Thailand’s Energy Regulatory Commission (ERC) has announced that the country’s first pilot project for the Direct Power Purchase Agreement (DPPA) scheme is in its final stages of review and is expected to launch before the end of this year. The program is designed to attract international data center developers and other investors, with the potential to expand beyond the current 2 GW trading cap if demand proves strong.

ERC Secretary-General Poonpat Leesombatpiboon said officials from the Ministry of Energy and the Board of Investment (BOI) have been actively involved in discussions. One of the key issues under review is the Third Party Access Code, which regulates the use of the national grid. Transactions under this framework are expected to include wheeling charges.

The move comes as industries accelerate their shift toward low-carbon and net-zero goals. Foreign data center developers have reportedly indicated that a clear DPPA framework would be a deciding factor in whether they commit to investments in Thailand.

Naruechon Dhumrongpiyawut, CEO of Thai clean energy developer Gunkul Engineering, also urged policymakers to keep pace with regional peers such as the Philippines and Taiwan, where DPPAs are already helping to attract foreign capital. She emphasized that international investors are increasingly looking for markets with liberalized green electricity frameworks.

Currently, the National Energy Policy Council (NEPC) caps DPPA transactions at 2 GW. Poonpat noted that the ceiling could be raised in the future to meet growing demand from international investors and domestic industries alike.