Thailand Reviews Costly Solar Power Contracts to Cut Electricity Bills
Thailand’s Energy Regulatory Commission is reviewing solar power purchase contracts that pay private producers up to 11 baht per unit, far above the current cost of 2.1579 baht, aiming to lower electricity bills for consumers. The commission proposes to renegotiate or cancel unfair contracts, align rates with National Energy Policy Commission limits, and limit contract durations to 20‑25 years. A government‑appointed committee will push the reforms forward for adoption as national policy.
The Energy Regulatory Commission (ERC) is moving to reassess the structure of buying electricity from private power producers after discovering that some contracts carry rates far above the current cost, adding an unnecessary burden to consumers’ electricity bills. Speaking as the ERC’s spokesperson, Secretary Poolapat Leesombutpiboon said the review focuses on agreements that use the Adder and Feed‑in Tariff (FiT) mechanisms, under which certain solar projects are being paid as much as 11 baht per kilowatt‑hour while the actual cost is only 2.1579 baht per kWh. This disparity translates into an extra charge of roughly 13‑17 satang per unit that consumers must bear.
On 7 October 2026, the committee tasked with solving problems arising from private‑sector power purchases (NESDC) resolved to review purchase rates for small power producers (SPP) and very small power producers (VSPP) under non‑firm contracts — those that do not guarantee a fixed output volume and rely on Adder and FiT schemes. The committee decided that for contracts not yet signed, parties should negotiate to cancel the signing or, if a contract is necessary, set the purchase price according to the National Energy Policy Commission’s (NEPC) resolution of 15 July 2026, which fixed the solar rate at 2.1579 baht per kWh and the wind rate at 2.9015 baht per kWh, or choose a rate more favorable to electricity users, with contract lengths limited to 20‑25 years.
For contracts already signed but where the projects have not yet begun feeding power into the grid or have not reached commercial operation date (COD), the ERC advises negotiating contract cancellation; if cancellation proves impossible, the projects must achieve COD within the period stipulated in the agreement, otherwise the contract should be terminated. The ERC noted that it had previously urged the NEPC, about two years earlier, to revisit the Adder and FiT policies that lack expiration dates after finding those rates markedly above current costs and inconsistent with Section 65 of the Energy Business Act B.E. 2550, which requires the ERC to base electricity rates on actual costs.
Although earlier proposals stalled, the present government has taken up the issue, appointing a committee chaired by Deputy Prime Minister Pakon Nilsphan to drive the review forward. The next step is to submit the matter to the NEPC for approval and adoption as state policy, after which the ERC will implement and supervise electricity rates to ensure they reflect true costs and relieve the public of undue financial burden.
