Are Renewable Energy Plants still viable in todays age?
Thai Solar Energy Plc (TSE), believes that “the potential for renewable power plants in Thailand has become unfavourable after energy policymakers have put off plans to buy power generated from renewables for five years.”
Policymakers have further announced that new renewable power producers will equate the feed-in tariff as fossil-fuel power producers, at about 2.40 baht per kilowatt-hour, as their production cost is equal to or lower than their traditional counterparts.
Cathleen Maleenont, TSE’s chairman and chief executive has said that, “The country has no potential to operate a renewable power plant and sell electricity to state utilities because profits will decline under the new rate.”
Some renewable investors operate under a power purchase agreement with the EGAT and Metropolitan Electricity Authority under a business-to-government (B2G) model. But Ms Maleenont said that “Selling power in the business-to-business (B2B) segment remains of interest to renewable investors because both parties can negotiate on prices and terms.”
“We can invest in renewable power plants in the country for B2B purposes, but there is less business opportunity in the B2G segment,” she said. “For our overseas outlook, TSE is very keen on operating renewable power plants because other governments still offer a high adder rate.”
TSE Solar plants in Japan
Ms Maleenont said that TSE Overseas Group is in charge of 8 solar power plants across Japan with a total capacity of 176.72 megawatts.
5 of these solar power plants, with a combined capacity of 6.99MW, have already secured income with a feed-in tariff of ¥36 yen (10.41 baht) per kilowatt-hour to sell electricity to Japan’s state utilities on a 20-year long contract.
What do you think about this, and the fact that TSE have said that there has been a decline in renewables? Do we want to set good examples of using renewable and green energy, or do we still want to be consuming and using fossil fuels?
We believe in the future of renewable and solar energy power generation.
Lets us know at Eyekandi-Solar, we’re interested in what you think!