Peer to Peer Energy Trading (“P2P”) is the concept represents a new model of Energy Trading to allows small-scale electricity producers who generate electricity from renewable sources, such as panels for household or small business use, to directly sell their excess electricity without the need to go through traditional large-scale utility providers. This approach helps reduce market monopolies and promote free and fair competition in the energy market. The trading mechanism leverages blockchain technology as the platform enabling transactions that are transparent, secure, and verifiable. All participants have equal access to information, making the model particularly suitable for decentralized energy systems.
Legal status for Peer-to-Peer Energy Trading in Thailand
At present, Thailand does not have specific legal provisions that clearly support Peer-to-Peer (P2P) energy trading yet, which poses an important limitation on the development and implementation of such systems on a national scale. As the current electricity market structure in Thailand remains in a “Single Buyer” model, where the state retains the primary role in electricity procurement and distribution. Moreover, there is still a lack of legal definitions for small-scale energy traders, as well as regulatory clarity regarding grid access, wheeling charges, and technical standards for energy interconnection.
Important moves to push forward on Peer-to-Peer Energy Trading
Although there are not yet clear legal provisions supporting Peer-to-Peer energy trading, Thai authorities, particularly the Energy Regulatory Commission (ERC), have initiated pilot projects or regulatory sandbox programs since 2019 to test Peer-to-Peer energy trading in various contexts, such as universities, industrial facilities, and energy communities. These initiatives are being closely monitored and evaluated to provide data and insights that will inform future policy development.
To enable Peer-to-Peer (P2P) energy trading to be realized in Thailand in the long term, it is essential to develop a clear legal and regulatory framework. This includes establishing a legal definition for “small-scale energy traders,” setting out the criteria for permitting electricity trading at the individual level, designing an appropriate taxation structure, and developing a digital platform that serves as a secure and transparent system for recording and monitoring transactions. These measures will help pave the way for a truly liberalized and sustainable energy market in Thailand, supported by a legal environment that embraces future innovation.