What Is Direct PPA — Understand in 30 Seconds
Direct PPA is a contract to buy electricity directly from an off-site renewable generator, delivered through the state grid (EGAT/MEA/PEA) under the Third Party Access (TPA) framework. Unlike a normal on-roof PPA, a Direct PPA sources power from an off-site solar farm. (PPA vs EPC · What is PPA)
Direct PPA = Buy clean power from off-site, delivered via grid
Direct PPA (Direct Power Purchase Agreement) is a contract where a renewable energy generator sells electricity directly to a factory buyer through EGAT/MEA/PEA grid infrastructure under the Third Party Access (TPA) framework. Unlike a Private PPA where solar panels are installed on the factory roof (on-site, behind-the-meter), Direct PPA sources power from off-site solar farms delivered via the national grid. The model works as: Generator --> Grid (wheeling charge) --> Factory. The factory needs no roof space or installation area but must pay a wheeling charge to the grid operator.
Why Now — Thailand's Power Market Is Changing
Thailand has operated under a Single Buyer Model for decades — EGAT purchases all private power and resells to MEA/PEA distributors. Key milestones: June 2024 — the National Energy Policy Council (NEPC) approved the Direct PPA principle allowing renewable generators to sell directly to end users. October 2025 — the ERC released draft TPA Code and Direct PPA regulations. January 2026 — the Energy Policy Administration Committee (กบง.) ordered a delay and review of the Direct PPA criteria. June–July 2026 — the draft criteria went before the NEPC (not yet approved as of 15 Jul 2026). The 2,000 MW pilot has therefore not yet begun and no start date has been announced — check ERC/utility announcements. If it proceeds, it will mark Thailand's first electricity market liberalization, letting factories choose their own power source. See current electricity tariffs for comparison.
2,000 MW Pilot — Rules & Eligibility
The Direct PPA pilot program has a total capacity of 2,000 MW with the following key conditions:
Generator Eligibility
Buyer Eligibility
Contract Terms
As of May 2026 — terms may change pending ERC finalization.
Wheeling Charges & Additional Costs — The Real Numbers
The wheeling charge is the core of Direct PPA economics — the fee paid to the grid operator for transmitting power from the generator to the factory. ERC's draft rate is approximately 1.07 THB/kWh on a postage-stamp basis (same rate regardless of distance). Compare this to the current grid tariff of ~3.95 THB/kWh. Additional costs to factor in: connection charge, ancillary services (system security), imbalance charge (generation-consumption mismatch), and policy expenses. Total landed cost formula: PPA price + wheeling + ancillary + imbalance + policy. Compare against your existing demand charge costs. Analyze your electricity bill.
Draft rate — subject to ERC finalization
Worked Example: Factory Consuming 500,000 kWh/month
| Item | THB/kWh |
|---|---|
| PPA Price | 2.20 |
| Wheeling | 1.07 |
| Ancillary / Imbalance | ~0.15 |
| Total Direct PPA Cost | ~3.42 |
| Grid Tariff (comparison) | 3.95 |
| Savings per kWh | ~0.53 |
Savings ~0.53 THB/kWh → ~265,000 THB/month (~3.18M THB/year) vs Grid 3.95 THB
Direct PPA vs Private PPA vs EPC — 3-Model Comparison
All three models offer clean energy for factories but differ in structure, cost, and suitability. Read how EPC and PPA differ or see PPA providers in Thailand. An on-site PPA already running: 2.1 MW at a Pathum Thani food-processing plant.
| Dimension | Direct PPA | Private PPA | EPC |
|---|---|---|---|
| Solar Plant Location | Off-site | On-site (rooftop) | On-site (rooftop) |
| System Ownership | Generator | Developer | Factory |
| Upfront Cost to Factory | Zero | Zero | Full CAPEX |
| Rate Structure | PPA price + wheeling | 10-20% off grid rate | Zero marginal cost after payback |
| Contract Term | 15-25 yrs (negotiable) | 10-25 years | N/A (owned) |
| Grid Dependency | EGAT/MEA/PEA grid required | Independent (behind-meter) | Independent (behind-meter) |
| Scalability | Not limited by roof area | Limited by roof area | Limited by roof area |
| Regulatory Complexity | High (TPA Code + ERC registration) | Low (bilateral contract) | Low (PEA/MEA interconnection only) |
| Best For | Large load, no roof, RE100 goals | Mid-size factory with roof | Wants ownership + max savings |
Direct PPA or Private PPA — Which Fits Your Factory?
Consult CapSolar experts for free — we analyze your actual business data.
Is Your Factory a Fit for Direct PPA? 5 Signals
If your factory matches 3 or more of these 5 signals, Direct PPA is likely a good fit. Compare PPA vs EPC yourself.
Monthly consumption above 200,000 kWh — wheeling becomes cost-effective at this scale
Roof space insufficient or unsuitable (old structure, limited area)
RE100 / ESG / Scope 2 reporting commitment
Multi-site operations wanting consolidated green procurement
BOI-promoted or export-oriented factory (regulatory advantage)
Timeline — From Contract to COD
Direct PPA takes longer than Private PPA (on-site) due to TPA Code requirements and grid connection. Estimated total: 12-18 months. Compare: Private PPA on-site = 2-4 months (see full EPC guide).
Step 1: TPA Registration + ERC Approval
2-3 monthsStep 2: Generator Construction
6-12 monthsStep 3: Grid Connection Approval
2-4 monthsStep 4: COD (Commercial Operation)
Risks & Considerations for Direct PPA
How CapSolar Can Help
CapSolar provides both Private PPA (on-site) and Direct PPA advisory services, backed by 80+ MWp / 150+ projects in Thailand. We help determine which model best fits your factory — Private PPA for factories with sufficient roof space, or Direct PPA advisory for those needing scale beyond their rooftop. Review our solar ROI calculations and BOI incentives guide. Weighing on-site vs an off-site contract? See UGT vs TPA: which off-site path fits. Not sure which to choose? Let us analyze for free.
Direct PPA or Private PPA — Which Fits Your Factory?
Consult CapSolar experts for free — we analyze your actual business data.