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Monday, February 10, 2025

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Thailand Launches First Utility Green Tariff

Thailand has introduced its first Utility Green Tariff (UGT), setting a renewable energy rate of 4.21 baht per kilowatt-hour (unit), slightly higher than the standard power tariff of 4.15 baht per unit. The new tariff, implemented from January 2025, targets companies committed to reducing carbon dioxide emissions, according to the Energy Regulatory Commission (ERC).

The UGT applies exclusively to businesses, with households unaffected. Companies opting for renewable power must sign one-year purchase agreements with the Electricity Generating Authority of Thailand (Egat), the Metropolitan Electricity Authority (MEA), or the Provincial Electricity Authority (PEA). Energy regulators have allocated 2 billion units of renewable electricity for sale by April.

As of January, companies have requested 600 million units of renewable power. These include firms in the electronics, chemical, and petrochemical sectors as well as shopping malls and financial institutions. The registration period for the UGT runs from January 2 to February 28.

The ERC has categorized the 4.21-baht tariff under “UGT 1,” which pertains to renewable energy sourced from seven hydropower dams across Thailand. Together, these facilities generate 1,135 megawatts of electricity annually, ensuring a supply of 2 billion units of clean power. A second category, “UGT 2,” will focus on renewable power with specified sources, including energy from the ERC’s first-phase renewables scheme, which has a total capacity of 5.2 gigawatts.

In addition to the UGT initiative, Egat is advancing renewable energy efforts with its floating solar farms. Two of these facilities, located at the Sirindhorn Dam in Ubon Ratchathani and the Ubonratana Dam in Khon Kaen, are already operational. Egat plans to complete 15 more floating solar farms at six hydropower dam reservoirs between 2025 and 2030, bringing their total capacity to 2,725 megawatts.

Officials emphasized the long-term potential of the UGT and floating solar projects in advancing Thailand’s renewable energy goals and reducing carbon emissions.

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