In more detail

Back in 2022, the ERC launched the "big lot" renewable energy procurement round with a total target purchasing capacity of 5,203 MW under a feed-in-tariff (FiT) scheme pursuant to the Regulations for the Purchase of Electricity from Renewable Energy Sources under a Feed-in-Tariff (FiT) Scheme Commissioning between 2022-2030 for Power Plants with No Fuel Costs B.E. 2565 (2022) ("2022 RE Big Lot Scheme"). Due to the resounding success of the 2022 RE Big Lot Scheme and the high number of qualified but ultimately unsuccessful private sector applicants from that round, Thai policymakers sought to increase the purchasing quota for state utilities to create more opportunities for unsuccessful applicants to be reconsidered for participation in the procurement scheme.

Accordingly in March 2023, the National Energy Policy Committee (NEPC) resolved to approve the opening of additional quotas for purchasing electricity from renewable energy projects under a FiT scheme. The additional quotas will be split into two phases, as follows:

• Phase 1: This quota will be opened only to applicants that had previously submitted a bid under the 2022 RE Big Lot Scheme for wind and ground-mounted solar energy generation projects and had passed the minimum qualifications and technical readiness criteria but failed to achieve a high enough technical score to be awarded a power purchase agreement (PPA) ("2024 RE Waitlist Scheme").
• Phase 2: This quota will be opened after the procurement process under the 2024 RE Waitlist Scheme has been completed and the purchasing capacity under such scheme has been duly allocated, and will be available for projects using the following technologies (in order of priority): (i) biogas (wastewater/waste); (ii) wind; (iii) ground-mounted solar; and (iv) waste-to-energy. Eligible applicants for the phase 2 quota include both (A) unsuccessful participants under the 2024 RE Waitlist Scheme and (B) participants that had submitted application packages in the 2022 RE Big Lot Scheme but failed to pass either the minimum qualifications or the minimum technical readiness criteria.

What's new in this round

Many of the key elements of the previous procurement round continue to apply to this new round. According to the 2024 RE Waitlist Regulations, key elements of the new tender are as follows:

1. Purchasing Targets:

• State distribution utilities will purchase electricity generated from small power producers (SPPs) or very small power producers (VSPPs) utilizing (i) wind energy (as the first priority) and (ii) ground-mounted solar energy (as the second priority).
• Total target purchasing capacity is 2,180 MW (600 MW for wind and 1,580 MW for ground-mounted solar).
• PPAs will be awarded on a "non-firm" basis with a term of 20-25 years.

2. FiT Rates:

FiT rates for the awarded projects under the 2024 RE Waitlist Scheme will be the same as in the 2022 RE Big Lot Round (recapped below):

3. Participant Qualifications:

• Eligible participants must be those that had qualified and passed the minimum technical readiness criteria under the 2022 RE Big Lot Scheme but failed to achieve a high enough technical score to be awarded a PPA ("Eligible Participants").
• The 2024 RE Waitlist Regulations adopt the same qualification criteria for Eligible Participants as those under the 2022 RE Big Lot Scheme. As such, the foreign shareholding restrictions and restriction on transfer of shares under the first scheme will continue to apply. You can visit our earlier article outlining these criteria and conditions here.
• Eligible Participants who wish to participate in the 2024 RE Waitlist Scheme will not be required to submit new electricity sale proposals or application packages but instead will only be required to submit a written notification ("Notice to Participate") to the ERC of their intention to participate in the 2024 RE Waitlist Scheme.
• Upon receipt of the Notice to Participate from Eligible Participants within the prescribed timeframe, the ERC will reconsider their technical scoring and select successful Eligible Participants based on their existing electricity sale proposals and application packages submitted under the 2022 RE Big Lot Scheme.
• The ERC has discretion to increase the proposed contracted capacity under the Eligible Participants' existing electricity sale proposals submitted under the 2022 RE Big Lot Scheme to the extent that such Eligible Participants had previously consented to an adjustment of such contracted capacity.

What's next?

We anticipate that the ERC will shortly announce a formal invitation for proposals (RFP) prescribing further details and procedures with respect to the 2024 RE Waitlist Scheme, including the deadline for submitting the Notices to Participate. We will keep you posted on this development as it comes.

Don't miss out on this golden opportunity!

The 2024 RE Waitlist Scheme is an eagerly-awaited second chance for disappointed players that were unsuccessful under the previous procurement round to reset their game in the ever-competitive Thai renewables market. Investors looking to partner with Eligible Participants for the 2024 RE Waitlist Scheme are highly encouraged to seek professional legal advice to verify that their proposed investment structure will not result in any stumbling blocks or cause any Eligible Participant to be disqualified from the running. Let our team of legal experts on the ground guide and assist you in this process, to ensure smooth sailing throughout this new bidding round.

Please don't hesitate to reach out to us should you have any questions or need any assistance.