The Proclamation of Energy Regulatory Commission the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector 2015 According to The National Energy Policy Council (NEPC) in the meeting No. 1/2014 (No.146) on October 22, 2014 and the meeting No. 3/2015 (No.3) on August 13, 2015, has resolved the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector. By virtue of section 11 (4) of Energy Industry Act 2007 (7) for the Energy Regulatory Commission regulations regarding the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector 2015 and the Energy Regulatory Commission resolution in the meeting No. 42/2015 (No.352) on September 9, 2015, Energy Regulatory Commission has issued as follows Article 1: This Proclamation is called “the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector 2015.” Article 2: This Proclamation shall come into force as from the day following the date of its publication. Article 3: In this Proclamation, “NEPC” means the National Energy Policy Council (NEPC) “Managing Committee” means The Managing Committee on Power Generation from Renewable Energy Promotion “ERC” means the Energy Regulatory Commission “Office of ERC” means the Office of Energy Regulatory Commission “Electricity Distribution” means Metropolitan Electricity Authority (MEA) or Provincial Electricity Authority (PEA) or Electricity Welfare of the Royal Thai Navy “Government Sector” means the Government Sector by the law governing the Administrative Organization of the State or the Government Sector by the law governing the Administrative Organization of the State which has provided the welfare within the government in the welfare business, and even meaning to the Organization established by the state. 1 “Agricultural Cooperative Sector” means the cooperatives that was registered in types of Agricultural Cooperative, Settlement Cooperative, and Fisheries Cooperative by the law governing the Cooperative. “Project” means the Power Plant Project from solar energy installing on the ground “A project owner-wishing person” means the Government Sector and Agricultural Cooperative Sector have wished to generate the electricity in the Power Plant Project from solar energy installing on the ground. “Project owner” means the Government Sector and Agricultural Cooperative Sector have been accepted to the project. “Project sponsor” means a juristic person in types of limited company or public company under the related law to support the project owner for the implementation of the Power Plant Project from solar energy installing on the ground. “FiT” means Feed-in Tariff or FiT which is generated from the Power Plant Project from solar energy installing on the ground. Article 4: The Qualifications of the person who wishes to own the project The project owner-wishing person shall submit their intention to participate the project and have the qualifications and conditions according the project guidelines, screening and selection the Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector, have been approved by the Managing Committee. As the attachment no.1 Article 5: The Submission of Power Selling Requests for participating the project (1) The project owner-wishing person shall check the electricity network links with the power station by the potentiality of the power system and electricity distribution without any charges. As the attachment no.2 Also, the electricity distribution shall monitor and report the results within 15 days from the requested date to the electricity distribution. (2) The project owner-wishing person shall prepare the power selling request for participating the project by ERC, as the attachment no.3, with confirmation from the electricity distribution along (1) (3) In a request, the installing capacity of the Photovoltaic Panel is not more than 5 MWp (4) The project owner-wishing person shall be the only person who submits the power selling request for participating the project. (5) The project owner-wishing person is able to submit the additional documents about the power selling request for participating the project within due date so that the request is completed. 2 (6) The power selling request for participating the project shall be verified by the Audit Subcommittee to the Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector. (7) The office of ERC shall announce the name lists of those who pass the qualification examination at the office of ERC and its website (www.erc.or.th). Article 6: the Method of Power Purchase The Power purchase uses the drawing method as follows (1) The project owner-wishing person, are verified by the article 5 (6), shall be eligible to draw the lottery separately according to the Government Sector group and Agricultural Cooperative Sector group in order to renumbering in each group. (2) The Sub-committee of the Selection Process for the Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector shall consider the potential conditions of the electricity system. Besides, the power purchase shall not exceed the target capacity of the power purchase in each areas. (3) In the case that the project owner-wishing person offers the power capacity over the potential of the power system remained or exceed the target capacity of the power purchase remained in areas. This person shall be chosen when the person has agreed to deduct the power capacity to not exceed the potential of the power system remained and less than the target capacity of the power purchase remained in areas. Anyhow, the person who wishes to own the project shall specify the minimum of the power capacity which have agreed to adjust in the request as the article 5 (2). (4) ERC shall consider to announce officially the name lists of the project owner who are approved and the office of ERC shall submit and inform those name lists to the Managing Committee. Thus, the ERC result is considered to be the best. (5) The project owner and sponsors who have approved, shall proceed to sign an agreement to sell electricity and Electricity Distribution later. (6) The project owner-wishing person but fail in the selection, shall receive the document back within 30 days from the date following the date of its announcement. Article 7: Power Purchase Targets (1) The target capacity of the power purchase in each areas and the capacity of the power purchase in every areas are not exceed 800 MWp that are divided into the Government Sector and Agricultural Cooperative Sector as follows (1.1) the power purchase for Government Sector up to 400 MW (1.2) the power purchase for Agricultural Cooperative Sector up to 400 MW 3 (2) The Proclamation of the Power Purchase shall be announced 2 stages as follows (2.1) the stage 1, it shall be announced to purchase the power in ready areas for the power transmission system and the potential of other fuels. Also, it shall be issued the power supply into Scheduled Commercial Operation Date (SCOD) within September 30, 2016. In the case of no trading within SCOD day or September 30, 2016, it is considered that the power purchase agreement is expired, except in the case of force majeure following in the power purchase agreement. (2.2) the stage 2, it shall be announced to purchase the power for other areas later. It shall be issued the power supply into Scheduled Commercial Operation Date (SCOD) from January 1, 2018 to June 30, 2018. In the case of no trading within SCOD day or June 30, 2016, it is considered that the power purchase agreement is expired, except in the case of force majeure following in the power purchase agreement. (2.3) the target of power purchase in the stage 1 shall not exceed 600 MW, Government Sector not over 300 MW and Agricultural Cooperative Sector not over 300 MW, or each group is totally half of the power purchase capacity for the project in stage 1. The details of the stage 1 area are as follows The target of stage 1 (the maximum amount of power - MWp) Areas SCOD within September 30, 2016 1. Metropolitan Electricity Authority 200 2. Provincial Electricity Authority North 5 Northeast - South - East 87 West 159 Central 138 Total 389 3. Electricity Welfare of the Royal Thai Navy 11 Total 600 Credit: Department of Alternative Energy Development and Efficiency, Ministry of Energy (2.4) the target of power purchase in each area of the stage 2 shall be announced later. Article 8: The Place of Submission for Power Purchasing Requests (1) The project owner-wishing person shall be able to ask for a participation form via the ERC office website (www.erc.or.th) or the office of Energy Regulatory Commission zone 1-13 or the ERC office No. 319 Phaya Thai Road, Pathum Wan Sub-district, Pathum Wan District, Bangkok 10330 4 (2) The place of request submission, the project owner-wishing person submits the participation form on November 1-10, 2015 at 9 a.m. - 4 p.m. at multi-purpose zone (the office is in front of Phufa shop) G floor, Chamchuri Square, Phaya Thai Road, Pathum Wan Sub-District, Pathum Wan District, Bangkok (3) Drawing (3.1) the place of drawing for participation to the project, the project owner-wishing person shall draw lots by dividing into Government Sector and Agricultural Cooperative Sector on December 15, 2015 at 9 a.m. - 3 p.m. (the place shall be determined and notified after the participation form is submitted) (3.2) drawing and participant consideration shall be follow the project rules, screening and selection the Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector. As the attachment no.1 (3.3) if the person who wishes to own the project is absent within a given date and time, it shall be considered as disclaim. Article 9: Power Purchase Schedule Period Activity September 21 - October 15, 2015 Electricity Distribution shall check the electricity network links with the power station as article 5 (1) The submission of the power selling request (9 a.m. - 4 p.m.) Close to receive any documents of the power selling request (additional) Announcement for the name list of the approved project Selection by drawing lots and release the result ERC shall officially announce the name list of the approved project owner and the office of ERC shall notify the Managing Committee. November 1- 10, 2015 November 20, 2015 December 11, 2015 December 15, 2015 December 25, 2015 Article 10: The Project Rules, Screening and Selection the Project The guideline, condition, procedure and other implements for power purchase from the project shall be following in the participation rules, screening, and selection document. As the attachment no. 1, the mentioned document is a part of this proclamation. 5 Article 11: The Proposal for Selling Power After the project owner has accepted for the project, the project owner or sponsor proposes for selling power with a complete evidence, as the attachment no. 1, and electricity distribution in order to sign in a power purchase agreement later. Article 12: The Change in the Period and Conditions in this Proclamation (1) In the case of the information or news about the proclamation of the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector has changed or edited, the office of ERC shall publish this information or news via the ERC office website (www.erc.or.th) (2) ERC is reserved the right for changing the ability of Feeder because of the potential changing of Feeder. (3) If this project does not have qualification or unreal document, ERC will reserve the right for canceling to participation. Published on September 17, 2015 Mr. Pornthep Thanyapongchai President of Energy Regulatory Commission 6 The Attachment of the Proclamation of Energy Regulatory Commission the Power Purchase Agreement of Power Plant Project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector 1. The project rules, screening and selection the power plant project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector 2. Information capability of the power system 3. Selling power-participating request form 7 The Attachment No. 1 The project rules, screening and selection the power plant project from solar energy installing on the ground for Government Sector and Agricultural Cooperative Sector Definition / Abbreviation Meaning ERC Energy Regulatory Commission Office of ERC Office of Energy Regulatory Commission Electricity Distribution Metropolitan Electricity Authority (MEA) or Provincial Electricity Authority (PEA) or Electricity Welfare of the Royal Thai Navy Government Sector the Government Sector by the law governing the Administrative Organization of the State or the Government Sector by the law governing the Administrative Organization of the State which has provided the welfare within the government in the welfare business, and even meaning to the Organization established by the state Agricultural Cooperative Sector the cooperatives that was registered in types of Agricultural Cooperative, Settlement Cooperative, and Fisheries Cooperative by the law governing the Cooperative Project the Power Plant Project from solar energy installing on the ground Project owner-wishing person the Government Sector and Agricultural Cooperative Sector have wished to generate the electricity in the Power Plant Project from solar energy installing on the ground. Project owner the Government Sector and Agricultural Cooperative Sector have been accepted to the project. Project sponsor a juristic person in types of limited company or public company under the related law to support the project owner for the implementation of the Power Plant Project from solar energy installing on the ground. 8 1. The Project Owner-Wishing Person Qualifications and Participation Conditions (1) Government Sector 1.1 Government 1.1.1 Qualifications 1) Shall be juristic person 2) In the case that the government sector wishes to operate the project itself, shall have the objectives and authorities for generating and selling the electricity legally. And also, in the case that the government sector wishes to procure the project sponsor for operation, shall have the laws and rules confirming an occupied land for operation. 1.1.2 Participation Conditions 1) Head of government has approved of project participation 2) Land for establishing the project 2.1) the case that the land occupied by government sector, shall be approved by the head of government. 2.2) the case that the land occupied by government sector, shall be approved by Treasury Department Ministry of Finance for participation through power purchase agreement. In the case that government sector operates on construction itself with using government budget, shall be not able to participate to this project. 3) In the case that the government sector wants private sector investing in this project as project sponsor, shall operate legally about the private investments in state undertakings including 3.1) Private Investments in State Undertakings Act B.E. 2556 3.2) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for private investments in projects having a value lower than the amount stated in section 23 of Private Investments in State Undertakings Act B.E. 2556 2015 3.3) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for value calculation of investments in state undertakings policy 2015 3.4) The other related proclamations 4) The place for project shall be able to construct the power plant without violating the city planning and redevelopment law or other related laws. 1.2 Autonomous University 1.2.1 Qualifications 1) Shall be juristic person 2) In the case that the autonomous university wishes to operate the project itself, shall have the authority for operating the project under the condition of section 59 on National Education Act B.E.2542. 9 However, it shall be following with the defined objectives with being educational institutions at the degree level of the university on University Establishment Act. In the case that autonomous university wishes to procure the project sponsor for operation, shall have the laws and rules confirming an occupied land for operation. 1.2.2 Participation Conditions 1) Chancellor with the approval of university council has approved of project participation. 2) Land for establishing the project 2.1) the case that the land occupied by university or authorized on governance, maintenance, use and supply of benefits. 2.2) the case that the land occupied by government sector, shall be approved by Treasury Department Ministry of Finance for participation through power purchase agreement. 2.3) the case that the land has gotten from donation, shall not be violated with the donation objectives. 3) In that case that the university wants private sector investing in this project as project sponsor, shall operate legally about the private investments in state undertakings including 3.1) Private Investments in State Undertakings Act B.E. 2556 3.2) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for private investments in projects having a value lower than the amount stated in section 23 of Private Investments in State Undertakings Act B.E. 2556 2015 3.3) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for value calculation of investments in state undertakings policy 2015 3.4) The other related proclamations 4) The place for project shall be able to construct the power plant without violating the city planning and redevelopment law or other related laws. 1.3 The State-Established Organization (exclude Public Organization and State Enterprises) 1.3.1 Qualifications 1) Shall be juristic person 2) In the case that the state-established organization wishes to operate the project itself, shall have the objectives and authorities for generating and selling the electricity legally. And also, in the case that the state-established organization wishes to procure the project sponsor for operation, shall have the laws and rules confirming an occupied land for operation. 1.3.2 Participation Conditions 1) The approval of project participation is approved by the highest authoritarian with the organization committee. 10 2) Land for establishing the project 2.1) the case that the land occupied by organization, shall be approved by the highest authoritarian of the organization. 2.2) the case that the land occupied by organization, shall be approved by Treasury Department Ministry of Finance for participation through power purchase agreement. 3) In the case that the state-established organization wishes to operate on construction itself with using government budget, shall be not able to participate to this project. 4) In that case that the state-established organization wishes the private sector investing in this project as project sponsor, shall operate legally about the private investments in state undertakings including 4.1) Private Investments in State Undertakings Act B.E. 2556 4.2) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for private investments in projects having a value lower than the amount stated in section 23 of Private Investments in State Undertakings Act B.E. 2556 2015 4.3) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for value calculation of investments in state undertakings policy 2015 4.4) The other related proclamations 5) The place for project shall be able to construct the power plant without violating the city planning and redevelopment law or other related laws. 1.4 The Local Administrative Organization 1.4.1 Qualifications 1) Shall be juristic person 2) In the case that the local administrative organization wishes to operate the project itself, shall have the objectives and authorities for generating and selling the electricity legally. And also, in the case that the local administrative organization wishes to procure the project sponsor for operation, shall have the laws and rules confirming an occupied land for operation. 1.4.2 Participation Conditions 1) The approval of project participation is approved by the highest authoritarian with the local administrative organization council. 2) Land for establishing the project 2.1) the case that the land occupied by the local administrative organization, shall be approved by the highest authoritarian of the local administrative organization. 2.2) the case that the land occupied by the local administrative organization, shall be approved by Treasury Department Ministry of Finance for participation through power purchase agreement. 11 3) In the case that the local administrative organization wishes to operate on construction itself with using government budget, shall be not able to participate to this project. 4) In that case that the local administrative organization wishes the private sector investing in this project as project sponsor, shall operate legally about the private investments in state undertakings including 4.1) Private Investments in State Undertakings Act B.E. 2556 4.2) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for private investments in projects having a value lower than the amount stated in section 23 of Private Investments in State Undertakings Act B.E. 2556 2015 4.3) The proclamation from the Private Investments in State Undertakings Policy Committee about rules and procedures for value calculation of investments in state undertakings policy 2015 4.4) The other related proclamations 5) The place for project shall be able to construct the power plant without violating the city planning and redevelopment law or other related laws. (2) Agricultural Cooperative Sector 2.1 Qualifications 2.1.1 Shall be the cooperatives that was registered in types of Agricultural Cooperative, Settlement Cooperative, and Fisheries Cooperative by the law governing the Cooperative. 2.1.2 Shall be evaluated by the quality standard from the Cooperatives Promotion Department in the last year 2.1.3 The cooperatives shall have the two-year-ago overall operation and not to take an action regarding corruption to the cooperatives and violation with the laws. 2.2 Participation Conditions 2.1.1 Shall be approved by the major cooperatives meeting for participation to the project 2.1.2 The project area shall be only located in cooperatives operation by 1) The case of the cooperatives, the project land shall be the cooperatives and obtained with other objectives, shall be approved by the major cooperatives meeting for using the land to set up the project. 2) The case that the land is established to be the settlement under the laws of the land for living, shall be allowed by the director general of the Cooperatives Promotion Department or Social Development and Welfare Department, depending on the case. 3) The case that the land is established to be the cooperatives member, shall be merely the land ownership of the cooperatives member (exclude associated members) and shall have an accepted contract from the members for setting up the project without canceling consent through power purchase agreement. 12 4) The case that the cooperatives has rented for the project, shall be operated to registered the contract with the Department of Land which the rent period shall be not less than the power purchase agreement period. (This shall be taken after the project has approved) 2.2.3 The place for project shall be able to construct the power plant without violating the city planning and redevelopment law or other related laws. 2.2.4 The Agricultural Cooperative Sector participated the project shall share the net income from selling power to the cooperatives members thoroughly. 2. The Electricity Network Links The project owner-wishing person shall propose the electricity network links with the power station by the potentiality of the power system as follows 2.1 The land for establishing the project shall be located in the area of transmission line and electricity distribution. It shall get connection for power trading with the potential of electricity system information. Also, it shall be announced that the target capacity of the power purchase in each areas and the capacity of the power purchase in every areas are not exceed 800 MWp. The target capacity of the power purchase has divided into the Government Sector and Agricultural Cooperative Sector as follows (1.1) the power purchase for Government Sector up to 400 MW (1.2) the power purchase for Agricultural Cooperative Sector up to 400 MW 2.2 The project owner-wishing person shall have a confirmed book from electricity distribution which has connected with the power system of electricity distribution at the power station and Feeder. 3. The Submission to Project Participation 3.1 In the submission to project participation, the highest authorities or an attorney from the highest authorities of the project owner shall operate to participate itself. No the project sponsor being as a representative. 3.2 If the project owner operated with the project sponsor, the project owner nominates the project sponsor together with evidence as a letter of consent to be supported from the project sponsor. 3.3 The participated project shall have the installed capacity up to 5 MWp per a project. 3.4 In the case that the project owner-wishing person is the government sector, shall submit for participation not exceed 1 project per 1 operated area only. (For the government sector, shall consider work under the government sector following the government division appeared in the law or rule) 3.5 In the case that the project owner is the agricultural cooperatives sector, shall submit for participation 1 project per 1 agricultural cooperative sector. 13 4. The Qualification of Project Sponsor as follows 4.1 Shall be juristic person as company limited or public company limited that has registered in Thailand in order to generate and sell the electricity. 4.2 The availability of technology by considering 4.2.1 Shall have the certification of standardized equipment providence for generating the power such as 1) Solar Cell 1.1) the crystal solar cell has certified by IEC 61215 or TIS 1843 or other related certification such as UL, EN or JIS. 1.2) the thin film solar cell has certified by IEC 61646 or TIS 2210 or other related certification such as UL, EN or JIS. 2) The Inverter and equipment for generated power system, and connected devices shall be along with electricity distribution procedure or electricity distribution agreement. 4.2.2 The project sponsor shall choose the solar cell from the manufacturer who has certified the solar cell capability through the power purchase agreement. 4.3 The availability of investment as follows 4.3.1 The registered capital shall not be less than 2 million per 1 MWp due to the sponsor-installed capacity which the registered capital has paid at the minimum of the Ministry of Commerce rule. 4.3.2 The credits for investment and all types of circulating capital in the company business, both the financial institution and/or the supplier, shall have an evidence showing that this financial institution and/or the supplier shall support various types covering all required financial amount for the project. 4.4 Shall be an experienced company or subsidiaries with the knowledge about the power production from solar energy not less than a year (counted from a project-submitted date), or the experienced staff with the knowledge about the power production from solar energy not less than a year (counted from a project-submitted date), and has a related license such as Control Engineering Professional License over the ordinary level and so on. In the case that the experienced subsidiaries shall have the supported document from the original company. 4.5 Shall be the company which is not in the name list of the official and already notified the name. 4.6 In the project participation, the project sponsor shall be able to support the project more than 1 project but the selling capacity is totally not exceed to 50 MWp 14 5. Selection Methods 5.1 The Consideration of Power Purchase The consideration of power purchase shall consider from an area under the potential of electricity system information and issue the power supply into Scheduled Commercial Operation Date (SCOD) dividing into 2 stages because of the limitation of certified power system for transmission. The stage 1 the due date of Scheduled Commercial Operation (SCOD) within September 30, 2016 The stage 2 the due date of Scheduled Commercial Operation (SCOD) from January 1, 2018 to June 30, 2018 5.2 The Selection Steps 5.2.1 The first step shall be selected the project by considering from 1) The completeness of document, especially the land for establishing the project, shall be located in the area of the potential of electricity system information. 2) The readiness of investment as identified in the article 4.3.1, shall have a registered evidence with the clear investor name and financial statements that the investor shall be able to pay the stocks. 3) The readiness of various credit lines as identified in the article 4.3.2, which have combined and covered the investment and the needed circulating fund completely. 5.2.2 The second step shall be operated the project selection as follows 1) The project owner-wishing person shall draw lots in order to arrange the number of the government sector group and agricultural cooperative sector group which have drawn lots with the potential of electricity system information. 2) ERC shall draw lots in order to choose the considered group respectively. 3) The project owner-wishing person with drawing lots first shall be chosen first due to the conditions of the potential of electricity system information as follows. 3.1) shall not be over the capability of Feeder 3.2) shall not be over the number of projects connected to each Feeder 3.3) shall not be over the capability of transformers 3.4) shall not be over the capability of power transmission system Therefore, the target capacity of the power purchase in those areas shall not be over. If the project owner-wishing person offers the power capacity over the potential of the power system remained or exceed the target capacity of the power purchase remained in areas. This person shall be chosen when the person has agreed to deduct the power capacity to not exceed the potential of the power system remained and less than the target capacity of the power purchase remained in areas. 15 4) To operate as the article 5.2.2 3) respectively until the target capacity of the power purchase in those areas shall be completed. If the project owner-wishing person offers the power capacity over the potential of the power system remained or exceed the target capacity of the power purchase remained in areas. This person shall be chosen when the person has agreed to deduct the power capacity to not exceed the potential of the power system remained and less than the target capacity of the power purchase remained in areas. 5) Thus, it is considered that the power selling request for participating the project which has not chosen in this step shall be dismissed and not be considered again. 5.2.3 The third step The selection shall be finished when the total areas of power capacity have completed with 800 MWp or all projects have been considered. In case that the power purchase has not completed with 800 MWp, the ERC has authority to take an action for the power purchase complement of 800 MWp. 16 17
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