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The much delayed second-phase 3.6-gigawatt renewable scheme is likely to start in the fourth quarter of this year, following the end of a legal dispute concerning the first phase, says an energy official.
The Energy Regulatory Commission (ERC) could not push ahead with the scheme’s second phase after the Central Administrative Court suspended the state’s plan to buy 1,500 megawatts of wind power due to alleged irregularities in the process of selecting power plants in the first phase of the scheme, with combined power generation capacity of 5.2GW from wind, solar and biogas energy.
The verdict was issued after Khon Kaen Wind 2 Co, a subsidiary wholly owned by Energy Absolute (EA), a renewable energy firm and an electric vehicle developer and operator, lodged a complaint with the court against the ERC and accused the commission of lacking transparency and fairness in an auction held between late 2022 and April 2023.
The ERC earlier announced it would file an appeal against the ruling.
EA recently decided to withdraw the complaint, said the official, who spoke on condition of anonymity.
He did not elaborate on the reasons behind EA’s decision.
The ERC needs to wait for the court’s statement clarifying the issue first, before preparing for a new auction under the scheme’s second phase, he said.
The commission will be more careful about drafting conditions and requirements for the auction to avoid causing doubts among participating companies, which may lead to a legal dispute in the second phase, he said.
The ERC is currently in the process of selecting three members of the ERC board to succeed retired members.
The board, which consists of seven members, will consider revising the conditions and criteria to screen companies in the second phase, said the official.
Power plant developers who qualified for renewable energy projects in the first phase, but were not awarded project development licences by the ERC, will be prioritised in the second phase, the official said.
Under the scheme’s second phase, additional renewable power will come from solar and wind farms as well as industrial waste-to-energy projects.