailand: ERC Announcement - Purchase of Electricity From Hybrid-Renewable Energy Small Power Producers
The Energy Regulatory Commission (ERC) issued an invitation to bid for the sale of electricity from Hybrid-Renewable Energy Small Power Producers (SPP) on 4 August 2017 ...
Thailand: New Amendment to the Labor Law
The Labor Protection Act B.E. 2541 (“LPA”) was first enacted in February 1998; the LPA has been amended several times ...
Thailand: Extension of the Reduced VAT Rate
Value added tax (VAT) is an indirect, non-cumulative, consumption tax levied on the supply of goods or provision of services in Thailand ...
Thailand: Ten year visa extension
Due to the rapidly increasing number of foreign senior-citizens seeking Thailand as a retirement destination, Thailand’s Cabinet recently approved the ten-year retirement visa extension ...
Thailand: The New Trade Competition Act
On 24 March 2017, the National Legislative Assembly (the “NLA”) in Thailand passed the final reading of the draft Trade Competition Act ...
Thailand: Amendment to BOI Act to create new BOI benefits
The Thai government has recently been promoting “Thailand 4.0”, which refers to creative and innovative industries ... as a master plan to pull Thailand out of the middle-income trap and toward becoming a high-income country ...
Energising Thailand’s M&A sector
With a focus on the energy and natural resources sector, Chandler & Thong-ek Partner Ratana Poonsombudlert answers our questions on Thailand’s M&A present and future
Related Articles
Related Articles by Jurisdiction
Latest Articles