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Thai authorities are planning to hold talks with the Laos government to jointly promote more use of renewable energy across borders, accelerating efforts to reduce carbon dioxide emissions.
Under the plan, Thai business operators will be encouraged to buy renewable power from Laos under a “cross-border energy attribute certificate” scheme, said an official at the Energy Ministry who requested anonymity.
The certificate is granted to electricity buyers who cut carbon dioxide emissions by using renewable energy in their business operations.
Electricity Generating Authority of Thailand (Egat) is planning to draft a new regulation enabling entrepreneurs to buy renewable power across borders, the official said.
Laos has been selling electricity, mostly from hydropower facilities, to Egat for more than 20 years, with the volume reaching 6 gigawatts.
Thai policymakers are required to discuss the possibility of implementing the scheme. Successful talks could lead to the signing of a memorandum of understanding (MoU) between the two countries.
“We should have an MoU that clarifies issues such as ways to calculate carbon dioxide reduction for buyers of renewable power,” said the official.
Thailand and Laos may apply different calculations.
The scheme should promote a calculation recommended by the RE100 group, according to the official.
Several hundred companies worldwide have joined RE100, a global renewable energy initiative that commits its members to using 100% renewable energy.
Businesses interested in participating in the scheme can directly buy electricity from renewable power companies in Laos, which would not sign 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,” said the official.
The scheme is expected to serve demand for renewable energy, especially among foreign investors in Thailand.
The Thai government is promoting the use of clean energy by approving a pilot project allowing companies, especially those specialising in data centre development, to buy electricity directly from renewable power companies in the country.
Peer-to-peer power trade in the renewables category has not been permitted in Thailand.
If power companies want to sell electricity produced by renewable resources, they are required to sell it to Egat and state power distribution agencies, which then distribute electricity through their grids to companies and households.