Thailand’s electricity tariff system for industrial users is tier-based, depending on voltage level, maximum demand (kW), and the utility operator (MEA – Metropolitan Electricity Authority, PEA – Provincial Electricity Authority, or EGAT – Electricity Generating Authority of Thailand).
It determines how much factories pay per kWh, whether they can join green-tariff or direct PPA programs, and how attractive renewable-energy projects are in financial terms.
Corporations such as Sahaviriya Steel Industries (SSI) consume ~100 MWe and are supplied directly by EGAT through 230 kV transmission lines under long-term Power Purchase Agreements (PPAs).
Their tariffs are 10–20 % lower than standard industrial customers because:
They buy at transmission voltage (no distribution losses).
They can offer load-management or interruptible-load services.
They negotiate tailored PPA structures aligned with EGAT’s system stability needs.
Voltage matters: Higher-voltage customers enjoy 10–25 % lower tariffs.
Tariff is tier-based: A 500 kW factory and a 900 kW factory pay the same (4.1/4.2 rate); a 5 MW factory moves to Type 5 with lower rates.
Green Tariff (UGT 1 & 2) is available only to Type 4 & 5 users (MEA/PEA grid); Bulk EGAT customers (> 10 MW) negotiate direct renewable PPAs instead.
Average industrial power cost (including Ft) ranges between 4.0 – 5.0 THB/kWh (≈ 11 – 14 US¢/kWh).
Carbon-intensive sectors (steel, cement, chemicals) are seeking renewable PPAs and on-site biomass/biogas generation to mitigate CBAM exposure.
Understanding Thailand’s tariff tiers is essential for:
Evaluating PPA competitiveness: Renewable LCOE must beat the TOU rates above.
Structuring bankable projects: Industrial off-takers pay per kWh plus demand charge—affecting savings and IRR.
Assessing green-tariff readiness: Only specific classes qualify for UGT or REC bundling.
Quantifying carbon impact: Replacing grid electricity (0.55–0.60 tCO₂/MWh) yields verifiable emission reductions under T-VER / Verra standards.