31 October 2026 Published by Silicon Valley Innovation ไทย

Thai Industry Wire

Factories, energy, freight and property in Thailand

Power

Direct green power deals for factories remain in draft

Utility Green Tariff 2 took effect on 1 May, with applications expected toward the end of 2026, and the draft power plan targets 24,300 megawatts of new solar by 2037.

By Thai Industry Wire Desk · · 4 min read

อ่านภาษาไทย

A thermal power station with red and white chimneys behind a switchyard of pylons, power lines and a flower bed under a blue sky
A power station and switchyard; illustrative, not a plant named in this storyPhoto by Nopparuj Lamaikul on Unsplash

A Thai factory still cannot sign a contract to buy renewable power directly from a generator and have it carried over the grid. On 15 July 2026 the National Energy Policy Council (NEPC) approved in principle widening the direct power purchase agreement (direct PPA) beyond data centres to other industrial users, but the grid code that would make it work is still a draft, according to the Chambers renewable energy guide for 2026.

How the pilot works today

The NEPC approved a direct PPA pilot in June 2024, sized at 2,000 megawatts for data centres, The Nation reported. The Energy Regulatory Commission (ERC) published draft rules in October 2025 and they were still drafts in July 2026.

The October draft, reported by DatacenterDynamics, set conditions on both sides:

  • Generators must be newly built renewable plants, or renewable plants paired with batteries, of at least 1,000 kVA, with no existing PPA.
  • Buyers must be data centres promoted by the Board of Investment, with at least 50 megawatts of IT load per building, buying 100% renewable power.

The draft third party access code covers wheeling, connection, system security, imbalance and policy charges, Chambers says. Imbalance is measured every 15 minutes. Negative imbalances are charged, at a higher rate above 2%. Positive ones are not charged, but the surplus is not paid for. Wheeling charges were still being finalised in July. On 9 April the government told Parliament that laws should be amended to accommodate direct PPAs.

What a factory can do now

Chambers describes what is open to a factory today.

On-site solar under a private PPA is already common. A developer installs and runs rooftop panels at the customer's premises and sells the output under a contract. Since 2024, rooftop solar has not needed a factory operating licence, whatever its size, though grid-connected systems need PEA or MEA approval and projects in industrial estates may need IEAT approval.

Utility Green Tariff 1 is open to every user and does not name the source. Utility Green Tariff 2 lets large users pick a portfolio of new renewable plants. It took effect on 1 May 2026, with applications expected toward the end of 2026 and service in 2027.

Off-site corporate PPAs are not generally available. Virtual and sleeved versions have only been tested in the ERC's sandbox.

The private sector is already positioning. WHA Utilities and Power reported 372 megawatts of cumulative signed private PPA capacity in its first-quarter 2026 results, plus a trial memorandum with Apex Circuit (Thailand) for a 17-megawatt direct PPA project. Its chief executive wants the criteria finalised quickly and has urged regulators to consider widening the quota to sectors such as automotive and steel. He says access to clean energy is now the first screen investors apply, tied to standards such as the EU's carbon border mechanism and RE100.

The plan behind it

The draft Power Development Plan (PDP) 2026 was approved by its drafting subcommittee, and public consultation was set to open on 8 September, The Nation reported. For 2026 to 2037 it adds about 50,900 megawatts:

  • Solar: 24,300 megawatts.
  • Battery storage: 14,500 megawatts.
  • Gas combined-cycle plants: 9,100 megawatts.
  • Wind: 2,700 megawatts.
  • Demand response and distributed resources: 2,660 megawatts.
  • Small modular reactors: 300 megawatts, from 2037.

It puts clean energy at about 49% of the electricity system in 2037 and forecasts demand of 57,273 megawatts that year. Direct PPAs and third party access are part of the plan, meant to support industries such as smart factories and data centres.

The BOI's May board directed faster issue of the PDP and said direct PPA criteria and grid-service charges would be announced soon. In July the direct PPA rules were still drafts.

What to watch

Three dates matter to a factory buyer: the ERC's final third party access code with its wheeling charge, the opening of UGT2 applications near the end of the year, and the PDP's approval after consultation.

FAQ

Can a Thai factory sign a direct PPA today?

Not generally. The NEPC approved extending direct PPAs to industrial users in principle on 15 July 2026, but the grid access code is still a draft, according to Chambers.

What is Utility Green Tariff 2?

A tariff for large users to choose a portfolio of new renewable plants. It took effect on 1 May 2026, with applications expected near the end of 2026, according to Chambers.

Is the Power Development Plan 2026 final?

No. It is a draft that was due to go to public consultation on 8 September 2026, according to The Nation.

Sources

direct PPApower development planUGT2rooftop solarfactoriesthird party access

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