Thailand’s Ministry of Energy has initiated steps to reform longstanding power purchase agreements with small renewable energy producers, aiming to address cost concerns and promote greater fairness. The move comes after a recent meeting between the ministry and the Thai Renewable Energy Association on 20 May 2025.
The discussion focused on so-called permanent contracts issued under the Adder and Feed-in Tariff (FiT) schemes. These contracts, first introduced following a 2007 resolution by the National Energy Policy Committee, allow for automatic five-year renewals without a set expiration date. While these mechanisms were originally designed to attract private investment in renewable power by guaranteeing rates above the standard electricity price, they have come under scrutiny for increasing the financial burden on both the government and consumers.
As electricity prices continue to rise, the Energy Ministry is seeking to revise these frameworks. Minister of Energy Pirapan Salirathavibhaga, who also chairs the National Energy Policy Executive Committee, has established a subcommittee to evaluate contract reform. The group has been tasked with proposing clear contract end dates and ensuring that changes benefit both energy investors and the general public.
This is the first coordinated policy response aimed at correcting structural issues in the current incentive models. The Thai Renewable Energy Association has signaled its readiness to work alongside the government in developing balanced reforms.
Among those present at the meeting were representatives of the RE 100 group, along with energy ministry officials and members of the subcommittee appointed to lead the review process.
