Across the Asia Pacific region, governments are accelerating energy security and transition efforts through a mix of regulatory reform, infrastructure planning, and market-based mechanisms. In this issue of APAC Energy Pulse, we take a closer look at the most recent initiatives and developments across the Asia Pacific market including:
Singapore
1. Singapore Government established a new central gas company
What happened?
A fully-Government owned entity, Singapore GasCo Pte. Ltd. (“SG GasCo”), has been set up to centralise the procurement and supply of gas for the power sector in Singapore. This establishment of SG GasCo is around two years in the making – with the framework first unveiled in 2023 on the back of the global energy crunch in 2022 (where electricity prices surged due to, amongst other reasons, global oil and spot gas price spikes, and fossil fuel shortage exacerbated by the Russia-Ukraine war).
While Singapore is moving towards its goal of net zero by 2050, it recognises that natural gas, which currently accounts for around 95% of Singapore’s electricity generation, will continue to play a crucial role. Historically, power generation companies in Singapore would each procure their own gas supply and determine the terms of such supply. However, individual power generation companies may not be willing (or capable) of entering into long-term contracts due to market volatility and other risks, and depending on their respective bargaining power, the terms on which they procure gas may not be as favourable.
Centralising such procurement and supply functions in SG GasCo is intended to help take advantage of economies of scale and negotiate for more favourable contracting terms with more diverse sources, and to secure more stable and long-term supply arrangements for Singapore.
Why does it matter?
Going forward, all gas suppliers looking to supply natural gas to Singapore will need to interface, negotiate and contract with SG GasCo, instead of each individual power generation company. Currently, Singapore sources natural gas in the form of piped natural gas from neighbouring Malaysia and Indonesia as well as liquefied natural gas from various countries.
2. Singapore Government-linked company to develop cross-border power infrastructure
What happened?
A newly incorporated Government-linked company, Singapore Energy Interconnections (“SGEI”), has been appointed by the Singapore Government to specialise in developing cross-border power infrastructure to enable low-carbon electricity imports.
SGEI will build, own, and operate regional power interconnections, and work with its regional partners to develop renewable energy projects and facilitate technical cooperation within the power sector.
Why does it matter?
This is a key step in Singapore’s journey towards enabling cross-border renewable-generated electricity trade. It represents Singapore’s continued commitment to the development of the regional ASEAN power grid, and its target of importing 6 GW of low carbon electricity by 2035. Investment into interconnector infrastructure is critical to ensuring that electricity can be delivered from where it is generated to where it is needed across maritime boundaries, and to ensure that the transition to renewable energy is kept affordable. The high capital costs and risks associated with the development of such infrastructure accentuate the need for governmental support in this important aspect in achieving ASEAN’s goal of an integrated power grid.
Indonesia
3. PLN released the long-awaited RUPTL (Electricity Supply Business Plan)
What happened?
On 3 June 2025, PT PLN (Persero) (“PLN”) released the long-awaited Rencana Usaha Penyediaan Tenaga Listrik Electricity Supply Business Plan (“RUPTL”), which sets out PLN’s plans for energy procurement for 2025 to 2034. Notable features include:
- At a base level, the RUPTL projects an additional 52.7 GW of capacity (with approximately 48 GW of PLN cooperation or IPP projects), while the Accelerated Renewable Energy Development case adds 69.5 GW of capacity (with approximately 55 GW of PLN cooperation or IPP projects).
- Over the first five five-year period, the RUPTL will front-load 76% of the 12 GW of planned thermal sources (including procurement of combined cycle gas turbine power plans and single cycle gas turbine power plans), while backloading 72% of the planned 42 GW of new and renewable energy projects to the last five-year period.
- The RUPTL (for the first time) permits private participation in transmission infrastructure investment, in cooperation with PLN, including:
- super grid (i.e. links between control areas);
- smart grid (integrate information technology for active monitoring of power systems); and
- control systems (real time generation management to allow intermittent resources, baseload resources, and storage to sustain grid reliability).
Why does it matter?
For sponsors, the release of the RUPTL is a major step to getting Indonesia’s power sector moving again, which sets the stage for new rounds of PLN, procurement for PLN cooperation and IPP projects.
The RUPTL shows that Indonesia’s focus remains on energy security in the near term, with a longer-term focus on the energy transition. Especially for gas powered generation, supply chain risks arise not only from declining domestic gas production but also constraints on global turbine supply and shipyard capacity for FSRUs bear watching.
4. MEMR issued Guidelines for Power Purchase Agreements for Renewable Energy Power Plants
What happened?
On 4 March 2025, Indonesia’s Ministry of Energy and Mineral Resources (“MEMR”) issued Regulation No. 5 of 2025 on Guidelines for Power Purchase Agreements for Renewable Energy Power Plants (“MEMR 5/2025”), an implementing regulation for Presidential Regulation No. 112 of 2022 (“PR 112/2022”), which mandated that MEMR establish these guidelines.
Going forward, MEMR 5/2025 is now the legal basis for renewable energy PPAs in Indonesia (including solar, hydropower, geothermal, wind, tidal, WTE and BESS facilities connected with these technologies), updating the previous MEMR Regulation No. 10 of 2017 (as amended) (“MEMR 10/2017”).
Why does it matter?
MEMR 5/2025 updates multiple key guidelines for renewable energy PPAs. PLN may now execute PPAs under a 30-year BOO scheme (allowing sponsors to realise additional revenue after the initial contracted period). MEMR 5/2025 also permits pre-COD share transfers in connection with financing (expanding the scope of pre-COD share transfers permitted under MEMR 48/2017 on Supervision of Business Activities in the Energy and Mineral Resources Sector, at least for renewable energy projects). MEMR 5/2025 allows the ownership of environmental attributes (such as RECs) generated by a project to be agreed by contract between an IPP operator and PLN.
MEMR 5/2025 codifies market practice with respect to (i) setting PLN’s purchase obligation in reference to “contracted energy” or the “availability factor,” depending on the type of energy source, (ii) performance security, capping performance security at 10% of the total project cost of the power plant, (iii) foreign exchange risks, allocating convertibility risk to sellers and exchange rate volatility with PLN. MEMR 5/2025 allows sellers and PLN to determine by contract the circumstances under which sellers would receive deemed commissioning or deemed dispatch.
MEMR 5/2025 also allows PLN to purchase electricity in excess of the contracted energy or the availability factor of a power plant under certain conditions and at 80% of the PPA price, where under MEMR 10/2017 PLN could purchase such excess electricity at an agreed price.
5. MEMR issued Regulation No. 10 of 2025 on the Roadmap for the Energy Transition in the Electricity Sector
What happened?
On 10 April 2025, MEMR issued Regulation No. 10 of 2025 the Roadmap for the Energy Transition in the Electricity Sector (“MEMR 10/2025”), another implementing regulation for PR 112/2022, which mandated that MEMR prepare and publish a roadmap for the accelerated retirement of coal fired power plants. This regulation supports Indonesia’s stated target of reaching net zero by 2060, planning for peak CO2 emissions in 2037.
PR 112/2022 requires the roadmap to include at least three elements: (1) emissions reduction from coal plants, (2) a coal plant retirement strategy, and (3) policy alignment. In response to these requirements, MEMR 10/2025's early retirement road map for coal fired plants includes detailed eligibility criteria for early retirement of individual plants. Presented as a scoring system, the eligibility criteria include: (i) alignment with the principles of the just energy transition (Tranisisi Energi Berkeadilan), and (ii) the availability of onshore and offshore funding support.
MEMR 10/2025 additionally sets out a broader road map for the energy transition in the power sector (in addition to coal plant retirement) and provides a further regulatory basis for the development of other advanced technologies, including nuclear power and super-grid implementation.
Why does it matter?
It is difficult to align the policies and future practical implementation of the energy transition roadmap set out in MEMR 10/2025 with the trends in the RUPTL. The RUPTL itself does not appear to provide for a coal plant phase-out plan. Neither the previous nor current RUPTL align with the coal retirement plans set out by the Just Energy Transition Partnership’s Comprehensive Investment and Policy Plan.
MEMR 10/2025 also notes that the early retirement of coal power plants is conditional, and must consider international support, the basic cost of electricity generation, and the reliability of the power system. Renewable generation and storage technologies will need to become cheaper and more reliable to compete with baseload coal.
6. Indonesia’s Ministry of Environment entered into a mutual recognition agreement with the Gold Standard
What happened?
On 8 May 2025, the Government of Indonesia (through the Ministry of Environment) formally recognised emission reduction certifications issued by the Gold Standard by executing a mutual recognition agreement (“MRA”) with the Gold Standard, an international carbon reduction certification body.
Why does it matter?
Article 68 of Indonesia’s Ministry of Environment and Forestry’s Regulation No. 21 of 2022 on the Implementation of Carbon Economic Value permits the trading of carbon credits certified under foreign standards, provided an MRA has been entered into with the relevant international certification body.
Accordingly, after the execution of the MRA with the Gold Standard, projects are now permitted to be dual-certified both under Gold Standard and SPE-GRK (the Indonesian national certification). This MRA opens up the market for Indonesian carbon credits to international buyers, including companies participating in CORSIA (the carbon offsetting and reduction scheme for international aviation), voluntary carbon markets, or other international compliance schemes.
Singapore & Indonesia
7. SGEI signed MOU to develop Indonesia-Singapore electricity import interconnector
What happened?
SGEI has signed a memorandum of understanding with Singa Renewables, a joint venture between TotalEnergies and Royal Golden Eagle, to explore the development, financing, construction, operation and maintenance of the Indonesia-Singapore subsea interconnector and related assets. Singa Renewables is one of the companies that have been granted a conditional licence by the Energy Market Authority (“EMA”) to import low carbon electricity into Singapore under EMA’s Request for Proposals to appoint licensed electricity importers.
Why does it matter?
This represents a critical step to enable low-carbon electricity imports from Indonesia to Singapore, and more broadly, in the development of the ASEAN Power Grid.
8. Governments of Indonesia and Singapore have agreed to increase cooperation in cross-border electricity trade, carbon capture and storage, and development of a sustainable industrial zone in Riau province
What happened?
On 13 June 2025, the Government of Indonesia (through the MEMR) and the Government of Singapore (through the Ministry of Trade and Industry (“MTI”)) executed three memoranda of understanding (“MOUs”) aiming to increase sustainable economic growth and encourage decarbonization of both countries’ economies. Building on earlier cooperation frameworks, the MOUs are focused on regulatory clarity and economic development in green industries.
- Planned Indonesia-Singapore export-import projects: EMA has granted conditional licenses for 2 GW of renewable energy projects, with conditional approvals for an additional 1.4 GW of capacity. For these projects, there remain legal hurdles under Indonesian regulations, including with respect to licensing of generation and transmission assets, export of environmental attributes and government force majeure risk. The MOU aims to develop regulatory mechanisms and commercial terms within a year.
- Carbon capture and storage (“CCS”): The two countries will form a joint working group to facilitate a bilateral agreement on project implementation. Indonesia aspires to be a regional CCS hub, while Singapore anticipates it will be able to export and store 2 million tonnes-per-year from its hard-to-abate sectors in the cross-border project. Emissions from Singapore’s refineries and industrial facilities will be transported and stored in depleted oil and gas fields in Indonesia.
- Sustainable industrial zone: A joint task force has been formed to identify manufacturing industries to be developed in a sustainable industrial zone in the Bintan, Batam, and Karimun region (known as BBK) bordering Singapore. MTI emphasised that regulatory clarity for renewable energy will attract international green investments in Indonesia.
Why does it matter?
Taken together, these MOUs are a major step in the cooperation of the Singaporean and Indonesian governments for sustainable investment. The green partnership between the countries is synergistic, combining Singapore’s leading capital and technical know-how with Indonesia’s massive natural resources. Successful implementation of these MOUs will allow Singapore to cut its emissions while spurring Indonesia’s economic growth.
Vietnam
With momentum from electricity law reform last year, Vietnam has revised its national power development plan and has issued various implementing regulations. These reforms provide both opportunities and challenges for stakeholders in Vietnam’s electricity sector.
9. Vietnam revised Power Development Plan VIII (PDP8)
What happened?
- Revised PDP8: Vietnam revised its PDP8 to continue to focus on renewable energy and new generation thermal power projects (including domestic gas-fired and imported LNG-to-power). The revised PDP8 estimates investment of approximately USD 136 billion by 2030 to develop energy sources and the associated transmission and storage infrastructure.
- Revised PDP8 Implementation Plan: An implementation plan was issued on 30 May 2023 with a list of the national priority projects. The list includes gas-fired power, ground-mounted and rooftop solar, onshore and offshore wind, battery storage and pumped-storage hydropower projects.
Why does it matter?
Over the last few years Vietnam has seen a slowdown in private sector development of new greenfield utility scale renewables and baseload generating capacity. New regulations open the door to more economically feasible and perhaps bankable greenfield projects for domestic and international developers, allowing Vietnam to achieve its ambitions for building energy security and transition as outlined in the revised PDP8.
10. Vietnam introduced new tariff mechanisms and ceilings
What happened?
Why does it matter?
- New tariff mechanisms: These include provisions for a minimum tariff component to ensure cost recovery without reference to dispatch, which is crucial for maintaining minimum and predictable project cash flow. New tariff mechanisms under the 2025 Electricity Law are untested. No precedents exist for negotiating PPAs or concession contracts for large-scale IPPs (e.g., offshore wind, thermal) by the private sector.
- VWEM indirect participation is important: Whether a power project is required to participate directly in the VWEM is important, as the option of indirect participation will allow a power plant to negotiate PPAs with a contracted tariff that can enable project cashflows not fully dependent on the project dispatch level from the VWEM (i.e., a dispatch market).
- If a large-scale power plant is required to participate directly to VWEM, it must bid electricity prices to be dispatched. This may not be practical or bankable in a dispatch market which simply ranks participants based upon bided tariffs and therefore costs of generation.
- If the power plant can negotiate tariff components that are not dependent upon dispatch level by not being required to participate directly in the VWEM, it could more likely ensure minimum tariff income and cash flows.
- It appears that domestic gas-fired IPPs now have the right to elect for not participating in the VWEM on a direct basis. Whether other large scale power projects with large investment costs (for example, LNG to power and offshore wind) can secure the same right of indirect VWEM participation remains to be seen, but the new regulations open the possibility of this happening.
- Tariff ceilings: New tariff ceilings in 2025 provide a basis for tariff negotiation and financial consideration for greenfield LNG-to-power and renewable energy projects. For new projects where investor selection will be by a bidding process, the ceilings will be the highest tariff that interested bidders can propose during the bidding process.
11. Vietnam introduced official direct PPA (“DPPA”) mechanisms
What happened?
Decree 57 took immediate effect on 3 March 2025 and replaced Decree 80 issued last year for DPPA mechanisms. Two direct electricity selling models remain with some changes:
-
Private transmission line DPPAs – sale and purchase of electricity via private wire systems.
Decree 57 introduces a more stringent requirement that the agreed electricity price under the corporate PPA must not exceed the generation ceiling of the respective electricity types. This could be seen as a backward step because it will reduce commercial parties’ flexibility to negotiate their own tariffs, which is the whole reason for having corporate PPAs and the main economic motivation for renewable energy generators using this model.
-
Virtual DPPAs – sale and purchase of electricity via the national grid.
Compared to the previous Decree 80, this virtual model now adds biomass generation projects to solar and wind power generation. Large-scale customers for the electricity charging business are also eligible to participate in this model.
A key issue regarding price remains that under this virtual electricity supply model, Vietnam Electricity (“EVN”) as an intermediary may charge the private offtaker not only the actual wheeling charges (transmission fees) and the spot price-based payment to RE generators through VWEM, but also additional charges to compensate EVN’s costs for other power sources invested or purchased by EVN (through the Ccl payment component). The compensation to EVN is unclear and could be substantial, considering other EVN generation sources involved, such as EVN's own substantial generating assets
Why does it matter?
- Official DPPA mechanisms: Corporate PPAs now have an official legal basis under Decree 57, including the direct transmission and virtual supply models.
- Key challenges remain: The electricity pricing remains constrained by regulatory ceilings or formulas, which may limit their commercial viability. In short, the Government is seeming to allow direct selling electricity mechanisms, but trying to protect EVN's financial position.
Philippines
12. Philippines launched its fifth Green Energy Auction exclusively for offshore wind
What happened?
The Philippines’ Department of Energy (“DOE”) launched its fifth Green Energy Auction Program (“GEA-5”), which is the first auction exclusively for offshore wind. Key highlights include:
- a total capacity of 3.3 GW of fixed-bottom offshore wind to be allocated (DOE has said that they remain open to floating offshore wind projects in future);
- delivery commencement period from 2028 to 2030;
- bid bond is set at P100,000/MW ($1,787/MW); and
- bidder registration will start the week of 14 July 2025, with Notice of awards is expected to be in late September to early October.
The applicable green energy auction reserve (GEAR) price and the renewable energy payment agreement (REPA) are expected to be released in July.
Why does it matter?
This is the Philippines’ first offshore wind auction, and its results would send a clear message for the future of the offshore wind industry in the Philippines.
This auction also reflects the Philippines’ continued commitment to renewable energy, as outlined in its Energy Plan 2025–2050 and the National Renewable Energy Program. Since our last update, DOE has also announced notices of award to eight bidders under its third Green Energy Auction Program (GEA-3) for the 6.68 GW capacity of geothermal and pumped storage hydropower.
Malaysia
13. Malaysia issued guidelines for Community Renewable Energy Aggregation Mechanism (“CREAM”)
What happened?
Following its announcement of the introduction of CREAM in February of this year, Malaysia’s Energy Commission (Suruhanjaya Tenaga) has now issued its Guidelines for CREAM. Notably, CREAM enables:
- the aggregation of residential rooftop space for renewable energy generation – homeowners may lease or rent their rooftop space to renewable energy generators, who will be responsible for developing and operating solar PV systems at such space and distributing the green electricity generated to relevant local users, and managing the contractual agreements with users and other stakeholders; and
- the procurement of green electricity by consumers directly from renewable energy power generators via open access to the national grid. Electricity produced under CREAM must be transmitted through the distribution network operated by Tenaga Nasional Berhad (“TNB”), the state utility, who will be responsible for implementing grid balancing measures at the local level.
An illustration of the physical and financial framework of CREAM as extracted from the Guidelines is set out below:
*Source: Guidelines for Community Renewable Energy Aggregation Mechanism (CREAM), GP/ST/No. 55/2025 [1], First Version, paragraph 6.3 on page 12.
Why does it matter?
CREAM is the Malaysia government’s latest initiative in its transition to energy market liberalization, integrating community-driven solutions into Malaysia’s energy mix. It is launched on the back of the Corporate Renewable Energy Supply Scheme (CRESS) that was introduced in September 2024 [2], which allowed commercial and industrial entities to procure green electricity directly from renewable energy developers, also via open access to the national grid.
14. Malaysia is expected to add 6 to 8 GW of gas-fired power by 2030
What happened?
A recent study has revealed that Malaysia is expected to experience the fastest surge in data centre power demand in Southeast Asia. Total power consumption in Malaysia is also expected to increase by 30% by 2030.
To meet such demand, the CEO of TNB said at the recent Energy Asia conference that he expects Malaysia to add 6 to 8 GW of gas-fired power plants by 2030, with the intention of gas taking the place of coal as the country moves to phase out coal responsibly. This trajectory can already be seen in practice – the Energy Commission has recently, on 13 May 2025, issued an RFP for new gas-fired power generation capacity in Peninsular Malaysia for commercial operations between 2025 and 2029, cementing continued place for gas in Malaysia’s energy mix going forward.
Why does it matter?
Malaysia’s planned ramp-up of gas-fired power plants alongside its renewable energy initiatives (such as CREAM and CRESS as mentioned above) reflects the fine balance that governments today are striving to find – ensuring energy security and meeting the future’s insatiable appetite for power in an economical way, while protecting and sustaining our environment and being good stewards of our resources.
Taiwan
15. Winds of Change? Taiwan Pushes Ahead with Auction Round 3.3 Despite Round 3.2 Project Cancellations
What happened?
Taiwan’s Ministry of Economic Affairs is initiating discussions with industry leaders about the upcoming Round 3.3 offshore wind auction, aiming for up to 3GW of new capacity. This step is part of Taiwan's broader goal to achieve 40-55 GW of offshore wind power by 2050.
Round 3.3 would follow on from Rounds 3.1 and 3.2 with reports suggesting that the relevant authorities are considering several changes to the Round 3.3 auction framework, including the introduction of a floor price and reducing the localisation burden on participants.
Why does it matter?
Projects in prior rounds have faced some development challenges (including the reported cancellation of projects) because of the difficulty of squaring high capex costs with the, in effect, zero subsidy regime of Rounds 3.1 and 3.2. This arose due to the auction process having no floor price, meaning that bidders submitted bids of NT$0 per kWh and consequently were awarded no subsidy or meaningful fallback PPA. This necessitated that the projects secure bankable corporate power purchase agreements from creditworthy offtakers in lieu of subsidy, which can be challenging at the scale and pricing required. The possibility of a floor price raises the question of whether this might signal the return of some form of subsidy or back-up pricing, which in turn may help Round 3.3 projects proceed to financial close more easily than has been the case for Rounds 3.1 and 3.2.
India
16. India issued draft virtual power purchase agreement (“vPPA”) guidelines
What happened?
The Indian Central Electricity Regulatory Commission (“CERC”) released draft guidelines for vPPAs in May 2025, and invited comments, suggestions and objections from stakeholders and interested parties. Historically, there has been ambiguity around the vPPA structure in India – in particular, whether vPPAs come under the regulatory jurisdiction of the Securities and Exchange Board of India as a “contract for differences”. These draft guidelines propose to formally establish a framework for vPPAs in India.
Notably, under the draft guidelines:
- vPPAs are recognised as non-transferable specific delivery-based over-the-counter contracts between a consumer and a renewable energy generator, that permit consumers to meet clean energy targets without taking physical delivery to power.
- Parties to the vPPA will mutually agree on a vPPA price for the duration of the vPPA, and will each purchase or sell (as applicable) power from or to the market via permitted third parties. The difference between the agreed vPPA price and market price will then be financially settled under the vPPA.
- Renewable energy capacity contracted through a vPPA will be eligible for the issuance of RECs under the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022.
Why does it matter?
This is a step towards modernising India’s power sector by formalizing new ways for companies to offset their energy consumption and emissions, and for stakeholders to hedge against price volatility.
17. India’s nuclear sector is revitalised via a new Nuclear Energy Mission
What happened?
The Indian government has renewed its focus on revitalizing the nuclear sector in the budget announced on February 1, 2025. India’s Minister of Finance announced a Nuclear Energy Mission, that contemplates an outlay of INR 200 billion (approx. USD 2.4 billion) for the purpose of achieving at least 100 GW of nuclear energy generation by 2047, and operationalizing at least five indigenously developed small modular reactors by 2033.
In addition, the Indian government is also considering amendments to the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2020, with the objective of creating a more conducive environment for investment, innovation and partnership with the private companies in the nuclear sector. Notably, such amendments include:
- allowing private sector participation under the Atomic Energy Act – currently, public sector joint ventures are allowed, but private sector companies and foreign investments directly into nuclear power are not permitted. Today, the Nuclear Power Corporation of India Limited operates atomic power plants across the country that contribute 8.7 GWe to the country's energy mix; and
- limiting the liability of equipment suppliers to build atomic energy plants under the Civil Nuclear Liability for Nuclear Damage Act.
Why does it matter?
Nuclear power is increasingly being recognised as being essential for countries to meet their net zero targets while ensuring energy security for a high-energy demand future. These initiatives by the Indian government demonstrate its recognition of this and is primed to open up a new area of exciting opportunities for private sector investors not only in India, but across the world.
Thailand
18. Thailand introduced revised draft Climate Change Act
What happened?
Thailand introduced a revised draft of its new Climate Change Act, following a public hearing on a previous draft of the Climate Change Act. Of note, the draft Climate Change Act contains the following key mandatory measures:
- Emissions Trading System (“ETS”): The ETS is a mandatory cap-and-trade system that limits greenhouse gas emission by setting a cap for certain business entities in designated industries that emit greenhouse gas. Such entities will receive allowances through free allocation or auctioning schemes and must surrender allowances equal to their emissions annually. The designated industries covered by the ETS have not been identified in the draft Climate Change Act yet and details are expected to be set out in subsidiary legislation.
- Carbon Border Adjustment Mechanism (“CBAM”): Under the CBAM (which is modelled after the EU’s system of the same name), importers of specified goods must register and report the embedded emissions amounts of their imports and purchase CBAM certificates corresponding to the emissions amount reported in the previous year.
- Enhanced carbon tax framework: Mandatory carbon tax at a prescribed rate will apply to carbon-intensive products such as petroleum products, liquefied gases and coal. Manufacturers and importers will be taxed based on emissions. Deductions and refunds on carbon taxes may be claimed where tax has already been paid on raw materials used in production.
What’s next?
The draft Climate Change Act is currently under review by Thailand’s Ministry of Finance and will next be proposed to the Thai Cabinet some time in 2025. The Climate Change Act will then be under Council of State review, with implementation expected in 2026.
Why does it matter?
The draft Climate Change Act represents a significant step by Thailand towards environmental responsibility and an improvement in its environmental policy. These climate policy developments will impact businesses across various sectors (particularly, carbon-intensive industries) through increased responsibilities and operational costs. Businesses should start assessing their carbon footprint and preparing to accommodate the changes in regulations ahead of the implementation of the Climate Change Act.
19. Thailand eliminated the requirement for factory licences for solar rooftop installations
What happened?
Thailand’s Ministry of Industry recently amended the Factory Act to remove the requirement for a factory licence for rooftop solar installations, regardless of installed capacity, if such solar systems were installed on rooftops or any part of a building that can be occupied or utilised by individuals. Under the previous regulations, rooftop solar systems with an installed capacity exceeding 1 MW were considered a “factory” under the Factory Act and required a factory licence from Thailand’s Department of Industrial Works.
This development benefits solar developers, contractors and installers who may have been previously deterred by regulatory hurdles. It facilities faster installation times and lower costs, without the need for prior approval of a factory licence from the Department of Industrial Works.
Why does it matter?
The removal of the factory licence requirement lowers the barrier for businesses to adopt large-scale rooftop solar systems and paves the way for accelerated growth in rooftop solar installations. This reinforces Thailand’s commitment to achieving its renewable energy goals of 30% renewable energy in Thailand’s energy mix by 2037 and carbon neutrality by 2050.
South Korea
20. South Korea announced competitive bidding rules for wind and solar power projects for H1 2025
What happened?
The South Korean Ministry of Trade, Industry and Energy (“MOTIE”) has released the rules for the upcoming competitive bidding for wind and solar power projects in the first half of 2025. Key highlights include:
- Wind Power Auction:
- Total capacity of 1.25 GW announced.
- 500 MW allocated for public-led offshore wind projects.
- 750 MW allocated for general offshore wind projects.
- Fixed offshore wind only in this round (floating offshore wind to be included in second half 2025).
- Introduction of security criteria in the evaluation process, with 8 points for public-led projects and 6 points for general projects.
- Ceiling price maintained at KRW 176,565/MWh, with preferential pricing for public-led projects and additional incentives for utilising government R&D demonstration wind systems.
- Solar Power Auction:
- Total capacity of up to 1.0 GW.
- Ceiling price adjusted downward to KRW 155,742/MWh from last year's KRW 157,307/MWh.
- Promotion of low-carbon solar modules with strengthened carbon emission standards (655kg CO2/kW).
- RE100 PPA Brokerage Market:
- Continued operation with enhanced flexibility.
- Relaxed contract capacity requirements and options for multiple demand companies.
- Flexible contract periods up to 20 years and extended negotiation periods.
Why does it matter?
The new auction rules signal several significant implications as follows:
- Security Focus: The inclusion of security criteria in the bidding process reflects heightened government attention to supply chain security, potentially influencing developer decisions regarding suppliers and technology partners.
- Public Sector Involvement: The allocation of capacity for public-led projects and preferential pricing underscores the government's active role in steering the sector's development.
- Corporate Renewable Procurement: The continued operation and increased flexibility of the RE100 PPA brokerage market show continued commitment to facilitating corporate renewable energy procurement.
[1] https://www.st.gov.my/contents/2025/CREAM/CREAM GUIDELINE_FINAL.pdf
[2] https://www.orrick.com/en/Insights/2024/12/APAC-Energy-Pulse-December-2024#5
[View source.]
