GPSC and BAAC have joined forces to explore agricultural land areas with potentials for implementation of clean energy, both solar and wind power, along with application of energy innovations. The objectives thereof are to transform Thai agricultural sector into Smart Farming that helps reduce production costs and add values to agricultural products, apply for the Green Farming Certificate from BAAC in the future, and promote Thailand towards the target of Net Zero emissions by 2065. In addition, BAAC has pledged 20 billion baht of new “Green Credit” to sustainably enhance the quality of life of farmers.

Today (22^nd November 2022), Mr. Worawat Pitayasiri, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, has signed a memorandum of understanding on the study and the development of areas for power generation based on clean energy with Mr. Tanaratt Ngamvalairatt, President of the Bank for Agriculture and Agricultural Cooperatives (BAAC). The study in this MOU will emphasize electricity production from clean energy, particularly solar and wind power, on the potential agricultural land areas. With that, the application of clean energy technologies in agriculture will be promoted in addition to BAAC’s special interest rate loan (20 billion baht) “Green Credit” in order to increase the efficiency of power consumption, support Thai agricultural sector to become Smart Farming, and drive Thailand to achieve the target of Net Zero emissions by 2065.

Mr. Worawat mentioned that the term of this MOU is three years and the objective thereof is to explore the potential agricultural land areas under the operation scope of BAAC, in which the implementation of power generation based on clean energy, both solar and wind power, is possible, in the way that the farmers are still able to continue their agricultural careers along with the said implementation. In the meantime, both parties are trying to find out the approaches to apply the clean energy technologies needed for power generation in the agricultural sector. This is all to increase production efficiency, maintain the quality of products as to the standards, and enhance the value of agricultural crops, which will fulfill the ideal concept of sustainable agriculture.

Mr. Tanaratt stated that BAAC has the policy to support agricultural sector to improve production activities that are environmental friendly, which is consistent with the BCG Model. The cooperation with GPSC would open-up opportunities for farmers to gain knowledge in energy management (especially in solar and wind power that is considered major renewable resources in Thailand) and implement technological innovation to increase efficiency, reduce costs and ultimately enhance income stability. BAAC is engaged in transferring knowledge to farmers to improve production processes and agricultural product processing to enhance value creation from top to bottom. In addition, BAAC is committed to provide 20 billion baht of new green credit to support organic agriculture, food safety projects, alternative energy, or environmental and natural resource conservation. To help address climate change, BAAC encourage and support farmers and community in reforestation projects (tree bank), carbon reduction (LESS) and carbon offset activities. Currently, there are 123,845 members from 6,838 communities with 12.4 million trees participating in the tree bank project. Among those members, there are 62 communities that obtained certificates from Thailand Greenhouse Gas Management Organization (TGO) for carbon footprint reduction, which fully support Thailand’s strategic direction to sustainably reduce greenhouse gas emission.

GPSC and BAAC wish to enhance the quality of farmers life by maximizing the land usage, earn extra income from land lease for clean energy production under this program, in addition to the increased income from the application of Smart Farming that helps reduce costs and increase production efficiency. Besides to the aforementioned approaches, the farmers can also apply for Green Farming Certificate in the future in order to certify that their agricultural products are produced by means of clean energy, which is considered a significant part in the development of new generation farmers. Additionally, it is also regarded as a model of learning resources related to the transfer of clean energy knowledge to enhance the value of Thai agricultural products, which is correspondent to BCG Economy Model (bioeconomy, circular economy, and green economy) intended for the sustainability of economy, society, and environment.

Both parties shall establish a joint working group to explore all potential agricultural land areas under the operation scope of BAAC. The experts of GPSC will analyze and assess the feasibility of applying the appropriate energy technologies to support the agricultural sector, for instance, the installation of renewable energy systems (wind power or solar energy) and the use of appropriate energy management technologies to control the supply of electricity into the agricultural operations. The development of this kind will make the agricultural sector of Thailand more modernized and more sustainable, which is in complaint to the change of global energy directions and the National Energy Plan, seeking for more environmentally-friendly energy solutions for all sectors.

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