The Energy Policy and Planning Office (Eppo) is working on a proposal to have the government buy renewable electricity from power companies at cheaper prices to reduce electricity bills for businesses and households, says an Eppo official.
The proposal, made by Worawit Srianunraksa, a member of the Energy Regulatory Commission (ERC), aims to set more reasonable prices in power purchase agreements (PPAs) made between the government and renewable plant operators.
"Eppo sent a letter to the ERC to ask for more details and start a process that could lead to a price adjustment," said the official, who requested anonymity.
Renewable power prices should be carefully considered and calculated every time the authorities and power firms sign a PPA, noted the official.
Eppo must conduct a study on the impact of a price adjustment, said the official.
Mr Worawit said earlier the current prices of renewable electricity under PPAs are too high. The Electricity Generating Authority of Thailand pays 3.29 baht per kilowatt-hour (unit) plus a bonus tariff, which is more expensive than electricity produced by power plants fuelled by fossil fuels.
Each PPA, which usually lasts for 25 years, can be renewed every five years after the expiry date indefinitely.
Under these conditions, renewable power plant operators continue to reap benefits while consumers bear an unnecessary financial burden when they buy electricity from the state grid, which comprises electricity from renewables and fossil fuel-based generators.
Renewable power companies already benefited from adder and feed-in tariffs granted by the government since 2009 to promote renewable energy development.
These tariffs last eight years, after which they continue to receive a bonus tariff, which is unfair to consumers, say many critics.
Mr Worawit wants the National Energy Policy Council to reconsider electricity prices set under PPAs and base them on prices calculated by Eppo.
The cost of electricity generated by a solar farm is 2.16 baht a unit, while the cost of power generated by a wind farm is 3.1 baht a unit, according to Eppo.