Bangkok Post

FTI urges rule rejig for energy trade


The Federation of Thai Industries (FTI) is calling on the government to amend laws to allow factories easier access to electricit­y made from renewable energy to help Thailand reduce carbon dioxide emissions.

The call is part of a global campaign against climate change, as European countries consider imposing a non-tariff barrier on companies that do not use enough clean energy in their manufactur­ing.

Natee Sithiprasa­sana, vice-chairman of the FTI’s Renewable Energy Industry Club, said the government wants to promote more renewable energy as a main source of electricit­y generation, but some regulation­s may not facilitate power trade among companies that want to use more renewable energy.

He was referring to the enhanced single buyer (ESB) model, which is considered a legal hindrance.

ESB allows the Electricit­y Generating Authority of Thailand (Egat) to be a single buyer that sells electricit­y to the public.

If power companies want to sell electricit­y produced by renewable resources, they are required to sell it to Egat and state power distributi­on agencies, which then distribute electricit­y through their grids to companies and households.

Power companies are only allowed to directly sell electricit­y to the industrial sector under private power purchase agreements, but only fossil fuelbased electricit­y is traded.

Mr Natee was speaking at a seminar held yesterday to mark 2021 Asean Sustainabl­e Energy Week.

He said Thailand is gearing up for a carbon neutrality goal, which will be achieved through more use of renewable energy.

Whether electricit­y supply from clean energy will satisfy growing demand from investors remains a worry, said Mr Natee.

Japan-based Denso Corporatio­n, a global auto component manufactur­er, last year requested 100% renewable energy to feed its production facilities in Thailand, he said.

The company needs to serve demand for clean energy by its largest auto parts purchaser, Toyota Corporatio­n.

Arthit Vechakij, also vice-chairman of the club, said the FTI is teaming up with environmen­tal authoritie­s to develop a new carbon credit trading platform to replace the old one, which had higher expenses and a complicate­d verificati­on process.

Carbon credits, which refer to the amount of greenhouse gas reduction from environmen­tal projects, can be traded to companies to offset the carbon dioxide they release into the atmosphere.

 ?? ?? Thailand uses an enhanced single buyer model for energy trade.
Thailand uses an enhanced single buyer model for energy trade.

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