Thailand has officially launched the Utility Green Tariff (UGT) to encourage businesses to adopt renewable energy. The UGT sets the rate for green electricity at 4.21 THB per kWh (approximately 0.12 USD), which is slightly higher than the current rate for conventional electricity. Local demand for corporate green electricity subscriptions has already reached 600 million kWh.
Key Details of the UGT:
- Subscription Requirements: Businesses interested in purchasing green electricity at the UGT rate must sign a one-year purchase agreement with one of the following entities:
- Electricity Generating Authority of Thailand (EGAT)
- Metropolitan Electricity Authority (MEA)
- Provincial Electricity Authority (PEA) Subscription registration must be completed between January 2 and February 28.
- Rate Comparison: The UGT rate of 4.21 THB per kWh is 0.06 THB (about 0.0018 USD) higher than conventional electricity rates. The total green electricity available for subscription from January to April this year is estimated at 2 billion kWh [1].
- UGT1 and UGT2:
- UGT1: This rate is available to small and medium-sized businesses, allowing them to meet carbon reduction requirements through actual electricity supply and green certificates without specifying the source of the green electricity. Currently, UGT1’s green electricity is sourced from seven hydropower plants under EGAT, with an estimated stable supply of 2 billion kWh annually.
- UGT2: Designed for large electricity users, this rate is still under review and will focus on the development of new renewable energy projects, allowing businesses to specify the source of their green electricity through utilities such as MEA or PEA.
The Energy Regulatory Commission (ERC) of Thailand has indicated that future green electricity supplies will primarily come from power plants collaborating with the ERC’s first-phase renewable energy program, with an expected capacity of up to 4.8 GW. The UGT program, which faced delays since its initial announcement in 2023, is now officially open for subscription. This initiative is expected to help businesses reduce carbon emissions and attract foreign investment to establish factories in Thailand.
Deputy Prime Minister Pirapan Salirathavibhaga has emphasized that Thailand aims to become the first ASEAN country to offer a comprehensive green electricity service with the implementation of the UGT.
Learn more:
- Bangkok Post – Preparing for the utility green tariff
- Thailand: Players, get ready! Second round of renewable energy auctions set to launch in Thailand for those who missed out in the previous round – Baker McKenzie InsightPlus
- Thailand’s Utility Green Tariff set to be launched next month | NEWS | Reccessary
