4 days ago
Clean energy dearth dents foreign interest
Ongoing political instability may slow Thai economic growth, but a larger hindrance is in the energy sector, as Thailand risks losing 1 trillion baht in foreign investment opportunities if the government does not step up efforts to facilitate renewable power usage, according to Thailand Development Research Institute (TDRI).
Many foreign companies, especially those in data centre and cloud service businesses, are waiting for authorities to allow peer-to-peer power trade, eager to know how clean electricity will be bought and sold under a new law.
Companies are still prohibited from buying renewable power directly from producers, but foreign investors want the government to adjust this outdated regulation.
The current rule requires them to buy electricity through state electricity agencies such as the Electricity Generating Authority of Thailand.
Many of these foreign companies increasingly depend on greater use of clean power.
"Slow progress in new clean energy management can deprive Thailand of the ability to attract foreign investment and maintain the country's economic development," said Areeporn Asawinpongphan, a research fellow on energy policy at TDRI.
Many industries are located in the Eastern Economic Corridor, but this economic zone envisioned as the country's high-tech industrial hub cannot ensure sufficient renewable power supply, she said.
In June 2024, the National Energy Policy Council approved a pilot direct power purchase agreement (PPA) project, enabling companies to buy renewable electricity directly from producers, following a request from foreign data centre developers.
The Energy Regulatory Commission and the Energy Policy and Planning Office already conducted a feasibility study on this project, aimed to have companies sell and buy 2,000 megawatts of clean power under direct PPAs, but the project has progressed at a snail's pace.
This is an obstacle for companies that need renewable power for their operations to avoid the impact of the European Union's Carbon Border Adjustment Mechanism, which imposes a fee on imports of products using carbon-intensive manufacturing into the EU.
Ms Areeporn said insufficient efforts to prepare for the shift towards clean energy can also affect many workers in industries that emit large amount of greenhouse gases.
Green jobs promoting eco-friendly energy and manufacturing must be generated for workers who need to change careers, she said.
