Reduce greenhouse gas emissions by increasing energy production from renewable sources.

Converting agricultural waste into biogas can help reduce air pollution, especially PM2.5 from the burning of agricultural waste.

Can cause health impacts to local communities if there are no properly-managed pollution control measures.

Gender inequality and/or marginalization risk: If not carefully controlled, air pollution from the energy production will have the greatest health impact on susceptible individuals living in close proximity to the power plants, including elderlies, pregnant women and children. Also, investment in community power plant may not address the problems of low female employment in the energy sector.

Stakeholder participation risk: Need to build awareness and require high engagement from communities before starting the project.

Execution risk: If the supply of raw materials are not properly managed, power plants can face raw material shortages and high production costs.

External Risk: Changing political agendas can lower the impact. (E.g. Previous bidding criteria accounts for benefits to communities, while current criteria prioritizes lowest production cost.)

Gender inequality and/or marginalization risk: Committees responsible for overseeing power plant benefits received by the communities, such as community enterprises, may not necessary have strong female representation that can limit the impact experienced by women within the communities.

This IOA helps low communities gain access to renewable energy, while also generating income from selling the electricity to the grid and from selling the raw materials used to make the electricity.

Power Development Plan (PDP) 2018-2037: Aims to meet increasing energy demand, strengthen energy security, and support consumers and businesses with lower energy costs through feed-in-tariffs. The PDP also aims to develop a decentralized energy ecosystem driven by smart and micro-grids (6).

This policy supports the IOA by providing incentives for selling energy produced by biomass and biogas back to the grid.

Alternative Energy Development Plan (AEDP) 2018-2037: Aims to promote community-based production and private sector investments in renewable energy and R&D. AEDP also aims to upgrade infrastructure (e.g. smart grid and transmisison lines) to support the increase in renewable energy (3). This policy supports the IOA by promoting energy production from renewable sources.

Community Power Plant for Grassroot Economy (โครงการโรงไฟฟ้าชุมชนเพื่อเศรษฐกิจฐานราก): Aims to promote very small power plants (VSPPs) that provide income to local communities (14). This policy directly support the IOA from promoting commnity power plants.

Financial incentives: As of 19 January 2021, feed-in-tariffs (FiT) set energy pricing for biomass at USD 0.1622/kWh (THB 4.8663/kWh) with capacity of 3MW or less, and USD 0.1426/kWh (THB 4.2788/kWh) with a capacity of greater than 3 MW. The duration is 20 years (4).

FiT sets energy pricing for biogas made from a maximum of 25% wastewater and energy crops is USD 0.1581/kWh (THB 4.7426/kWh) with a capacity of no more than 3 MW. The duration is 20 years (4).

Fiscal incentives: Board of Investment (BOI) Promotion provides 8-years or more of Corporate Income Tax exemption, import duty exemptions on machinery and raw materials, and other non-tax incentives for energy service companies (ESCO) and electricity generation from renewable energy (15).

Energy Industry Act (2007) established the Energy Regulatory Commission (ERC) to regulate power generation, distribution, transmission, and system operator licenses. It also oversees fairness between stakeholders, tariff review, and approval of power purchases (7). This regulation is relevant to the IOA as selling electricity back into the grid is being regulated by this policy.

Electricity Generating Authority of Thailand Act (1968) enables EGAT to reinforce regulations with regards to power purchases from independent producers and to transmission system operations (7). This regulation is relevant to the IOA as EGAT is the main actor in buying energy from the community power plants.

Foreign Business Act (FBA) 1999 stipulates eligibility criteria for foreign businesses in Thailand. Renewable energy production is not restricted by FBA, but foreign businesses must obtain a BOI investment promotion certificate to own land used in the energy production (7). This regulation is relevant to the IOA as foreign investment in community power plants must comply to the requirements.

Under the Community Power Plant for Grassroot Economy Project, community power plants require that communities have at least 10% ownership, a 3-6 MW capacity, must sell electricity back to the grid within 36 months at the Feed-in-Tariffs rate, and must have agreed on a contract with local farmers for growing the raw materials (14).

This stipulations of the project promotes the IOA to have participations from the communities, which lead to reduction in oppositions against the projects.

Private companies that are already approved for community power plants through a bidding process (i.e. UAC Global), and local communities i.e. co-operatives and community-enterprises, corporate venture capitalists (i.e. Mitr Phol, PTT ExpresSo).

Energy Planning and Policy Office (EPPO), Department of Alternative Energy Development and Efficiency (DEDE), Energy Regulatory Commission (ERC), Energy Generating Authority of Thailand (EGAT), Metropolitan Energy Authority (MEA), Provincial Energy Authority (PEA)

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), Asian Development Bank (ADB), International Finance Corporation (IFC)

Thailand Renewable Energy for Community Association, Biomass Power Plant Association, Biogas Thailand

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