Government Approves Energy Transition Projects With 400 Billion Baht Loan
The government has approved a 400 billion baht energy transition loan, with agencies now required to submit projects offering direct public benefits like EV purchase subsidies and solar installation support.
Deputy Prime Minister Phadej Parisyananda clarified on July 10 that following the Constitutional Court's approval of the royal decree authorizing the Finance Ministry to borrow 400 billion baht for addressing energy crisis impacts and advancing the nation's energy transition, government agencies must now submit long-term energy transition projects. Initial projects must directly benefit the public through measures like interest subsidies or down payment assistance. The Transport Ministry has proposed down payment support for taxi, van, and public transport drivers switching to electric vehicles, while other agencies will offer similar assistance for rooftop solar installations. Phadej explained that each agency will submit projects for review by a screening committee comprising the Finance Ministry Permanent Secretary, the Office of the National Economic and Social Development Council, and the Comptroller General's Department. When asked about potential overlap with projects in the 2570 fiscal year budget currently under parliamentary review, Phadej assured there would be no duplication by cross-referencing existing budget allocations. He noted that of the 400 billion baht loan, 170 billion baht has been spent on economic recovery, and the government need not use the full amount by the end of 2570. Further stimulus or economic relief measures depend on the Finance Ministry's reassessment of economic conditions.