You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 15, 2020

Thailand Issues Regulations for Procurement of Electricity from Very Small Power Plants

Subscribe to Updates

Thailand has issued a new regulation setting out criteria and conditions for power purchase agreements (PPAs) for very small power producers (VSPPs) under the Community Power Plants for the Local Economy project—part of the Electricity Generating Authority of Thailand’s (EGAT) Energy Policy for the Local Economy. The Regulation Re: Procurement of Electricity from Very Small Power Producers was issued on April 2, 2020, by the Energy Regulatory Commission (ERC) and published in the Government Gazette on April 10, 2020.

In order to qualify as a VSPP, a power producer must generate no more than 10 MW per project, and must comply with the requirements and restrictions set by the Executive Committee of Power Purchase from Community Power Plant Projects. Furthermore, prospective VSPPs may only use one of the following:

  • Biomass
  • Biogas from wastewater or waste
  • Biogas from biofuel
  • A hybrid of biomass with biogas (wastewater or waste)
  • A hybrid of biogas (biofuel) with solar power

Under the ERC’s new regulation, a PPA with a VSPP will have a term of 20 years from the Commercial Operation Date (COD) and will specify the following feed-in tariffs (FIT) per unit of electricity, depending on the type of fuel:

  • Solar: THB 2.90 per unit
  • Biomass: THB 4.2636–4.8582 per unit (depending on the installed capacity)
  • Biogas (waste): THB 3.76 per unit
  • Biogas (biofuel): THB 5.3725 per unit
  • Biogas (combination of waste/biofuel): THB 4.7269 per unit

These prices are based on the variable FIT rate for 2019 and will be increased by the ERC based on core inflation. There is also a FIT premium of THB 0.50 per unit for projects located in designated areas.

Applicants must also pay the following guarantees to either the Metropolitan Electricity Authority or the Provincial Electricity Authority:

  1. Application guarantee of THB 500 per kW of electricity offered for sale, payable at the time of application. This will be returned when the applicant withdraws their intent to sell electricity within the application period, if the applicant is not selected for the PPA, or when the applicant has signed the PPA.
  2. Performance guarantee of THB 500 per kW of electricity offered for sale, to be paid prior to signing the PPA. This will be returned on the COD.

Successful applicants must also sign the PPA within 120 days after the selected applicants are announced, or the PPA will be void and the application guarantee forfeited, unless the failure to do so is the result of a force majeure or the fault of a government agency. Furthermore, if the selected producer is unable to produce electricity for sale by the contractually specified COD (SCOD), the producer may be subject to fines of 0.33% of the guarantee payments per day, starting from 60 days after the SCOD. If the VSPP is still unable to supply electricity 360 days after the SCOD, the PPA will be terminated and the performance guarantee may be forfeited.

The application timeline and details of required supporting documents will be specified later by the ERC, which will also provide the application form and further criteria.

Related Professionals

Location

RELATED INSIGHTS​ 

July 2, 2026
Thailand’s Electronic Transactions Development Agency (ETDA) released a new version of the draft Act on Artificial Intelligence on July 2, 2026, for a public hearing period expected to be approximately 30 days. The draft act adopts a risk-based regulatory approach modeled in part on international frameworks—particularly the EU’s AI Act—while incorporating provisions tailored to Thailand’s regulatory landscape and digital economy objectives. If enacted in its current form, the law would introduce extraterritorial obligations, a tiered risk classification system, strict liability for AI-related damages, and new transparency requirements for AI-generated content. Scope and Extraterritorial Application The draft act applies to AI development, deployment, or any other action affecting people in Thailand, even if the action occurs outside the country. Of note: This extraterritorial reach creates compliance obligations for global AI companies whose systems impact Thai residents or consumers, even if the provider has no physical presence in Thailand. Foreign AI providers serving Thai deployers or users must appoint a local coordinator or authorized representative. Depending on the type of AI system, the representative may need full authority to act on behalf of the provider without any limitation of liability. Certain activities are exempt from the draft act’s oversight, including AI used by natural persons solely for personal or household activities, AI for educational research conducted by higher education institutions with ethics committee approval, research and development activities conducted prior to distribution or service provision, and other AI systems prescribed by royal decree. Risk-Based Classification Framework The draft act establishes a tiered risk classification system with three main categories: Prohibited AI. The act outright prohibits AI systems employing cognitive-behavioral manipulation using subliminal techniques, AI systems causing unfair broad-scale discrimination from processing irrelevant data, and other categories of serious risk as determined by announcement of a forthcoming committee that will be responsible
Read More
July 1, 2026
Obtaining marketing authorization is a fundamental requirement for bringing pharmaceutical products to the Thai market. Companies must navigate the Thai Food and Drug Administration’s registration procedures while also complying with post-approval pharmacovigilance obligations, licensing requirements for manufacturing and importation, data protection rules, and other regulatory requirements. This guide provides an overview of Thailand’s regulatory framework for pharmaceutical marketing authorization, including available registration pathways, review timelines, application fees, postmarketing surveillance obligations, licensing requirements, exemptions, data exclusivity, freedom of information, and parallel import considerations. It is intended as a practical reference for pharmaceutical companies, regulatory affairs professionals, and others involved in bringing medicinal products to the Thai market. Download the guide below for a concise overview of the current requirements and procedures governing pharmaceutical marketing authorization in Thailand.
Read More
June 30, 2026
Tilleke & Gibbins’ insurance specialists in Bangkok provided Thomson Reuters’ latest country update on Thailand’s regulatory framework for the insurance industry. The country update, which is part of Thomson Reuters’ extensive Regulatory Intelligence offerings, contains information and guidance for insurers active in the Thai market. The guide covers the following topics in detail: Permission to operate; Legal and regulatory considerations for domestic and international insurers; Capital reserve requirements; Investment management and markets; The Office of Insurance Commission’s arbitration system for handling complaints; Creditor hierarchy; Rehabilitation of non-life insurance companies; and Personal data protection requirements for insurers. Thomson Reuters Regulatory Intelligence is a service that provides with curated news, analysis, and data across jurisdictions to help legal, risk, and compliance professionals manage compliance and mitigate global risk. The full Thailand insurance country update is available by subscription to Regulatory Intelligence on the Thomson Reuters website.
Read More
June 30, 2026
Customs recordation is an enforcement mechanism in Myanmar that enables intellectual property (IP) rights holders to seek prevention of the cross-border movement of infringing goods. The enactment of Myanmar’s IP laws in 2019 has enabled customs recordation for registered marks and copyrights under the Trademark Law 2019 and the Copyright Law 2019. By contrast, the Patent Law 2019 and the Industrial Design Law 2019 do not provide a practical framework for customs recordation, and accordingly such rights are not subject to the customs recordation regime. Under the Trademark Law 2019, rights holders may apply for customs recordation and may also ask the Customs Department to suspend the release of goods suspected of bearing counterfeit marks. Likewise, the Copyright Law 2019 allows for customs intervention in relation to pirated works. These provisions reflect Myanmar’s gradual alignment with international standards on border measures, although the implementation framework remains at a relatively early stage of development. Customs Recordation Pursuant to the Trademark Law 2019 and the Copyright Law 2019, the relevant authorities have issued customs rules concerning the protection of registered marks and copyrights. In practice, the process generally begins with the submission of an application to the Customs Department together with supporting documentation. This typically includes proof of registration in Myanmar; details of the rights holder, applicant, and any authorized representative; and a comprehensive description of the genuine goods. Product identification materials—such as photographs, packaging samples, and distinguishing features—are particularly important in helping customs officers identify suspected infringing goods. A recordation remains valid for two years from the date of approval. It may be renewed for additional two-year terms, provided that the renewal application is filed within the thirty days prior to expiry for marks and up to thirty days in advance of the expiry date for copyrights, in accordance with
Read More