The Thai Energy Regulatory Commission (ERC) has released new draft regulations that establish a framework for data centers to purchase clean power directly from renewable energy producers via the Thai electrical grid.

First reported by w.media, the Draft Direct Power Purchase Agreement (PPA) Regulation is a pilot policy first approved by the National Energy Policy Council (NEPC) in June 2024. It is designed to allow Thailand Board of Investment (BOI) promoted data centers to sign direct contracts with renewable power producers, with electricity transmitted through the national grid.

The ERC proposal outlines specific eligibility criteria for the power producers and data center operators. For generators, only projects that utilize renewable energy or hybrid systems that colocate renewables with battery energy storage systems will be eligible.

In addition, power plants eligible for the scheme must be newly developed, have a minimum installed capacity of 1,000kVA, and can’t already hold a PPA with a private buyer or a state utility. Finally, all land acquisitions for developments by foreign investors must secure approval from the BOI under its investment scheme.

For data center developers, the eligibility criteria are even more stringent. New facilities must receive BOI investment promotion, demonstrate an IT baseload of at least 50MW per building, and submit a ten-year energy plan outlining direct PPA commitments, grid usage, and total load forecasts. In addition, developers must commit 100 percent of the energy they procure from renewable energy and demonstrate that it aligns with corporate sustainability mandates.

Applicants must also present proof of an agreement in principle with a renewable energy producer, such as a Memorandum of Understanding or Letter of Intent. Data centers will be allowed to contract with multiple renewable generators under the scheme.

The regulation remains in draft form, with changes expected before it becomes law.

Thailand is a burgeoning data center market, with Data Center Map recording 55 facilities in the country across 21 operators. Several major data center operators broke ground in the country this year. For example, in September, Digital Edge broke ground on a 100MW facility in Bangkok. Before this, in July, Bridge DC broke ground on a 200MW data center project in Bangkok.