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The Stock Exchange of Thailand (SET) supports renewable energy power plants seeking to list on its Market for Alternative Investment (mai) by issuing new listing rules effective from March 26, 2012.
“The new rule supports fundraising of renewable energy business, which is useful to our economy and environment, and builds national energy security. The listing enables renewable energy firms to improve their projects with fewer funding limitations, and also supports Thailand’s power development plan (2010-2030) of the Ministry of Energy. Under the plan, power production from renewable energy must reach at least five percent of total power production in 2030,” mai President Chanitr Charnchainarong said.
While considering the new rules, mai held hearings with many stakeholder groups to suit the needs of business owners and business conditions, he added.
Power plants meeting the new requirements are those using any kinds of renewable energy sources, such as solar, wind, water, biological, and biomass energy, with a market capitalization of over THB 500 million (approx. USD 16.2 million). They must also have power purchase agreement (PPA) signed with the government in order to generating secure revenues with commercial operation date for at least one year. SET also set the silent period for the applicants at two years. Also, the applicants interested in listing on mai must give clear and adequate information about risks of power sale contracts, government subsidies, material procurement, material costs, and technology to investors.
