Unlocking Direct PPA for Data Centres and Beyond: What Will It Take for Thailand? 

On 12 May 2026, the Energy Research Institute (ERI), Chulalongkorn University, organised a seminar under the Green Researcher Network forum on behalf of the project Clean, Affordable and Secure Energy for Southeast Asia (CASE) in Thailand on “Unlocking Direct PPA for Data Centres and Beyond: What Does It Actually Take?”.  

The event brought together representatives from government agencies, utilities, academia, industry, and the private sector to discuss Thailand’s readiness to support growing demand for clean electricity from data centres and emerging industries. Discussions focused on the opportunities and challenges associated with enabling Direct PPA mechanisms and the broader transition required to support a rapidly evolving electricity landscape. 

Thailand’s Growing Data Centre Demand Is Reshaping the Energy Sector 

The seminar opened with a context-setting session by Dr Phimsupha Kokchang, Researcher at the Energy Research Institute, Chulalongkorn University, who outlined Thailand’s evolving electricity landscape, the implications of rising data centre demand, and the role of market reforms in enabling renewable energy procurement for large-scale consumers.  

Thailand is experiencing rapid growth in data centre investment, driven by accelerating digitalisation, cloud services, and the expansion of AI. At the same time, increasing global energy volatility is creating greater uncertainty around energy prices and supply security, placing new pressures on the country’s power sector to provide reliable, affordable, and sustainable electricity. 

By 2025, the Board of Investment (BOI) had approved 36 data centre projects worth approximately THB 800 billion (USD 23 billion), including major investments from global technology companies such as Amazon Web Services, Google, and Microsoft. As electricity demand from large consumers continues to grow, companies are increasingly seeking access to clean and competitively priced electricity to support ESG commitments and global supply chain decarbonisation requirements. 

In response, Thailand has announced plans to enable Direct Power Purchase Agreements (Direct PPA), allowing large corporate consumers to procure renewable electricity directly from developers. Since 2024, approximately 2,000 MW of Direct PPA capacity has reportedly been proposed to support data centre development. However, implementation remains limited, as several key regulatory frameworks — particularly Third Party Access (TPA) rules — are still under development. 

Throughout the seminar, participants discussed whether Thailand’s electricity sector is institutionally, technically, and commercially prepared to support Direct PPA implementation at scale. 

Enabling Direct PPA in Thailand — Current Readiness and Key Implementation Gaps 

One of the seminar’s key highlights was the panel discussion “Enabling Direct PPA in Thailand: Current Readiness and Key Implementation Gaps,” moderated by Maythiwan Kiatgrajai, Senior Energy Advisor at GIZ Thailand. 

The panel featured Dr Chanchai Amornvipas, Director of Regulatory Development and Strategic Execution Department at the Office of Energy Regulatory Commission (OERC); Sermchai Jaruwatdilok, Deputy Director of Power Economic Policy at the Provincial Electricity Authority (PEA); Jakgree Sirimanivattana, Assistant Governor for Corporate Strategy at the Electricity Generating Authority of Thailand (EGAT); and Pongpatchara Pongpiriyakarn, Principal at AFRY Thailand. 

The panel explored several key questions surrounding Thailand’s readiness to support Direct PPA implementation for large electricity consumers, particularly data centres, and examined the broader implications for Thailand’s electricity market. Panelists explored a range of issues, including the current level of institutional and market readiness, key barriers to implementation, the compatibility of Direct PPA under Thailand’s Enhanced Single Buyer (ESB) model, and priority actions required over the next one to two years to enable wider adoption. 

The discussion also highlighted the importance of developing supporting regulatory mechanisms, particularly the TPA Code, alongside broader investments in grid modernisation, renewable energy forecasting capabilities, digital infrastructure, and system flexibility. Participants further emphasised the evolving role of utilities and system operators in managing increasingly decentralised electricity systems, while ensuring that growing demand from new industries does not create unintended impacts for existing electricity consumers. 

Enabling Direct PPA in Thailand extends beyond introducing a new procurement mechanism and represents a broader system transition involving regulatory reform, infrastructure readiness, and evolving institutional roles. 

Data Centre Growth, Grid Readiness, and Direct PPA Implementation 

The second session focused on four presentations covering data centre growth, grid readiness, corporate renewable procurement, and international experiences with Direct PPA implementation. Assist. Prof. Nondh Nuchmorn from Thammasat University presented Data Centre Development in Thailand: Policy and Regulatory Implications; Bancha Yathip presented Beyond Smart Grids: Grid Resilience and Renewable Energy Solutions for Data Centres; Esa Heiskanen from Constant Energy presented Corporate Buyer Perspective: Enabling Direct PPA and International Practices; and Dr Arne van Stiphout from Agora Energiewende presented How Data Centre Flexibility Can Help Solve Europe’s Grid Bottleneck

The session highlighted increasing electricity demand and sustainability considerations linked to the rapid expansion of data centres, alongside the growing importance of grid reliability, renewable energy access, BESS, and supporting infrastructure. Discussions also explored the role of corporate renewable PPAs in facilitating renewable energy procurement and supporting decarbonisation targets, while emphasising the need for enabling regulatory frameworks and market mechanisms. Drawing from international experiences, speakers also shared lessons on integrating growing electricity demand into power systems, highlighting how flexibility measures can support renewable energy integration and improve overall system efficiency. 

Key Takeaways and Next Steps 

As demand from data centres and emerging digital industries continues to increase, discussions highlighted the importance of aligning regulatory, technical, and commercial aspects to support implementation. In this context, discussions reflected that the key challenge is not only whether Direct PPA can be enabled in Thailand but also what conditions are required to support effective implementation in practice. This includes considerations related to system efficiency, fairness, long-term sustainability, and the ability to support future scale-up. 

Discussions throughout the event also underscored that Direct PPA should be considered within the broader context of power sector development and energy transition planning. Key themes raised during the seminar included current policy developments and implementation gaps, potential approaches for Direct PPA design within Thailand’s electricity market structure, principles for market development, and broader considerations associated with sustainable data centre growth. 

The seminar discussions are further explored in the policy paper Unlocking Direct PPA for Data Centres and Beyond: What Does It Actually Take? which presents key recommendations and considerations emerging from the seminar, including current policy developments and implementation gaps related to Direct PPA, potential design approaches and market consideration.