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11 September 2017

SOLAR ENERGY DEVELOPMENT IN THAILAND

OVERVIEW On 7 September 2017, the government announced that it will lift the ban to sell electric power generated by solar rooftop PV in the fourth quarter of 2017. This includes solar facilities on detached houses, warehouses, factories, and offices. According to the Energy Ministry, EGAT will exclusively buy at a rate below THB 2.6 per kilowatt-hour. Currently, EGAT sells electricity to consumers at a rate of about THB 4 per kilowatt-hour. The details, conditions, and processes have been promised to be finalized in October 2017. There may be a license requirement and total capacity limitations. Number of Solar Projects The current number of solar projects which have achieved COD in Thailand is 529 projects, with a total selling capacity of 2,560.94 MW. Information from ERC’s website as of 7 September 2017. They include:

7 SPP PPAs signed with EGAT, with total selling capacity of 436 MW, details as follows: No. Name of Project Installed

Capacity Selling

Capacity COD

1. BCPG, Ayutthaya 34.2 30 16/07/12 2. Natural Energy Development Lopburi 73 55 22/12/11 3. Serm Sang Palang Ngan Lopburi 52 40 02/02/15 4. EA Solar Nakornsawan 126.126 90 23/12/13 5. EA Solar Lampang 128.396 90 17/02/15 6. EA Solar, Pitsanulok 133.92 90 01/04/16 7. SPP Six, Lopburi 41 41 30/12/15

522 VSPP PPAs signed with PEA/MEA and achieved COD, with total selling capacity of

2,124.949 MW. Suspension of Receipt of Applications Receipt of applications for sale of power from solar projects was suspended by both EGAT and PEA in April 2010. At that time, a large number of applications had been received, without in the case of PEA any bid security, evidence of financial or technical knowhow, rights to land, etc. On 8 December 2014, applications for 178 ground-mounted solar projects which had submitted PPA applications prior to the suspension in April 2010 were accepted for consideration. According to summary of status of solar projects provided at NEPC meeting no. 3/2558 dated 13 August 2015, 171 applications were accepted with total installed capacity of 983 MW, of which 100 PPAs have been

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signed with total installed capacity of 584 MW, and 71 applications with total installed capacity of 399 MW are under the process for signing PPAs. Attachment 1 is an English translation of PEA standard form of 25-year VSPP PPA for applicants for sale of power under original adder system, providing for Feed-in-Tariff in Section 7. Solar PV Rooftop Projects In 2013 and 2015, applications were accepted for solar PV rooftop projects, and 8811 PPAs were signed, with total installed capacity of 167 MW. Ground-mounted solar projects for Government Agencies and Agricultural Cooperatives In 2015, rules have been announced for purchase of power from ground-mounted solar projects for Governmental Agencies and Agricultural Cooperatives. Only one application may be made by an agency or cooperative. One application may not be for more than 5 MW. Applications may be submitted to ERC from 1 to 10 November 2015. All supporting documents must be submitted by 20 November 2015. The Committee will screen applications and announce the list of applications that have passed qualification screening on 11 December 2015. Those applications that pass qualification screening are entitled to participate in the second step of selection by “drawing lots” on 15 December 2015. The power purchase target is prescribed for each area, but will not exceed 800 MW. The power purchase target in Phase 1 is 600 MW (not exceeding 300 MW for government agencies and not exceeding 300 MW for agricultural cooperative).

Phase 1 will be for projects, in areas with transmission line availability and potential of other fuels, with SCOD no later than 30 September 2016.

Phase 2 will be for other areas with SCOD from 1 January 2018 to 30 June 2018. The schedule for power purchase by drawing lots or “lucky draw” was:

Schedule Activity 21 September 2015 -15 October 2015 The Power Utility opens for application for inspection of the

point connecting the power network system under clause 5(1) of Notification dated 17 September 2015

1-10 November 2015 Filing an application for sale of power in the project (09.00-16.00 hrs.) Online applications may be made in ERC’s website

20 November 2015 Closing date for documents in support of the application for sale of power in the project (additional)

11 December 2015 Announcement of the list of projects that have passed qualification screening

15 December 2015 Selecting by drawing lots and announcing the result

24 December 2015 ERC will officially announce the projects that have passed the scrutiny and ERC will submit the matter to the RE Committee for information

However, subsequent to the above Schedule being announced, on 14 December 2015, the ERC circulated a further Notification regarding, Postponement of the Drawing of Lots for the Purchase of Power from Ground-mounted Solar Farm Projects – specific to Government Agencies and Agricultural Cooperatives. This Postponement changed the selection proceedings from 15 December 2015 to 22 December 2015.

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On 18 December 2015, ERC circulated a Notification regarding Postponement of the Drawing of Lots for the Purchase of Power Ground-mounted Solar Farm Projects specific to Government Agencies and Agricultural Cooperatives (No. 2). This Postponement was made in order to enable the ERC to consider petitions from “unqualified” projects which had not been included in the list of projects that had passed the qualification screening announced on 11 December 2015. On 11 March 2016, NEPC approved extension of SCOD for Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives from 30 September 2016 to 30 December 2016 for areas where transmission systems are ready (Phase 1). On 1 April 2016, ERC circulated a Notification regarding schedule for power purchase by drawing lots or “lucky draw” as follows:

Schedule Activity 18 April 2016 Announcement of the list of projects that have passed qualification screening

21 April 2016 Selecting by drawing lots and announcing the result 26 April 2016 ERC will officially announce the projects that have passed the scrutiny and

ERC will submit the matter to the RE Committee for information On 26 April 2016, ERC announced names of 67 projects selection by lottery to participate in Purchase of Power from Ground-mounted Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives program. Attachment 2 is an English translation of PEA standard form of 25-year VSPP PPA for applicants for sale of power for Governmental Agencies and Agricultural Cooperatives. Receipt of New Applications The government has not announced when applications for solar projects in general will be open. BOI Incentives In December 2014, the BOI announced new incentives for promotion of investment, including renewable energy projects. Developers of solar power plants can apply for BOI promotion under category 7.1.1.2: Production of electricity or electricity and steam from renewable energy, such as solar energy, wind energy, biomass or biogas, etc. except from garbage or refuse derived fuel. The specific condition required for this category is that the project must be approved by the relevant government agencies. Category 7.1.1.2 will be granted incentives under Group A2 as follows:

8-year corporate income tax exemption, accounting for 100% of investment (excluding cost of land and working capital).

Exemption of import duty on machinery.

Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board.

Other non-tax incentives. Current information can be found in ERC’s website www.erc.or.th and DEDE’s website www.dede.or.th

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Proposed new legislation In 2014 the IFC worked with DEDE on a draft Alternative Energy Act (primary law to govern alternative energy projects), which is under review by the Ministry of Energy. Timing of possible enactment is uncertain. The intent of the draft Act is to promote all forms of alternative energy sources. The draft Act would establish an “Alternative Energy Committee” (“AEC”) to facilitate connections (including “non-firm” connections), minimize costs, risk and delay in project development, introduce a “governance process” for network design principles and standards, designate “zones” in which alternative energy sources would be promoted, grant promotion to producers of power from alternative energy sources, and supervise a monitoring process. The AEC would monitor technical developments on energy storage and grid integration of renewables. Secondary legislation would address grid integration of renewables, one-stop-shop, Alternative Energy Fund, and Feed-in-Tariffs. BACKGROUND AND HISTORY 1. Energy Regulatory Commission

The Energy Industry Act B.E. 2550 was published and became effective in December 2007. It established a new regulatory regime for electricity and natural gas businesses. One of the purposes of the Act was to restructure the energy industry management by separating policy making, regulation, and operating functions. It provided for the establishment of the Energy Regulatory Commission (“ERC”), whose members have been appointed, and the Office of Energy Regulatory Commission. Operators of energy businesses must obtain several licenses from the Commission. The types of licenses required depend on nature of operation and size of production capacity or distribution capacity. Royal decree, regulations, and notifications to implement the Act have been published. The Commission is responsible for the prevention of abusive use of monopoly power and protection of energy consumers and those adversely affected by the energy industry operation.

2. Policies re Renewable Energy

On 26 December 2006, the National Energy Policy Council (“NEPC”) approved EGAT purchasing power from generators using renewable energy, and instructed EGAT to revise its regulations for purchase of power from SPPs using renewable energy. On 28 January 2009, the Cabinet approved a 15-year Renewable Energy Development Plan (“REDP”), and on 9 March 2009, the NEPC approved additional tariff “adders” for certain categories of alternative energy. The announced goal was for renewable energy to constitute up to 20% of total energy consumption by 2022. On 30 November 2011, the NEPC approved a 20-year energy conservation plan (2011-2030) under which energy consumption by the industrial sector, large-scale business buildings, small business buildings, and residential hours and transportation sector will be reduced. NEPC also approved a 10-year 25% Alternative Energy Development Plan 2012-2021 (“AEDP”) to replace the 15-year REDP. During the 14th ASEAN Summit in Thailand 28 February – 1 March 2009, the meeting recognized the challenge of climate change, and agreed to cooperate on energy security, ASEAN energy cooperation, and development of renewable and alternative energy. The Department of Alternative Energy Development and Efficiency (“DEDE”) is responsible for implementation of the alternative energy plan. See its website at www.dede.co.th.

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On 12 September 2014, General Prayut Chan-o-cha, the Prime Minister presented the Policy Statement of the Council of Ministers, which included: “6.9 The government shall reform the price structures of various types of fuel so that they

are consistent with costs, and ensure an appropriate tax burden for different kinds of oil and different types of users, in order to improve efficiency in the country’s energy use and deter consumers from wasteful use, see to a new round of exploration and production of natural gas and crude oil both at sea and on land, and see to the construction of more power plants by state and private sector agencies, including the use of fossil fuels and alternative energy, in a manner that is open, transparent, fair, and environmentally friendly, while cooperating with neighbouring countries on energy development.”

“9.5 Expedite the control of pollution – air, refuse and wastewater arising from production

and consumption to create a good quality environment for the people by giving first priority to solid waste management; encouraging mechanisms for sorting of refuse for recycling as much as possible; expediting the disposal of accumulated refuse in waste disposal sites located in critical areas, which are mainly state owned land; supporting the transformation of waste into energy wherever possible; setting up special regulations and measures to manage industrial waste, by designating standard-built industrial waste pits separate from community waste disposal sites; developing a monitoring and inspection system to prevent illegal disposal of hazardous, electronic and infectious waste; managing chemicals to lessen the risk and danger of leakage and accidents; attaching importance to comprehensive waste management; and using legal measures and strict enforcement of the law.”

On 16 July 2013, the NEPC approved two feed-in tariff policies for solar PV rooftop and solar PV community ground-mounted systems. On 15 August 2014, the NEPC approved the preparation of the Power Development Plan (“PDP”) 2015 – 2036, the Energy Efficiency Development Plan (“EEDP”) 2015 – 2036, and the Alternative Energy Development Plan (“AEDP”) 2015 – 2036, and appointed the Ministry of Energy to prepare the plan and send to the NEPC for further consideration. The NEPC also approved three feed-in tariff policies for solar as follows: (i) Approved feed-in tariff at the rate of 5.66 Baht/kWh for a period of 25 years for the

pending PPA applications that had already been submitted to EGAT/PEA/MEA prior the NEPC’s resolution on 28 June 2010 and had not yet received letter of acceptance from EGAT/PEA/MEA with total quota of 576 MW.

(ii) Approved an extension of SCOD for solar PV rooftop projects which have signed PPA with PEA/MEA for total capacity of 130.64 MW from 31 December 2013 to 31 December 2014 and approved accepting new applications for solar PV rooftop for residential rooftop that have installation capacity of less than 10 kW for total capacity of 69.36 MW, with a feed-in tariff of 6.85 Baht/kWh. These new projects must achieve COD by 31 December 2015.

(iii) Approved the change on the solar PV community ground-mounted systems

programme which was approved by NEPC’s resolution on 16 July 2013 with the new solar farms in the form of Public Private Partnerships with the governmental sector or agricultural cooperatives programme. This new programme will be for solar farm (ground-mounted solar installations) having installation capacity of not more than 5 MW. The feed-in tariff for this programme will be at the rate of 5.66 Baht/kWh for a period of 25 years with total quota of 800 MW by 31 December 2015.

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The NEPC appointed the ERC to consider and issue the Regulation for the Purchase of Power from Solar Power Project under FiT regime. On 22 October 2014, the NEPC approved the amendment of the NEPC’s resolution on 15 August 2014 as follows: (i) Approved the increase of quota for another 800 MW for those pending PPA

applications that already submitted to EGAT/PEA/MEA prior the NEPC’s resolution on 28 June 2010 and had not yet received letter of acceptance from EGAT/PEA/MEA and allowed the projects that have the transmission line issues to change their location.

(ii) Approved an extension of SCOD for solar PV rooftop projects which have signed PPA with PEA/MEA for total capacity of 130.64 MW from the end of December 2014 to June 2015.

On 8 December 2014, the Administrative Committee on Promotion Measures for Power Generation from Renewable Energy (“RE Committee”) approved the acceptance of power purchase from solar farm (ground-mounted solar installations) projects (178 projects) that already submitted the PPA applications with EGAT/PEA/MEA prior the NEPC’s resolution on 28 June 2010 and had not yet received letter of acceptance from EGAT/PEA/MEA by dividing into two groups as follows: (i) 25 projects (138.350 MW) which have no issue on transmission line or land. These

projects can execute the power purchase agreement within the framework of period under the Regulation for Acceptance of Power Purchase of related Power Utility; whereby the project must achieve the COD by the end of December 2015.

(ii) 153 projects (875.025 MW) which have transmission line or land issues. These projects are entitled to change their locations provided that all proceedings will be completed by 31 March 2015 and inform DEDE so that DEDE will coordinate with EGAT/PEA/MEA for inspection of the propagation of electric transmission lines, proceed for the acceptance of power purchase, and execution of power purchase agreement. All 153 projects must achieve the COD by the end of December 2015.

On 16 February 2015, NEPC approved an extension of SCOD for Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives from 31 December 2015 to 30 June 2016. On 14 May 2015, NEPC approved the PDP 2015 based on three major criteria as follows:

Security of national power system: taking into account distribution of power sources

and types in order to be less dependent on natural gas (target is no more than 40% in 2036 from 65% as of now), and rely more on alternative/ renewable energy, clean coal, and electricity import from neighboring countries. At the same time, spare capacity must be no less than 15% of peak load;

Economy: by determining appropriate electricity rate that effectively reflects actual

cost, production/transmission/sales systems, and provides least impact on people’s cost of living. It is estimated that average electricity rate throughout PDP 2015 is at THB 4.587/1 GWh.

Ecology: by releasing 37% less carbon monoxide, which is the major cause of global

warming, within 2036 through increased production of renewable power, and full-

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fledged implementation of energy conservation in four key target groups: industry, business buildings, houses, and public sector. This should result in decrease of electricity demand of 89,672 GWh in 2036.

On 13 August 2015, NEPC approved another extension of SCOD for Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives from 30 June 2016 to 30 September 2016 for the areas that the power transmission systems are ready, and 30 June 2018 for the remaining areas. NEPC also approved the Energy Efficiency Plan 2015-2036 (EEP 2015). On 17 September 2015, NEPC approved the Alternative Energy Development Plan 2015-2036 (AEDP 2015)

3. ERC Notifications and Regulations concerning new Feed-in Tariffs for Solar Power

On 30 December 2014, ERC announced Regulation governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt) B.E. 2557 and Regulation governing Purchase of Power from Ground Mounted Solar Farm Projects for Applicants Filing for Sale of Power in the Original Adder System B.E. 2557. On 2 February 2015, ERC announced Notification governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt). Under this Notification, ERC announced the additional power purchase from solar rooftop in the amount of 69.36 MW in order to Complete 100 Megawatt quota. The term of the PPA is 25 years. The projects must achieve COD by 31 December 2015. The feed-in tariff (FiT) rate for the energy amount that does not exceed the Capacity Factor of 14.85 per cent shall be at THB 6.85 per unit. The rate for the energy amount in excess of the Capacity Factor of 14.85 per cent will be the FiT rate equivalent to the average wholesale of the power purchase rate at the range of 11 – 33 kilovolt (average wholesale rate in 12-month period) which EGAT sells to the Distribution Utility plus the electricity cost according to the formula for automatic wholesale price adjustment in average (Ft of average wholesale price in 12-month period). Notwithstanding, such power purchase rate must not exceed the FiT of THB 6.85 per unit. For the energy amount purchased in the first and last contract years of the Power Purchase Agreement, if not a full calendar year, FiT at THB 6.85 per unit shall be used whereby the Capacity Factor shall not apply. On 17 February 2015, ERC announced Notification governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt) (amendment) in order to amend the attachment 1 of the Notification. On 6 March 2015, ERC announced Regulation governing Purchase of Power from Ground-mounted Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives B.E. 2558. On 25 March 2015, ERC announced Regulation governing Purchase of Power from Ground Mounted Solar Farm Projects for Applicants Filing for Sale of Power in the Original Adder System (No. 2) B.E. 2558 in order to amend the provision regarding transfer of PPA. On 14 September 2015, ERC announced Regulation governing Purchase of Power from Ground-mounted Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives B.E. (No.2) 2558 in order to amend an extension of SCOD from 30 June 2016 to 30 September 2016 for the areas that the power transmission systems are ready (Phase 1) and 30 June 2018 for the remaining areas (Phase 2). On 17 September 2015, ERC announced Notification governing Purchase of Power from Ground-mounted Solar Farm Projects for Governmental Agencies and Agricultural

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Cooperatives B.E. 2558 together with Annex 1 re Rules for Participation in the Project, Screening and Selection of the Projects of Electricity Generating from Ground-mounted Solar Farm in the Case of Governmental Agencies and Agricultural Cooperatives. On 18 September 2015, ERC announced Notification governing Purchase of Power from Ground-mounted Solar Farm Projects for Governmental Agencies and Agricultural Cooperatives (Additional) B.E. 2558 together with Annex 2: Data on Grid Capacity and Annex 3: Application for Sale of Power in the Project. On 24 September 2015, ERC announced Notification re application for energy industry operation from ground mounted solar farm projects in the form of FiT for applicants filing in the original adder system. The ERC resolved that applications must be filed under Section 47 of the EIA within 31 October 2015. On 11 August 2016, ERC announced Notification re Pilot Project for Self-Consumption Solar PV Rooftop B.E. 2559. The pilot project for self-consumption solar PV rooftop is allocated for 100 MW, PEA and MEA each allow for 50 MW (10 MW for residential-scale; 40 MW for commercial scale). Under this pilot project for self-consumption solar PV rooftop, electricity generated from the rooftop PV system must be self-consumption and any excess electricity that flow through PEA/MEA system (if any) will not be compensated for.

4. EGAT Regulations On 18 April 2007, EGAT announced Regulation for the Purchase of Power from Small Power Producers exclusively for the generation from renewable energy. SPPs can obtain information from the Power Purchase Agreement Division, EGAT. The Regulation (as amended in 2009) can be found at www.egat.co.th. The Regulations cover the following subjects:

A. Objective of Power Purchase from Small Power Producers B. Enforcement C. Characteristics of the Power Generating Processes of SPPs D. Electrical System Standards of SPPs E. Procedures and Consideration Principles of Power Purchase from SPPs F. Conditions of the Power Purchase from SPPs G. Power Purchasing Point and Connection Point H. Costs Incurred for SPPs I. Conditions of the Power Generating Operation and the Maintenance Shutdown of

SPPs J. Principles of the Tariff Determination for the Purchase of Power from SPPs K. Failure to Comply with the Power Purchase Agreement (PPA) L. Performance Security for Compliance to the Power Purchase Agreement after the

Commercial Operation Date M. Bill Settlement Conditions N. Damages to the Power System O. Problems Arising from Compliance with the Regulations and Power Purchase

Agreements P. Amendments to the Regulations Q. Solution to the Problems Arising from Compliance with the Regulations for

Synchronization of Generators to the Power Utility System, the Power System Interconnection Criteria and the SPP Grid Code

EGAT has published standard forms of PPAs including Model Non-Firm Agreement (Renewable, without Supporting Fuel (Khor. 1), with Adder).

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On 10 July 2015, EGAT announced Notification governing Rules for Assignment of Rights and Duties under Application for Sale of Power or Power Purchase Agreement from Small Power Producer (SPP) for Solar Farm Project that filed Application in the Original Adder System.

5. PEA Regulations In 2006, PEA announced Regulation for the Purchase of Power from Very Small Power Producers for the Generation Using Renewable Energy. On 20 May 2008, PEA issued Notification re: Prescription of Increment of Power Purchase Price for Renewable Energy Very Small Power Producers. The Cabinet at its meeting on 24 March 2009 approved and acknowledged the resolution of the NEPC at its meeting No. 2/2009 (No. 124) held on 9 March 2009 re: Proposal to Improve the Guideline for Promotion of Power Generating from Renewable Energy by prescribing the period and purchased power capacity eligible for increment of power purchase price, adjustment of rate of increment of power purchase price for renewable energy power producers classified according to the type of technology and fuel, and revision of Regulations For Purchase of Power. PEA also published standard forms of PPAs including Power Purchase Agreement for the Purchase of Power from a Very Small Power Producer (for the Generation using Renewable Energy). Features of PEA’s PPAs signed after 19 August 2009.

5-year term, renewable without limit Requirement for a bank guarantee of Baht 200,000 per MW Delay LDs for delays exceeding 60 days in achieving SCOD: 0.33% of guaranteed

amount per day

6. Carbon Market Financing There is a growing market for carbon market finance. Thailand established a Designated National Authority (“DNA”) to manage CDM projects, currently the Thailand Greenhouse Gas Management Organization (“TGO”). According to information available from TGO’s website as of 16 October 2015, 222 letters of approval for CDM projects have been issued, there are 153 registered Thai CDM projects, and 54 projects have been certified. The TGO is drafting the rules for a carbon fund. It would provide low interest rate loans for CDM, and purchase carbon credits from project developers for sale to the international carbon trading markets (latest data posted in DNA website).

7. Transition from Adder Policy to Feed-in-Tariffs

On 19 August 2009, PEA issued Notification re: Prescription of Increment of Power Purchase Price for Renewable Energy Very Small Power Producers (up to 10 MW) under the Resolution of the NEPC dated 9 March 2009. For solar energy, an adder of Baht 8 per unit was prescribed for ten years from COD. The special adder for 3 southern most provinces (Yala, Pattani, and Narathiwat) of Baht 1.50 was also prescribed. On 15 January 2010, EGAT issued Notification re Prescription of Increment of Power Purchase Price for Renewable Energy Small Power Producers (10 MW ≥ 90 MW). For solar energy, an adder of Baht 8.00 per unit was prescribed, for ten years from COD. The special adder for 3 southern most provinces (Yala, Pattani, and Narathiwat) of Baht 1.50 was also prescribed.

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On 9 April 2010, PEA issued a notification suspending receipt of applications for sale of power from solar projects and wind projects. On 22 September 2010, PEA issued a notification continuing suspending receipt of application for solar projects. On 5 April 2010, EGAT issued a notification suspending receipt of applications for sale of power from solar project. On 29 October 2010, EGAT issued a notification continuing suspending receipt of application for solar projects. On 20 July 2010, the Thai Cabinet approved resolutions of NEPC adopted on 28 June, 2010, including confirming adder of Baht 8.00 per unit under PPAs which had been signed, and for projects for which acceptances to purchase electricity had been issued. In the case of applications for sale of electricity submitted and pending consideration, the adder of Baht 6.50 per unit would apply. For other renewable energy projects, the Cabinet approved NEPC’s guidelines for coordination and follow-up of promotion of renewable power production in compliance with the policy, and establishment of a committee comprising representatives from related agencies of MoE and NESDB, and to approve a Feed-in Tariff system. On 30 March 2011, EGAT issued Notification re Prescription of Increment of Power Purchase Price for Renewable Energy Small Power Producers in order to amend the EGAT Notification dated 15 January 2010 and to approve the special increment of power purchase price (Adder) for renewable energy projects from Small Power Producers that located in the areas of four Districts in Songkla Province, namely, Jana District, Thepa District, Nathawi District and Saba Yoi District, that sell the electric to the system under Regulation for the Purchase of Power from SPP. For solar energy, an adder of Baht 6.50 per unit was prescribed, for ten years from COD. The special adder for four Districts in Songkla Province of Baht 1.50 was also prescribed. On 12 April 2011, PEA issued Notification re: Prescription of Increment of Power Purchase Price for Renewable Energy Very Small Power Procedure Under the Resolution of the NEPC dated 25 November 2010 in order to amend the PEA Notification dated 19 August 2009 and to approve the special increment of power purchase price (Adder) for renewable energy projects from Very Small Power Producers that located in the areas of four Districts in Songkla Province, namely, Jana District, Thepa District, Nathawi District and Saba Yoi District, that sell the electric to the system under the Regulations for the Purchase of Power from VSPP. For solar energy, an adder of Baht 6.50 per unit was prescribed, for ten years from COD. The special adder for four Districts in Songkla Province of Baht 1.50 was also prescribed. On 16 July 2013, the NEPC approved two feed-in tariff policies, which would lead to reopening support of solar power for two packages: 1. Solar PV Rooftop The solar PV rooftop policy applies to solar PV rooftop projects having the installation capacity lower than 1 MW, with a combined capacity of 200 MW. Projects must be installed by December 2013. The Feed-in Tariffs for solar rooftops are as follows:

Type of Buildings Installation Capacity Feed-in Tariff

(Baht)

Residential House ≤ 10 kW 6.96 per kilowatt-hour

Small Business 10 kW ≥ 250 kW 6.55 per kilowatt-hour

Medium-Large Business/Factory 250 kW ≥ 1000 kW 6.16 per kilowatt-hour

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The Feed-in Tariff will apply for 25 years from the Scheduled Commercial Operation Date (“SCOD”). The NEPC appointed the ERC to consider and issue the guidelines, rules, procedures and conditions for purchase of electricity from solar PV rooftop. The Thai Cabinet at its meeting on 13 August 2013 approved and acknowledged the resolution of the NEPC at its meeting No. 2/2556 (No.145) held on 16 July 2013 as proposed by the Ministry of Energy. On 30 August 2013, ERC announced regulations governing purchase of electricity from solar PV rooftop which came into force on 3 September 2013. The ERC Regulation will apply to the purchase of electricity from Very Small Power Producers (“VSPP”) who wish to produce electricity from solar PV rooftop only, and it will not apply to other VSPPs who produce electricity from other sources of renewable energy including the VSPPs who produce electricity from solar PV panels but have not installed the PV panels on the rooftop. On 6 September 2013, ERC announced Notification re purchase of electricity from solar PV rooftop. According to the ERC Notification dated 6 September 2013, the VSPPs who wish to produce electricity from solar PV rooftop and sell to the Metropolitan Electricity Authority (“MEA”) or Provincial Electricity Authority (“PEA”), could file the VSPP application for solar PV rooftop with the MEA or PEA as the case may be from 23 September 2013 to 11 October 2013. MEA and PEA would consider the VSPP application on first come first serve basis, and would announce the result of its consideration on the VSPP applications from 14 October 2013 onwards. On 24 March 2014, ERC announced Notification re Solar PV Rooftop shall not be considered as power plant. Under this Notification, a power plant generating from solar PV rooftop will be exempt from a factory operation license but required to notify ERC in accordance with ERC Notification re Determination of Energy Industry Exempt from License Application to be an Industry to Notify B.E. 2551. On 15 August 2014 and 22 October 2014, the NEPC approved resolutions to give an extension of SCOD for solar PV rooftop projects which signed PPA with PEA/MEA for total capacity of 130.64 MW from 31 December 2013 to 30 June 2015 and approved the open up of applications for solar PV rooftop for residential rooftop that have installation capacity of less than 10 kW for total capacity of 69.36 MW, with a feed-in tariff of 6.85 Baht/kWk. These new projects must achieve COD by the 31 December 2015. On 30 December 2014, ERC announced Regulation governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt) B.E. 2557 and Regulation governing Purchase of Power from Ground Mounted Solar Farm Projects for Applicants Filing for Sale of Power in the Original Adder System B.E. 2557. On 2 February 2015, ERC announced Notification governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt). Under this Notification, ERC announced the additional power purchase from solar rooftop in the amount of 69.36 MW in order to Complete 100 Megawatt quota. The term of the PPA is 25 years. The projects must achieve COD by 31 December 2015. The feed-in tariff (FiT) rate for the energy amount that does not exceed the Capacity Factor of 14.85 per cent will be at THB 6.85 per unit. The rate for the energy amount in excess of the Capacity Factor of 14.85 per cent will be the FiT rate equivalent to the average wholesale of the power purchase rate at the range of 11 – 33 kilovolt (average wholesale rate in 12-month period) which EGAT sells to the Distribution Utility plus the electricity cost according to the formula for automatic wholesale price adjustment in average (Ft of average wholesale price in 12-month period). Notwithstanding, such power purchase rate must not exceed the FiT of THB 6.85 per unit. For the energy amount purchased in the first and last contract years of the Power Purchase

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Agreement, if not a full calendar year, FiT at THB 6.85 per unit shall be used whereby the Capacity Factor shall not apply. On 17 February 2015, ERC announced Notification governing Purchase of Power from Solar Rooftop Power Generation (for Additional Power Purchase to Complete 100 Megawatt) (amendment) in order to amend the attachment 1 of the Notification. 2. Community ground-mounted solar The Ministry of Energy together with the National Village and Urban Community Fund Office will develop Solar PV project on the basis of one MW per village, with a combined capacity of 800 MW. All projects were to be installed by December 2014. The Feed-in Tariffs for community ground-mounted solar were as follows:

Period Feed-in Tariff

(Baht)

Year 1 – Year 3 9.75 per kilowatt-hour

Year 4 – Year 10 6.50 per kilowatt-hour

Year 11 – Year 25 4.50 per kilowatt-hour Each village would be able to apply for one solar power project with capacity of 1 MW and the source of fund for financing project (100%) will be a loan from a government bank, either (i) Government Savings Bank or (ii) Bank for Agriculture and Agricultural Cooperatives. The NEPC appointed the ERC to consider and issue the regulations for purchase of electricity from the community ground-mounted solar. However, on 15 August 2014 and 22 October 2014, NEPC approved to replace the solar PV community ground-mounted systems programme with solar farms in the form of Public Private Partnerships with the governmental sector or agricultural cooperatives programme. This new programme was for solar farm (ground-mounted solar installations) having installation capacity of not more than 5 MW. The feed-in tariff for this programme will be at the rate of 5.66 Baht/kWh for a period of 25 years with total quota of 800 MW by the end of December 2015.

8. Department of Alternative Energy Development and Efficiency (DEDE) Attached are slides presented by Dr. Karnnalin Theerarattananoon from Department of Alternative Energy Development & Efficiency, Ministry of Energy Thailand on 3 September 2015 titled “RE/PV Plans PV and Utilities Workshop” and slides presented by Dr. Yaowateera Achawangkul from Department of Alternative Energy Development & Efficiency, Ministry of Energy Thailand on 2 March 2017 titled “Thailand’s Alternative Energy Development Plan”. 9. Restrictions on amendments to PPAs

The Committee on Management of Measures for Promotion of Renewable Power Production, appointed under the National Energy Policy Board, No. 1/2554 on January 26, 2011, (No. 6), instructed the three power authorities to issue a notification prohibiting a change in or amendment to PPAs with renewable energy projects applying for (i) a change in the quantity of the power energy offered for sale, (ii) relocation of the power plant, or (iii) a change in the production technology. EGAT issued such notification dated 14 March 2011. It was PEA’s internal policy to allow transfers of rights of generators under PPAs only to “affiliates” of the transferors; “affiliates” as defined in Section 39 of the Revenue Code.

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PEA’s current practice on postponement of SCODs is to grant up to two 6-month extensions, to allow project owners who has actually started construction to avoid delay LDs. On 10 July 2015, EGAT announced Notification governing Rules for Assignment of Rights and Duties under Application for Sale of Power or Power Purchase Agreement from Small Power Producer (SPP) for Solar Farm Project that filed Application in the Original Adder System. This Notification will apply to those projects under the ERC Regulations on Purchase of Power from Ground-Mounted Solar Power for Applicants for Sale of Power in Adder System B.E. 2557. On 22 July 2015, PEA announced Notification governing Rules for Assignment of Rights and Duties under Application for Sale of Power or Power Purchase Agreement. This Notification applies to the following projects: (1) The power projects under the ERC Regulation on Purchase of Power from Ground-

Mounted Solar Power for Applicants for Sale of Power under original Adder System B.E. 2557 (2014);

(2) The power projects under the ERC Regulation on Purchase of Power from Ground-

Mounted Solar Power for Government Agencies and Agricultural Cooperatives B.E. 2558;

(3) The power projects under the ERC Regulation on Purchase of Power from Very Small

Power Producers, Renewable Power Projects in Feed-in-Tariff Form (excluding solar power projects) B.E. 2558 (2015).

A transfer of rights and duties requires consent of the Power Utility, is subject to 51% of all shares being retained by the assignor until 3 years after COD; and is subject to half the shareholders of the assignor holding 51% of all shares of the assignee. On 30 September 2016, PEA announced Notification governing Rules for Assignment of Rights and Duties under Application for Sale of Power or Power Purchase Agreement. This Notification repealed the PEA Notification dated 22 July 2015. Basically, the major provisions under this PEA Notification are similar to those of PEA Notification dated 22 July 2015. Attachments: 1. PEA standard form of 25-year VSPP PPA for ground mounted solar farm projects

under original adder system, with Feed-in-Tariff. 2. PEA standard form of 25-year VSPP PPA for ground mounted solar farm projects for

Government Agencies and Agricultural Cooperatives, with Feed-in-Tariff 3. Slides of Dr. Karnnalin Theerarattananoon from Department of Alternative Energy

Development & Efficiency, Ministry of Energy Thailand on 3 September 2015 titled “RE/PV Plans PV and Utilities Workshop.”

4. Slides of Dr. Yaowateera Achawangkul from Department of Alternative Energy Development & Efficiency, Ministry of Energy Thailand on 2 March 2017 titled “Thailand’s Alternative Energy Development Plan”

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Attachment 1

Based on Thai language version received from PEA on 26 October 2015 25-year VSPP PPA providing for Feed-in-Tariff

(Translation)

[Letterhead of Provincial Electricity Authority]

Power Purchase Agreement Ground Mounted Solar Farm Projects

For Applicants for Sale of Power Under Original Adder System B.E. 2557 (2014) No.

Between and Provincial Electricity Authority This Power Purchase Agreement is made at the Provincial Electricity Authority on between residing at no. by hereinafter referred to as the “Power Producer” on one part, and the Provincial Electricity Authority, office no. 200 Ngamwongwan Road, Khet Chatuchak, Bangkok 10900, by title hereinafter referred to as “PEA” on the other part. Both parties agree to purchase and sell power with terms and conditions as follows: 1. Purchase and Sale of Power Energy 1.1 The Power Producer and PEA shall comply with the conditions for purchase and sale of

power and the power system connection prescribed in the Regulations of the Energy Regulatory Commission on Purchase of Power from Ground Mounted Solar Farm Projects for Applicants for Sale of Power under original Adder System B.E. 2557, according to the Attachment hereto.

1.2 The Attachment hereto shall be deemed part of this Agreement. If any provision therein

contradicts this Agreement, the provision in this Agreement shall prevail. 1.3 PEA agrees to purchase and the Power Producer agrees to sell power from the ground

mounted solar energy at the Power Purchase Point in the maximum quantity of power energy of megawatts (MWp) (calculated from the maximum output of the photovoltaic panel measured in megawatts peak (MWp) under the standard test conditions set for testing of the photovoltaic panel, using the same circuit and the same power purchase point) at a voltage of volt , and details of the power production system shall be as specified in the application for sale of power and the power connection system. The Scheduled Commercial Operation Date (SCOD) shall be within , and the term of the Power Purchase Agreement shall be 25 years, which shall be counted, as the case may be, as follows:

1.3.1 In case of distributing the power into the commercial operation system (COD) prior to the

SCOD so stated in the Power Purchase Agreement, the term of the Power Purchase Agreement shall be counted for 25 years from the COD.

1.3.2 In case of distributing the power into the commercial operation system (COD) on the SCOD

so stated in the Power Purchase Agreement, the term of the Power Purchase Agreement shall be counted for 25 years from the SCOD so stated in the Power Purchase Agreement.

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1.3.3 In case of distributing the power into the commercial operation system after the SCOD so

stated in the Power Purchase Agreement, the term of Agreement shall be counted for 25 years from SCOD so stated in the Power Purchase Agreement, which does not affect the expiry date of the sale of power specified in the Power Purchase Agreement. However, the purchase of power shall be commenced from the commercial operation date (COD), and before distributing the power into the commercial operation system (COD), the Power Producer must produce the license as required by law to PEA.

1.4 If the Power Producer has already executed the Power Purchase Agreement but is unable to

distribute the power into the system within the SCOD and wishes to request for extension of the SCOD, he is required to notify PEA in writing not less than 30 days prior to the SCOD. PEA will consider from readiness in 4 aspects, namely readiness of land, technology, source of capital and application for permission under related law. The SCOD may be extended but not later than 31 December 2015, however, the expiry date of sale of power specified in clause 1.3 will not be affected.

2. Application and Termination of Agreement This Agreement shall be effective from the date on which both parties sign, and shall be in full force and effect until it is terminated in the following cases: 2.1 The Power Producer issues a letter to PEA stating its wish to terminate the purchase and sale

of power, which shall be effective at least 30 days of the date PEA receives such notice, or which may be earlier or later than such schedule as the parties my agree.

2.2 If either party fails to comply with any clause of the Agreement, the other party shall notify

such failing party in writing to make a correction. If the correction is not made, such other party has the right to terminate this Agreement.

2.3 The Power Producer, having signed the Power Purchase Agreement, must comply with the

provisions of the Power Purchase Agreement, and is prohibited to change the power purchase point and the equipment used in the power production system without permission from PEA. If the Power Producer fails to do so, PEA will proceed with clause 2.2.

2.4 If the Power Producer commits any of the following acts, he shall be deemed to have

breached the Power Purchase Agreement, which is deemed terminated immediately, and shall be further subject to a legal prosecution, civil and criminal, without a claim for any damages from PEA which is a party to the Agreement, and shall be subject to penalty of Baht 5,000,000/MW according to the installed capacity under the Power Purchase Agreement.

2.4.1 Use other fuel in generating power or sell into the system the power energy generated from

the source other than that derived from solar power by the photovoltaic panel technology under the Power Purchase Agreement;

2.4.2 Install extra photovoltaic panels from those stated in the Power Purchase Agreement. 3. Assignment of Rights and Duties The Power Producer shall not assign the rights and duties in the application for sale of power or the Power Purchase Agreement to other person unless consent is obtained from the Power Utility under the rules of the Power Utility approved by the Energy Regulatory Commission.

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If the Power Producer is a juristic person, it is prohibited to change the number of shareholders which causes the original shareholders under the particulars submitted for offer for sale of power in the under original Adder System to be less than one half, and is prohibited to change the number of shares held by such original shareholders to be less than 51 per cent of total shares until the Power Producer has distributed the power into the commercial operation system (COD) for 3 years. 4. Safety Standards and Power System Connection 4.1 The Power Producer and PEA shall comply with the conditions for purchase and sale of

power as provided in the Regulations of the Energy Regulatory Commission on Purchase of Power from Ground Mounted Solar Farm Projects for Applicants for Sale of Power under original Adder System B.E. 2557, as appearing in the Attachment hereto.

4.2 For security of the power system, PEA has the right to examine or to request the Power

Producer to examine, correct, improve, change the Power Producer’s power distribution equipment related to PEA’s power system at any time as necessary. PEA, however, reserves the right to add in subsequent time the equipment to PEA’s power system and Power Producer’s power plant in compliance with the technical standards and the power distribution form of PEA, provided that the Power Producer shall be responsible for all expenses.

4.3 The application form for sale of power and the power system connection together with

supporting documents and the documents specified in clause 4.1 shall be deemed part of this Agreement. If any provisions in the Attachment and this Agreement are in discrepancy, the provisions of this Agreement shall prevail.

4.4 Each party shall give advance notice to the other party if there is any change in its power

system affecting the protective equipment in the power systems of each party. No action shall be taken on the connection equipment without prior written notice to PEA.

4.5 The Power Producer connecting the power system of PEA shall comply with safety standards

and power system connection standards under clause 4.1, and shall comply with requirements for the power network system of PEA currently applicable. The Power Producer shall examine the power distribution system, the controlling and preventive system and the communication system in good working condition after the purchase and sale of power, and results of the examination shall be submitted to PEA for consideration on a yearly basis. However, PEA reserves the right to dispatch its officers to participate in the examination at the stage of annual maintenance in connection with the Power Producer for security and safety of the power system, the operators of PEA and the power producers. Where necessary, PEA has the right to examine or to request the Power Producer to examine, correct, improve, change the Power Producer’s power distribution equipment related to the power system of PEA at any time as necessary.

4.6 The Power Producer and PEA are required to install the damage preventive equipment of the

power system under the Requirements for the Power Network System then applicable. If damage is caused by defects of the power system equipment or other damage is caused by either party, that party is required to be responsible for such damage.

5. Expense The Power Producer shall be responsible for the expenses in the power system connection, the equipment examination and related expenses under clauses 20 and 22 of Regulations of the Energy Regulatory Commission on Purchase of Power from Ground Mounted Solar Farm Projects for Applicants for Sale of Power under original Adder System B.E. 2557, and other related expenses as

328363_17.doc 17

prescribed by PEA. Such expenses must be paid in full before connection to the power network system of PEA. 6. Control and Operation of Power Plant 6.1 The Power Producer connecting at a voltage of 22 kilowatts or more shall strictly comply

with the Switching Order of PEA for the purpose of operation and maintenance, except in case where damage to life and property of any party may be caused.

6.2 The Power Producer shall permit PEA to enter its premise to install, perform, maintain,

change and/or move the power system connection equipment upon notice to the owner or possessor of the premise.

6.3 If damage occurs to the power network system and/or the third party caused by the act of the

connector, the connector shall be liable to such damage. 7. Calculation of Power Purchase and Payment 7.1 The Feed-in-Tariff (FiT) for the power energy quantity not exceeding the Capacity Factor

shall be calculated at Baht 5.66 per unit. For the power energy quantity in excess of the Capacity Factor of 16 per cent, the Feed-in-Tariff shall be equivalent to the average wholesale power purchase rate at a voltage of 11 – 33 kilovolts (average wholesale rate in 12-month period) which the Electricity Generating Authority of Thailand sells to PEA plus the Average Wholesale Fuel Adjustment Charge (Average wholesale Ft in 12-month period). However, such power purchase rate must not exceed the FiT of 5.66 baht per unit. If the power energy quantity is purchased in the first year and the last year of the Power Purchase Agreement in less than full calendar year, FiT at 5.66 baht per unit shall apply without applying the Capacity Factor.

7.2 If PEA defaults on payment of debt within 30 days of the date PEA receives an invoice, PEA allows the Power Producer to charge interest on the unpaid amount at the rate equal to the currently-applicable interest rate on loan Krung Thai Bank Plc charges to its prime customers, from the defaulting date until payment is made in full. However, the interest rate to be paid to each other shall not exceed fifteen percent (15%) per year.

8. Security or Enforcement of Security to Pay Debt The Power Producer has delivered to PEA the security on form prescribed by PEA. PEA may return or seize the security, or enforce the security to pay debt, as follows: 8.1 If the Power Producer has a complete Installed Capacity Size and is able to distribute power

into the commercial operation system within the SCOD, PEA shall return the security to the Power Producer within 15 business days from a business day following the date on which the Power Producer commences the purchase and sale of power (COD).

8.2 If the Power Producer fails to distribute the power within the SCOD for any reason, PEA shall

charge the penalty at the rate of 1.11 per cent per day of the security amount from the day following the SCOD until the date the Power Producer is able to commence the purchase and sale of power with PEA, except for force majeure events. If the penalty has been charged in full of the security amount, the Power Purchase Agreement shall be deemed terminated.

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If the penalty charged until 31 December 2015 is still less than the value of the security and the Power Producer is not yet able to commence the purchase and sale of power, PEA shall forfeit the security remaining from the penalty, and the Power Purchase Agreement shall be deemed terminated.

8.3 If the Power Producer is able to distribute the power after the SCOD and has to pay the

penalty under the first paragraph or other costs, PEA shall return the Security as follows: (1) Return the remainder of the security within 15 business days after deduction of

penalty or other costs; (2) Return the security within 15 business days from the day following the date PEA has

received the penalty or other costs in full from the Power Producer or the security issuer prior to enforcement of such security through court.

8.4 If the Power Producer or the security issuer fails to pay penalty and other costs caused by the

Power Producer’s failure to satisfy the conditions for the power distribution into the system correctly and completely as designated by PEA, or the Power Producer who has been considered but fails to execute the Power Purchase Agreement agreed upon under the negotiation procedure, through the fault of the Power Producer, PEA shall forfeit the security. However, if a new act amending the Civil and Commercial Code concerning the suretyship is effective, the Power Producer must place a new suretyship agreement containing the conditions consistent to the new provisions of law on form which will be later prescribed by the Procurement Committee or PEA as security in place of the existing one within 15 days of the date a written notice is received from PEA. If any event occurs, causing change to the security, the Power Producer must deliver to PEA the new security agreement as prescribed by PEA within 15 days of the date a written notice is received from PEA.

9. Force Majeure 9.1 “Force Majeure” means any event the happening or pernicious results of which could not be

prevented even though a person against whom it happened or threatened to happen were to take such appropriate care as might be expected from a person in his position and situation, and includes any one or several of the following events: (1) Government’s act, such as a change in the energy policy, a change in law which

prevents the parties to the Agreement to comply with any clause of the Agreement; (2) Blockade or warlike act of the enemy, be it declared or undeclared; (3) Uprising, rebellion, riot, espionage, sabotage, strike, lockout under labor law, any

eviction, accident, earthquake, storm, fire, flood, epidemic, unusual harsh weather, explosion;

(4) Interruption in the power distribution system caused by an accident thereto or to other

related equipment in connection to the power system; (5) Seizure of the power plant, property or any right, share or interests from the Power

Producer by a state agency or act of a state agency which will severely affect the power plant of the Power Producer or the performance of duties of the Power Producer under the Power Purchase Agreement.

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9.2 If any party fails to comply with this Agreement caused by force majeure events under clause 9.1, such party shall not be deemed to have breached the Agreement, and the other party shall not claim any damages.

9.3 The party raising the force majeure event shall:

(1) notify the other party of the event as soon as practicable, together with information

and details of the event and time for remedy; (2) pay the expense, and actively take a remedial action to end the event soon. However,

such action must be possible for such party to take. 10. Dispute 10.1 The Power Producer encountering problems from compliance with the Regulations for

Purchase of Power and/or the Power Purchase Agreement shall file the matter in writing with the Energy Regulatory Commission by forwarding the same to the Chairman of the Energy Regulatory Commission at the place where the Energy Regulatory Commission Office is situated.

10.2 Where there is reasonable cause to decide the problem of compliance with the Power

Purchase Agreement, ERC shall decide the problem, and the decision of ERC shall be deemed final.

10.3 If the Power Producer is dissatisfied with the decision of ERC, the problem shall be decided

by the Thai court. 11. Other Provisions Where there is an amendment to, and/or an issuance of, any regulation, notification, condition, rule, resolution of the National Energy Policy Council additionally from those prescribed at the time of the Agreement, such additional amendment or issuance shall be deemed part of this Agreement. This Agreement is made in two originals having the same contents. The parties, having thoroughly read and understood the contents herein, have hereunder affixed their signatures with the seals (if any) affixed. Each copy is retained by each party. Power Producer Signed Power Producer ( ) Title Signed Witness ( ) Title

Provincial Electricity Authority Signed Provincial Electricity Authority ( ) Title Signed Witness ( ) Title

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Attachment 2

Power Purchase Agreement from Ground Mounted Solar Energy

for Government Agencies and Agricultural Cooperatives Agreement No.

This Agreement is made at Provincial Electricity Authority, no. 200 Ngamwongwan Road, Latyao Sub-District, Chatuchak District, Bangkok 10900 on between Provincial Electricity Authority by , authorized person (Power of Attorney no. dated ), main office located at no. 200 Ngamwongwan Road, Latyao Sub-District, Chatuchak District, Bangkok 10900, hereinafter referred to as “Power Purchaser” on one part and registered with Bangkok Partnerships and Companies Registration Office No. Road Tambon/Kwaeng Amphoe/Khet Province by , an authorized person who signs to bind the juristic person, per a certificate of incorporation of from Partnerships and Companies Registration Office, dated (and Power of Attorney dated )* attached hereto, main office located at no. , authorized person/attorney-in-fact, per the Power of Attorney dated attached hereto, hereinafter referred to as “Power Producer” on the other part. The parties agree to purchase and sell power with terms and conditions as follows: Definitions “SCOD” means Scheduled Commercial Operation Date: SCOD “COD” means Commercial Operation Date: COD “ERC” means Energy Regulatory Commission 1. Agreements on Purchase and Sale of Power 1.1 Power Purchaser agrees to purchase and Power Producer agrees to sell ground-mounted solar

power for government agencies and agricultural cooperatives at Circuit No. where the power purchase circuit is located, at maximum power energy of megawatts (MWp) (calculated basing on the total maximum capacity of photovoltaic panel using the same circuit and having the same purchase point, and not exceeding the maximum installed capacity required) at voltage of 22 kilovolts, and details of the power generating system shall be as specified in the application for sale of power and the power system connection, provided that the SCOD shall be within .

1.2. The Power Purchase Agreement shall have a term of 25 years, provided that the

term shall be counted as follows, as the case may be:

1.2.1 If the Commercial Operation Date (COD) is before the SCOD as specified in the Power Purchase Agreement, the 25 year-term of the Power Purchase Agreement shall be counted from the Commercial Operation Date (COD).

1.2.2 If the Commercial Operation Date (COD) is on the SCOD as specified in the Power

Purchase Agreement, the 25 year-term of the Power Purchase Agreement shall be counted from the SCOD specified therein.

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1.2.3 If the Commercial Operation Date (COD) is after the SCOD as specified in the Power Purchase Agreement, the 25 year-term of the Power Purchase Agreement shall be counted from the SCOD specified in the Power Purchase Agreement, without affecting the ending date of the power sale specified in the Power Purchase Agreement.

The power shall, however, be purchased on the COD. Before the COD, Power Producer shall present such licenses as required by law to Power Purchaser.

1.3 If Power Producer expects that it is unable to distribute power into the system as specified

therein on the SCOD, and wishes to request to extend the SCOD, it shall notify Power Purchaser of its intention in writing at least 30 days prior to expiry of the SCOD. Power Purchaser will consider to extend the SCOD based on readiness of 4 (four) aspects: land, technology, sources of fund and permission under relevant laws, within 30 (thirty) days. However, Power Producer is able to request for an extension of the SCOD, but not exceeding 30 December 2016 , without affecting the ending date of the power sale as specified in Clause 1.2.3. However, the consideration to extend the said SCOD must be approved by ERC as well.

2. Effective Term of Agreement This Agreement shall be effective from the date hereof, and its effective term shall be subject to the conditions specified in Clause 1. 3. Annexes which form part of the Agreement The following Annexes hereto shall be deemed part of the Agreement: Annex 1 Regulations of the Energy Regulatory Commission Governing Purchase of Power

from Ground Mounted Solar Power Project for Government Agencies and Agricultural Cooperatives B.E. 2558.

Annex 2 Regulations of the Energy Regulatory Commission Governing Purchase of Ground

Mounted Solar Power Project for Government Agencies and Agricultural Cooperatives (No.2) B.E. 2558.

Annex 3 Regulations of the Energy Regulatory Commission Governing Purchase of Ground

Mounted Solar Power Project for Government Agencies and Agricultural Cooperatives (No.3) B.E. 2559.

Annex 4 Notification of the Energy Regulatory Commission Re: Purchase of Ground Mounted

Solar Power Project for Government Agencies and Agricultural Cooperatives B.E. 2558.

Annex 5 Notification of the Energy Regulatory Commission Re: Purchase of Ground Mounted

Solar Power Project for Government Agencies and Agricultural Cooperatives (additional) B.E. 2558.

Annex 6 Notification of the Energy Regulatory Commission Re: List of Ground Mounted

Solar Power Projects for Government Agencies and Agricultural Cooperatives Passing Selection and Having Right to Execute Agreement with Electricity Authority.

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Annex 7 Form of Application for Sale of Power and Connection to Power System, and All Documents Agreed upon in Writing by the Parties to the Agreement before Executing the Agreement.

Annex 8 A copy of the List of Shareholders issued on . If the provisions in the Annexes to the Agreement are inconsistent or different among themselves, or are inconsistent to or different from the Agreement, ERC shall decide. The decision of ERC shall be final. Power Producer shall comply with ERC’s decision and shall have no right to claim damages or any expense from ERC or Power Purchaser. 4. Safety Standard and Power System Connection 4.1 For security of Power Purchaser’s power system, Power Purchaser shall, at any time as

necessary, have the right to examine or request Power Producer to examine, correct, improve the power distribution equipment of Power Producer related to the power system of Power Purchaser. However, Power Purchaser reserves the right to later add equipment both to the distribution system of Power Purchaser and the power plant of Power Producer in compliance with technical standards and forms of power distribution of Power Purchaser.

4.2 Power Producer shall notify Power Purchaser in advance if there is any change in its power

system, which may affect the preventive equipment in the power systems of both parties. Any act relating to the connection equipment is prohibited, unless the prior written notice is given to Power Purchaser and the written consent is obtained from Power Purchaser.

4.3 Power Producer who connects the power system of Power Purchaser must comply with the

safety standards and the power system connection standards under Clause 4.1, and must comply with the current applicable requirements for the power network system of Power Purchaser. Power Producer shall, after the purchase and sale of power, examine the power distribution system, the controlling and preventive system as well as the communication system to be in good working condition. The result of examination must be sent to Power Purchaser for consideration on a yearly basis. However, Power Purchaser reserves the right to send the official to participate in the examination at the stage of the annual equipment maintenance in connection with Power Producer for security of the power system and safety of operators of both Power Producer and Power Purchaser. Where it is necessary, Power Purchaser shall have the right to examine or request Power Producer to examine, correct, improve the power distribution equipment of Power Producer related to the power system of Power Purchaser at any time.

4.4 Power Producer and Power Purchaser shall install the damage-preventive equipment of the

power system according to the applicable requirements for the power network system. If damage occurs caused by fault of equipment of the power system or other causes of damage by any party, such party shall be responsible for such damage.

4.5 Any act relating to the safety standards and the power system connection of Power Producer

in compliance with the order of Power Purchaser shall not release Power Producer from liability to damage caused by power production to Power Producer, its subordinates, employees or third persons.

4.6 In connecting the power system and examining the equipment by Power Purchaser, Power

Producer shall solely bear the costs, however, in compliance with the rules, procedures and conditions specified in the Regulations of the Energy Regulatory Commission, Annexes 1-3 hereto.

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5. Control and Operation of Power Plant 5.1 For Power Producer who produces power at a voltage of 22 kilovolts or more,

the switching order of the Distribution Center of Power Purchaser must be strictly observed for the purpose of operation and maintenance, except for the case where damage may be caused to life or property of any party.

5.2 Power Producer shall allow Power Purchaser to enter its premise in order to install, operate,

maintain, change and/or move the power connection equipment upon notice to the owner or the possessor of the premise.

5.3 If damage to the power network system and/or a third person is caused by the connection,

Power Producer shall be responsible therefor. 5.4 Power Producer shall be prohibited to sell into the system the power energy generated from

sources other than the Ground Mounted Solar Power for Government Agencies and Agricultural Cooperatives under this Agreement, and shall be prohibited to increase capacity from that specified in the Power Purchase Agreement. If Power Producer is found to violate, it shall be deemed to have breached the Agreement and Power Purchaser shall have the right to terminate the Agreement forthwith. Power Producer accordingly may be subject to a legal action, both civil and criminal, without a claim for any damage from Power Purchaser, and Power Purchaser will charge a fine at the rate of Baht 5,000 per maximum kilowatt of the capacity specified in Clause 1.1.

5.5 Power Producer shall adjust a power factor of the generator according to the rate specified by

Power Purchaser, which must be adjustable from leading 0.9 to lagging 0.9 or better in order to control or maintain voltage quality and efficiency of the power network system. However, the power factor specified by Power Purchaser may be changed as needed by the power network system at each period.

5.6 Power Producer who has signed the Power Purchase Agreement shall be prohibited to change

the circuit of the purchased power, and shall be prohibited to change the size of installed capacity exceeding that specified in the application, unless written consent is obtained from Power Purchaser with approval of ERC.

5.7 Any act relating to control and operation of the power plant of Power Producer in compliance

with the instructions of the Power Purchaser shall not release Power Producer from liability to damage caused by power production to Power Producer, its subordinates, employees or third persons.

6. Calculation of Power Purchase and Payment 6.1 Rules and calculation of the power energy quantity, prescription of the power energy rates and

payment for the power cost shall be in accordance with the rules, procedures and conditions prescribed in the Regulations of Energy Regulatory Commission, Annexes 1-3 hereto.

6.2 If in any month Power Producer distributes the power energy into the system of Power

Purchaser exceeding the maximum quantity specified in the Power Purchase Agreement, Power Purchaser shall not calculate the power energy cost for Power Producer in respect of the exceeding portion.

6.3 If Power Producer purchases power from Power Purchaser into its production system through

the power meter, Power Purchaser will charge the power energy cost at the rate under the Power Purchase Agreement for Power Consumer according to the voltage connected.

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6.4 If Power Purchaser defaults in payment for a period of 30 (thirty) days of the date Power

Purchaser receives the invoice, Power Purchaser shall allow Power Producer to charge interest on the defaulting amount at the rate equal to the loan interest rate of Krung Thai Bank Public Company Limited charged to their credit-worthy customers at such time from the defaulting date until payment is made in full. However, the interest rate payable shall not exceed fifteen percent (15%) per year.

7. Force Majeure 7.1 “Force Majeure” means any event which will occur or pernicious results of which could not

be prevented even though a person against whom it happened or threatened to happen were to take such appropriate care as might be expected from a person in his position and situation, and shall include any of the following events: (1) A governmental act such as a change in the energy policy, a change in law which

causes any party to be unable to comply with any agreement; (2) Blockage or act of enemy in a manner of war, whether declared or not; (3) Uprising, riot, turbulence, espionage, sabotage, strike, lock out under labour laws,

eviction of any right, accidence, earthquake, storm, fire, flood, epidemic, unusual extreme weather event and explosion;

(4) Interruption in the power distribution system caused by an accident to the power

distribution system or other equipment related to power system connection; (5) Project, property or any right, shares or any benefits of Power Producer have been

seized by a government agency, or an act of a government agency which severely affects the power production or the performance of obligations of Power Producer under the Power Purchase Agreement.

7.2 In case where either party remains able to perform under this Agreement, the party who refers

to the force majeure under Clause 7.1 and such force majeure ends before the SCOD, shall notify the other party of such event together with details thereof within 15 (fifteen) days of the date such force majeure occurs and the date such force majeure ends, and shall request the extension of period for performance of the Agreement as required to remedy damage caused therefrom. The party referring to the force majeure under Clause 7.1 shall, at its own costs, endeavor to seriously remedy and end such force majeure as soon as practicable. The period for performance of the Agreement shall be extended equally to the period of which the force majeure occurs and period of remedying the force majeure, unless the party having the right to extend the period no longer wishes to extend.

7.3 In case the force majeure under Clause 7.1 ends after the SCOD, this Agreement shall be

deemed terminated through no fault of any party, and damage therefrom shall not be claimed from the other party.

8. Assignment of Rights in Agreement Power Producer shall be prohibited to assign rights and obligations under the Power Purchase Agreement to other person, unless written consent is obtained from Power Purchaser under the rules prescribed by Power Purchaser with approval of ERC.

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In case that Power Producer is a juristic person, no change shall be made in the number of shareholders to cause the original shareholders under the Power Purchase Agreement to be less than one half, and no change shall be made in the number of shares held by original shareholders which causes them to hold less than 51 per cent of total number of shares until the Power Producer will have distributed the power into the commercial system (COD) for a period of 3 (three) years. 9. Settlement of Dispute If a dispute arises from compliance with the Power Purchase Agreement or the regulations for purchase of power, the decision power shall be vested in ERC which shall be deemed final. If Power Producer is dissatisfied with the decision of ERC, it shall file a legal action with Thai court. The dispute under paragraph one shall be referred to the Chairman of ERC at the place where ERC Office is situated. 10. Termination of Agreement The Agreement shall terminate upon: (a) Power Purchaser receives a written termination notice from Power Producer; (b) Any party terminates the Agreement due to the other party’s failure to comply with any clause

of the Agreement.

11. Notices and Delivery of Documents Correspondences, demands, notices or any other letters delivered to the party to the Agreement by any means shall, if delivered to the address specified in this Agreement, be deemed to have been delivered to the party and duly received by such party, unless the party to the Agreement has clearly served a written notice of change in the contact domicile on the other party through a designated representative of each party, or by a registered mail with return receipt requested, or by fax, prior to the said correspondence, demand, notice or any other letter is delivered, and the party shall be deemed have duly acknowledged the notice of change in the domicile. This Agreement is made in two originals having the same contents. The parties, having thoroughly read and understood the contents of the Agreement, have hereunder affixed their signatures with the seal affixed (if any) in the presence of witnesses. Each copy is retained by each party as evidence. Power Producer (Signed) Power Producer

Power Purchaser (Signed) Power Purchaser

(Signed) Witness

(Signed) Witness

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Attachment 3

Slides of Dr. Karnnalin Theerarattananoon

from Department of Alternative Energy Development & Efficiency,

Ministry of Energy Thailand on 3 September 2015

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Attachment 4 Slides of Dr. Yaowateera Achawangkul from Department of Alternative Energy Development &

Efficiency, Ministry of Energy Thailand on 2 March 2017

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