Thailand: Small solar energy producers face cut in rate

Thailand: Small solar energy producers face cut in rate

THE National Energy Policy Committee yesterday agreed to reduce the tariff
for small solar energy producers.

Energy Minister General Anantaporn Kanjanarat said the supreme energy board
has resolved to revise the feed-in-tariff for very small power producers
that use solar energy since production costs have come down significantly
due to a reduction in the price of solar panels and related equipment.

The new tariff will be Bt4.12 per kilowatt-hour (unit) for a purchase period
of 25 years. The previous price was Bt5.66 per kilowatt-hour. Developers in
the Southern border provinces will get a Bt0.50/unit premium.

The Energy Regulatory Commission will work with involved agencies to set
targets in line with the Alternative Energy Development Plan 2015 and submit
them to the NEPC.

The NEPC, chaired by Prime Minister Prayut Chan-o-cha, also acknowledged the
latest results from PTT negotiations which called for a 20 per cent
reduction in the price it pays Shell Eastern Trading and BP Singapore for
liquefied natural gas. The reduction will reduce the payments to Shell,
during its 15-year contract, and BP's 20-year-contract by a combined total
of Bt115 billion.

The energy board also agreed that the Ministry of Energy would postpone the
auction of expiring petroleum concessions due to delay in the amendments of
the laws by the National Legislative Assembly. The board yesterday extended
the auction process to next September.

Chevron's Thai unit holds concessions to operate the Erawan gas field, while
PTTEP operates the Bongkot gas field. The two have combined production of
2.2 billion cubic feet per day, or 76 per cent of output in the Gulf of
Thailand. The concessions are due to expire in 2022 and 2023 respectively.

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Ref:
http://www.nationmultimedia.com/business/Small-solar-energy-producers-face-c
ut-in-rate-30296253.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com