Thailand’s Minister of Energy, Akanat Promphan, announced that the National Energy Policy Council (NEPC) will meet in June 2026 to finalize criteria for the pilot phase of the Direct Power Purchase Agreement (Direct PPA) project, with a total capacity of 2,000 megawatts.
The long-awaited initiative is moving forward after significant delays, answering calls from the business sector and investors for greater clarity and momentum in clean energy policy—particularly for industry and data center operators.
The Direct PPA pilot aims to liberalize Thailand’s electricity market by moving from a single-buyer system to a more open trading structure. According to the minister, this project will help modernize Thailand’s renewable energy landscape and better support international investors, especially large-scale data centers.
Under the Direct PPA, renewable energy producers will gain the ability to sell electricity directly to consumers using existing grid infrastructure, via the Third Party Access (TPA) principle. This system is expected to increase market flexibility, offer more options for clean energy procurement, and strengthen Thailand’s attractiveness to global companies committed to sustainability.
On energy policy planning, Akanat confirmed that a subcommittee is rushing the revision of Thailand’s Power Development Plan (PDP 2026), targeting completion by June 2026 for submission to the Energy Policy Committee (EPC) in July. The goal is to overcome years of planning delays and align the sector’s direction with long-term strategic goals.
Following EPC approval, a public hearing will gather feedback from all relevant parties, aiming for comprehensive stakeholder alignment before official rollout—expected in the fourth quarter of this year. The PDP is set to clarify Thailand’s long-term energy investment landscape and supports the country’s Net Zero Emissions target by 2050.
Krungsri Securities highlights that guidelines for TPA and wheeling charges—critical for implementing Direct PPA—are expected to be finalized in June. Firms with strong captive demand from data center customers, such as Gulf Development Public Company Limited (SET: GULF), WHA Utilities and Power Public Company Limited (SET: WHAUP), and B.Grimm Power Public Company Limited (SET: BGRIM), are seen as front-runners to benefit from the initiative.
While the Energy Policy and Planning Office (EPPO) is revising peak load forecasts, the office is also actively working to complete and propose the new PDP to the EPC by July 2026, signaling positive momentum for the power sector overall.
As such, the brokerage firm maintains its “Bullish” outlook for the power plant sector, with GULF as the top pick—recommended “BUY” with a 2026 price target of THB 74. The “Buy” recommendation was also given to Global Power Synergy Public Company Limited (SET: GPSC) with a 2026 price target of THB 48—due to their strong financials and direct benefit potential from PDP 2026.
Bualuang Securities has also raised its target price for GULF to THB 78, as the data center sector emerges as a near-term growth driver. Thailand’s competitive construction costs, power rates, and supportive government policy—including BOI perks and Direct PPA—position the country as a rising data center hub in Southeast Asia, drawing major cloud providers like Google, Microsoft, and AWS. GULF’s robust infrastructure and clean energy provision for hyperscaler clients position it to capitalize on this growth and future Direct PPA opportunities.
