Thailand Pushes for Renewable Energy to Attract Data Centre Investments
Thailand is implementing direct Power Purchase Agreements to attract data centre investments. This shift from the state-controlled energy market will allow companies to directly purchase renewable energy, making the country more appealing to eco-conscious businesses. The pilot project, approved by the National Energy Policy Council, aims to trade up to two thousand megawatts of clean energy.
The Bhumibol Dam in Tak province, operated by Egat, is a key hydropower facility supplying renewable energy to Thailand.
The Thai government aims to attract foreign investments by facilitating renewable power sales under direct Power Purchase Agreements (PPAs).
This initiative is especially significant for data centre operators, who demand a reliable supply of clean energy.
Prime Minister Srettha Thavisin has instructed officials to pilot a direct PPA project, trying to shift from the traditional enhanced single buyer (ESB) system where Egat is the sole electricity buyer.
The government and business groups, including industries in the Eastern Economic Corridor (EEC), are collaborating to study and implement the direct PPA plan.
The National Energy Policy Council (NEPC) has approved a pilot project allowing up to 2,000 megawatts of renewable electricity trade under direct PPAs.
This change is seen as crucial for making Thailand a regional data centre hub by addressing the high energy demands of this sector.