To support power generation from renewable energy, the Thai government adopted in October 2014 a new feed-in tariff (FiT), or pricing mechanism to pay renewable energy producers for each unit of energy they contribute to the electricity grid.
Thailand FIT
The NEPC has also acknowledged in principle the implementation of feed-in tariffs by the Ministry of Energy which would replace the adder programme for very small power producers – those less than 10 megawatts in production capacity.
The initial phase of feed-in tariff support for solar power in the form of “Adder” gave rise to the dominance of solar farms, contributing currently to 99% of Thailand’s solar power capacity. Since 2013, the government has begun to give
a more focused support to rooftop solar power investment in the form of fixed feed-in tariff.
According to the Energy Regulatory Commission (ERC) there were 1,520 MW of free-field installations (solar farms) and approximately 82 MW of solar rooftop installed combining for a total of 1,601.36 MW.
FIT(F) is a portion of the remuneration that is fixed throughout the whole support period, while FIT(V) is a portion that varies according to the inflation rate. Variable portions are applicabl
e only for certain technologies for which the feedstock price is considered to be volatile.
The National Energy Policy Council (NEPC) chaired by Prime Minister Prayut Chan-o-cha is scheduled to hold a meeting on 15th December 2014 to discuss a possibility of changing the renewable energy payment mechanism from Adder rates to Feed-In Tariff scheme, known as FIT.
Those boasting successful projects from the first wave of PPAs are set to provide comment on how stakeholders will need to adapt to ensure that the ambitious SCOD of December 2015 is met. Whilst the exact conditions of the new PPAs will change compared to the initial adder scheme, a feed-in tariff of 5.66 Baht/kWh (currently 13.34 €cent) will apply that will be granted over a period of 25 years.
THE NATIONAL Energy Policy Council (NEPC) has acknowledged in principle a change in the tariff allowance for very small power producer (VSPP) projects that use renewable energy – moving from the “adder” to the “feed-in tariff” system.
Through its national Alternative Energy Development Plan, Thailand has set one of the more ambitious regional solar PV targets at 3,000MW by 2021. The principal drivers that will allow Thailand to meet this goal are the Renewable Energy Adder Program (REAP) and the two newly introduced residential/commercial-scale and community feed-in tariff programs.
While municipal utilities in Los Angeles and on New York’s Long Island plod along with timid municipal feed-in tariff programs, Thailand plans to add 1,000 MW of solar photovoltaics (solar PV) by the end of 2014.
