Legal analysis on bankability of hydro floating solar project in Thailand

Abstract

In comparison to other types of renewable energy projects, hydro floating solar projects are more complicated as public water resources are used as the location of the project but the electricity is generated from solar power. Accordingly, it is unclear whether the operation of the project falls within the definition of water use that is subject to the Water Resources Act B.E.2561(2018) or not. Several interpretations on the definition of water use in Section 4 of this Act may cause challenges in the bankability of the project. In order to fund the project, the project company generally relies on the loan from financial institutions. The presence of uncertainty in the rights that the project company triggers the problem in the bankability of the project. This thesis will address the criteria that the financial institutions take into consideration, analyze the laws in Thailand that are relevant to the project and compare the law regulating public water resources in Thailand with those in Japan and Australia. Ultimately, the recommendation will be provided to facilitate the bankability of hydro floating solar project in Thailand.