Current Energy Mix

Thailand continues to rely on natural gas as the principal fuel for electricity generation. The current electricity generation and supply mix is as follows:

• natural gas, 61.66%;
• coal and lignite, 10.32%;
• oil, 0.03%;
• hydropower, 2.91%;
• imported electricity, 15.08%; and
• renewable energy, 10.00%.

As reflected in these figures, natural gas accounts for more than half of Thailand’s electricity generation and supply mix.

Ongoing Energy Transition

Thailand is nevertheless undergoing a continuing energy transition. Other renewable energy sources are increasingly being used for electricity generation, including solar energy, biomass, biogas, hydropower and wind energy. Thailand also imports significant volumes of electricity generated from hydropower in Laos.

At present, there is no specific ban on, or mandatory phase-out of, any particular type of fossil fuel. Thailand’s energy transition is instead being driven through measures that promote the procurement of electricity from renewable energy sources, including the purchase of renewable electricity under feed-in tariff (FiT) schemes.

Under the Power Development Plan 2018–37, Revision 1 (PDP 2018 Revision 1), which is currently the officially effective PDP, Thailand has set a target of approximately 20,766 MW of renewable energy generation capacity by 2037, out of total contracted generation capacity of 77,211 MW.

Solar Power

Solar power is one of the most significant renewable energy technologies in Thailand. It includes utility-scale ground-mounted solar farms, including projects combined with battery energy storage systems (BESS), residential and commercial and industrial (C&I) rooftop solar installations, on-site solar generation under self-consumption or private PPA arrangements, and floating solar-hydropower hybrid projects developed by the Electricity Generating Authority of Thailand (EGAT) on its reservoirs.

Biomass and Biogas

Biomass and biogas are long-established renewable energy technologies in Thailand. Biomass generation commonly uses agricultural residues, including rice husk, bagasse, palm waste and cassava waste, while biogas is also produced from agro-industrial wastewater.

Wind Power

Onshore wind development is concentrated principally in provinces with relatively strong wind resources, particularly Nakhon Ratchasima and Chaiyaphum.

Offshore wind development in the Gulf of Thailand remains at the feasibility stage. Further details on offshore renewable energy development are discussed in 6.2 Offshore Project Development.

Other Renewable Energy Technologies

Hydropower also forms part of Thailand’s renewable energy mix, through both EGAT-owned domestic hydropower plants and electricity imported from hydropower projects in Laos. Municipal solid waste-to-energy is another renewable energy source used in Thailand.

Geothermal energy remains very limited. Thailand has a small pilot geothermal power plant of approximately 0.3 MW at Fang, Chiang Mai, which has been operated jointly by EGAT and the Department of Mineral Resources since 1989.

Green hydrogen and hydrogen blending remain at an early exploratory stage. These technologies are discussed further in 3.4 Hydrogen and Other Biofuels and Renewables.

Expansion of Clean Electricity Procurement Options

Over the past 12 months, Thailand’s renewable energy market has continued to develop through an expansion of clean electricity procurement options available to businesses. In addition to the procurement of electricity from renewable energy projects under FiT schemes, the utility green tariff (UGT) has continued to be developed and implemented as a mechanism through which electricity users may procure renewable electricity from EGAT, the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA).

Under the UGT mechanism, electricity users purchase renewable electricity at the applicable tariff together with renewable energy certificates (RECs). Subject to the applicable rules, the RECs support the purchaser’s claim of clean electricity consumption corresponding to the number of certificates held. Thailand currently offers two UGT options: UGT1, for which the renewable electricity source is not specified, and UGT2, which allows users to select from a specified portfolio of renewable energy projects. In 2026, the Energy Regulatory Commission (ERC) prescribed the UGT1 tariff for 2026 and also adopted a resolution concerning the UGT2 tariff.

Development of Direct PPAs and Third-Party Access

Another significant development has been the preparation of a framework for the direct purchase and sale of renewable electricity between generators and electricity users through Direct Power Purchase Agreements (Direct PPAs), using the electricity networks of the utilities through third-party access (TPA).

Thailand’s initial pilot programme was designed for data centre operators, which are major electricity consumers, and was also intended to support investment in Thailand. In October 2025, the ERC submitted for public consultation the draft criteria for the pilot programme for renewable electricity trading through Direct PPAs using TPA for data centres. This was followed by a public consultation on the proposed TPA charges applicable to the pilot programme.

On 15 July 2026, the National Energy Policy Council (NEPC) subsequently approved, in principle, an expansion of the Direct PPA through the TPA framework beyond data centres to other industrial users requiring clean electricity.

The expansion remains a policy-level development. Broader implementation of Direct PPAs will depend on the completion and implementation of the relevant regulatory framework, including the TPA Code, so that the mechanism can operate in practice.

Cross-Border Electricity Developments

Thailand has also continued to participate in cross-border electricity trading and regional power integration initiatives in Association of Southeast Asian Nations (ASEAN). One notable development during the period was the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project Phase 2.

In January 2026, Electricité du Laos (EDL), EGAT and Tenaga Nasional Berhad (TNB) entered into the Phase 2 Energy Wheeling Agreement to support the transmission of renewable electricity from Laos to Singapore through the electricity systems of Thailand and Malaysia.

Principal Legislation and Renewable Energy Regulation

The principal legislation governing the electricity and natural gas industries is the Energy Industry Act BE 2550 (2007). The Act established the ERC as an independent regulator and provides for a separation between policy-making, regulation and energy industry operations. The NEPC determines high-level energy policy, while the ERC performs regulatory functions, and the state utilities and private operators undertake energy industry activities. Energy industry operations are generally subject to licensing by the ERC under Section 47 of the Act, unless an exemption applies, with the applicable licence requirements depending on the type and characteristics of the activity.

There is no standalone renewable energy act. However, the Energy Industry Act expressly provides for the promotion of renewable energy, including through the ERC’s functions under Section 11(16). Renewable electricity is also governed by subordinate ERC notifications and regulations addressing specific technologies and support schemes, including solar rooftop procurement, power purchase rules for small power producers (SPPs) and very small power producers (VSPPs), and FiT arrangements.

National policy plans, including the PDP and the Alternative Energy Development Plan (AEDP), are not primary legislation. They establish planning targets and provide the policy basis for procurement measures implemented through the applicable regulatory and utility frameworks. Future developments in these plans are discussed in 7.1.

Other Applicable Laws

Other laws relevant to renewable energy include the Electricity Generating Authority of Thailand Act, the Provincial Electricity Authority Act and the Metropolitan Electricity Authority Act, which establish the statutory framework for the three state utilities. The Energy Conservation Promotion Act BE 2535 (1992) provides a further framework for energy conservation and support through the Energy Conservation Promotion Fund.

Renewable energy projects may also be subject to the Factory Act BE 2535 (1992) and the Enhancement and Conservation of National Environmental Quality Act BE 2535 (1992), including applicable environmental assessment requirements. The Land Code and the Foreign Business Act BE 2542 (1999) are relevant to land ownership and foreign investment, as discussed in 2.4 Ownership and Transfer of Control.

For renewable fuels, the Fuel Trade Act BE 2543 (2000) and the Fuel Oils Control Act BE 2542 (1999), together with their subordinate regulations, may also apply, depending on the fuel and activity concerned. These laws address matters including fuel trading, quality, storage, transportation and safety.

Sector-specific merger control for energy industry licensees is governed by the ERC Regulation on Criteria and Procedures for Mergers and Cross-shareholdings in the Energy Industry BE 2565 (2022), issued under Section 60 of the Energy Industry Act. The regulation took effect on 20 December 2022. The implications for ownership and transfers are discussed in 2.4 Ownership and Transfer of Control.

Upcoming Legislative and Regulatory Developments

A significant regulatory development is the implementation of Direct PPAs through TPA to the electricity networks. In 2025, the ERC consulted on draft criteria for the data centre Direct PPA pilot, a draft Third-Party Access Code (TPA Code) and proposed TPA charges. These measures address the eligibility and network-access arrangements required to support direct electricity transactions.

On 15 July 2026, the NEPC approved, at the policy level, the expansion of Direct PPAs through TPA beyond data centres to other industries requiring clean electricity. Practical implementation remains dependent on the relevant regulatory and contractual arrangements. Further details are discussed in 5.5 Renewable Energy Certificates and (Corporate) Power Purchase Agreements.

At the policy level, the Ministry of Energy, the NEPC and the Energy Policy and Planning Office (EPPO) play key roles in setting and developing Thailand’s energy policy. The NEPC determines high-level energy policy, while EPPO is responsible for formulating and recommending national energy policies and plans and plays a central role in the development of the PDP and the wider National Energy Plan.

The ERC is the principal independent regulator of the electricity and natural gas industries under the Energy Industry Act BE 2550 (2007). Its principal functions include:

• issuing energy industry operation licences and regulating licensed energy businesses;
• regulating and approving electricity tariffs and issuing or approving rules governing power procurement, including renewable energy procurement and FiT arrangements;
• issuing binding regulations, grid codes, service standards and technical and connection requirements;
• requiring information and reports from licensees and carrying out inspections and compliance monitoring;
• using administrative enforcement measures, including licence suspension or revocation, while certain breaches of the Energy Industry Act BE 2550 (2007) may also constitute criminal offences punishable by fines and/or imprisonment; and
• considering disputes that fall within the statutory dispute-resolution framework under the Energy Industry Act BE 2550 (2007), including certain disputes between licensees.

Other authorities may also be relevant to renewable energy projects depending on the nature and location of the project. These include:

• the Department of Alternative Energy Development and Efficiency (DEDE), which promotes renewable energy and energy efficiency;
• the Ministry of Industry and the Department of Industrial Works in relation to factory regulation;
• the Office of Natural Resources and Environmental Policy and Planning (ONEP) and relevant environmental review bodies for environmental impact assessment requirements;
• the Board of Investment (BOI) in relation to investment incentives; and
• for projects located in industrial estates, the Industrial Estate Authority of Thailand (IEAT).

Energy Industry Licensing

Electricity generation, transmission, distribution and supply are regulated activities under the Energy Industry Act BE 2550 (2007) and generally require an ERC licence unless an applicable exemption applies.

Private power producers participating in utility power procurement are commonly classified as independent power producers (IPPs), SPPs and VSPPs, primarily by reference to contracted capacity and the applicable procurement scheme. IPPs generally have contracted capacity exceeding 90 MW, SPPs generally have contracted capacity of between 10 MW and 90 MW, while VSPPs supply no more than 10 MW. IPPs and SPPs generally sell electricity to EGAT, while VSPPs generally sell electricity to PEA or MEA.

Electricity Sales and Grid Access

Under Thailand’s enhanced single buyer model, utility procurement remains the principal route for electricity generated by private power producers. Direct sales between private generators and end users are not generally available, although certain self-consumption and on-site private PPA arrangements may be permitted subject to the applicable regulatory framework. A broader Direct PPA framework using the public electricity networks through TPA is currently under development.

Section 81 of the Energy Industry Act BE 2550 (2007) provides a statutory basis for other licensees or energy industry operators to use or connect to an energy network in accordance with the applicable network codes. However, a generally available TPA framework for private electricity trading has not yet become operational, and the detailed TPA Code remains under development.

Technology-Specific Requirements

Regulatory requirements also vary according to the renewable energy technology and characteristics of the project. Solar rooftop installations are no longer treated as factories requiring a factory licence, irrespective of installed capacity, where they fall within the exemption under the applicable Factory Ministerial Regulation. Other requirements may nevertheless apply, including energy industry licensing or notification requirements, controlled-energy production requirements, building requirements and grid interconnection approval, depending on the project structure.

Environmental requirements vary according to the technology, capacity, location and characteristics of the project. Renewable power projects may be subject to environmental impact assessment requirements or ERC environmental measures, including the applicable Code of Practice (CoP), depending on the project concerned. Biomass, biogas and waste-to-energy projects may also be subject to additional factory, environmental and waste-management requirements, reflecting their feedstock, combustion processes and emissions profile.

Ownership of Renewable Energy Assets

There is no sector-specific prohibition on private ownership of renewable energy generation assets. Foreign investment in a renewable energy project is, however, subject to Thailand’s generally applicable foreign investment and land ownership restrictions.

Land ownership is a principal consideration for foreign investors. As a general rule, foreign individuals and foreign-owned entities are restricted from owning land in Thailand under the Land Code. Foreign-backed project developers therefore commonly rely on alternative land rights, such as registered leases or superficies rights. A BOI-promoted project may, subject to BOI approval, be permitted to own land required for the promoted activity.

Transfer of Licences and Project Rights

Rights under an energy industry licence may not be transferred freely and are subject to the applicable procedures of the ERC. Separately, the assignment or transfer of a power purchase agreement is governed by the relevant PPA and procurement rules and may require the consent of the relevant utility.

Mergers and Changes in Ownership

Transactions involving energy industry licensees may also be subject to the ERC’s rules on mergers and cross-shareholdings under the Regulation of the Energy Regulatory Commission on Criteria and Procedures for Mergers and Cross-shareholdings in the Energy Industry BE 2565 (2022). Depending on the nature of the transaction, an ERC filing or approval may be required. This is particularly relevant to acquisitions and consolidations of renewable energy projects or portfolios.

Foreign Business Restrictions

There is no specific restriction on foreign investment in renewable electricity activities as such. The Department of Business Development (DBD) has taken the view that the generation and sale of electricity produced by a foreign-owned operator itself does not constitute a business listed in the schedules to the Foreign Business Act BE 2542 (1999). Accordingly, a foreign-owned project company may generally undertake such activities without obtaining a foreign business licence under the Foreign Business Act, subject to compliance with other applicable requirements, including energy industry licensing and minimum capital requirements.

The position may differ depending on the particular business activity. For example, the DBD has treated the operation of an electric vehicle charging station for the sale of electricity as a service business under List 3 (21) of the Foreign Business Act. A foreign operator carrying on such a business would therefore be required to obtain the relevant foreign business licence or certificate, unless an exemption or other applicable privilege is available.

Land Ownership

A principal practical constraint for foreign investors is land ownership. As discussed in 2.4 Ownership and Transfer of Control, foreign individuals and foreign-owned entities are generally restricted from owning land in Thailand under the Land Code. Renewable energy projects may therefore need to rely on alternative land rights, such as registered leases or superficies rights.

Investment Promotion

BOI promotion may facilitate foreign investment in qualifying renewable energy projects. Depending on the promoted activity and the incentives granted, a BOI-promoted project may be permitted to own land required for the promoted activity and may receive tax, customs and other investment privileges. BOI promotion may also facilitate the employment of foreign experts and, where the promoted activity would otherwise be restricted under the Foreign Business Act, access to the applicable foreign business certificate procedure.

Market Structure

Thailand’s electricity market operates under the enhanced single buyer (ESB) model. EGAT owns and operates the national high-voltage transmission network, acts as the system operator and is the principal purchaser of electricity from IPPs and SPPs. PEA and MEA operate the distribution networks in their respective service areas and are the principal purchasers of electricity from VSPPs.

Private renewable electricity generation therefore remains closely integrated with the state utility system. Key market participants include:

• EGAT, PEA and MEA as purchasers, network operators and electricity suppliers, as applicable;
• the ERC as the principal regulator and licensor; and
• private Thai and international renewable energy developers.

Renewable Energy Procurement

Utility-scale renewable energy projects selling electricity to the utilities are principally developed under government power procurement programmes, including FiT schemes. Under the current renewable energy procurement programme for 2022–30, the ERC has established procurement frameworks for technologies including ground-mounted solar, solar combined with BESS, wind and biogas.

Projects selected under these programmes enter into PPAs with the relevant electricity utility. Under current FiT schemes, PPA terms commonly range from 20 to 25 years, depending on the technology and procurement programme. Many renewable VSPP arrangements are structured on a non-firm basis.

Licensing and Grid Connection

Renewable electricity generation is subject to the licensing framework under the Energy Industry Act BE 2550 (2007), unless an applicable exemption applies. Electricity generation activities with a total generating capacity of less than 1,000 kVA are generally exempt from the requirement to obtain an electricity generation licence from the ERC, although notification and other applicable regulatory requirements may still apply. Projects must also comply with the relevant technical, grid connection and metering requirements of the utility to whose network they connect.

The principal renewable generation assets include solar, wind, biomass, biogas and hydropower facilities, together with associated grid connection infrastructure. The characteristics of the principal renewable energy technologies used in Thailand are discussed in 1.2 Renewable Energy Technologies.

Thailand’s renewable gas sector, principally biogas and biomethane, remains relatively small compared with the electricity generation sector. Biogas production has developed largely around the treatment and utilisation of agro-industrial wastewater and organic residues, including waste streams from cassava starch processing and palm oil production.

Biogas may be used directly for industrial heat or upgraded to biomethane or compressed biomethane gas (CBG) for use as a substitute for conventional natural gas in transport or industrial applications. Key participants include agro-industrial operators, renewable energy developers and technology providers involved in the treatment, upgrading and utilisation of biogas.

Biogas and biomethane production facilities may be subject to factory, environmental, wastewater management and waste-handling requirements, depending on the nature and scale of the facility and the feedstock used. Where biogas is subsequently used for electricity generation, separate electricity generation licensing requirements may also apply.

Renewable heat is not yet a separately developed production sector in Thailand. In practice, renewable heat is used primarily in industrial applications, particularly through biomass and biogas systems that produce steam or process heat for on-site consumption or, in some cases, supply to nearby industrial users.

There is no organised heat market or public district heating network. Key participants are therefore primarily industrial operators, biomass and biogas project developers and operators of cogeneration facilities.

Geothermal resources are limited and have not developed into a material commercial heat market in Thailand. There is no separate regulatory framework specifically governing a renewable heat market. Where renewable heat is produced as part of an industrial facility, the project may instead be subject to generally applicable factory, environmental and safety requirements.

Hydrogen remains at an early stage of development in Thailand, with current activity focused primarily on pilot projects, research and feasibility studies rather than large-scale commercial deployment. EGAT, for example, has developed a wind hydrogen hybrid system at Lam Takhong in Nakhon Ratchasima, where electricity generated from wind power is used to produce and store hydrogen, which can subsequently be converted back into electricity through fuel cells. EGAT is also studying the use of hydrogen blended with natural gas for power generation.

Thailand does not currently have a dedicated regulatory regime specifically for hydrogen production. Depending on the structure and intended use of a project, hydrogen production and related facilities may instead be subject to existing energy, factory, environmental and safety requirements. Where hydrogen is used for electricity generation, the applicable electricity generation licensing framework may also apply.

Thailand has a more established biofuels sector centred on fuel ethanol and biodiesel, including E20 gasohol and B20 diesel products. Government policy continues to promote biofuels as part of efforts to reduce dependence on imported petroleum and support domestic agricultural feedstocks. Biofuels are regulated principally through the petroleum-fuel framework, including applicable fuel specifications, blending and distribution requirements.

The principal category of small-scale and local renewable electricity generation in Thailand is rooftop solar for self-consumption by households and businesses. Following the Ministerial Regulation Re: Designation of Type, Kind, and Size of Factories (No. 3), B.E. 2567 (2024), rooftop solar installations are no longer treated as factories requiring a factory operating licence, irrespective of installed capacity, significantly reducing the regulatory burden for C&I rooftop solar projects.

Depending on the capacity and configuration of the system, small-scale rooftop solar installations may be exempt from the requirement to obtain an energy industry operation licence, although notification and other regulatory requirements may still apply. Grid-connected systems must also obtain the relevant interconnection approval from PEA or MEA, as applicable. Projects located within industrial estates may additionally be subject to applicable requirements of the IEAT.

Electricity generated for self-consumption does not need to be sold to the grid. Where electricity is injected into the public grid, the project must comply with the applicable technical and grid connection requirements. Where surplus electricity is sold to the relevant distribution utility, the sale must be made under an applicable electricity procurement scheme and PPA. Under the 2026 residential solar rooftop procurement programme, surplus electricity is purchased at THB2.20 per kWh for a period of ten years, subject to a nationwide procurement target of up to 500 MW and a maximum offered sale capacity of 5 kW per meter.

Transmission and Distribution Networks

EGAT owns and operates Thailand’s national high-voltage transmission network, while PEA and MEA own and operate the distribution networks in their respective service areas. The transportation of electricity generated from renewable energy therefore continues to rely principally on the public electricity networks operated by these state-owned utilities.

A generally available TPA regime for private electricity trading is not yet operational. The ERC has developed a draft TPA Code to establish a framework for third-party use of the electricity networks, but the detailed framework remains under development.

BESS

BESS are increasingly being deployed in Thailand both as grid-scale storage and as part of renewable energy projects. BESS has also been incorporated into renewable energy procurement. For example, under Thailand’s FiT programme for 2022–30 a specific procurement category was established for ground-mounted solar projects combined with BESS, under which selected SPP projects sell electricity under long-term PPAs with the relevant utility.

Thailand does not yet have a comprehensive regulatory framework specifically for electricity storage. The ERC has been developing a framework addressing the legal status and grid connection of BESS, including possible licensing or registration requirements for utility-scale and behind-the-meter systems, as well as rules for the procurement of services from BESS. The regulatory treatment of BESS therefore currently depends on how the system is configured and used within the relevant project or network.

Where a BESS is connected to the public electricity network, its installation and operation must comply with the applicable technical and interconnection requirements of the relevant grid operator. Any injection or sale of electricity from a BESS into the grid is subject to the applicable electricity procurement and grid connection requirements, including any relevant PPA.

Other Storage Solutions

Beyond BESS, pumped-storage hydropower is an established form of large-scale electricity storage in Thailand. EGAT currently operates three pumped-storage hydropower facilities:

• Srinagarind Dam in Kanchanaburi Province (360 MW);
• Bhumibol Dam in Tak Province (171 MW); and
• Lamtakong Jolabha Vadhana Power Plant in Nakhon Ratchasima Province (1,000 MW).

These facilities support power system flexibility and the integration of renewable energy generation.

Grid Congestion and Curtailment

At the transmission-system level, EGAT addresses grid constraints and the variability of renewable generation through network reinforcement and grid modernisation, improved renewable energy forecasting and monitoring and flexible technologies such as BESS. PEA and MEA are also developing smart-grid and flexibility solutions within their respective distribution networks.

Curtailment is addressed through applicable grid codes, power procurement arrangements and PPAs rather than through a single renewable-specific market mechanism. Under the relevant arrangements, the applicable utility or system operator may require generators to reduce output where technical constraints or system security require it. The treatment of curtailment, including any compensation, depends on the applicable procurement and contractual terms rather than a separate standard curtailment compensation mechanism.

Demand-Side Flexibility

Demand-side flexibility mechanisms are already used in Thailand. EGAT operates a demand response control centre (DRCC), through which participating electricity users may be instructed to reduce load during periods of high system demand or other specified conditions in return for compensation. Time-of-use tariffs provide price-based incentives to shift electricity consumption, while interruptible tariffs available to eligible customers provide a contractual mechanism for reducing load when requested by the relevant utility.

Broader market-based arrangements for flexibility remain under development. Virtual power plant (VPP) concepts have been tested through projects including PEA’s low-voltage VPP pilot in Pattaya and EGAT’s V2G and VPP project under the ERC Sandbox. Peer-to-peer (P2P) energy trading has also been tested under the ERC Sandbox, including through Chulalongkorn University’s Smart Campus project and a pilot by WHA Utilities and Power using PEA’s distribution network. These models are not yet generally available commercial market arrangements.

Off-Grid Solutions

Off-grid and islanded renewable energy solutions exist principally in remote and island communities. For example, PEA’s microgrid project on Ko Pha Luai combines solar generation, battery storage and backup generation to supply electricity to the island community. Such solutions remain relatively limited compared with Thailand’s mainstream C&I electricity market, which remains predominantly grid-connected.

Thailand has an established natural gas transmission network, but there is no dedicated public network for the transportation and storage of renewable gas. Biogas is commonly used on site, while upgraded biomethane or CBG may be transported in compressed form for use as a fuel. Project-specific pipelines may also be used over short distances. Biomethane used as a vehicle fuel is subject to applicable fuel-quality requirements issued by the Department of Energy Business.

Thailand already has a TPA framework for natural gas transmission systems and liquefied natural gas (LNG) terminals. Access to such infrastructure is governed by the relevant operator’s TPA Code, together with applicable technical, connection and gas-quality requirements.

Thailand does not currently have a separate regulatory regime specifically governing the injection of biomethane or other renewable gas into the natural gas grid, nor is there a general obligation requiring gas-grid operators to accept or blend a prescribed proportion of renewable gas.

Thailand does not have an organised public heat grid or district heating network, and there is therefore no dedicated regulatory framework for the transportation or storage of renewable heat.

Renewable heat, principally from biomass and biogas, is generally produced and consumed on site to provide steam or process heat for industrial operations. Where heat is supplied to another industrial user, the arrangement would generally be structured bilaterally between the relevant parties rather than through a regulated public network.

Although there is no separate regulatory regime for renewable heat transportation or the storage of renewable heat, the relevant facilities remain subject to generally applicable factory, environmental and safety requirements. These may include requirements relating to boilers, thermal-fluid heaters and pressure vessels, depending on the equipment used.

Thailand does not currently have a dedicated hydrogen transportation or storage network. The regulatory framework is, however, beginning to develop. A Ministry of Energy notification published in December 2025 designates hydrogen and ammonia as “fuel oils” under the Fuel Oils Control Act BE 2542 (1999). The notification expressly provides that it will take effect after two years from its publication in the Government Gazette. Accordingly, as of 2026, the specific regulatory regime contemplated under the Fuel Oils Control Act for hydrogen transportation and storage has not yet taken effect.

Biofuels, principally ethanol and biodiesel, are more established and are transported and stored through conventional fuel terminals, depots, storage tanks, blending facilities and road-transport infrastructure. Their transportation and storage are principally regulated under the Fuel Oils Control Act BE 2542 (1999) and its subordinate regulations, which govern matters including fuel-storage premises, tanks and transportation facilities. The Fuel Trade Act BE 2543 (2000) also applies to fuel traders and certain fuel transporters, as well as fuel-quality and related trading requirements.

Thailand’s electricity market continues to operate under the ESB structure. Most end users purchase electricity from PEA or MEA at regulated retail tariffs. Corporate and industrial users seeking renewable electricity currently rely principally on the UGT and on-site renewable generation arrangements, particularly solar rooftop private PPAs.

Under the UGT mechanism, EGAT, MEA and PEA provide renewable electricity together with RECs. UGT1 is a non-source-specific product, while UGT2 allows users to specify a group or portfolio of renewable generation projects. The ERC has prescribed tariffs for both UGT1 and UGT2 for 2026.

On-site corporate PPAs, particularly for rooftop solar, are already used in Thailand. Under these arrangements, renewable generation is installed at the customer’s premises, and the customer purchases the electricity generated under a bilateral agreement, while continuing to obtain electricity from the relevant utility where on-site generation is insufficient. Unbundled RECs may also be purchased separately from physical electricity supply, as discussed in 5.5 Renewable Energy Certificates and (Corporate) Power Purchase Agreements.

General off-site Direct PPAs involving the wheeling of electricity through the public grid are not yet generally available. The ERC has developed draft rules for the Direct PPA pilot, the TPA Code and the applicable TPA charges. On 15 July 2026, the NEPC approved an expansion of the Direct PPA policy to cover not only data centres but also other industrial users seeking clean electricity. Broader implementation remains dependent on the completion and implementation of the relevant regulatory and grid-access framework.

There is no developed standardised retail or wholesale market for the trade and supply of renewable gas to end users in Thailand. Biogas is commonly produced and used on-site, particularly by industrial and agro-industrial facilities, while upgraded biomethane or CBG may be supplied under local or bilateral arrangements. Key participants therefore include biogas and biomethane producers, industrial users and, where relevant, fuel suppliers and distributors.

Renewable gas supply arrangements are generally negotiated bilaterally rather than under a standard renewable-gas supply contract. Where biomethane is supplied for use as a vehicle fuel, it is subject to applicable fuel-quality requirements issued by the Department of Energy Business. Grid injection is addressed separately in 4.3 Gas.

Thailand does not currently have an organised market for the trade and supply of renewable heat or a generally available a public heat or district-heating network.

Renewable heat, principally from biomass and biogas, is generally produced and consumed on site to provide steam or process heat for industrial operations. Where heat is supplied to another industrial user, the arrangement would generally be structured bilaterally between the relevant parties. There is no generally prescribed standard-form contract specifically for the supply of renewable heat, nor is there a separately regulated public market for heat supply.

Although there is no dedicated regulatory framework for renewable-heat trading, the relevant facilities and equipment remain subject to generally applicable factory, environmental and safety requirements, including requirements applicable to boilers, thermal-fluid heaters and pressure vessels where relevant.

Hydrogen supply to end users remains at an early stage in Thailand, and there is not yet a developed retail market or standardised commercial framework for the supply of renewable hydrogen.

The regulatory framework is beginning to develop, including a Ministry of Energy notification issued in 2025 designating hydrogen and ammonia as “fuel oils” under the Fuel Oils Control Act BE 2542 (1999). Dedicated infrastructure and commercial arrangements for the large-scale supply of renewable hydrogen nevertheless remain limited.

Biofuels are considerably more established. Ethanol and biodiesel are supplied to end users through Thailand’s conventional fuel market and are incorporated into retail fuels in accordance with applicable fuel specifications and government blending policies. Their trade and supply are principally regulated under the Fuel Trade Act BE 2543 (2000) and the Fuel Oils Control Act BE 2542 (1999), together with applicable fuel-quality requirements, rather than through a separate renewable-energy trading market.

RECs

Thailand principally uses the international renewable energy certificate (electricity) (I-REC(E)) system for RECs, with EGAT acting as the accredited I-REC(E) issuer in Thailand. RECs represent the environmental attributes associated with renewable electricity generation and may be supplied together with renewable electricity, including through the UGT mechanism, or traded separately from the physical electricity supply.

Unbundled REC transactions are generally conducted bilaterally or over the counter, including through market intermediaries, rather than through an organised domestic exchange. There is currently no official domestic REC market price, and commercial terms are negotiated between the relevant parties. Demand is driven principally by corporate renewable-energy and greenhouse-gas reporting commitments, including Scope 2 reporting.

The issuance, transfer and redemption of I-REC(E) certificates are governed by the International Attribute Tracking Standard, the applicable I-REC(E) Code and related registry rules. EGAT also publishes standard terms and conditions applicable to I-REC(E) registrants in Thailand. Commercial terms for REC sale and purchase transactions are generally negotiated between the relevant parties.

Corporate and Direct PPAs

On-site corporate PPAs, particularly for solar rooftop projects, are already established in Thailand. These are generally bilateral contracts under which a renewable energy developer installs and operates generating facilities at the customer’s premises, and the customer purchases the electricity generated at an agreed tariff. The contractual terms are commercially negotiated and typically address matters such as the contract term, tariff, metering, operation and maintenance, site access, performance and termination.

By contrast, long-term off-site corporate PPAs involving the physical delivery of electricity through the public grid are not yet generally available under Thailand’s current ESB structure. The Direct PPA framework is being developed to permit renewable generators and eligible consumers to contract directly while using the public electricity networks under the TPA framework.

Alternative corporate PPA structures are also being explored through the ERC Sandbox. Virtual PPA arrangements have been tested, while the Sandbox framework also provides for the testing of other new PPA structures, including sleeved PPAs. These remain pilot or testing arrangements rather than generally available commercial products.

Market Maturity

Thailand has a well-established onshore renewable energy market, comprising utility-scale solar and wind projects, biomass and biogas projects, and distributed solar installations. Solar and wind account for a significant proportion of current large-scale renewable procurement. Under the initial round of the FiT programme for 2022–30, the ERC reported the selection of 175 projects with an aggregate contracted capacity of approximately 4,852 MW, comprising approximately 2,368 MW of ground-mounted solar, 994 MW of ground-mounted solar combined with BESS and 1,490 MW of wind projects.

Biomass and biogas projects are longer-established and are generally linked to the availability of agricultural or industrial feedstock. Distributed solar, particularly C&I rooftop solar, is also an established segment of the market. The applicable regulatory requirements vary depending on the technology, capacity, location and configuration of each project.

Site and Land Acquisition

Developers generally secure project sites through land ownership, registered leases, superficies rights or other contractual arrangements with landowners. Project companies that are treated as foreign persons for the purposes of Thai land law must take account of Thailand’s restrictions on foreign land ownership and commonly use leasehold or superficies structures. Where applicable, a BOI-promoted entity may obtain permission to own land for its promoted activities under Section 27 of the Investment Promotion Act BE 2520 (1977), as discussed in 2.4 Ownership and Transfer of Control.

Land title, zoning, permitted land use and any restrictions applicable to particular categories of land should be confirmed at an early stage of development. Securing the project site is generally separate from obtaining the right to sell electricity under an applicable utility procurement programme.

Permits and Approvals

The construction and operation of an onshore renewable energy project may require an energy industry operation licence from the ERC unless an exemption applies. Depending on the nature of the project, other approvals may include building or construction approvals, factory-related approvals where applicable, environmental approvals, grid connection approvals and permits relating to water use, emissions or waste management. Certain construction approvals relating to energy businesses may be processed through the ERC under Section 48 of the Energy Industry Act BE 2550 (2007).

Environmental requirements depend on the technology, capacity, location and other characteristics of the project. Depending on those factors, a project may be subject to an environmental impact assessment or other environmental review under environmental legislation, or to the ERC’s Code of Practice (CoP) and related environmental requirements. The ERC also has procedures for consultation with affected communities and stakeholders as part of the licensing process.

Solar rooftop projects benefit from a simplified regulatory position in certain respects. In particular, solar rooftop electricity generation is no longer treated as a factory requiring a factory operating licence under the relevant factory legislation, although other energy, building and grid-connection requirements may continue to apply, as discussed in 3.5 Local and Domestic Production.

Key Parties

The key parties typically include the developer or project company, landowners, EPC contractors, equipment suppliers, O&M contractors, lenders and the relevant electricity utility. EGAT, PEA or MEA may be involved as the offtaker or grid operator, depending on the project, while the ERC is responsible for energy industry regulation and licensing. Biomass and biogas projects may additionally involve feedstock suppliers under separate supply arrangements.

Construction and EPC

There is no mandatory statutory form of EPC contract for renewable energy projects. EPC arrangements are commonly used for utility-scale solar projects and generally address completion, testing and commissioning, performance requirements, delay and performance liquidated damages, warranties and allocation of construction risks.

Wind projects may use a different contracting structure, including separate turbine supply or installation agreements and balance-of-plant contracts rather than a single EPC arrangement. The allocation of interface and completion risks therefore depends on the contracting structure adopted for a particular project.

Operational Phase and Operations and Maintenance (O&M)

Following commercial operation, projects are generally supported by O&M or service agreements with an equipment supplier, original equipment manufacturer or specialist contractor. These arrangements typically address scheduled and corrective maintenance, availability or performance standards, spare parts and other operational responsibilities. The project company must also continue to comply with its energy industry licence and applicable environmental, technical and grid requirements throughout the operating period.

Grid Connection and Route to Market

For grid-connected renewable projects, the principal route to market remains the sale of electricity to EGAT, PEA or MEA under an applicable power procurement programme and PPA. The current FiT programme for renewable energy without fuel costs includes PPAs with terms of approximately 20–25 years, depending on the relevant project category. Grid-connected projects must also satisfy the applicable technical and interconnection requirements of the relevant utility.

Off-site Direct PPAs using the public electricity network are not yet generally available as an operational route to market. The ERC has consulted on the Direct PPA pilot framework, the draft TPA Code and applicable TPA charges. On 15 July 2026, the NEPC approved a policy expansion of Direct PPA beyond data centres to other industrial users seeking clean electricity, but implementation remains dependent on the completion and implementation of the relevant regulatory and network-access framework.

Financing, Government Involvement and Community Participation

Project financing considerations typically include the security of the PPA or other revenue arrangements, land rights, permitting, construction and completion risk, grid connection and the overall security package, as discussed further in 6.3 Project Finance.

Government involvement includes energy planning, renewable electricity procurement and FiT policy, ERC licensing and regulation, and investment incentives administered by the BOI. Community involvement may arise through environmental and ERC licensing consultation requirements. In addition, the Power Development Fund under Section 97(3) of the Energy Industry Act supports the development or rehabilitation of local communities affected by power-plant operations, with contributions collected from power-generation licensees in accordance with the applicable rules.

Market Maturity

Offshore renewable energy development in Thailand, in practice offshore wind, remains at an early stage. Thailand does not currently have an operating commercial offshore wind farm. The DEDE has undertaken studies of Thailand’s offshore wind resources and the feasibility of offshore wind generation, but these studies have not yet resulted in an established commercial offshore wind procurement programme.

Accordingly, there is not yet a domestic track record covering the construction or operation of utility-scale offshore wind projects comparable with Thailand’s established onshore renewable energy market.

Site and Regulatory Framework

Thailand has not yet established a dedicated offshore-wind-specific project development framework comparable with the seabed leasing and site-allocation regimes used in more mature offshore wind markets. A proposed project would therefore need to be considered under the generally applicable energy, environmental, maritime and other laws relevant to its particular location and configuration.

An offshore wind-generating project would be expected to require consideration under the Energy Industry Act BE 2550 (2007), together with applicable environmental and grid-connection requirements. Maritime approvals would also need to be considered. For example, where the Navigation in Thai Waters Act BE 2456 (1913) applies, Section 117 regulates the construction of structures or other objects in, over or under waters within its scope and requires the relevant permission.

As no utility-scale offshore wind project has yet proceeded through a complete Thai development and permitting process, the interaction between these existing regimes has not been fully tested in practice for offshore wind.

Key Parties and Contracting

The parties involved in a future offshore wind project would be expected to include the project developer, the ERC, the relevant electricity grid operator, the Marine Department and other environmental or marine authorities, together with turbine and equipment suppliers, construction contractors, lenders and other project participants.

Thailand does not yet have an established domestic market practice for offshore wind EPC, balance-of-plant, wind turbine supply and installation or long-term O&M contracting. Accordingly, unlike the onshore market, there is presently no Thailand-specific standard contractual structure for offshore wind projects.

Government and Community Involvement

Government involvement to date has principally included renewable energy policy and studies of offshore wind resource potential rather than a dedicated offshore wind procurement or site-allocation programme. DEDE has undertaken studies both of offshore wind potential and of the feasibility and preliminary environmental impacts of offshore wind development.

For a future project, community and stakeholder involvement would depend on the applicable environmental and permitting requirements and the location of the project. This could include consultation with coastal communities and other affected stakeholders, but no offshore-wind-specific community participation practice has yet developed in Thailand.

Project Finance

Renewable energy project financing in Thailand generally follows the broader Thai project-finance framework. Larger projects may be financed through bilateral or syndicated bank facilities on a limited or non-recourse basis. Renewable energy projects nevertheless raise particular financing considerations relating to the PPA or other revenue arrangements, land rights, energy licensing, permitting and grid connection.

Security

A typical security package may include mortgages over land or buildings owned by the project company, pledges over shares in the project company, business security over eligible movable assets, claims and receivables, and contractual assignments of rights under material project documents and insurance policies. Where the project site is leased rather than owned, lenders generally focus on the project company’s rights under the lease and other project assets rather than a mortgage over the underlying land. Direct agreements with key project counterparties may also be used where agreed to provide lenders with notice, cure or step-in protections.

Security must comply with the applicable Thai-law creation and perfection requirements. In particular, mortgages require registration, while security under the Business Security Act BE 2558 (2015) must be made in writing and registered.

Offtake, Land and Regulatory Risk

For projects selling electricity to EGAT, PEA or MEA, lenders place significant weight on the terms and duration of the applicable PPA and the relevant procurement framework. Key considerations include the tariff and payment mechanism, commercial operation requirements, termination provisions, assignment restrictions and other provisions affecting the certainty of project revenues. Utility PPAs are generally based on the terms prescribed for the relevant procurement programme and therefore provide more limited scope for negotiation than fully negotiated private PPAs.

Lenders also typically require satisfactory land rights for the expected project and financing period, together with the necessary energy industry licences, environmental and other permits, and grid-connection approvals. Restrictions on foreign land ownership must also be taken into account where the project company is treated as a foreign person for the purposes of Thai land law, as discussed in 2.4 Ownership and Transfer of Control.

Transfer and Lender Enforcement

Rights under an energy industry licence are subject to the applicable ERC requirements governing transfers. PPAs and other material project agreements may also contain consent requirements or restrictions on assignment or changes affecting the project company. These requirements must therefore be considered when structuring share security, enforcement rights and any lender step-in arrangements.

FiT

The principal support mechanism for new renewable electricity procurement in Thailand is the FiT. Under the current FiT programme for 2022–30, renewable electricity projects are selected under ERC procurement programmes and sell electricity to the relevant utility at the applicable FiT under long-term PPAs. For the selected ground-mounted solar, solar combined with BESS and wind projects under this programme, PPA terms are generally 20–25 years.

The FiT replaced the earlier Adder mechanism as the principal form of support for new renewable electricity procurement. The Adder operated as a premium added to the applicable electricity purchase price for a specified support period, but it is no longer the principal mechanism for new renewable projects.

Residential Solar

A separate programme is available for residential solar rooftop generation. Under the 2026 programme, PEA and MEA purchase surplus electricity from participating residential solar rooftop systems at THB2.20 per kWh for ten years, subject to the programme requirements. The nationwide procurement target under the programme is up to 500 MW.

A tax incentive for residential solar rooftop installations has also been introduced under Royal Decree No 805 BE 2569 (2026). Subject to the statutory conditions, individuals may claim qualifying expenditure on the purchase and installation of residential solar rooftop systems, up to THB200,000 for personal income tax purposes.

BOI Incentives

Investment incentives for renewable energy projects are also available through the BOI. Under the current BOI framework, the production of electricity or electricity and steam from renewable sources such as solar, wind, biomass and biogas, excluding waste and refuse-derived fuel, is classified as an A2 activity (which is generally calculated based on the actual qualifying investment in the promoted project), subject to the relevant conditions. Eligible projects may receive an eight-year corporate income tax exemption, subject to the applicable exemption cap, together with exemptions from import duty on qualifying machinery and other available BOI privileges.

Electricity or steam generation from waste or refuse-derived fuel is classified separately as an A1 activity, for which the BOI provides an eight-year corporate income tax exemption without the investment-based cap applicable to A2 activities, subject to the relevant conditions. BOI non-tax privileges may also include permission to own land required for the promoted activity and permission to bring skilled foreign personnel into Thailand.

Outside applicable BOI promotion and other specific incentive measures, renewable energy businesses remain subject to the generally applicable Thai tax framework.

Thailand does not have a single statute governing the decommissioning of renewable energy installations. Decommissioning obligations instead arise from the energy regulatory framework, applicable environmental requirements, project permits and contractual arrangements.

Under the ERC’s Notification on the Cessation of Energy Industry Operations BE 2561 (2018), an energy industry licensee proposing permanently to cease all or part of its operations must notify the ERC Office and provide the prescribed information. This includes an assessment of impacts on system security, energy users, public interests, safety and the environment, together with a plan for dismantling the facilities and a plan for implementing relevant environmental measures. Following completion of the notification requirements, the licensee must generally continue operations for at least 90 days unless the ERC orders otherwise.

Projects subject to the ERC’s CoP must also comply with the applicable environmental measures during the decommissioning or dismantling phase. Contractual arrangements, including land leases and other project agreements, may impose additional obligations concerning the removal of project equipment or restoration of the site.

Materials and equipment arising from decommissioning must be disposed of or recycled in accordance with the applicable environmental and waste-management requirements and any relevant licence, permit or CoP conditions.

Power Development Plan 2026

A significant forthcoming policy development is the finalisation of Thailand’s Power Development Plan 2026–50 (PDP2026). The EPPO presented the draft PDP2026 for public consultation on 8 September 2026. Pending approval of a replacement plan, PDP2018 Revision 1 remains the current power development plan.

Based on publicly available information as at September 2026, the draft PDP2026 envisages substantial additions to renewable generation and energy storage during the first phase of the plan, from 2026 to 2037. These include approximately 24,300 MW of solar power, 2,700 MW of wind power and 14,500 MW of BESS. This first phase is broadly common across the alternative scenarios considered under the draft.

For the period after 2037, the draft considers alternative pathways involving different combinations of renewable energy, energy storage, carbon capture and storage and other low-carbon technologies. Depending on the pathway, the share of clean energy is expected to range from approximately 65% to 89% by 2050. The draft also places greater emphasis on system flexibility and grid modernisation to accommodate increasing levels of variable renewable generation.

The concept of “clean energy” under the draft is broader than renewable electricity alone. The long-term pathway has not yet been selected, and the proposed capacity additions, technology mix and clean-energy shares remain subject to the ongoing approval process.

Draft Climate Change Act

The proposed Climate Change Act, approved in principle by the Cabinet on 2 December 2025, is another important development. The published draft provides for greenhouse gas measurement, reporting and verification requirements for specified categories of entities and activities. It also proposes carbon-pricing mechanisms, including an emissions trading system and a carbon tax. These proposals remain subject to the legislative process and the adoption of implementing regulations.

For businesses falling within the relevant scope, implementation could create additional obligations concerning emissions data, independent verification and carbon-related costs. These potential obligations would be relevant to energy procurement, operating costs and investment in lower-carbon technologies. However, the businesses covered, applicable thresholds, compliance requirements and commencement dates will depend on the final legislation and implementing rules.

The proposed legislation also provides for a Climate Fund to support greenhouse gas mitigation, climate adaptation and investment in low-carbon activities. The fund could provide an additional source of support for qualifying projects and businesses, subject to the eligibility criteria and funding mechanisms ultimately adopted.

Direct PPAs and Grid Access

Implementation of the expanded Direct PPA and TPA framework remains a further development to monitor. On 15 July 2026, the NEPC approved, at the policy level, the expansion of Direct PPAs through TPA beyond data centres to other industries requiring clean electricity. Practical implementation will depend on the relevant eligibility, network-access and contractual arrangements, as discussed in 5.5 Renewable Energy Certificates and (Corporate) Power Purchase Agreements.