A government committee has resolved to renegotiate or cancel power purchase agreements (PPAs) that have not yet been signed with private producers, in an effort to bring down electricity tariffs. Where signing is unavoidable, the purchase rate will be reset to the levels set by the National Energy Policy Council (NEPC) on July 15, 2026: 2.1579 baht per unit for solar power and 2.9015 baht per unit for wind power, or a rate more favorable to electricity consumers.
The decision came after the third meeting of the Committee on Resolving Problems Arising from Private Power Purchases, chaired by Deputy Prime Minister Pakorn Nilprapunt. The committee found that only about 2-3% of private power producers had agreed to amend or cancel their contracts with the state, out of roughly 400-500 contracts requiring revision.
For contracts already signed but not yet connected to the grid (i.e., without a commercial operation date, or COD), the committee resolved that:
- the state should negotiate to cancel them;
- if cancellation is not possible, the project must reach COD within the period specified in the contract; and
- if that deadline is missed, the contract must be terminated.
- Contracts that are renegotiated will also be given a fixed term of 20-25 years.
The resolutions cover the rates paid to non-firm SPPs and VSPPs under the adder and feed-in tariff (FiT) schemes, which exceed true costs. Some solar projects are paid as much as 11 baht per unit, even though the current cost is 2.1579 baht. Many contracts also have no expiry date. As a result, consumers are bearing electricity costs about 13-17 satang per unit above the actual cost.
Earlier, the committee said private operators’ low uptake reflected concerns over the new purchase rates and their investment burdens. The state intends to buy solar power at about 2.15 baht per unit and wind power at about 2.90 baht, while the existing wholesale price structure, including the fuel adjustment charge (Ft), stands at slightly over 3 baht per unit.
