WIND ENERGY DEVELOPMENT IN THAILAND - … re wind energy development in thailand 330445-11.doc 2...

memo re wind energy development in thailand 330445-11.doc 1

June 2014

WIND ENERGY DEVELOPMENT IN THAILAND

UPDATE: On 28 October 2015, EGAT issued a Notification re suspension of application for the

sale of power to EGAT from all sources of energy.

1. Energy Regulatory Commission

The Energy Industry Act B.E. 2550 (A.D. 2007) was published and became effective in

December 2007. It established a new regulatory regime for electricity and natural gas

businesses. One of the purposes of the Act was to restructure the energy industry management

by separating policy making, regulation, and operating functions. It provided for the

establishment of the Energy Regulatory Commission, whose members have been appointed,

and the Office of Energy Regulatory Commission. Operators of energy businesses must obtain

several licenses from the Commission. The types of licenses required depend on nature of

operation and size of production capacity or distribution capacity. Royal decree, regulations,

and notifications to implement the Act have been published. The Commission is responsible

for the prevention of abusive use of monopoly power and protection of energy consumers and

those adversely affected by the energy industry operation.

2. Policies re Renewable Energy

On 26 December 2006, the National Energy Policy Committee (“NEPC”) approved EGAT

purchasing power from generators using renewable energy, and instructed EGAT to revise its

regulations for purchase of power from SPPs using renewable energy.

On 28 January 2009, the Cabinet approved a 15-year Renewable Energy Development Plan

(“REDP”), and on 9 March 2009, the NEPC approved additional tariff “adders” for certain

categories of alternative energy. The announced goal was for renewable energy to constitute

up to 20% of total energy consumption by 2022. On 30 November 2011, the NEPC approved

a 20-year energy conservation plan (2011-2030) under which energy consumption by the

industrial sector, large-scale business buildings, small business buildings, and residential

hours and transportation sector will be reduced. NEPC also approved a 10-year 25%

Alternative Energy Development Plan 2012-2021 (“AEDP”) to replace the 15-year REDP.

During the 14th ASEAN Summit in Thailand 28 February – 1 March 2009, the meeting

recognized the challenge of climate change, and agreed to cooperate on energy security,

ASEAN energy cooperation, and development of renewable and alternative energy.

The Department of Alternative Energy Development and Efficiency (“DEDE”) is responsible

for implementation of the alternative energy plan. See its website at www.dede.co.th.

On 23 August 2011, the Prime Minister presented the Policy Statement of the Council of

Ministers, which included:

“3.5.4 Support the production, use, research and development of renewable and

alternative energy sources, with the objective of replacing 25% of the energy

http://www.dede.co.th/


generated by fossil fuels within the next decade. Comprehensive

development of the energy industry will also be promoted.”

On 16 July 2013, the NEPC approved two policies to promote solar power: feed-in tariff rates

for solar PV rooftop and solar PV community ground-mounted systems.

3. EGAT Regulations

On 18 April 2007, EGAT announced Regulations for the Purchase of Power from Small

Power Producers exclusively for the generation from renewable energy. SPPs can obtain

information from the Power Purchase Agreement Division, EGAT. The Regulations (as

amended in 2009) can be found at www.ppa.egat.co.th/Sppx/b4.2.htm.

The Regulations cover the following subjects:

A. Objective of Power Purchase from Small Power Producers

B. Enforcement

C. Characteristics of the Power Generating Processes of SPPs

D. Electrical System Standards of SPPs

E. Procedures and Consideration Principles of Power Purchase from SPPs

F. Conditions of the Power Purchase from SPPs

G. Power Purchasing Point and Connection Point

H. Costs Incurred for SPPs

I. Conditions of the Power Generating Operation and the Maintenance Shutdown of

SPPs

J. Principles of the Tariff Determination for the Purchase of Power from SPPs

K. Failure to Comply with the Power Purchase Agreement (PPA)

L. Performance Security for Compliance to the Power Purchase Agreement after the

Commercial Operation Date

M. Bill Settlement Conditions

N. Damages to the Power System

O. Problems Arising from Compliance with the Regulations and Power Purchase

Agreements

P. Amendments to the Regulations

Q. Solution to the Problems Arising from Compliance with the Regulations for

Synchronization of Generators to the Power Utility System, the Power System

Interconnection Criteria and the SPP Grid Code

EGAT published standard forms of PPAs including Model Non-Firm Agreement (Renewable,

without Supporting Fuel (Khor. 1), with Adder) (See Attachment No. 1.)

4. PEA Regulations

In 2006, PEA announced Regulations for the Purchase of Power from Very Small Power

Producers for the Generation Using Renewable Energy (“Regulations”). On 20 May 2008,

PEA has issued the Notification re: Prescription of Increment of Power Purchase Price for

Renewable Energy Very Small Power Producers. The Cabinet at its meeting on 24 March

2009 approved and acknowledged the resolution of the NEPC at its meeting No. 2/2009 (No.

124) held on 9 March 2009 re: Proposal to Improve the Guideline for Promotion of Power

Generating from Renewable Energy by prescribing the period and purchased power capacity

eligible for increment of power purchase price, adjustment of rate of increment of power

purchase price for renewable energy power producers classified according to the type of

technology and fuel, and revision of Regulations For Purchase of Power.

http://www.ppa.egat.co.th/Sppx/b4.2.htm


PEA also published standard forms of PPAs including Power Purchase Agreement for the

Purchase of Power from a Very Small Power Producer (for the Generation using Renewable

Energy). See Attachment No. 2. Features of PEA’s PPAs signed after 19 August 2009.

5-year term, renewable without limit

Requirement for a bank guarantee of Baht 200,000 per MW

Delay LDs for delays exceeding 60 days in achieving SCOD: 0.33% of guaranteed

amount per day

5. Carbon Market Financing

There is a growing market for carbon market finance. Thailand established a Designated

National Authority (“DNA”) to manage CDM projects, currently the Thailand Greenhouse

Gas Management Organization (“TGO”). 221 letters of approval for CDM projects have been

issued; there are 148 registered Thai CDM projects, and 35 projects have been certified, as of

October 2013.

The TGO is drafting the rules for a carbon fund. It would provide low interest rate loans for

CDM, and purchase carbon credits from project developers for sale to the international carbon

trading markets.

6. Adder Policy

On 19 August 2009, PEA issued the Notification of the Provincial Electricity Authority re:

Prescription of Increment of Power Purchase Price for Renewable Energy Very Small Power

Producers (up to 10 MW) under the Resolution of the NEPC dated 9 March 2009. For wind

energy with total capacity less than or equal to 50 kW (<= 50 kW), an adder of Baht 4.50 per

unit was prescribed, for ten years from COD. For wind energy with total capacity of more

than 50 kW, an adder of Baht 3.50 per unit was prescribed, for ten years from COD. The

special adder for 3 southern most provinces (Yala, Pattani, and Narathiwat) of Baht 1.50 was

also prescribed.

On 15 January 2010, EGAT issued the Notification re Prescription of Increment of Power

Purchase Price for Renewable Energy Small Power Producers (10 MW ≥ 90 MW).. For wind

energy, an adder of Baht 3.50 per unit was prescribed, for ten years from COD. The special

adder for 3 southern most provinces (Yala, Pattani, and Narathiwat) of Baht 1.50 was also

prescribed.

On 5 April 2010, EGAT issued a notification suspending receipt of applications for sale of

power from wind project. On 29 October 2010, EGAT issued a notification which lifted the

suspension for wind projects.

On 9 April 2010, PEA issued a notification suspending receipt of applications for sale of

power for wind projects. On 22 September 2010, PEA issued a notification which lifted the

suspension for wind projects.

On 20 July 2010, the Thai Cabinet approved resolutions of NEPC adopted on 28 June 2010,

including NEPC’s guidelines for coordination and follow-up of promotion of renewable

power production in compliance with the policy, and establishment of a committee

comprising representatives from such related agencies of MoE and NESDB, and to approve a

Feed-in Tariff system.

On 30 March 2011, EGAT issued the Notification re Prescription of Increment of Power

Purchase Price for Renewable Energy Small Power Producers in order to amend the EGAT

Notification dated 15 January 2010 and to approve the special increment of power purchase


price (Adder) for renewable energy projects from Small Power Producers that located in the

areas of four Districts in Songkla Province, namely, Jana District, Thepa District, Nathawi

District and Saba Yoi District, that sell the electric to the system under the Regulations for the

Purchase of Power from SPP. For wind energy, an adder of Baht 3.50 per unit was prescribed,

for ten years from COD. The special adder for four Districts in Songkla Province of Baht 1.50

was also prescribed.

On 12 April 2011, PEA issued the Notification of the Provincial Electricity Authority re: Prescription

of Increment of Power Purchase Price for Renewable Energy Very Small Power Procedure Under the

Resolution of the NEPC Dated 25 November 2010 in order to amend the PEA Notification dated 19

August 2009 and to approve the special increment of power purchase price (Adder) for renewable

energy projects from Very Small Power Producers that located in the areas of four Districts in Songkla

Province, namely, Jana District, Thepa District, Nathawi District and Saba Yoi District, that sell the

electric to the system under the Regulations for the Purchase of Power from VSPP. For wind energy

with total capacity less than or equal to 50 kW (<= 50 kW), an adder of Baht 4.50 per unit was

prescribed, for ten years from COD. For wind energy with total capacity of more than 50 kW, an

adder of Baht 3.50 per unit was prescribed, for ten years from COD. The special adder for four

Districts in Songkla Province of Baht 1.50 was also prescribed.

7. Status of progress on wind energy promotion

The following status report on renewable energy promotion measures was published on the

DEDE website.

“At present, the private sector interested to invest in wind energy as a wind farm for

a large number, i.e. more than 1,400 MW. However, still being hindered by asking

the permission on utilizing the area from government agencies in concern since the

areas with high wind potential will be at mountains or in national parks, etc.

“The Energy Ministry is co-working with other concerning organizations to solve

such the above problem (in a request to utilize such those areas) and eventually

getting the solution in accompany by ALRO (the “Agriculture Land Reform

Office”) which give a permission to capably develop the wind farm in the ALRO

areas at a renting rate of 35,000 baht per year. The ALRO also issued the regulation

for supporting for ex: the land renting period for wind power generation by the

project duration time as specified by the permission requester, but not exceeding of

27 years. Furthermore, the other areas to be requested for utilization are of: the Estate

of Self-Community Construction, the Gov-property Estate (so-called as “Tee Raja

PassaDu” a land belongs to government under the Treasury Department), and

Forest Area for investing in development as the wind farm.

“DEDE finished establishing the new wind map identifying the wind speed in

Thailand at height of 40 meters above the ground (See more information at

http://www2.dede.go.th/km_it/windmap40m/windmap40m.html) and at height of 90

meters above the ground (See more information at

http://www2.dede.go.th/km_it/windmap53/windmap90m.html). This would capably

support the private sector for investment consideration to develop their wind power

generation projects.

“As for the southern area, we found the wind energy potentials, at optimized level for

investment, are in provinces of Surat Thani, Nakhon Si Thammarat, Songkhla, Yala

and Pattani.”

http://www2.dede.go.th/km_it/windmap40m/windmap40m.html

http://www2.dede.go.th/km_it/windmap53/windmap90m.html


As of May 2014, there are two 103.5 MW wind power plants which have achieved COD

under PPAs with EGAT, First Korat Wind and K.R. Two. Seven additional projects under SPP

program have signed PPAs with EGAT.

Five VSPP wind farms developed by governmental and private companies have achieved

COD with total capacity of 8.782 MW.

Securing rights to land for wind farms continues to be a major challenge.

8. Prohibition of amendments to PPAs

The Committee on Management of Measures for Promotion of Renewable Power Production,

appointed under the National Energy Policy Board, No. 1/2554 on January 26, 2011, (No. 6),

instructed the three power authorities to issue a notification prohibiting a change in or

amendment to PPAs with renewable energy projects applying for (i) a change in the quantity

of the power energy offered for sale, (ii) relocation of the power plant, or (iii) a change in the

production technology. EGAT issued such notification dated 14 March 2011.

9. Large Wind Farms under construction

Two 103.5 MW wind farms were constructed by First Korat Wind and K.R. Two in Nakorn

Ratchsima Province. Other large wind farm projects are in the development phase.

Attachment:

(1) EGAT Model Non-Firm PPA (Renewable, without Supporting Fuel (Khor. 1), with Adder)

(2) PEA standard form of VSPP PPA (renewable energy).

(3) “Update on Wind Energy Developments in Thailand”, Dr. Twarath Sutabutr, Deputy DG of

DEDE on 4-5 June 2012.


Attachment 1

(Translation)

MODEL NON-FIRM AGREEMENT

(Renewable, without Supporting Fuel (Khor.1), with Adder)

Electricity Sales Agreement No. ………………………

Between

………………… Co., Ltd. and the Electricity Generating Authority of Thailand

________________

This Electricity Sales Agreement is made at the Electricity Generating Authority of Thailand

on ……………………, between ………………………. Co., Ltd., represented

by …………………………….., title ……………………., with office located at

no. ……. ………………………….…………………………………………………………..,

hereinafter referred to as the “Company”, of the one part, and the Electricity Generating Authority of

Thailand, represented by ………………………., title: Governor of the Electricity Generating

Authority of Thailand, with office located at no. 53 Moo 2, Charansanitwong Road, Tambol Bang

Kruai, Bang Kruai District, Nonthaburi Province 11130, hereinafter referred to as “EGAT”, of the

other part. Both parties agree to purchase and sell electricity under the following conditions:

1. Application and Termination of Agreement

1.1 This Agreement shall become effective on the date of its signing by both parties and its term

shall commence from the month in which the Company sells electricity to EGAT and last for

a period of 5 years. Before the term of the Agreement expires, if any party wishes to renew

the term, that party shall notify the other party in writing at least 30 days before the expiration

of the Agreement, and this Agreement shall be renewed for 5 years each time.

1.2 If any party fails to comply with any provision of the Agreement, the other party shall give a

written notice to that party to remedy, failing which the other party shall be entitled to

terminate this Agreement.

1.3 The following attachments hereto shall be deemed part hereof:

1.3.1 No. 1 Electricity Tariff

1.3.2 No. 2 Regulations on Connection to Power Network System of EGAT (in

case of connection of power network system to EGAT, add “and

Regulations on Use of Services of EGAT’s Power Network System”).

1.3.3 No. 3 Regulations on Connection of Power Network Systems, Regulations

on Use of Power Network System Services and Regulations on

Operation of Power Network System of the Metropolitan Electricity

Authority or the Provincial Electricity Authority (in case of

connection to Power Network System of the Metropolitan Electricity

Authority or the Provincial Electricity Authority).

1.3.4 No. 4 Power Generation Process Data Form.

1.3.5 No. 5 Notification of EGAT re: Prescription of Adder for the Purchase of

Electricity from Small Producers of Power from Renewable Energy.


Where a provision of an attachment is contrary to or inconsistent with a provision of this

Agreement, the latter shall prevail. In case of contradiction between the provisions of the

attachments themselves, the Company shall present the matter to the Energy Regulatory

Commission (ERC) for decision.

2. Action Required prior to Purchase and Sale of Electricity

2.1 The Company shall prepare the environmental impact analysis report (as required by law) and

shall produce the approval and the analysis report to EGAT at least 5 business days before the

date of signing of the Electricity Sales Agreement.

The Company shall produce to EGAT the certificate of permission for construction of the

plant to install power generators, the license for generation of electricity from the ERC, the

environmental licenses and other licenses required by law at least 10 business days before the

Commercial Operation Date.

2.2 The Company shall submit in writing to EGAT the steps of test runs for the generators and the

expected date of commencement of synchronization of generators to the systems of the Power

Utility for EGAT’s consideration and approval at least 60 days before the commencement date

of the synchronization of the generators.

2.3 The Company and the Power Utility shall jointly determine procedure for electricity

distribution, daily communication procedure, electricity turning off, daily energy volume

report, instruction procedure, keeping records of electrical data of each generating unit,

distribution of reactive energy, and names of coordinating officers of both parties.

2.4 The Company shall notify the date on which the Company intends to commence the sale of

electricity to EGAT in writing at least 30 days in advance, and EGAT reserves the right to

determine the Commercial Operation Date as may be technically justified.

2.5 If the Company is unable to commence the sale of electricity within 12 months from the

scheduled commercial operation date (SCOD) under Clause 4.1, it shall be deemed that this

Agreement is terminated.

2.6 The Company shall enter into a backup power purchase agreement to purchase backup power

from the Power Utility before the Commercial Operation Date by not less than one-third of

the installed capacity less the volume of capacity sold into the system of the Power Utility,

and the Company shall produce such backup power purchase agreement to EGAT at least 10

business days before the Commercial Operation Date under Clause 2.4.

3. Power Systems Connection

3.1 The Company shall be responsible for the design work, construction, installation,

maintenance and possession of the power plant and supporting equipment beyond the power

system connection point on the Company’s side.

3.2 The Company shall install telemetering equipment on the Company’s premises, maintain the

equipment and bear the expenses related to the equipment so that it is usable at all times, in

accordance with the standard set forth in Attachment No. 2 hereto.

3.3 The Power Utility shall be responsible for the design of the electrical equipment and

protective equipment for the connection of power systems.


3.4 The Company shall allow the Power Utility to enter its premises to install, operate, maintain,

replace and/or remove power system connecting equipment, after informing the owner or

possessor of the premises.

3.5 The Power Utility reserves the right to subsequently add protective equipment so as to be in

line with technical standard of the Power Utility.

3.6 The Company shall bear the expenses for the power systems connection, i.e. the cost of the

transmission system and the power distribution system from the power system connecting

point to the Company’s power plant, cost of electricity meter, cost of electricity preventive

system and all increased operating costs incurred out of the purchase of electricity from the

Company, and the Company shall make full payment before the commencement of the sale of

electricity.

3.7 Each party shall notify the other party in advance in case of any change in its power system

that will affect the protective equipment in the power systems of both parties.

4. Purchase and Sale of Energy

4.1 The scheduled commercial operation date (SCOD) is …………………..………

4.2 The Company agrees to sell, and EGAT agrees to purchase, electricity in the capacity volume

of ……. megawatts at the voltage of ……….. kilovolts, with the point of purchase of

electricity being at the point of installation of electricity meter located

at …………………………………….

4.3 The Company agrees to sell, and EGAT agrees to purchase, the electricity according to the

electricity tariff provided in Attachment No. 1 hereto.

5. Generation in accordance with Technical Standard of the Power Utility

The Company shall generate electricity with quality, and shall comply with the safety standard and

connection standard in accordance with the Regulations on Connection to the Power System of EGAT

pursuant to Attachment No. 2 hereto [and Regulations for Synchronization of Generators to the

Distribution System, Regulations on Use of Power Network System Services and Regulations on

Operation of Power Network System of the Metropolitan Electricity Authority or the Provincial

Electricity Authority (in case of connection to Power Network System of the Metropolitan Electricity

Authority or the Provincial Electricity Authority pursuant to Attachment No. 3 hereto.]

6. Power Plant Control and Operations

6.1 The Company shall notify EGAT of its annual power generation plan for the subsequent year,

within the 1st day of October of every year.

6.2 The Company shall notify EGAT of its monthly power generation plan for the subsequent

month within the 15th day of the month.

6.3 If the Company changes the power generation plan from the one under Clause 6.2, the

Company shall notify EGAT of the same at least 7 days in advance.

6.4 The Company shall strictly comply with the switching order of EGAT’s power system control

center, and may not do anything with respect to the connecting equipment without prior

written notice to EGAT except in the event of likely danger to life or property of either party.


6.5 The parties shall keep records of electrical data and data concerning charging of electricity

tariff and all other data required by the other party for at least 5 years.

6.6 Either party has the right to inspect the other party’s records and data related to this

Agreement any time during the period such data are being kept, by giving a 14-day advance

written notice to the other party.

6.7 For the stability of power systems, the parties shall inspect their electrical equipment

according to schedule and may request the other party to rectify and improve the other party’s

power distribution equipment that relates to the Power Utility’s power system as may be

necessary.

6.8 The Company shall pay the cost of inspection of its power distribution equipment that relates

to the power system of the Power Utility under Clause 6.7 (whether it is an inspection under

the regulations of the Power Utility or inspection at the request of the Company), and

additional expenses incurred out of appropriate performance by the Power Utility, to the

Power Utility within 30 days from the date of receipt of an invoice from the Power Utility.

6.9 The Company uses ………………. as its fuel. The Company shall notify EGAT every month

of the volume of fuel used and the volume of electricity energy and thermal energy (if any)

produced, in the form prescribed by EGAT according to Attachment No. 4 hereto.

The Company shall also bear relevant expenses incurred for equipment and meters related to

the production process as well as expenses for inspection of such equipment and meters.

6.10 EGAT shall be entitled to inspect the power plant at all times as may be appropriate, by giving

a written notice to the Company at least 3 days in advance, and the Company shall provide

assistance to EGAT’s representative in the inspection of the power plant.

7. Electricity Meter

7.1 The Company is the owner of both main set and secondary set of the electricity meters

including supporting equipment used in measuring the volume of electricity energy sold,

which can measure the volume of electricity energy at each period of a day. Both the main set

and the secondary set of electricity meters may have an inaccuracy in accordance with

international standard by no more than plus or minus zero point two percent (0.2%), and the

supporting equipment used to measure the electricity shall have an inaccuracy in accordance

with international standard by no more than plus or minus zero point two percent (0.2%) or

plus or minus zero point three percent (0.3%) pursuant to Attachment No. 2 hereto. Said

electricity meters shall be tested and compared to the standard electricity meter approximately

once a year. The supporting equipment used to measure electricity energy volume shall be

tested at an agreed interval which may be no more than 3 years. The expenses incurred in

connection with the test shall be borne by the Company.

7.2 All electricity meter and measuring equipment used to measure electricity energy volume sold

to EGAT must be sealed. Breaking the seals for inspection or test or adjustment must be done

jointly by officers of both parties. A party wishing a test or adjustment shall notify the other

party in writing at least 14 days in advance. The expenses incurred in connection with the

inspection, test or adjustment shall be borne by the party wishing the test or adjustment.

7.3 If the result of the test specified in Clause 7.1 shows inaccuracy no more than plus or minus

zero point five percent (0.5%) difference from the standard electricity meter, no adjustment

will be made to the payment of the electricity charge made to the Company. However, if such

test shows inaccuracy exceeding plus or minus zero point five percent (0.5%), the Company

and EGAT shall jointly calculate the accurate volume sold by the Company to EGAT during


the period the electricity meter shows inaccuracy. If the period of inaccuracy of the electricity

meter is not known, half of the period of time between such test and the previous test shall be

used, provided that it does not exceed 6 months. This corrected electricity energy volume

shall be used to calculate the electricity charge payable by EGAT to the Company. The

difference between the electricity charge previously calculated and the re-calculated

electricity charge shall be paid by EGAT to the Company or be refunded by the Company to

EGAT, as the case may be, by adding to or deducting from the electricity charge invoice for

the subsequent month.

7.4 Whenever it is found that the electricity energy volume measured is inaccurate due to any

cause other than the test under Clause 7.1 by more than plus or minus zero point five percent

(0.5%), the calculation of the electricity energy volume sold during the inaccuracy period

and the payment of the electricity charge to each other shall be made in the same manner as

those under Clause 7.3.

7.5 Reading of electricity meter to calculate the electricity charge for billing shall be made from

the main set of electricity meter ending at 24.00 hours of the last day of each month, and the

representative of each party shall sign to certify the accuracy thereof. The secondary set of

electricity meter will be used only in case of defect or breakdown of the main set of electricity

meter.

If the reading method and/or electricity meter reading certification method between the Power

Utilities have changed, the reading method and/or electricity meter reading certification

method under this Agreement shall be changed accordingly.

8. Linkage of Communication Systems

8.1 The Company shall arrange for linkage of communication systems between its power plant

and EGAT at the communication system linkage point, with number of operating circuits

sufficient for use in accordance with the requirements, so that the coordination, control and

instructions for power generation and measurement of electricity energy volume can be done

accurately and speedily in order to maintain the stability of the overall power systems.

8.2 The Company shall provide communication equipment in accordance with Attachment No. 2

hereto, which equipment shall meet international standards as used by EGAT, and permission

must have been obtained as required by law from relevant authorities, for communicating

with EGAT’s power system control center.

8.3 The Company shall be responsible for the design work, installation, test and operation as well

as maintenance of the communication system equipment on the Company’s side and at the

communication system linkage point. In this connection, EGAT shall designate the linkage

point that is technically justified. To the Company’s communication equipment linked to

EGAT’s communication system, the Company may not do anything unless consent from

EGAT has been obtained.

8.4 The Company shall bear the costs of connecting the communication systems from the

communication system linkage point to the Company’s power plant, i.e. costs for design,

equipment, installation, test, maintenance and monthly expenses incurred and related to the

communications throughout the period of sale and purchase of electricity.

8.5 If any party needs to inspect its own communication equipment located in EGAT’s premises,

both parties shall provide cooperation to each other. If it is found by the inspection that the

communication equipment suffers damage as a result of the act of any party, that party must

be responsible for the cost of repair of such equipment, and the party causing such damage


shall pay the cost of the equipment repair within 30 days from the date of receipt of a written

notice thereof.

8.6 Each party shall notify the other party at least 7 days in advance before any change to its

communication system that will affect the communication system connecting the Company

and EGAT.

9. Damage to the Power Systems

The Company and the Power Utility must install equipment to prevent damage to the power systems

in accordance with the regulations on connection to power system network of EGAT) pursuant to

Attachment No. 2 hereto [and the regulations on synchronization of generators, the regulations on the

use of distribution system serviced and the regulations on the operation of the power system network

of MEA or PEA (in the case of connection to the power system network of MEA or PEA) pursuant to

Attachment No. 3 hereto].

In case of damage arising from a defect of the power system equipment or other event caused by any

party, that party shall be responsible for the damage to the power equipment of the other party,

provided that it must be direct damage arising from such defect, excluding consequential damage.

10. Billing and Payment

10.1 EGAT shall pay the electricity energy charge and the adder to a small producer of power from

renewable energy each month as follows:

10.1.1 The electricity energy charge during the peak period: The electricity energy

volume during the peak period that does not exceed the capacity volume under

Clause 4.2, multiplied by the number of hours during the peak period of that

month at the rate of the Electricity Tariff during the peak period in accordance

with Attachment No. 1 hereto.

10.1.2 The electricity energy charge during the off-peak period: The electricity energy

volume during the off peak period that does not exceed the capacity volume

under Clause 4.2, multiplied by the number of hours during the off peak period of

that month at the rate of the Electricity Tariff during the off-peak period in

accordance with Attachment No.1 hereto.

10.1.3 The Company shall receive the adder in accordance with the electricity energy

volume chargeable under Clauses 10.1.1 and 10.1.2. The rate of the adder and the

period for receipt of the adder shall be in accordance with Attachment No. 5

hereto. Such rate of the adder does not include value added tax.

10.2 The Company shall submit an invoice for the electricity charge to EGAT once a month, and

EGAT shall make payment to the Company within 30 days from the date of receipt by EGAT

of the invoice for the electricity charge from the Company.

10.3 EGAT shall submit an invoice to the Company (if any), and the Company shall make payment

to EGAT within 30 days from the date of receipt by the Company of the invoice.

10.4 If any party disputes against the other party concerning an invoice under Clauses 10.2 and

10.3 and if payment can be made only in part, the party to whom the invoice is sent shall pay

the undisputed amount within the schedule. If it is found later that the cause of the dispute did

not arise from the fault of the party who issued the invoice, the party to whom the invoice is

sent may not raise the dispute to release itself from being in default of payment.


10.5 If any party is in default of payment within the period specified in Clause 10.2, 10.3 or 10.4,

as the case may be, the defaulting party agrees that the other party may charge interest on the

unpaid amount on a daily basis equal to the minimum overdraft rate announced by Krung

Thai Bank Public Company Limited on the date immediately following the due date plus 2

(MOR+2%), from the date of default until the payment has been made in full, provided that in

no event shall the interest rate exceed fifteen percent (15%) per annum.

11. Security for Electricity Sale Proposal

11.1 The Company has submitted security for electricity sale proposal in the form of …………….,

issued by …………., no. ………, dated ……………., in the amount of ……………. Baht

(……………. Baht).

11.2 EGAT shall return the security for electricity sale proposal to the Company within 15 working

days in the following cases:

11.2.1 When the Company has reached the Commercial Operation Date:

(1) To return the full amount in case it can transmit the electricity into the power

system within 60 days after the Scheduled Commercial Operation Date under

Clause 4.1;

(2) To return the balance of the amount after EGAT has deducted the fine for

delay in transmitting the electricity into the power system by more than 60

days after the Scheduled Commercial Operation Date under Clause 4.1 at the

rate of zero point three three percent (0.33%) per day of the amount of the

security for electricity sale proposal.

11.2.2 The Company has no permission under the other relevant law and has complied with

rules and conditions for such permission properly and completely and the absence of

such permission does not arise from the Company’s fault.

11.2.3 When EGAT has deducted the fine and other expenses incurred as a result of the

failure to transmit the electricity into the power system by the Company in full.

11.3 If the Company fails to reach the Scheduled Commercial Operation Date specified in Clause

4.1 for a cause not attributable to EGAT or the force majeure under Clause 13, EGAT shall be

entitled to fine for the delay at the rate of zero point three three percent (0.33%) per day of the

amount of the security for electricity sale proposal after the lapse of 60 days subsequent to the

Scheduled Commercial Operation Date under Clause 4.1.

12. Assignment of Rights and/or Obligations

12.1 EGAT may not assign the rights and obligations hereunder to other person without written

consent from the Company, except for an assignment of EGAT’s rights and obligations

hereunder to its affiliate in which EGAT holds at least one half of its shares, and the assignee

must possess the same capabilities required for performance of the obligations under the

Agreement as EGAT.

12.2 The Company may not assign the rights and obligations hereunder to other person without

written consent from EGAT. If the Company is to assign its rights and obligations to its

financiers or a person designated by the financiers as security for credit facilities, EGAT shall

give consent thereto under the following conditions:


12.2.1 The person designated by the financiers to perform the obligations under the

Agreement on behalf of the Company must possess the qualifications, status and

capacity in respect of law, finance and technology that are appropriate to fully

perform in accordance with the provisions hereof.

12.2.2 The financiers or the person designated by the financiers must be jointly liable for

any indebtedness of the Company to EGAT from the date of signing by the

Company of this Agreement.

12.2.3 The financiers or the person designated by the financiers must agree to be bound

by and be liable under the Agreement in the same manner as the Company.

12.2.4 Such assignment of rights and obligations will not release the Company from its

obligations and liabilities which have arisen prior to such assignment.

13. Force majeure

13.1 “Force majeure” means any event the happening or pernicious results of which could not be

prevented or controlled, and which was not caused by the fault or negligence of a person

against whom it happened or threatened to happen even though such person were to take such

appropriate care as might be expected from him in his position and situation.

Subject to the above definition, force majeure shall include:

13.1.1 Act of the government, such as change in energy policy or law, which causes the

party to be unable to perform any provision of the Agreement.

13.1.2 Blockage or act of enemy in the nature of war, whether declared or not.

13.1.3 Uprising, insurrection, civil commotion, espionage, sabotage, strike, lock-out

under labour law, any derogation of right, accident, earthquake, storm, fire, flood,

epidemic, severe and unusual weather conditions, explosion.

13.1.4 The refusal to renew any government license related to the possession,

construction, financing, operation or maintenance of power plant equipment,

which is not caused by the act or omission of the Company.

13.1.5 Seizure or taking possession from the Company of the power plant, any property,

right, shares or interest by a government agency, or act or omission by a

government agency which will severely affect the Company’s power plant or the

performance hereunder or any contract related to the Company’s power plant and

to which the Company is a party.

13.2 “Force majeure from government agency” means the force majeure provided in Clauses

13.1.1, 13.1.2, 13.1.4 and 13.1.5 caused by a government agency.

13.3 If any party cannot perform under this Agreement due to the force majeure under Clause 13.1,

such party who has complied with Clause 13.4 may not be deemed as being in breach of the

Agreement, and the other party shall not claim any damages. The period for performance

shall also be extended to the extent of the period of the force majeure and the period required

to remedy the force majeure, unless the party entitled to the extension of time does not require

such extension.


13.4 The party claiming force majeure must notify the other of the force majeure as soon as

practicable together with details of the force majeure and the period required to remedy the

damage due to such force majeure.

13.5 For avoidance of doubt, if a machine or the power system breaks down or if a machine, power

transmission line, power plant or equipment and tools owned or used by any party cannot be

used in the course of normal operation (whether by such party or by other person), such case

shall not be deemed as a force majeure.

14. Settlement of Dispute

14.1 Where the Company meets with a trouble arising out of the performance under the Agreement

or where the Company intends to file a request or appeal relating to the performance under the

Agreement, it shall submit the same to the ERC for decisions.

14.2 The decisions of the ERC shall be absolute and final and shall be binding on the parties. If the

ERC cannot find the solution, Thai court shall decide the case.

15. Consequential Damages

Any party may not claim consequential damages or damages that are not direct damages incurred by a

party caused by a breach of the Agreement.

16. Ownership and Risks

Ownership and risks in the electricity from the power system connecting point to the Company’s

power plant shall belong to the Company.

17. Governing Law

This Agreement shall be governed by Thai laws.

This Agreement is made in duplicate with identical contents. Both parties, having thoroughly read and

understood the contents hereof, have therefore signed and affixed seals (if any) hereon in the presence

of witnesses. Each party retains one copy of the Agreement as evidence.

………………………… Co., Ltd. The Electricity Generating Authority of Thailand

Signed …………………… Seller Signed ………………………….Purchaser

(………………………………..) (……………………………………..)

Title………………………….. Governor of the Electricity Generating

Authority of Thailand

Signed …………………… Witness Signed ……………………….. Witness

(……………………………….) (…………………………………..)

Title………………………….. Title……………………………..


Attachment No. 1

to EGAT model

Electricity Tariff

Between …………………………….. Co., Ltd. and the Electricity Generating Authority of

Thailand

For Power Generating from Renewable Energy

Under the Regulations on Purchase of Electricity from Small Power Producer,

Non-Firm Contract Category, B.E. 2550 (2007), Clauses Khor.1, Khor.2 and Khor.3

________________

Electricity Tariff at the electricity purchase point located at the electricity meter installation point,

at ……………………………………………………………………..

A. Energy Payment (EP)

The energy payment shall be equal to the wholesale price of electricity at the voltage of 11-33

kilovolts, which the Electricity Generating Authority of Thailand sells to the Distribution Utility, plus

the electricity charge according to the formula of automatic adjustment of electricity tariff at average

wholesale price (average wholesale Ft).

B. Value Added Tax

The above electricity tariff does not include value added tax.

_______________


Attachment No. 2

(Not Attached) Regulations on Connection to Power Network System of EGAT (in case of connection of power

network system to EGAT, add “and Regulations on Use of Services of EGAT’s Power Network

System”).

Attachment No. 3

(Not Attached) Regulations on Connection of Power Network Systems, Regulations on Use of Power Network

System Services and Regulations on Operation of Power Network System of the Metropolitan

Electricity Authority or the Provincial Electricity Authority (in case of connection to Power Network

System of the Metropolitan Electricity Authority or the Provincial Electricity Authority).

Attachment No. 4

(Not Attached) Power Generation Process Data Form.

________________


Attachment No. 5

to EGAT model

Electricity Generating Authority of Thailand

Notification

Re: Prescription of Increment of Power Purchase Price for Renewable Energy Small Power

Producers

Whereas the Electricity Generating Authority of Thailand (EGAT) has issued the Notification re:

Prescription of Increment of Power Purchase Price for Renewable Energy Small Power Producers

dated August 4, 2009 in compliance with the resolution of the Council of Ministers held on March 24,

2009 regarding proposal for improvement of guideline for promotion of generation of power from

renewable energy.

The Energy Regulation Commission passed a resolution on December 25, 2009 that EGAT should

issue additional regulation to the notification re increment of power purchase price for renewable

energy small power producers regarding prescription of condition for the return of guarantee for

power sale offer so as to be appropriate for the present circumstance.

Therefore, EGAT hereby issues a notification that the Notification re: Prescription of Increment of

Power Purchase Price for Renewable Energy Small Power Producers dated August 4, 2009 be

cancelled and replaced by this Notification.

1. This Notification shall apply to renewable energy small power producers (SPP) and

those submitting an offer and wishing to receive an increment of power purchase price

as follows:

1.1 A person submitting an offer who has filed an application for sale of power in accordance

with the Regulations on Purchase of Power from Only Small Power Producers Who Produce

Power from Renewable Energy B.E. 2550 (2007) and Regulations on Purchase of Power from

Small Power Producers of Non-Firm Contract Type B.E. 2550 (2007) after August 4, 2009.

1.2 A person submitting an offer who has filed an application for increment of power purchase

price for small power producers before August 4, 2009 and has not received a power purchase

reply or has not made a power purchase contract with EGAT shall proceed in accordance with

Clauses 5 and 6 from the date of being informed.

2. Rate of increment of power purchase price for renewable energy small power producers

The rate of increment of power purchase price (increment) for a renewable energy small power

producer classified according to the type of technology and fuel


Fuel Increment

(Baht/kilowatt-

hour)

Special

Increment for 3

Southernmost

Provinces1/

(Baht/kilowatt-

hour)

Total Special

Increment for 3

Southernmost

Provinces

(Baht/kilowatt-

hour)

Support

Period

from the

COD

(Years)

1. Biomass 0.30 1.00 1.30 7

2. Biogas 0.30 1.00 1.30 7

3. Garbage2/

(1) Fermentation or

garbage pit

2.50 1.00 3.50 7

(2) Thermal process 3.50 1.00 4.50 7

4. Wind energy 3.50 1.50 5.00 10

5. Solar energy 8.00 1.50 9.50 10

Note:

1/ Means southernmost provinces, namely Yala, Pattani and Narathiwat provinces.

2/ Means community garbage and industrial garbage that is not dangerous and not organic garbage.

3. Support period

3.1 The support will be granted for a period of 10 years from the Commercial Operation Date

(COD) for small power producers who produce power from wind energy and solar energy.

3.2 Support will be granted for a period of 7 years from the COD for small power producers who

produce power from biomass, biogas and garbage.

4. Persons not eligible to receive increment of power purchase price

Small power producers who have made a power purchase contract with EGAT.

5. The person submitting the offer must submit the following documents and evidences in

support of consideration:

5.1 Details of information supporting the application and offer to sell power in accordance with

the Regulations of Purchase of Power from Small Power Producers with respect to Generation

of Power from Renewable Energy B.E. 2550 (2007) and Regulations of Purchase of Power

from Small Power Producers of Non-Firm Contract Type B.E. 2550 (2007).

5.2 Guarantee for the offer (applicable to only those submitting an offer for sale of power who are

a renewable energy small power producer, of non-firm contract type) in the amount equal to

200 baht (two hundred baht) per kilowatt according to the power capacity offered for sale,

using any of the following guarantees:

5.2.1 Cash;

5.2.2 Cash cheque drawn by a domestic bank (cashier’s cheque) and payable to “Electricity

Generating Authority of Thailand”, dated the date of submission of the offer or not


more than 5 public working days before that date, and if collection from the cheque

incurs any fee, the offeror must bear such fee;

5.2.3 Letter of guarantee of a domestic bank;

5.2.4 Letter of guarantee of a finance company licensed to operate finance business for

commercial purposes and to operate guarantee business under the notification of the

Bank of Thailand, and whose name has been circulated to government agencies.

6. Placement of guarantee for submission of the offer to sell power

6.1 The person submitting the offer who has submitted an application for increment of power

purchase price before August 4, 2009 must place a guarantee for submission of the offer

within 60 days from the date of receipt of the notification. If the said period has passed the

person will be regarded as having waived its right to submit an offer.

6.2 The person submitting the offer after August 4, 2009 must place a guarantee for the offer on

the date of submission of the offer.

7. Consideration criteria

7.1 EGAT will consider an offer to receive power purchase price increment of an offeror who has

proper qualifications and has submitted accurate and complete documents and evidences

pursuant to the details supporting the application and an offer to receive power purchase price

increment, based on the order of submission of offer and readiness of proceeding with the

action plan proposed, documents and evidences submitted in support of consideration and

consistency of the date of supply of power into the system and the goal of the 15-year

alternative energy development plan and impact on the power price rate according to the

automatic power price rate adjustment formula (Ft) as follows:

7.1.1 EGAT will consider an offer of a person submitting the offer who has submitted an

offer to receive power purchase price increment before August 4, 2009 and who has

already placed a guarantee first.

7.1.2 EGAT will consider an offer of a person submitting an offer after August 4, 2009 as

the next order.

7.2 EGAT may request additional documents to be used as the basis for consideration of the

readiness of the person submitting the offer.

8. Conditions of return and seizure of guarantee

8.1 EGAT will return the guarantee to the person submitting the offer, within 15 business days in

the following cases:

8.1.1 After the person submitting the offer is informed in writing by EGAT that its offer is

rejected;

8.1.2 After the small power producer has commenced sale of power (COD):

1) The full amount will be returned if power can be supplied into the system

within 60 days after the date of commencement of sale of power (SCOD);


2) The remaining guarantee will be returned after EGAT has deducted penalty

for delay of supply of power into the system beyond 60 days at the rate of

zero point three three percent (0.33%) per day of the guarantee amount;

8.1.3 The person submitting the offer fails to have obtained any permit under other relevant

laws after it has duly and fully complied with all of the rules and conditions

applicable to such permit, and the withholding of the permit is not due to the fault of

such person.

8.1.4 After EGAT has deducted the full amount of penalty and other expenses incurred

from the failure to perform the conditions of supply of power into the system by the

small power producer.

8.2 If the person submitting the offer withdraws its intention to sell power or if a small power

producer who has been selected but is unable to sign the power purchase contract agreed

during negotiations due to the fault of the small power producer, EGAT will seize the

guarantee for such offer.

8.3 If the person submitting the offer is unable to commence sale of power on the date of

commencement of sale of power (SCOD) provided in the power purchase contract without the

fault of the power utility or force majeure, EGAT shall be entitled to impose a penalty for

such delay at the rate of zero point three three percent (0.33%) per day of the guarantee

amount after completion of 60 days from the SCOD.

9. Cancellation of increment

If power sale and purchase is not commenced within 12 months after the SCOD, the power purchase

contract shall be deemed terminated.

Notified on this 15th day of January 2010.

-Signature-

(Mr. Sutat Patamasiriwat)

Governor of the Electricity Generating Authority of Thailand


Attachment 2

PEA standard form of VSPP PPA (renewable energy)

Power Purchase Agreement No.______________

for the Purchase of Power from a Very Small Power Producer

(for the Generation Using Renewable Energy)

between

______________ and the Provincial Electricity Authority

This Power Purchase Agreement is executed and delivered at the Distribution Utility on

between , represented by , with the office located at , hereinafter

called “the Power Producer,” of the one part, and the Provincial Electricity Authority, represented by

__________, title: , office: ____________, hereinafter called “the Utility,” of the other part.

WHEREAS both parties agree to purchase and sell electricity under the following terms and

conditions:

1. Purchase and Sale of Electricity

1.1 The Power Producer and the Utility shall abide by the terms and conditions pertaining to the

purchase of power and system interconnection as stipulated in the Regulations for the

Purchase for Power from Very Small Power Producers (for the Generation Using Renewable

Energy) and the Regulations for Synchronization of Generators with Net Output under 10

MW to the Distribution Utility System, B.E. 2549 (2006), as detailed in Appendices 1 and 2

attached to this Agreement respectively.

1.2 Appendices 1 and 2 annexed hereto shall form an integral part of this Agreement. In case of

inconsistency between the provisions in this Agreement and those in Appendices 1 and 2, the

former shall prevail.

1.3 The Utility agrees to purchase and the Power Producer agrees to sell electricity at a maximum

capacity of MW at the voltage level of Volt, with the Purchasing

Point located at , with details of the generation system as specified in the

Application for Sale of Electricity and System Interconnection and the Power Producer agrees

to sell electricity to the Utility within ___________.

1.4 The Utility agrees to sell standby power to the Power Producer at the request of the latter,

pursuant to the announcement on the standby power tariff and in line with the standby power

purchase agreement between the Utility and the Power Producer.

2. Agreement in Force and Termination

This Agreement shall come into force as from the date of its signing by both parties for a

period of five (5) years. The Agreement shall be automatically extended on a continual basis,

each time for another period of five (5) years, and shall remain effective unless it is

terminated in the event of the following:

2.1 The Power Producer gives a written notice to the Utility of his intention to discontinue the

purchase/sale of electricity by terminating the Agreement.

2.2 If one party is in breach of any terms and conditions specified in the Agreement, the non-


breaching party shall send a written notice to the breaching party to make necessary

correction. If the breaching party fails to make such correction, the non-breaching party is

entitled to terminate this Agreement.

3. Power System Interconnection

3.1 The Power Producer will allow the Utility to enter its premises to install, to undertake the

maintenance, to change and/or to relocate the power system interconnection equipment after

the owner or the possessor of the location has been notified.

3.2 The Utility reserves the rights to specify the requirement of additional equipment, at a later

stage, both for the Utility’s distribution system and for the Power Producer’s power plant, to

be in line with the technical standards and the pattern of power dispatch of the Utility.

3.3 One party has to notify the other party in advance if any change has been made to its power

system, which will affect the protective equipment in the power system of both parties. No

action related to the interconnection equipment shall be taken without a written notice to the

Utility in advance.

4. Control and Operation of the Power Plant

4.1 The Power Producer must strictly abide by the switching order of the Utility’s Control Center

for the benefits of the operation and maintenance, except for the case where damage may be

caused to the life or property of either party.

4.2 The Power Producer has to submit the information about the amount of fuel consumption per

year and the Average Lower Heating Value of the primary and secondary fuels used for

electricity generation.

4.3 The Power Producer, using commercial fuels, such as oil, natural gas and coal, as a secondary

fuel at a ratio greater than 25% of the total heat consumption for power generation in that

given year, must generate electricity efficiently by having the ratio of Primary Energy Saving

(PES) at no less than 10% in each year. The PES ratio calculation method is provided in

Attachment 2 of the Regulations for the Purchase of Power from Very Small Power Producers

(for the Generation Using Cogeneration System). In case of the failure to comply with the

requirements about the efficiency of the power generating processes, a fine shall be imposed,

pursuant to the calculation method described in Item 4.4.

4.4 In the event that the PES ratio achieved by the Power Producer is less than 10%, the Utility

will demand a refund from the revenue from the energy charge that the Utility has paid to the

Power Producer in that given year, according to the difference of the PES ratio as required by

the Regulations, i.e. 10%, and the actual PES ratio derived from the calculation using the

calculation formula specified in the Regulations for the Purchase of Power from Very Small

Power Producers (for the Generation Using Cogeneration System).

5. Billing Settlement

5.1 The payment for the purchase/sale of electricity shall be in compliance with the provisions

specified in the Regulations for the Purchase of Power from Very Small Power Producers (for

the Generation Using Renewable Energy).

5.2 In case the Power Producer fails to make payment within the period specified in the

Regulations for the Purchase of Power from Very Small Power Producers, the Utility is

entitled to take measures pursuant to the Utility’s announcements or regulations.


5.3 In case the Utility fails to make payment within the period specified in the Regulations for the

Purchase of Power from Very Small Power Producers, the Utility agrees that the Power

Producer charge for the interest of the amount in arrears at the then MLR rate charged by

Krung Thai Bank Public Company Limited, as from the date of default until the payment is

made in full. In this connection, the imposed interest rate shall not exceed fifteen percent

(15%) per annum.

6. Force Majeure

6.1 “Force Majeure” denotes any event of which the happening or pernicious results could not be

prevented even though a person against whom it happened or threatened to happen were to

take such appropriate care as might be expected from him in his position and in such a

situation, and shall include any or several of the following events:

6.1.1 acts of the government such as a change to the energy policy of the government;

6.1.2 acts of public enemies in a war situation (whether declared or undeclared), blockades,

riots, insurrection, commotion, espionage, sabotage, strikes, work stoppages as stated

in the labor law, any eviction, earthquakes, storms, fires, floods or explosions; and

6.1.3 interruptions in the distribution system resulting from detriments to the distribution

system or any devices related to the system interconnection.

6.2 In the event that either party is unable to perform his obligations under this Agreement by

reason of Force Majeure under Item 6.1 hereof, such party shall not be held in breach of the

Agreement, and the other party shall not claim for any compensation whatsoever.

6.3 The party claiming Force Majeure shall:

6.3.1 notify the other party as soon as practicable of the Force Majeure, together with the

detailed information of the event and the period of time necessary to cure the

damages resulting from such Force Majeure; and

6.3.2 use, at its own cost, all reasonable efforts to remedy the situation as soon as possible

and such implementation must be within the ability of the party.

7. Settlement of Disputes and Arbitration

7.1 Any dispute or difference arising out of, or in connection with, the Agreement or the

implementation of any of the provisions of the Agreement which cannot be settled amicably

shall be referred to arbitration. If no settlement can be reached by arbitration, the dispute or

the difference shall be referred to a Thai court for a final decision.

7.2 Unless both parties agree in the appointment of a single arbitrator, any dispute or difference

shall be referred to two (2) arbitrators. Either party shall serve upon the other a notice of

intention to submit the dispute or difference to arbitration and specify the name of an

arbitrator to be appointed by him. Then, the other party shall appoint the other arbitrator

within thirty (30) days after receipt of the said notice. If the two arbitrators are unable to

compromise such dispute or difference, an umpire shall be appointed by the two arbitrators

within thirty (30) days from the date of disagreement. The umpire so appointed shall resolve

the dispute or difference. The arbitration proceedings shall follow either the Rules of

Arbitration of the Ministry of Justice’s Arbitration Office, mutatis mutandis, or the Rules of

Arbitration and Conciliation of the International Chamber of Commerce, as agreed by both

parties. The arbitration proceedings shall be conducted in the Thai language.


7.3 The appointed arbitrators must have qualifications illustrating expertise in the field of

development, debt financing, construction, power plant operation or power plant maintenance

and shall not be employees or agents of, or advisors to either party.

7.4 Should either party decline to appoint an arbitrator, or in case the two arbitrators cannot reach

an agreement regarding the appointment of an umpire, each party is entitled to refer the matter

to a Civil Court for the appointment of arbitrator or umpire as the case may be.

7.5 Any decision or award given by the arbitrators or the umpire, as the case may be, shall be

final, conclusive and binding upon the parties hereto. If the arbitrators or the umpire cannot

settle the dispute or difference, or the notified party pursuant to Item 7.2 hereof fails to

appoint an arbitrator on his side, wishing to exercise the right of institution of court action,

then the dispute or difference shall be deferred to the relevant Provincial Court for a decision.

7.6 Each party shall bear the cost of his own arbitrator’s service and share equally other cost of all

proceedings. In case a single arbitrator or an umpire is appointed, the cost of the single

arbitrator’s service or the cost of the umpire’s service shall be decided by the arbitrator or the

umpire, as the case may be.

This Agreement is executed in two identical counterparts. Both parties have thoroughly read and

understood the contents hereof and have hereto appended their respective signatures and affixed their

seals (if any) in the presence of witnesses. Both parties shall keep each copy of the Agreement.

Power Producer Provincial Electricity Authority

Signature: ……..………..…. Power Producer Signature: …………….………….. Utility

(___________________) (___________________)

Title Title

___________________ ___________________

Signature: ………………………. Witness Signature: …………………… Witness

(___________________) (___________________)

Title Title

___________________ ___________________


Attachment 3


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