Bangkok: The Energy Regulatory Commission (ERC) has initiated negotiations with the private sector to reduce electricity prices for the solar power purchase project, setting a target price of 3.94 baht per unit for the period from September to December 2025. The government has also extended the operation period of the Nam Phong Power Plant by six years, managed the Mae Moh Power Plant, set electricity selling prices for neighboring countries, and canceled the plan to separate the System Operator (SO).
According to Thai News Agency, Deputy Prime Minister and Minister of Energy, Mr. Pirapan Salirathavipak, disclosed that the National Energy Policy Council (NEPC) meeting, chaired by Acting Prime Minister, Mr. Phumtham Wechayachai, addressed several key energy-related agenda items. The meeting focused on implementing the NEPC resolution from May 2025 about purchasing additional electricity from renewable sources without fuel and industrial waste costs. This is part of the plan to increase clean energy electricity production from 2023 to 2030.
For wind power projects, since the reference price by EGAT is higher than the FIT rate, the power purchase agreement (PPA) signing process will proceed with adjustments to the timeframe and an extension of the Commercial Operation Date (SCOD) to no later than 2030. For solar power projects, the ERC, along with EGAT, PEA, MEA, and EPPO, will negotiate electricity rates with private operators, completing the process within 45 days. Adjustments to contract terms and SCOD extensions similar to wind power projects will follow.
The meeting decided to extend Nam Phong Combined Cycle Power Plant Units 1 and 2's operational life by six years until September 2031, aligning with the natural gas sales contract and electricity demand in the Northeastern region. This move aims to reduce electricity production costs by about 28.358 billion baht over six years.
For the Mae Moh Power Plant, the meeting approved replacing Units 8-9 with renovations to Units 12 and 13, postponing decommissioning until 2048. This strategy aims to reduce investment, optimize domestic resources, and lower electricity costs, anticipating a 3.67 satang per unit decrease in the Ft charge, equating to a reduction of approximately 9,566 million baht annually.
The meeting also approved reducing electricity bills for residential users under the normal tariff for September to December 2025, with the Ft set at 3.94 baht per unit. The ERC and other authorities are tasked with reviewing electricity consumption eligibility for discounts to promote efficient use and reduce unnecessary subsidies.
Additionally, the meeting resolved to ensure electricity prices for neighboring countries comply with the 2015 NEPC resolution, with prices not lower than those for domestic consumers. EGAT and PEA are assigned to develop appropriate pricing guidelines for future contracts.
The ERC meeting reviewed the separation of the System Operator (SO) and resolved to keep it within EGAT, contrary to the original plan for independence, ensuring efficient management and compliance with international standards.
The meeting also acknowledged the Demand Response (DR) pilot project's results, approving guidelines for its development to reduce power plant construction and LNG imports. A subcommittee under EPAC will be established to set criteria and compensation rates, ensuring they remain below power plant or LNG electricity costs.
Mr. Pirapan also noted the ERC's acknowledgment of the Pool Manager's independent management from PTT, negating the need for a separate legal entity for the Pool Manager.