Call for green power to supply data centers

Thailand's Federation of Thai Industries' Renewable Energy Industry Club is calling on the government to permit renewable power producers with expired "adder tariffs" to sell electricity directly to data centers. This proposal aims to meet the vast clean energy demands of these facilities while avoiding the current system of wholesale purchases.

Club chairman Natee Sithiprassana explained that companies whose adder tariffs have expired should no longer sell electricity back to the government. Instead, he suggests they should supply data centers directly. The implementation of this idea hinges on ongoing negotiations with the government. Currently, firms with expired adder tariffs possess a combined generation capacity of 2,596 megawatts.

This suggestion comes as the government is already piloting a direct power purchase agreement program, enabling renewable power companies to sell electricity directly to data centers. However, peer-to-peer power trade remains prohibited in Thailand. The adder tariff, introduced in 2006 to encourage renewable energy investment, was criticized for increasing electricity costs for consumers. Although the scheme has ended, companies can still sell electricity to the government at wholesale prices.

Industry sources indicate that producers continue to sell electricity at high prices due to a wholesale tariff of 3.78 baht per unit, plus a fuel tariff. Research shows that 522 out of 566 renewable energy projects still benefit from selling electricity at these favorable wholesale prices, even after their adder tariffs expired. The government replaced the adder tariff with a feed-in tariff for new projects in 2014, but older projects continue under the previous system.

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companies with expired adder tariffs should no longer sell electricity to the government, instead supplying data centres directly.