Pioneering renewable energy options: Thailand takes up the challenge

This policy brief analyzes Thailand's pioneering approach to renewable energy through the implementation of Small Power Producer (SPP) and Very Small Power Producer (VSPP) programs. By utilizing a feed-in premium known as the 'Adder,' Thailand successfully attracted private investment and rapid growth in solar and biogas. The document highlights the crucial role of civil society in policy design and the government's current shift toward a feed-in tariff to manage costs and ensure a more balanced renewable energy portfolio.

• Thailand's energy sector is heavily dependent on imports, which creates economic and security risks. In 2011, the country imported over 50% of its primary energy supply (measured in tonnes of oil equivalent) and nearly 25% of its natural gas supply. These imports consumed almost 12% of the country's gross domestic product (GDP).
• The Thai government implemented the Small Power Producer (SPP) and Very Small Power Producer (VSPP) programmes to encourage renewable energy. The SPP programme targeted plants with export capacities up to 60 MW (later 90 MW), while the VSPP programme focused on plants up to 1 MW (later 10 MW). These programmes provided predictable power purchase agreements (PPAs) and simplified regulations, allowing producers to sell electricity to the grid.
• A key incentive mechanism called the 'Adder' was introduced as a feed-in premium paid to SPPs and VSPPs using renewable energy. This premium, ranging from 8 to 21 US cents per kilowatt hour (kWh) for 7 to 10 years, is added to the avoided cost rate and funded via a surcharge paid by all electricity consumers.
• Civil society played a critical role in the design of RE policies, specifically the VSPP and the Adder. Organizations like Palang Thai provided international expertise, organized study tours, and conducted research to demonstrate that renewable energy could contribute more to electricity demands than official government projections suggested.
• The 10-year Alternative Energy Development Plan (2012–2021) set targets for renewable energy to account for 25% of total energy consumption and 10% of electricity consumption. The government estimated that these targets would avoid over US$19 billion in annual energy imports, avoid 76 million tonnes of greenhouse gas emissions per year, and create at least 40,000 new jobs.
• While solar power and biogas exceeded their 2011 targets, other renewable sources lagged significantly. For example, wind power had a target of 115 MW but only 0.38 MW of actual capacity by 2011, and small/micro hydro had a target of 165 MW with only 13.28 MW actual capacity.
• Rapid growth in solar applications, which exceeded official targets by a factor of four by 2010, led the government to reduce the Adder for some projects and halt new applications to control costs and consumer bills. To address this, the government is transitioning from a feed-in premium (the Adder) to a feed-in tariff to provide a total guaranteed rate independent of volatile conventional power prices.

APA

Weischer, L. (2013). Pioneering renewable energy options: Thailand takes up the challenge. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2013/05/Thailand-MIT_InsideStory.pdf

Chicago

Weischer, Lutz. Pioneering renewable energy options: Thailand takes up the challenge. Climate and Development Knowledge Network, 2013. http://cdkn.org/wp-content/uploads/2013/05/Thailand-MIT_InsideStory.pdf.

Wikipedia

{{cite report |last1=Weischer |first1=Lutz |title=Pioneering renewable energy options: Thailand takes up the challenge |publisher=Climate and Development Knowledge Network |date=May 2013 |url=http://cdkn.org/wp-content/uploads/2013/05/Thailand-MIT_InsideStory.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{weischer2013pioneering, author = {Weischer, Lutz}, title = {{Pioneering renewable energy options: Thailand takes up the challenge}}, institution = {Climate and Development Knowledge Network}, year = {2013}, month = may, url = {http://cdkn.org/wp-content/uploads/2013/05/Thailand-MIT_InsideStory.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }