Thailand: Policymakers seek wind farm solution

Thailand: Policymakers seek wind farm solution

Energy and agricultural policymakers are scheduled to meet next week to find
a solution on disputes for 15 wind farms located on Sor Por Kor land in
Nakon Ratchasima and Chaiyaphum.

The Supreme Administrative Court ruled last week that it is inappropriate to
rent out Sor Por Kor land in Chaiyaphum, which had been designated for
farming purposes, to build wind farms. It further ordered the revocation of
a licence to develop a wind farm there.

That has raised concerns among other wind farms developers on whether their
licences could be revoked, prompting them to suspend investment on renewable
energy projects.

The Agricultural Land Reform Office (Alro) had earlier leased the Sor Por
Kor land for building wind energy projects. Alro now fears that the ruling
will set a precedent for future projects.

The Department of Alternative Energy Development and Efficiency (DEDE) said
policymakers planned to meet on Feb 14 at the headquarter of the Ministry of
Agriculture and Cooperatives in order to seek out a solution.

The DEDE's director-general, Praphon Wongtharua, said the talks would also
cover ways to lend support to those who are investing in renewable energy
projects.

"As it is, we don't yet know how to help investors who have started projects
whose licences have been revoked or otherwise need to move to new
locations," said Mr Praphon.

There are 11 wind farms that are waiting for approval of power purchase
agreements by the Energy Regulatory Commission. The approval process,
however, has been suspended until the dispute over the Sor Por Kor land is
settled.

Those 11 wind farms have a combined power generating capacity of almost 700
megawatts, while the other 4 farms with a combined capacity of 354MW are
already operating and selling electricity to the Electricity Generating
Authority of Thailand.

Energy experts estimate that total capital expenditure on the 15 wind farms,
excluding land prices, could be over 80 billion baht.

Mr Praphon said the controversy over land use is unlikely to have an adverse
impact on Thailand's alternative energy development plan 2015-2036, which
has the ambitious goal of seeing 30% of the country's energy supply coming
from renewable energy, up from 14% as of the end of 2016.

He said the DEDE is conducting a feasibility study on the pros and cons of
solar rooftops before initiating a project and granting licences to new
investors. Chulalongkorn University will start conducting the study in
March.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1196597/policymakers-seek-wind-farm
-solution

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com