Mitihoon – Gulf Energy Development Plc. (GULF) and Pandora, the world’s largest jewelry brand, announced a groundbreaking partnership to pilot a Virtual Power Purchase Agreement (VPPA) in Thailand. The Memorandum of Understanding (MoU) outlines a one-year project under the Energy Regulatory Commission of Thailand’s (ERC) Sandbox (Phase 2) program to study, develop, and implement the VPPA. This initiative marks a significant step towards achieving renewable energy targets and promoting sustainable business practices in Thailand, including progress toward RE100 goals. The successful completion of this project is expected to generate valuable data contributing to the development of regulatory frameworks.
This pilot project enables Pandora to support the investment of clean energy project (solar rooftop) by GULF1, a wholly owned subsidiary of GULF. Instead of direct purchase or physical transfer of electricity, Pandora will engage in financial settlements based on the difference between the agreed-upon VPPA price and the fluctuating ‘wholesale market price’, using a new pricing mechanism initiated in the sandbox project. This VPPA structure benefits both parties. GULF will be able to reduce market price volatility through fixed electricity pricing (“strike price”), ensure a more stable return on investment, and support the development of new renewable energy projects. Pandora, in turn, will contribute to clean energy development by compensating for the price difference, and is entitled to acquire RE Certificates (RECs) from the project to offset their carbon footprint. Therefore, the project will demonstrate the feasibility and benefits of VPPAs in Thailand, paving the way for future boarder adoption of this important renewable energy financing mechanism.
Ms. Yupapin Wangviwat, Deputy CEO and Chief Financial Officer, GULF, stated, “This pilot VPPA project underscores our shared commitment to driving the energy transition and creating a more sustainable future. At GULF, we recognize the importance of climate action and decarbonization. We have a target to increase the proportion of renewables in our portfolio from the current 10% to over 40% by 2035. We have also announced a target to achieve net zero emissions by 2050. While VPPAs are widely adopted in other countries, they are still a relatively new concept in Thailand, which makes our collaboration even more innovative and inspiring. Together, we are pioneering a sustainable solution for any companies that are looking to reduce their carbon emissions and achieve their renewable energy goals. The success of this project will pave the way for wider adoption of clean energy solutions in Thailand, empowering more businesses to contribute to a greener future.”
Mr. Jeerasage Puranasamriddhi, Chief Supply Officer & Managing Director, Pandora, said, “Sustainability is integral to Pandora’s growth strategy, and we are always looking for like-minded partners to join us on this journey. That is why we are excited to partner with GULF on this innovative project to drive the expansion of renewable energy in Thailand. We believe this collaboration will inspire other businesses to embrace renewable energy solutions, creating positive outcomes for both people and environment.”
This VPPA initiative is one of 36 projects participating in ERC Sandbox (Phase 2) under the office of the Energy Regulatory Commission of Thailand (ERC). This initiative fosters innovation and technological advancements within the energy sector by providing a controlled environment where businesses can test new energy-related technologies and business models without the constraints of existing regulations. Upon successful completion, this VPPA pilot project is expected to yield valuable data for Thailand’s regulatory frameworks development.
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