The 200-billion-baht energy transition programme and the new vehicle tax structure should become clearer in September, says the finance minister.
Finance Minister Ekniti Nitithanprapas said after the 400-billion-baht borrowing decree was approved by parliament, the ministry plans to accelerate projects using the borrowed funds.
The energy transition programme was allocated 200 billion baht from the decree and is likely to focus initially on the installation of rooftop solar systems at government agencies and state-owned enterprises as well as households. The goal is to reduce the country’s reliance on oil and gas imports.
The rooftop solar project will be overseen by the Metropolitan Electricity Authority and the Provincial Electricity Authority, the ministry noted.
Mr Ekniti said he held discussions with the Energy Ministry to ensure the government’s electricity transmission network can accommodate clean energy generated and sold directly to electricity users or through direct power purchase agreements.
The discussions also covered the development of a smart grid, for which the Energy Regulatory Commission is drafting the details.
He said the government intends to provide subsidies to people installing rooftop solar systems because some households might not find it worthwhile to spend several hundred thousand baht on solar installations.
“The purpose of this borrowing is to provide relief to people and support the energy transition. We believe that once demand from across the country is combined, the volume will be substantial,” said Mr Ekniti.
The finance permanent secretary chairs the project screening committee and will determine the appropriate level of funding, he noted.
As for replacing oil-powered vehicles with vehicles using clean or alternative energy such as biodiesel, Mr Ekniti said the Transport Ministry will oversee this project, aiming to upgrade public vehicles to run on clean energy.
In addition, he referenced discussions with Yodchanan Wongsawat, who oversees the Higher Education, Science, Research and Innovation Ministry, and the Education Ministry on the need to upgrade the skills of Thais in using clean energy, including the production and assembly of products related to clean energy.
“This national development requires building up essential infrastructure as implemented during the reign of King Rama VI,” said Mr Ekniti.
“After World War I, King Rama VI upgraded the country by developing its education system.”
Regarding the rooftop solar project, Mr Ekniti said earlier the government would provide a subsidy of 50,000 baht per household to people who wanted to install rooftop solar systems, with Government Savings Bank and Government Housing Bank offering offering low-interest loans for the project.