Krungthai Bank Research Center reveals that Solar-Corporate PPA is a clean energy business with high growth potential, catering to electricity users who want to save on energy costs without making their own investments. It is estimated that the revenue from the Solar-Corporate PPA business in Thailand could expand to between 37.7 and 118.2 billion baht by 2580, representing a growth of 17.5 to 54.8 times from 2563. Potential entrants into this business include companies involved in solar panel installation, solar panel manufacturing, and solar power plants.

Dr. Pacharaporn Nantarama, Assistant Managing Director of Krungthai COMPASS, stated that globally there is a heightened awareness of greenhouse gas reduction goals in line with the Paris Agreement, which benefits the clean energy sector, particularly solar power. The cost of installing solar systems has significantly decreased. Besides solar power plants, the Solar-Corporate PPA business also shows potential, as operators invest in generating electricity from solar panels for clients, charging them later at rates often lower than those from the government.

"The Solar-Corporate PPA business is expected to grow alongside the global solar power generation capacity, which is projected to increase to 8,541 thousand megawatts by 2593, up from 714 thousand megawatts in 2563, marking a growth of up to 12 times. In Thailand, this business has the opportunity to grow in response to the demand for solar energy from both households and industries. Additionally, the Solar-Corporate PPA business is supported by government policies offering both tax and non-tax incentives,"

Ms. Nirattisay Tumwongsa, a senior analyst, noted that the current business model has three formats:
1) Synthetic: Electricity is produced and supplied from the producer's source, with a distributor acting as an intermediary and a centralized electricity trading market overseeing production and distribution.
2) Sleeved: Electricity is produced and sent directly from the producer to the consumer, renting transmission lines from the government for distribution.
3) Private wire: Electricity is produced on-site at the consumer's location, which is the model currently used in Thailand. Currently, there are few operators, resulting in low competition. Furthermore, this business has high profitability, with an average EBIT margin of 22.8% from 2560 to 2562, while solar panel installers and manufacturers have average EBIT margins of only 4.0% and 3.3%, respectively.

Mr. Pongprapa Napaphrukchat, an analyst, added that Krungthai COMPASS expects the revenue from the Solar-Corporate PPA business in Thailand to expand to between 37.7 and 118.2 billion baht by 2580 compared to 2563, representing a growth of 17.5 to 54.8 times. The growth of Solar-Corporate PPA depends on three key issues that the government should consider:
1) Increasing the proportion of electricity purchases specifically from Solar Rooftop in the PDP 2022 plan, which will allow this business to expand its customer base among private sectors and households wanting to generate their own electricity and sell excess power.
2) Allowing the leasing of transmission lines in public areas, enabling electricity producers to send power directly to multiple consumers simultaneously and facilitating the Sleeved model of Solar-Corporate PPA in Thailand.
3) Promoting a centralized electricity trading market between producers and consumers, which will enable the Synthetic model of Solar-Corporate PPA in Thailand. If services in the Sleeved and Synthetic formats are added to the Private wire model, it will diversify services and broaden the customer base, supporting the growth of this business in the future.