7.2. Policy barriers
The government policy to support renewable energy produced by small power
producers (SPP) through bidding process, which spends the ENCON fund to subsidize
additional electricity prices (above the common buy-back tariff), has attracted private
investments. However, this measure seems to bias in favor of large-scale and low powergenerating
cost SPPs. This will limit the renewable resources exploited under this scheme.
We believe that Thailand should diversify the use of renewable energy resources by
having different policies for different energy sources and scales of power production. The
existing bias policy hinders the development of other sources of energy and technologies.
Policy to address smaller scale or higher cost biomass sources (that have potential) should
be formulated.