Thailand is proposing a lower green premium for electricity users this year under its utility tariff scheme, after renewable energy certificate prices fell last year.
The proposed 2026 premium for the Utility Green Tariff 1 (UGT1) scheme is Bt0.0375/kWh ($1.19/MWh), 37pc lower on the year, according to a consultation paper by the country's Energy Regulatory Commission released on 7 January.
UGT1 matches end-users' power consumption with hydropower international renewable energy certificates (I-RECs). The premium is applied on top of corporate customers' power bills.
The new figure is derived from an average market price of Thai hydropower I-RECs of Bt0.0286/kWh ($0.91/MWh) in January-November 2025, plus administrative fees. Thai hydro I-REC prices fell from an average of $1.32/MWh in January 2025 to $0.55/MWh in December, while solar and wind certificates dropped from $1.81/MWh to $0.55/MWh over the same period, according to Argus assessments.
I-RECs for UGT1 are issued from seven hydropower plants owned by state firm Electricity Generating Authority of Thailand, commissioned between the 1970s-1990s. These facilities have a combined capacity of 1.14GW and generate over 1.3 TWh/yr.
Companies such as food firm Nestle and local shopping centre group Siam Piwat subscribed to UGT1 in 2025, but their contracted volume have not been disclosed.
A separate UGT2 programme, drawing I-RECs from solar and wind farms, has not yet been launched.
Public consultation on the latest UGT1 price revision closes on 19 January 2026.
