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 2,000 MW pilot program launched. This marks Thailand's first electricity market liberalization — factories can now 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.
| 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.