The Energy Regulatory Commission (“ERC”) in Thailand has announced a programme to grant licences to develop and operate solar farms with a combined capacity of 600MW to private developers. The development model for this round is for joint ventures to be set up between private investors and state agencies. The Solar power generation capacity is limited to 5MW per licence. The feed in tariff will be 5.66 Thai Baht per Kwh for 25 years.
The 600MW capacity is being allocated to the various regions of Thailand, with 389 MW of the solar power being under a power purchase agreement (“PPA”) with the Provincial Electricity Authority (split between the regions of Thailand as follows: 138 MW Central, 159 MW West, 87 MW East and 5 MW North), 200 MW under a PPA with the Metropolitan Electricity Authority in the Bangkok region, and 11MW under a PPA with the Royal Thai Navy base at Sattahip.
Investors can bid for one or more solar farm projects with a combined power capacity of up to 50MW.
The application process opened on 1 November 2015 and all applications must be submitted to the ERC by 10 November 2015. Qualifying applicants will be selected by a draw on 15 December 2015 and then the successful applicants will be announced on 24 December 2015. PPAs are to be signed within 120 days from the date of the ERC’s announcement with the intention of commencing operation by September 2016.