Thailand’s Energy Regulatory Commission (ERC) has issued the Notification on the Criteria for Regulating the Licensed Pool Manager B.E. 2566 (2023), which took effect on November 30, 2023. It followed an earlier notification, which took effect on October 13, 2023, that added the new license for the country’s pool gas manager. The new notification aims to regulate natural gas sale agreements and promote competition among players in the regulated natural gas market—that is, those who utilize natural gas for electricity generation under the Electricity Generating Authority of Thailand (EGAT) scheme, including industrial and NGV (natural gas for vehicles) consumers who rely on natural pool gas. The establishment of the pool gas scheme is aimed at encouraging new shippers to enter the market and providing new natural gas shippers with fair opportunities to compete with existing shippers, as all licensed shippers in the regulated market are subject to the same natural gas costs under this new scheme. Under this pool gas scheme, the pool manager plays a critical part in reselling natural gas in the country. Some of its responsibilities include the following: Purchasing natural gas or liquid natural gas (LNG) from licensed shippers in the regulated market at the rate at which the shippers procured the natural gas, including incidental expenses such as pipeline transportation and LNG station fees; Collecting data on the quantity and price of the gas purchased from the licensed shippers and calculating the pool gas price as specified in the ERC-approved manual, which is basically the average price of the natural gas procurement cost of all shippers in the pool; and Reselling natural gas or LNG to licensed shippers at the pool gas pricing rate in the quantity distributed to the pool by each shipper. Apart from its function in facilitating the primary procedures of

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.

Thailand’s Energy Regulatory Commission (ERC) is in the process of reviewing a draft regulation that updates the nationality qualifications for the ultimate shareholders and directors of applicants for an energy business license. The draft ERC Regulation Re: Qualifications, Documents and Application for Electricity Business—which is intended to replace the ERC Regulation Re: Application and Permission for Electricity Business B.E. 2551 and its amendments—is likely to be adopted soon and will affect licensed companies that are foreign majority owned when they apply for or renew their energy business licenses. The draft regulation requires partnerships, limited companies, and public limited companies to have the following qualifications unless there is an international agreement granting national treatment for a specific commitment (mode 3 or mode 4) or exemption by other laws: Juristic persons must be established under Thai law or registered in Thailand with the objective of carrying out electricity business; For private limited companies, foreign ultimate shareholders must not hold more than 49% of the total shares, and the number of the foreign shareholders must not exceed half of all shareholders; At least half of all directors must have Thai nationality; and Any authorized directors must have Thai nationality. When the draft regulation is adopted, it will not take retroactive effect on previously granted energy business licenses, which will continue to be valid until they expire if there is no material change to the license as defined by the draft regulation. Once the license is up for renewal (energy business licenses are normally issued for a specific period of time), it will be subject to the draft regulation. All license applications submitted prior to the effective date of the draft regulation and under consideration will be deemed applications for a license under the draft regulation. As noted above, the new qualification requirements

Cambodia has the potential to be one of the top countries in the world for generating renewable energy through solar, based on the average amount of sunlight hours available per day and the consistent sunshine throughout the year. The Cambodian government has recognized this potential and has made major updates to its energy policies in recent years. Solar power is now taking over a much larger portion of the total energy mix in Cambodia, especially as a number of utility-scale solar power plants have come online in recent years. The long-term Power Development Master Plan 2022–2040 sets out the long-term energy policy for Cambodia and requires a bigger role for renewables. The use of solar power will play a key role in this aim to increase the role of renewables, with the plan foreseeing almost 30% of all national power generated through solar technologies by 2040. Two of the latest legislative and regulatory steps by the government are the Ministry of Mines and Energy’s guidelines for rooftop solar systems, and most recently the long-awaited Environment and Natural Resources Code, which was enacted on June 29, 2023. Rooftop Solar Projects Many companies, from small startups to multinationals, are exploring the potential for rooftop solar in Cambodia. However, despite the favorable natural factors, the regulatory framework was not always clear or friendly to rooftop solar, hampering investment. This started slowly changing with the adoption of the first solar energy regulation in 2018, which provided the country’s first official guidance on both solar power plants and rooftop solar. It provided some much-needed clarity, but the 2018 solar energy regulation—and especially the subsequent electricity tariff schemes—often kept rooftop projects from being financially viable. Many players in the industry voiced their doubts about the regulations and tariffs, focusing especially on the capacity charge—a monthly