Economics Solar Power at U-Tapao Priced Higher Than National Benchmark

[Georgealbert]

 

Picture courtesy of Matichon.

 

New details have emerged regarding the solar power project at U-Tapao International Airport, highlighting that electricity from the plant will be sold at a higher rate than the national standard.

 

Following the Cabinet’s acknowledgement on 19 August of an Energy Operations licence issued to B.Grimm Power Public Company Limited (BGRIMM), the company has been authorised to operate solar and co-generation power systems within the state-owned land at U-Tapao Airport in Ban Chang District, Rayong. The electricity is intended to supply private contractors developing the airport and the Eastern Economic Corridor Aviation Zone (EECa).

 

BGRIMM will sell solar power at 3.48 baht per unit, notably higher than the latest purchase rate of 2.16 baht per unit set by the National Energy Policy Committee (NEPC). The project includes two systems: a combined heat and power plant (co-generation) and a solar energy plant, with a maximum installed capacity of 18 megawatts for solar.

 

The project’s origins date back to 2018 when the EECa was established over 6,500 rai at U-Tapao. The Royal Thai Navy, as project owner, is responsible for sourcing public utilities, including electricity and chilled water, for the airport and surrounding developments. In 2020, BGRIMM was selected as the power operator and signed a Power Purchase Agreement (PPA) with the Navy’s concessionary electricity service to sell surplus electricity.

 

Critics have questioned the timing and pricing of the project. The airport’s construction has been delayed, meaning initial electricity demand is low. Observers have asked why the solar project was not postponed to align with actual demand and why electricity is priced above the national benchmark.

 

The issue has also drawn attention to the role of lawmakers who previously advocated for transparent and fair electricity pricing in the Navy’s concessionary system, with concerns over higher-than-standard rates and inconsistent quality. Notably, some BGRIMM executives previously held positions on parliamentary energy subcommittees.

 

The Cabinet’s recent acknowledgment allows BGRIMM to proceed with operations under the EECa framework, marking another step in the airport’s long-delayed development.

 

 

  Adapted by Asean Now from Matichon 2025-08-24