Thailand announces second solar development plans for 2017
Next year could be Thailand's "second solar gold rush", according to a report from Bangkok-based law firm Pugnatorius, following plans released by the Thai Energy Policy and Planning Office (EPPO), which could be attractive to foreign investment. Among the opportunities being rolled out in 2017 are around 518 MW of solar, 67 projects with a combined capacity of 281 MW which are open for joint ventures, and increased access to rooftop solar for private investors. However, Pugnatorius also warned of an end to government incentives as cost reductions continue.

The Thai Energy Policy and Planning Office (EPPO) has announced new solar development plans for 2017, which open up several opportunities for foreign investors to participate.

‘Thailand Solar Outlook 2017’, a report from Bangkok-based law firm Pugnatorius, forecast that 2017 will be Thailand’s “second solar gold rush” after a successful year in 2015 was dampened by several delays and uncertainties in 2016.

Thailand added 470MW of solar in 2014, followed by 722MW in 2015, but it has already installed 732MW in the first nine months of this year, according to the latest data from the Energy Regulatory Commission (ERC).

Pugnatorius said it is unlikely that 2017 will see a significant cut of current incentives for low carbon technologies, such as fiscal benefits and data support on renewable development progress. For example, these include the provision of solar and wind data maps and a one-stop-service center at the Department of Alternative Energy Development and Efficiency (DEDE).

However, the report stated: “The political risk of a (retrospective) cancellation of renewable energy incentives is small, but not non-existing. [The National Committee for Peace and Order has] full and uncontrolled authority to reshape the energy legislation and regulatory framework without grandfathering, loss compensation, legal or court protection.”

Continued enhancements in technology and further cost reductions might also bring about the end of government incentives, particularly if solar power prices reach grid parity with traditional power sources, said Pugnatorius.