Foreign data centre operators eager to expand their businesses to Thailand can start buying clean power under the state’s direct power purchase agreement (PPA) scheme in December of this year, says the Energy Regulatory Commission (ERC).
Authorities are keen to launch a pilot direct PPA scheme because it facilitates trade between power companies and their clients, which is a key factor for investors considering development of data centres in Thailand.
Peer-to-peer power trade in the renewables category remains banned in the country, but under a direct PPA, power producers can directly sell electricity to buyers.
Later this month, data centre operators will be given details of the direct PPA, including electricity prices and trade regulations, before the scheme is approved by the Energy Policy Administration Committee next month for a launch in December, said Poonpat Leesombatpiboon, secretary-general of the ERC.
‘A public hearing is being held from Oct 3-10, with adjustments expected later for investment issues,’ he said.
Participants in the direct PPA must be data centre operators granted investment incentives from the Board of Investment (BoI).
Many investors have applied for the investment privileges. Between 2022 and 2024, up to 27 data centre and cloud services projects were submitted to the board for approval, according to the BoI.
Implementation of the direct PPA scheme, with power generation capacity of 2 gigawatts, will extend beyond the Eastern Economic Corridor, as officials seek locations with adequate renewable energy generation and transmission infrastructure to support the initiative, said Mr Poonpat.
Solar energy will be prioritised for the scheme due to its lower generation costs compared to other renewable sources, said ERC deputy secretary-general Kan Saengruang.
Clean electricity prices under the scheme should not be different from those under direct PPA schemes in Vietnam, Malaysia and the Philippines, he said.
The Thai government plans to pilot the direct PPA scheme for a few years before expanding it to other industries, including printed circuit boards, electronics, and electric vehicles, all of which need clean energy to run their businesses.