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Review of Financial Incentives for Renewable Energies

Review of Financial Incentives for Renewable Energies




1 May, 2017 to 31 December, 2017




Southeast Asia


Thailand is the second-largest economy and the fourth-largest country by population in Southeast Asia. Its economic success has resulted in a steady and steep increase in its energy consumption and, as a consequence, a rising dependency on imported fuels. The Alternative Energy Development Plan is a key guiding document of the Thai Integrated Energy Blueprint (TIEB) and sets a national target to increase the share of Renewable Energy in final energy consumption to 30% by 2036 to further diversify energy generation sources and transition to a more sustainable energy sector. A significant portion of this target is to substitute natural gas power generation with wind, hydro, biomass, biogas and municipal waste.

In order to contribute to the achievement of this target, the Department of Alternative Energy Development and Efficiency (DEDE) requested policy advisory support from the EUEI PDF to review the current Feed in Tariff model, and provide recommendations to improve the financial incentive framework for renewable energies in Thailand.

Since the beginning of 2017, the EUEI PDF has worked collaboratively with DEDE and jointly conducted significant stakeholder consultations with different public sector organisations involved in the implementation of renewable energy incentive schemes, private sector, academia and international organisations to better understand the barriers to renewable energy development in the country.

The results of the stakeholder consultations fed into a review of the current FIT model, suggestions for improvements and amendments to the model, and recommendations for additional and alternative financial incentives to respond to the decreasing cost of renewable energies, growing Thai renewable energy market, and objective to diversify renewable energy generation technologies contributing to the national grid. Furthermore, the EUEI PDF supported DEDE with a 2-day training for 20 DEDE representatives on use of the FIT model, and international best practices in the promotion of renewable energy and how they could apply to Thailand.
The capacity building support and recommendations will empower DEDE and feed in to the National Energy Policy Council’s proposal for future Feed in Tariff rates and regulations in 2018.




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  • Energy Efficiency
  • Energy Security
  • Renewable Energy

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