The government has decisively ordered the overhaul of private power purchase contracts for solar and wind energy, terminating perpetual contracts and reducing the purchase price to 2.16 baht per unit. Officials confirm this will lower the FT charge to help citizens and say there is no fear of lawsuits from private companies.
On 8 July 2026, Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC) and secretary to the committee addressing issues from power purchases from private producers, disclosed that the meeting resolved on a major reform of the purchase price structure for electricity from private renewable sources to cut hidden costs that inflate the variable electricity tariff (FT) and reduce energy living costs for the public.
Mr. Danucha stated that the committee found serious problems in past contracts for purchasing electricity from small and very small renewable power producers (SPP/VSPP), including solar and wind, which were effectively "perpetual contracts" due to automatic renewal clauses. Additionally, the original purchase prices were based on wholesale prices plus the FT charge, causing the government to pay over 3 baht per unit despite these plants using natural energy (sun and wind) with no real fuel costs. With technology costs now much lower, the committee resolved to reduce the purchase price to just 2.16 baht per unit (referencing community solar project prices), initially piloting this with solar power, while wind purchase prices will be reviewed separately.
Mr. Danucha described strong measures adopted: the committee categorized disadvantageous power purchase contracts into two groups. For plants whose 25-year contracts have expired, automatic renewal is canceled; only one renewal of the original term (3 or 5 years) is allowed with the purchase price cut to 2.16 baht per unit, after which the contract ends immediately. For plants that have received Adder subsidies for 10 years but whose contracts have not yet reached 25 years, it is deemed that construction costs have been fully recovered during the subsidy period; thus, the remaining contract period will be forcibly adjusted to the 2.16 baht per unit price. For plants that have not yet connected to the grid more than two years past deadline with no progress, contract cancellations will be considered case by case.
Regarding how much this measure will reduce electricity costs for the public, the NESDC secretary-general said that the Energy Policy and Planning Office (EPPO) and the Energy Regulatory Commission (ERC) are calculating precise figures. This restructuring will remove the FT portion and reflect actual costs, though reductions may not be immediate because the three state electricity authorities must first complete contract adjustments with private producers. Next, the proposal will be submitted to the National Energy Policy Committee (NEPC), chaired by the Prime Minister, to approve amendments to previous resolutions.
“Deputy Prime Minister Pakorn, as chair, emphasized at the meeting that our duty is to correct the unfairness that has occurred, ensuring fairness that benefits the public most. There is no need to worry about lawsuits from private firms because we act in the public interest,” Mr. Danucha said.
Additionally, the committee resolved to appoint a subcommittee to examine and revise contracts of large independent power producers (IPPs) regarding availability payments (AP) and energy payments (EP) in the next phase. Addressing concerns about impacts on foreign investor confidence, particularly for data center groups, Mr. Danucha affirmed there would be no negative effect, citing clear government measures such as upgrading substations and enabling direct power purchase agreements (Direct PPA) between producers and consumers.