Thailand and Laos spark cross-border renewable energy scheme
Thai officials are set to engage in discussions with the Laotian government to enhance the utilisation of renewable energy across borders, aiming to expedite the reduction of carbon dioxide emissions.
The plan involves encouraging Thai businesses to purchase renewable power from Laos through a cross-border energy attribute certificate scheme, according to an official from the Energy Ministry who requested anonymity. This certificate will be awarded to electricity buyers who lower their carbon dioxide emissions by integrating renewable energy into their operations.
The Electricity Generating Authority of Thailand (EGAT) is preparing to draft new regulations that will enable entrepreneurs to procure renewable power from across the border. Laos has been supplying electricity, predominantly from hydropower sources, to EGAT for over two decades, with the current volume reaching 6 gigawatts.
Thai policymakers need to discuss the potential implementation of this scheme. If successful, these discussions could result in the signing of a memorandum of understanding (MoU) between Thailand and Laos.
“We should have an MoU that clarifies issues such as ways to calculate carbon dioxide reduction for buyers of renewable power.”
The scheme is expected to adopt the calculation methods recommended by the RE100 group. RE100 is a global renewable energy initiative with several hundred companies committed to using 100% renewable energy.
Businesses interested in the scheme will be able to directly purchase electricity from renewable power companies in Laos, bypassing power purchase agreements with Egat.
“Whether the scheme will be translated into action depends on the outcome of the talks, which involve technical and legal issues.”
This initiative is anticipated to meet the growing demand for renewable energy, particularly among foreign investors in Thailand. The Thai government has already approved a pilot project that allows companies, especially those specialising in data centre development, to buy electricity directly from renewable power companies within the country.
Currently, peer-to-peer power trading in the renewables category is not permitted in Thailand. Power companies wishing to sell electricity generated from renewable resources must sell it to Egat and state power distribution agencies, which then distribute it through their grids to companies and households, reported Bangkok Post.
What Other Media Are Saying
- The Energy Transition Partnership highlights the crucial role of international cooperation in Southeast Asia’s clean energy transition, emphasising the need for collective action, financial aid, and technical support to achieve net-zero emissions goals. (read more)
Frequently Asked Questions
Here are some common questions asked about this news
How could cross-border renewable energy trading between Thailand and Laos impact regional carbon reduction efforts?
It could significantly lower carbon emissions by increasing access to renewable energy sources.
Why is the adoption of the RE100 group’s calculation methods crucial for the Thai-Laos renewable energy scheme?
It ensures standardisation and accuracy in measuring carbon reduction, facilitating international compliance.
What challenges might arise in implementing the cross-border energy attribute certificate scheme?
Technical and legal issues, including differing carbon calculation methods and regulatory adjustments.
How could direct renewable energy purchases by Thai businesses from Laos transform the local energy market?
It could disrupt traditional power purchase agreements, fostering more competitive and sustainable energy solutions.
What if the pilot project for direct renewable energy purchases within Thailand proves successful?
It could pave the way for broader adoption of peer-to-peer power trading, enhancing renewable energy usage.
