Overview of Thailand’s Draft TPA Code 2025
Thailand’s energy regulatory framework continues to develop in response to rising electricity demand, especially from data centers and large industrial users (see: https://fosrlaw.com/2025/data-centers-and-nuclear-energy/). The draft Third Party Access Code (TPA Code), prepared by EGAT, MEA, and PEA under the ERC’s 2022 TPA Framework Guideline, introduces the idea of electricity wheeling in Thailand, allowing third-party entities to transmit power through existing utility networks. As of October 2025, the draft is still under consultation with the Energy Regulatory Commission (ERC) under the Energy Business Act B.E. 2550 (2007), with stakeholder input expected to shape its final version.
Meanwhile, the ERC released the Draft Criteria for the Direct PPA Pilot Project for Data Centers in October 2025, after the NEPC’s June 25, 2024, resolution. The proposal outlines how data centers can directly procure renewable energy from producers through the TPA wheeling mechanism, aligning Thailand with global trends toward grid liberalization and decarbonization.
Operational and Legal Framework for Electricity Wheeling
The draft TPA Code allows licensed third-party producers or traders, excluding regulated utilities, to transmit electricity through networks operated by EGAT, MEA, or PEA. This creates a market for direct electricity delivery to end-users without traditional middlemen, based on principles of non-discrimination, transparency, and grid security under Section 81 of the Energy Business Act B.E. 2550 (2007).
Key Operational Mechanisms:
- Application and Allocation: Third parties must apply for network access, demonstrating compliance with technical standards under the Grid Code. Available Transfer Capacity (ATC) is allocated on a first-come, first-served basis, with use-it-or-lose-it clauses ensuring efficiency and ERC oversight.
- Standard Contracts: Define capacity, wheeling fees, and 15-minute scheduling intervals. A central control center balances grid supply and demand and enforces penalties for deviations.
- Fees and Compliance: Wheeling fees approved by the ERC include costs for transmission, distribution, and ancillary services like congestion management. Utilities may curtail or disconnect service due to non-compliance or grid instability.
This electricity wheeling arrangement under ERC supervision ensures transparent cost sharing and grid stability for both producers and end-users. These provisions combine international standards with Thai regulatory principles, aiming to create a competitive yet secure electricity market.
Integration of TPA with the Direct PPA Pilot Project for Data Centers
The Draft Direct PPA Pilot Project for Data Centers explicitly incorporates TPA, enabling Board of Investment (BOI)-promoted data centers with an IT base load of at least 50 MW to contract directly with renewable energy producers (see: https://fosrlaw.com/2023/telecommunications-licensing-and-data-centers-in-thailand/). This pilot, capped at 2,000 MW, requires participation from new or uncontracted renewable plants (minimum 1,000 kVA) that are compliant with Grid Code and TPA standards.
Practical Integration: Data centers must enter into TPA service agreements for electricity wheeling, while producers adhere to operational protocols. Utility backups ensure reliability through dual sourcing.
Legal Integration: Rooted in the NEPC resolution and Energy Business Act B.E. 2550 (2007), the pilot aligns with the 2022 TPA Framework Guideline. ERC hearings ensure fairness, while BOI regulations provide an investment framework for renewable integration.
The Direct PPA Pilot represents Thailand’s first structured application of the TPA wheeling mechanism for renewable energy, allowing BOI-promoted data centers to procure clean electricity via grid-based wheeling services. If approved, implementation could begin by late 2025, marking a milestone in Thailand’s energy liberalization.
International Comparisons: EU, U.S., Australia, India, and the Philippines
- European Union: Directive 2009/72/EC (Third Energy Package) mandates regulated TPA and network unbundling. Subsequent rulings and 2024 updates on renewables and hydrogen integration highlight ongoing liberalization through wheeling and open-grid access.
- United States: FERC Order No. 888 (1996) established open access, confirmed by New York v. FERC (2002). Later updates, including Order No. 890 and the 2024 transmission planning rule, further defined fair tariff mechanisms and wheeling cost recovery.
- Australia: The National Electricity Law (NEL) and National Electricity Rules promote open access within the National Electricity Market, with the AEMC’s 2024 reforms enhancing hybrid access and congestion management through advanced wheeling arrangements.
- India: The Electricity Act of 2003 supports open access and inter-state wheeling under regulatory oversight. The 2022 amendments increased flexibility while maintaining government directive powers under Section 11.
- Philippines: Republic Act No. 9136 (2001) mandates open access and competitive wheeling, with 2024 amendments expanding ERC jurisdiction and integrating third-party LNG supply.
Like Thailand’s draft TPA Code, these open access models rely on regulated wheeling frameworks to ensure competition, neutrality, and transparency in electricity markets.
Broader Context of Thailand’s Energy Liberalization
The TPA Code is part of Thailand’s broader effort to promote clean energy and diversify grid access. Complementary measures include the U.S.-Thailand 123 Agreement (effective July 2025) on nuclear technology transfer and EGAT’s 2025 MOU with Korea Hydro & Nuclear Power for small modular reactors (see: https://fosrlaw.com/2025/thailand-nuclear-energy-framework/). Under the Power Development Plan, Thailand aims for 51% clean energy by 2037, including up to 600 MW of nuclear generation by 2035.
Public hearings under the ERC framework will determine how these reforms integrate with the TPA regime and electricity wheeling systems, balancing private participation with energy security and national policy goals.
The final TPA Code remains subject to ERC approval following post-October 2025 public consultations, and revisions may occur before formal adoption.
Risks and Benefits of TPA Implementation
While the TPA framework encourages competition and renewable sourcing, it also presents challenges such as grid congestion in high-demand areas and balancing intermittent renewable inputs. However, if managed effectively, TPA could improve energy efficiency, support Thailand’s data center expansion amid the AI boom, and diversify electricity procurement for industrial users.
The information in this publication is for general guidance only and should not be relied upon as legal advice. For further inquiries, please contact [email protected]
© 2025 Formichella & Sritawat Attorneys at Law
About the Authors
John Formichella is a co-founding partner of Formichella & Sritawat Attorneys at Law and heads the firm’s Technology, Media, and Telecommunications (TMT) practice. With over 27 years of experience, including serving as General Counsel for a NASDAQ-listed telecommunications company, he provides advice on telecommunications and energy projects throughout Southeast Asia. Earlier in his career, Mr. Formichella worked as in-house counsel and contracts manager on the Taiwan Fourth Nuclear Power Project (Lungmen), where he supported EPC contracting, supplier frameworks, and regulatory interfaces for a large-scale nuclear power program. He has participated in major infrastructure projects and regulatory frameworks under the Energy Business Act and the Telecommunications Business Act, and he continues to advise investors entering Thailand’s regulated industries.
Naytiwut Jamallsawat is a Partner at Formichella & Sritawat Attorneys at Law, leading the firm’s Regulatory Practice. He advises both international and Thai clients on complex regulatory issues, including cybersecurity, data privacy, and energy law, and has experience with licensing, BOI promotions, and ERC consultations.