FRIDAY, March 29, 2024
nationthailand

‘Bidding’ for renewables mulled

‘Bidding’ for renewables mulled

THE GOVERNMENT is considering opening competitive bidding for renewable power projects, Energy Minister General Anantaporn Kanjanarat said.

He said renewable energy had not yet been dependable enough to meet electricity demands around the clock and thus conventional power plants still needed to be built to operate in parallel, which meant a duplication in investment.
Higher costs of renewable power have added 20 satang per kilowatt-hour to the national electricity tariff. He said that if the country got too carried away with renewable power, it would result in a cost burden for the people and industries.
“Renewable developers have said they can compete with conventional energy, so let them bid,” he said.
Nevertheless, Anantaporn said the government’s target to increase the share of renewable energy to 30 per cent of total electricity consumption in 20 years was still a reasonable goal.
Twarath Sutabutr, director-general of the Energy Policy and Planning Office, said eligible bidders for the new Small Power Producer (SPP) programme would have to commit to producing a certain amount of electricity or sign up to firm supply contracts. 
Current renewable power purchase agreements (PPAs) are on a “non-firm” supply basis, which has caused power utilities to establish standby reserves from fossil-fuelled power plants.
 
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