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Friday, May 24, 2024

Manufacturers Urged to Switch to Renewable Energy to Reduce Costs

The Ministry of Industry stressed the significance of manufacturing seriously adopting renewable energy, citing increased power costs as a key reason in attracting businesses’ attention to this matter.

It has been suggested by the OIE that the manufacturing sector switch to renewable energy to help with the growing cost of power. In addition to better managing electricity consumption, switching to sustainable energy sources like biomass or solar power might help bring down prices.

According to OIE Director-General Warawan Chitaroon, the government is cognizant of the impact that rising electricity prices will have on businesses; however, the Energy Regulatory Commission can only mitigate this impact by lowering the planned increase in the power tariff used to calculate electricity bills from 20.5% to 13%. Production expenses would rise across the board as a result of the electricity tariff increase from 4.72 to 5.33 baht per kilowatt-hour (unit).

Fuel cost for energy generation in the country is the primary factor in the fuel tariff (Ft), which is a significant component of the power tariff. The OIE reports that Thailand has the third-highest Ft rate in ASEAN, behind only Singapore and the Philippines, placing it above the regional average.

The Federation of Thai Industries is also worried about the country’s Ft, pointing out that high energy prices might discourage foreign investments or cause firms to abandon contracts already in place.

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