EGAT Direct Power Purchase for Thai Factories
Guide to EGAT's 2,000 MW DPPP — The Only Path to RE100 for Large Factories
Factories with ≥10 MW demand that cannot fit enough rooftop solar can now buy renewable electricity directly from generators through EGAT's transmission grid — a game-changing energy policy since 2025.
Direct Power Purchase Pilot (DPPP) is EGAT's new policy allowing large factories (demand ≥10 MW) to buy renewable electricity directly from generators through EGAT's transmission grid for the first time. Phase 1 is 2,000 MW. The main cost is wheeling charge (grid usage fee) comprising transmission fee + backup reserve + system service, totaling 1.5-2.5 THB/kWh, bringing all-in electricity cost to 3.0-4.0 THB/kWh (cheaper than normal grid at 4.15-4.72 THB/kWh).
What is Direct Power Purchase — Why It Changes Thailand's Energy Game
Before DPPP, Thailand's power system was a Single Buyer model: EGAT bought all electricity from generators, sold to PEA/MEA, who resold to consumers. Factories wanting renewable energy had only one option: rooftop solar (limited by space) or PPA with a rooftop developer.
DPPP changes the game: factories can buy directly from solar farms, wind farms, or biomass plants through EGAT's transmission grid, regardless of location (physical delivery via grid). For the first time, large factories with insufficient roof space can achieve 100% renewable energy.
Key drivers: (1) Data center boom — Google, AWS, Microsoft investing in Thailand need RE100, (2) EU CBAM + CSRD — export factories must reduce supply chain carbon, (3) RE100 commitments — multinationals set renewable energy targets for supply chains.
EGAT DPPP Phase 1: 2,000 MW — Eligibility & Application Process
Eligibility: (1) Electricity consumers with contract demand ≥10 MW, (2) Connected to EGAT, PEA, or MEA grid, (3) Sufficient financial credit for long-term PPA (10-25 years). In practice: large industrial factories, industrial estates, data centers, and large commercial buildings.
DPPP application process: (1) Submit Letter of Intent to EGAT, (2) Match with qualified generator, (3) Agree PPA terms (price, duration, volume), (4) EGAT checks grid capacity, (5) Sign wheeling agreement with EGAT, (6) Begin power delivery — Total timeline: 6-18 months.
Upcoming Phase 2: EGAT plans to expand DPPP by 3,000-5,000 MW and may lower the threshold from 10 MW to 5 MW or 1 MW, making it accessible to medium-sized factories. Monitor announcements from ERC (Energy Regulatory Commission).
Wheeling Charge Explained — Transmission Fee + Backup Reserve + System Service
Wheeling charge is the fee EGAT collects from direct power buyers for using EGAT's transmission grid to deliver electricity from generator to factory. It has 3 components:
Transmission Use of System (TUOS)
Transmission + distribution usage fee for EGAT and PEA/MEA grids. Calculated by distance and voltage. Currently ~0.5-1.0 THB/kWh.
Backup Reserve Charge
Fee for EGAT maintaining backup generation capacity in case renewable generation falls short (e.g., cloud cover, calm wind). ~0.3-0.8 THB/kWh.
System Service Charge
Ancillary service fee for grid stability (frequency regulation, voltage control). ~0.2-0.5 THB/kWh.
Total wheeling: 1.0-2.3 THB/kWh + RE generator price: 1.5-2.5 THB/kWh = DPPP all-in: 2.5-4.8 THB/kWh (vs. normal grid: 4.15-4.72 THB/kWh). Savings: 0-30% depending on negotiated RE price.
Comparison: On-site Solar vs Private PPA vs DPPP — Which Should Factories Choose?
| Model | Scale | Cost/kWh | RE Coverage | Best For |
|---|---|---|---|---|
| On-site Rooftop Solar | 100 kWp - 5 MWp | 2.0-3.0 ฿/kWh | 20-40% | Factories with large roofs |
| Private PPA (Rooftop) | 200 kWp - 3 MWp | 3.0-3.8 ฿/kWh | 15-35% | Zero CapEx preference |
| DPPP (Utility-Scale) | 10 MW+ | 2.5-4.8 ฿/kWh | 50-100% | RE100 / insufficient roof |
Recommendation: most factories should use a hybrid approach — on-site rooftop solar for base savings + DPPP to fill the gap to RE100. This maximizes both ROI (from rooftop) and RE coverage (from DPPP).
Utility-Scale Solar Offtake: Virtual PPA + Sleeved PPA + Physical Delivery
Virtual PPA (VPPA)
Virtual PPA (VPPA) — the factory does not receive physical electricity from the generator. Instead, a contract for differences: if market price > strike price, generator pays difference to factory; if lower, factory pays. The factory gets RECs for RE100 reporting. No wheeling charge required.
Sleeved PPA
Sleeved PPA — through an intermediary (utility/aggregator) that handles physical delivery, wheeling, and balancing. Factory pays all-in-one to the aggregator. Simpler than direct DPPP but adds service fee of 0.2-0.5 THB/kWh.
Physical Delivery (DPPP)
Physical delivery (direct DPPP) — actual RE electricity delivered through the grid. Gets both RE electricity + REC. Lowest cost (no intermediary service fee) but must manage balancing + wheeling agreement in-house. Suited for factories with an energy management team.
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