Thailand’s UTNP Leader to Review Solar Power Purchase Agreements

In a significant move concerning Thailand’s energy policy, Peerapun Saleerathavibhak, the leader of the United Thai Nation Party (UTNP), has announced his firm intention to launch an immediate review of solar power purchase agreements should he return to a position of power. The pledge comes amid concerns over potential irregularities and questionable price hikes in contracts signed after his tenure as Energy Minister.

A Tale of Two Prices in Thailand solar power agreements

At the heart of the issue is a stark price discrepancy in the rates at which the state has agreed to purchase solar-generated electricity. Peerapun highlighted that during his time as Energy Minister, the government secured power at approximately 1.57 baht per unit. This rate was strategically aligned with the cost of the state’s own Floating Solar project, establishing a benchmark for fair pricing.

However, he pointed out that following the government transition, new agreements were rapidly finalized at a significantly higher price of 2.16 baht per unit. This increase has raised questions, particularly as advancements in solar technology typically lead to a reduction, not an increase, in production costs. Peerapun argues that rushing to lock the nation into expensive, long-term contracts creates an unnecessary and enduring financial burden for the country and its citizens.

Questionable Urgency and Long-Term Costs of Thailand solar power agreements

Peerapun further explained that during his two years as Energy Minister, he had deliberately delayed the signing of new power purchase agreements. His reasoning was based on a practical assessment of the country’s needs: Thailand’s electricity reserves already exceeded national demand. This surplus capacity, he suggests, made the subsequent rush to approve more expensive contracts all the more perplexing.

The former minister’s stance is clear: beyond investigating contracts that may lack transparency, the focus should be on ensuring that energy policy serves the public interest by securing the lowest possible costs.

A Vision for Solar Deregulation in Thailand solar power agreements

Beyond a retroactive review, Peerapun proposes a forward-thinking solution to lower electricity costs and empower citizens. He advocates for the deregulation of solar power generation.

This policy would allow individuals, households, and private entities to produce their own electricity without the need for complicated and often prohibitive permits. By decentralizing power generation, this approach would not only reduce the state’s burden to purchase electricity but could also foster a more competitive and resilient energy market, ultimately leading to lower costs for all consumers. This vision shifts the paradigm from state-centric energy procurement to a more liberalized model of energy independence.