By Chandler MHM Limited
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. On 31 August 2017, the earlier invitation was amended to reflect the change in timeframe for the selected bidders and EGAT to sign a power purchase agreement (i.e. shorten the period set for the selected bidders and EGAT to sign a power purchase agreement from within 13 December 2020 to within 13 December 2019). With these announcements, the ERC aims to purchase electricity from SPPs in a total amount of 300 megawatts (MW).
The bidding is open to SPPs with hybrid renewable power resources. The power purchase agreements for such sales will be on a firm basis, and contract terms will be for 20 years. The Feed in Tariff (FiT) rate offered is THB 3.66 per kilowatt-hour. The scheduled commercial operation date is set to be between 1 January 2020 and December 2021.
This new purchase of electricity model is one component in the Thai government’s Alternative Energy Development Plan (AEDP) 2015-2036, which aims to reach approximately 20,000 MW of installed capacity from renewable power sources by 2036.
The timeframe for inspection of power system connecting points was from 7 August to 21 August 2017. Submission of offers for sale under the new model, will be open from 2 October to 6 October 2017. The selection process for bids will be made by way of competitive bidding, and the ERC will announce the list of selected bidders in December 2017.
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This update 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 persons at Mori Hamada & Matsumoto or Chandler MHM Limited, or any of the Key Contacts listed to the right.