Clean Energy Projects in Thailand: A Guide for Foreign Investors
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Great news: The OECD recently published the ‘Energy Finance and Investment Roadmap of Thailand’ on June 10, 2024.
This highlights more profitability for foreign investors in clean energy projects in Thailand. As a foreign investor, it's time to grow your renewable project idea in a sustainable infrastructure of Bangkok or Chiang Mai.
Follow these guidelines to invest sustainably in clean energy projects in Thailand:
Criteria for clean energy projects in Thailand
Composition
As a private limited company, foreign investors' shares must not exceed 49% of the total issued shares. The applicant should incorporate the company under Thai law and file for an electricity license. Also, ? of the directors in Thailand’s energy projects should be of Thai nationality as per Clause 4(2)(e) of the Regulation of the Energy Regulatory Commission.?
Benefits of investing in clean energy projects in Thailand
●? Easier access to the Thailand market through green bonds under the Bank of Thailand
●??Smooth investment in renewable energy projects via feed-in-tariff (FiT) scheme to adjust the tariff rates
●??Higher guarantee on the power purchase agreements (PPA) for solar, wind, and biomass energy,
●??Enhanced underwriting policy to address any risks in the security transactions of green bonds
●??The National Energy Plan (NEP) projects a capital generation of 2.9 billion baht in Thailand over the next 13 years.
●??The carbon offset scheme governs activities with carbon credits under the provision of List Three (21) of the Foreign Business Act (1999).
A socially responsible investment approach
Thailand offers a corporate income tax exemption for up to 8 years and import duty exemptions. The foreign investor must be mindful of the investment area with a minimum capital required of 1 million baht.
The applicant needs to apply for BOI promotion and submit an investment plan for any of the 3 conditions:
However, certain documents are needed to submit for clean energy projects in Thailand:
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At Konrad Legal, we’re always ready to assist you in protecting your operational compliance for clean energy projects in Thailand.
Book a free round of consultation with us at [email protected]