In brief
Thailand's Energy Regulatory Commission (ERC) has published for public hearing, from 19 September 2026 to 18 October 2026, draft principles for amending the ERC Regulation on Applications for and Granting of Energy Business Licenses B.E. 2551 (2008) ("ERC Draft Principles"). The proposed amendments would introduce a specific license category for the distribution of electricity to data centers ("Data Center Electricity Distribution License"). Applicants would be required to submit additional detailed information and supporting documents, including the data center's electricity consumption and load profile, backup power plan, investment plan, and cybersecurity plan and measures. Existing distributors supplying electricity to data centers may also be required to apply for the license within 180 days after the amended regulation takes effect.
The ERC Draft Principles support the national policy for a pilot direct power purchase agreement ("Direct PPA") scheme for data centers using third-party access (TPA), while addressing the potential effects of rapidly increasing data center electricity demand on grid reliability, electricity tariffs, and other electricity users.
In more detail
Policy background
At Meeting No. 2/2569 (No. 176), the National Energy Policy Committee approved a framework for electricity grid access security deposits for large-scale data center users and criteria for a pilot scheme for the purchase and sale of renewable electricity through Direct PPAs using TPA arrangements for data center businesses. As data center electricity consumption is expected to increase rapidly, the policy framework seeks to address potential effects on power system stability and reliability, electricity tariffs, and other electricity users.
The ERC has therefore approved the preparation of amendments to the ERC Regulation on Applications for and Granting of Energy Business Licenses B.E. 2551 (2008). The amendments would establish specific criteria, procedures, and conditions for applications for the Data Center Electricity Distribution License, enabling more appropriate and effective regulatory oversight of electricity distribution to data centers.
Key amendments
The ERC Draft Principles propose the following key amendments to the existing licensing regulations:
New definition of "data center"
The ERC Draft Principles define a "data center" as an electricity user with a building, premises, or structure equipped with electronic devices used to collect, store, process, host, transmit, or receive data electronically, whether for its own business, affiliated juristic persons, or unaffiliated persons.
Supporting documents and information required for a Data Center Electricity Distribution License application
An applicant for a Data Center Electricity Distribution License would be required to submit the following supporting documents and information:
- Details of the data center's electricity consumption over the project term, including at least:
- An overall electricity consumption plan, broken down by supply source, including state utilities, the Utility Green Tariff, Direct PPAs, self-generation, and purchases from other private suppliers
- A power backup plan, an energy storage system plan, and a backup power generation system plan
- The electricity load profile of the data center, showing maximum and minimum electricity demand broken down by time period
- The scheduled commencement dates for electricity distribution to the data center and for the data center's operations
- The target year for achieving RE100 or any other relevant target (if applicable)
- A work plan and investment plan for electricity procurement and distribution, together with details of grid connections supporting the data center's electricity consumption plan
- A power purchase agreement or other electricity sale and purchase agreement with the data center
- A report assessing the impact on the stability and reliability of the electricity system, including prevention and mitigation measures
- A business continuity plan, including a disaster recovery plan
- A cybersecurity plan and measures
- Any other documents and evidence as prescribed by the ERC
Applicants supplying electricity directly to data centers would not be required to submit the documents listed in items 4, 5, and 6 above.
Additional ERC considerations for granting a Data Center Electricity Distribution License
When considering an application for a Data Center Electricity Distribution License, the ERC would also take into account:
- Consistency with national energy policy and data center policy
- Adequacy of electricity generating capacity and the electricity grid, and the ability to absorb peak electricity demand
- Impact on the stability and reliability of the electricity system, as well as prevention and mitigation measures
- Impact on other electricity users and the public interest
- Cybersecurity maintenance (as the case may be)
Transitional provisions
The ERC Draft Principles would require an existing electricity distributor that supplies electricity to data centers before the new regulation takes effect, and whose activities constitute a licensable energy business under the Energy Industry Act B.E. 2550 (2007), to apply for a Data Center Electricity Distribution License within 180 days after the regulation takes effect. An applicant that submits its application within this period may continue operating unless and until the ERC notifies it that the application has been rejected.
Potential impact
The proposal is significant for private electricity suppliers, renewable energy developers, data center owners and operators, infrastructure investors, and lenders involved in data center power solutions. If adopted, the framework would make electricity supply planning and licensing a central workstream in data center development and operations, particularly where the power solution combines utility supply, green tariffs, Direct PPAs, self-generation, energy storage, or other private supply arrangements.
The proposed framework may also make a Data Center Electricity Distribution License more demanding to obtain. Applicants would need to prepare a broader range of detailed supporting documents and information, and the ERC would apply additional substantive criteria when determining whether to grant the license, including grid capacity, system reliability, impacts on other electricity users and the public interest, and cybersecurity. This could increase the time, cost, and regulatory uncertainty associated with the application process and may require earlier coordination among technical, regulatory, commercial, resilience, and cybersecurity workstreams. Applicants may also need to align the license application with grid connection studies, investment plans, power purchase arrangements, operational schedules, and corporate renewable energy targets. Existing electricity suppliers should assess whether their activities fall within the proposed licensing scope and whether they can prepare the required application within the proposed transitional period.
The ERC Draft Principles set out only the preliminary principles for the proposed amendments. The detailed application requirements and criteria to be applied by the ERC when considering a Data Center Electricity Distribution License will depend on the official draft regulation and the final regulation subsequently issued by the ERC and brought into effect. Further developments should therefore be closely monitored.
Recommended actions
Businesses involved in supplying electricity to, developing, financing, or operating data centers in Thailand should consider the following steps:
- Assess whether the proposed business model involves an activity requiring a Data Center Electricity Distribution License, including private supply, on-site generation, or a Direct PPA structure
- Map the proposed electricity supply sources over the project term and ensure consistency among the power procurement plan, load profile, grid connection strategy, and project schedule
- Review draft and existing power purchase arrangements to identify the information and commitments required for the license application
- Coordinate technical, regulatory, commercial, resilience, and cybersecurity workstreams at an early stage, including any required impact assessments and mitigation measures
- Assess potential transitional application requirements and begin compiling supporting documents in anticipation of the proposed 180-day period, if you are an existing supplier
- Monitor the consultation process and the final form and effective date of the amended ERC regulation
How we can help
Our energy, infrastructure, technology, and finance teams can assist data center developers, electricity suppliers, renewable energy developers, investors, and lenders in assessing the proposed licensing framework and its implications for project structuring, licensing strategy, power procurement, and financing. We can also help clients navigate the regulatory, contractual, and implementation issues arising from the proposed amendments.
If your electricity supply project may be affected by the proposed amendments, please contact us to discuss the potential licensing requirements and appropriate next steps.
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Ekarin Tengchiew, Hongrat Jungwanitchakun and Prachaya Apibansri, Senior Associates, have contributed to this legal update.