Thailand Approves 1,500 MW Community Solar Program with Time-Sensitive “First-Served” Selection (Thailand)

Key Commercial and Technical Terms

While the full regulations are pending, the NEPC framework confirms the following core parameters:

• Total Quota: 1,500 MW, nationwide.
• Project Type: Ground-mounted solar farms.
• Project Capacity: Capped at 10 MW per project (qualifying as a Very Small Power Producer, or VSPP).
• Contract Term: 25-year, non-firm Power Purchase Agreement (PPA).
• Tariff: A Feed-in Tariff (FiT) of up to THB 2.25 per kWh.
• Offtake Model: The Provincial Electricity Authority (PEA) or Metropolitan Electricity Authority (MEA) will purchase the power and sell it to the designated local communities.

The “First-Served” Selection: A Race for Readiness

The selection process will be on a “first-come, first-served” basis, rewarding project readiness.

Based on the preliminary framework and analysis of similar past schemes, applicants should prepare to submit a comprehensive readiness package demonstrating:

• Proponent Qualifications: The applicant must be a juristic person registered in Thailand, not be a government agency, and meet minimum registered capital requirements.
• Technical Readiness: Evidence of site readiness, technological feasibility, financial readiness, and a suitable implementation plan.
• Land Rights: Secured and finalized land leases or title deeds for the project site.
• Community Cooperation: This is a new and critical requirement. Applicants must obtain formal consent from the Local Administrative Organization (LAO) for the project, using a specific form to be prescribed by the ERC.

Key Legal & Regulatory Issues to Monitor

Our analysis identifies three major legal points that will directly impact project feasibility and structuring.

A. Foreign Ownership Limits

The most significant legal uncertainty for international investors is whether the new regulations will impose foreign ownership restrictions. As a crucial precedent, the 2022 “Big Lot” renewable program enforced a stringent dual restriction: foreign shareholding was capped at 49% of the total issued shares, and the number of foreign shareholders could not exceed half of the total number of shareholders. International investors are strongly advised to proactively structure their companies to ensure compliance with these potential dual caps, in the event that they are included in the final ERC regulation.

B. Ownership of RECs and Carbon Credits

The NEPC framework specifies that all Renewable Energy Certificates (RECs) and carbon credits generated by the projects will be owned by the state utility (PEA/MEA).

This is a critical commercial point. Developers cannot monetize these environmental attributes, and this must be reflected in all financial models.

C. Potential for Factory License Exemption

To expedite the “Quick Big Win” timeline, the NEPC has assigned the Ministry of Industry to consider exempting these 10 MW ground-mounted projects from requiring a factory license (Ror. Ngor. 4). If approved, this would significantly reduce permitting timelines, costs, and complexity.

This 1,500 MW quota has initiated a high-stakes ‘readiness race’ in which the window of opportunity will be brief and intensely competitive. To secure a position, investors should begin all preparatory work now. We therefore strongly advise clients to mobilize all critical-path preparations immediately from securing land rights to engaging with LAOs, in parallel with the ERC’s drafting process. Our team is monitoring the development of this opportunity. For strategic counsel on how to navigate the requirements and position your project to win, please contact Kobchai Nitungkorn at kobchai.n@nagashima.com.