Thailand BOI 2025 Investment Incentives: Energy Sector Eligible Activities

TL;DR / Summary

• Thailand's 2025 BOI guide gives energy projects a wide incentive spread, from 3-year capped CIT relief to 8-year uncapped A1 incentives for selected activities such as RDF energy, ESCO projects, and green hydrogen.
• The classification turns on technical facts, including project type, process design, solar capacity thresholds, Ministry of Energy approvals, and whether carbon capture or in-project manufacturing is required.
• Investors should map the project against the official activity code before fixing shareholding, capex, and licensing strategy, because a small factual mismatch can move the project into a weaker incentive bucket.

Introduction

Thailand's Board of Investment (BOI) continues to position the Kingdom as a regional hub for clean and sustainable energy investment under its Five-Year Investment Promotion Strategy (2023–2027). The strategy directs promoted activities toward three core economic objectives—Innovative, Competitive, and Inclusive—with the energy sector receiving significant attention under Section 7: Public Utilities and related cross-cutting categories.

This article consolidates all energy-related eligible activities from the BOI Investment Promotion Guide 2025 (published January 2025 by the Office of the Board of Investment, available at osos.boi.go.th). All incentive group classifications, conditions, and corporate income tax (CIT) exemption periods cited herein are drawn directly from that official source.

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BOI Incentive Group Reference

Before examining individual activities, it is essential to understand the incentive group framework applied across all promoted activities:

All groups receive non-tax incentives including: permission to own land, permission to bring in skilled foreign workers and experts, permission to remit foreign currency abroad, and permission for foreign nationals to enter Thailand for investment study purposes.

Source: BOI Investment Promotion Guide 2025, pp. 13–15, Office of the Board of Investment (January 2025).

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Main Content

Section 1 — Electricity Production from Renewable Energy (Activity 7.1)

Located under Section 7: Public Utilities (supervised by Investment Promotion Division 3), these activities are among the most strategically prioritised in the 2025 guide.

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7.1.1 — Electricity/Steam from Garbage or Refuse Derived Fuel (RDF)

Incentive Group: A1 CIT Exemption: 8 years, no cap

Projects producing electricity, or combined electricity and steam, using garbage or refuse derived fuel (RDF) qualify for the highest non-capped incentive tier.

• No additional special conditions are specified beyond the standard BOI investment promotion criteria.
• This activity supports Thailand's national circular economy and waste-to-energy policy framework.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.1.

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7.1.2 — Electricity/Steam from Renewable Energy (Solar, Wind, Biomass, Biogas, etc.)

Incentive Group: A2 CIT Exemption: 8 years, with cap (100% of eligible investment)

This activity covers production of electricity or combined electricity and steam from renewable energy sources, including: solar energy, wind energy, biomass, biogas, and other renewable sources—excluding garbage or refuse derived fuel (covered separately under 7.1.1).

Key Condition:

• For solar energy projects specifically, the installed solar cell capacity must be not less than 200 kilowatts (kW) per power distribution point.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.2.

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7.1.3 — Electricity/Steam from Hydrogen

Incentive Group: A2 CIT Exemption: 8 years, with cap (100% of eligible investment)

Projects producing electricity or combined electricity and steam using hydrogen as fuel are eligible under this activity. This reflects Thailand's growing policy interest in hydrogen as an energy carrier, particularly in the context of the national decarbonisation roadmap.

• No additional special conditions beyond the standard BOI general criteria.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.3.

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7.1.4 — Electricity/Steam from Other Energy Sources

Incentive Group: A4 CIT Exemption: 3 years, with cap (100% of eligible investment)

Projects using energy sources not covered under 7.1.1–7.1.3 (e.g., conventional thermal sources) must meet at least one of the following conditions:

Key Conditions:

• Project must use a cogeneration system (combined heat and power, CHP); or
• If the project uses coal, it must exclusively use clean coal technology.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.4.

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7.1.7 — Energy Service Company (ESCO)

Incentive Group: A1 CIT Exemption: 8 years, no cap

Energy Service Companies—entities that design, implement, and finance energy efficiency improvements for third-party clients—are promoted under Activity 7.1.7.

Key Condition:

• The project must obtain approval from the Ministry of Energy before submitting the BOI investment promotion application.

This pre-approval requirement means prospective ESCO investors must engage with the Ministry of Energy as a preliminary step in their BOI application process.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.7.

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Section 2 — Hydrogen and Green Chemicals (Activity 6.1.1)

Located under Section 6: Chemical and Petrochemical Industries, activity 6.1.1 addresses hydrogen production as both an industrial chemical and an energy input—a distinction with direct incentive consequences.

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6.1.1.1 — Green Hydrogen and Green Ammonia (from Water via Renewable Energy)

Incentive Group: A1 CIT Exemption: 8 years, no cap

This activity covers the manufacture of green hydrogen and related products such as green ammonia, produced from water through electrolysis powered by renewable energy.

Key Conditions:

1. Project must employ electrolysis of water as the production process.
2. Project must use renewable energy (e.g., solar or wind energy) with zero CO₂ emissions from the production process itself.

Source: BOI Investment Promotion Guide 2025, p. 99, Activity 6.1.1.1.

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6.1.1.2 — Hydrogen via Hydrocarbons or Fossil Fuels (with CCS/CCU)

Incentive Group: A2 CIT Exemption: 8 years, with cap (100% of eligible investment)

Projects producing hydrogen through conventional hydrocarbon or fossil fuel reforming routes (e.g., Steam Methane Reforming, SMR) may qualify if they apply carbon capture technology.

Key Condition:

• Project must use Carbon Capture and Storage (CCS) and/or Carbon Capture and Utilisation (CCU) technology to offset direct CO₂ emissions.

Source: BOI Investment Promotion Guide 2025, p. 99, Activity 6.1.1.2.

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Section 3 — Solar Cell and Panel Manufacturing (Activity 4.2.12)

Located under Section 4: Electrical Appliances and Electronics Industry, this sub-section covers upstream manufacturing in the solar supply chain.

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4.2.12.1 — Manufacture of Solar Cells and/or Raw Materials for Solar Cells

Incentive Group: A2 CIT Exemption: 8 years, with cap (100% of eligible investment)

Key Conditions:

• Project must have a production process as approved by the Board.
• Product must achieve an energy yield as approved by the Board.

Source: BOI Investment Promotion Guide 2025, p. 83, Activity 4.2.12.1.

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4.2.12.2 — Manufacture of Solar Panels from Solar Cells Produced Within the Same Project

Incentive Group: A2 CIT Exemption: 8 years, with cap (100% of eligible investment)

This activity applies only to vertically integrated projects where solar cells are manufactured in the same project as the solar panels.

Key Conditions:

• Project must have a production process and energy yield as approved by the Board.
• The "within the same project" requirement means solar panels manufactured from externally sourced cells would not qualify under this activity.

Source: BOI Investment Promotion Guide 2025, p. 83, Activity 4.2.12.2.

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Section 4 — Waste-to-Energy and Environmental Utilities (Activities 7.1.5, 7.1.11, 7.1.12)

These activities sit at the intersection of energy production and waste management policy.

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7.1.5 — Production of Tap Water, Industrial Water, or Steam from Waste

Incentive Group: A2 CIT Exemption: 8 years, with cap

Key Condition:

• Project must receive a Factory License No. 101 (Central Waste Treatment facility) permit.

Source: BOI Investment Promotion Guide 2025, p. 105, Activity 7.1.5.

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7.1.11 — Manufacture of Refuse Derived Fuel (RDF)

Incentive Group: A2 CIT Exemption: 8 years, with cap

Key Conditions:

1. Project must be located in an industrial estate or promoted industrial zone, except where no thermal smelting or burning processes are involved.
2. Unwanted materials (feedstock) must originate from domestic sources only.
3. Project must employ a modern production process as approved by the Board.

Source: BOI Investment Promotion Guide 2025, p. 106, Activity 7.1.11.

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7.1.12 — Waste Treatment or Disposal

Incentive Group: A2 CIT Exemption: 8 years, with cap

Key Condition:

• In the case of landfill-based projects, only hazardous waste treatment is eligible, and the project must obtain an approved Environmental Impact Assessment (EIA) from the Office of Natural Resources and Environmental Policy and Planning (ONEP) before submitting the BOI application.

Source: BOI Investment Promotion Guide 2025, p. 106, Activity 7.1.12.

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Section 5 — EV Charging Infrastructure (Activity 3.17)

While primarily classified under the Automotive Industry, EV charging infrastructure is a critical enabling layer of Thailand's clean energy transition strategy.

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3.17.1 — Electric Vehicle Charging Station

Incentive Group: A3 or A4 CIT Exemption: 5 years (A3) or 3 years (A4)

Key Conditions:

1. Project must submit a procurement plan for equipment and parts.
2. Project must submit an EV smart charging system development plan or a plan to connect to an EV charging network operator platform or central platform.
3. Project must comply with applicable laws and safety standards from the Ministry of Energy, Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA), or Ministry of Industry.

Incentive Tier Differentiation:

• A3 applies to projects with no fewer than 40 chargers, of which at least 25% are quick-charging DC units.
• A4 applies to all other cases.

Source: BOI Investment Promotion Guide 2025, p. 70–71, Activity 3.17.1.

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3.17.2 — Electric Vehicle Battery Swapping Station

Incentive Group: A3 CIT Exemption: 5 years, with cap

Key Conditions: 1–3. Same procurement, smart charging integration, and regulatory compliance conditions as 3.17.1 above.

Important Note: Batteries imported for use at swapping stations are not eligible for import duty exemption under Section 28.

Source: BOI Investment Promotion Guide 2025, p. 71, Activity 3.17.2.

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Section 6 — Additional Area-Based and Merit-Based Incentives Applicable to Energy Projects

The base incentives described above may be extended or enhanced through BOI's area-based and competitiveness enhancement programmes.

Area-Based Uplift (Additional CIT Exemption Years):

Competitiveness Enhancement Incentive (R&D / Technology): Projects investing in R&D, technology licensing, or advanced technology training at qualifying expenditure thresholds (≥1% of sales or ≥200 million THB in the first three years) may receive up to 5 additional years of CIT exemption, potentially extending the total CIT exemption period to 13 years with no cap for A1 and A2 group activities.

Source: BOI Investment Promotion Guide 2025, pp. 17–27, Additional Incentives and Area-Based Promotion.

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Consolidated Reference Table — Energy-Related Eligible Activities

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FAQ

Q: We are developing a solar project below 200 kW per distribution point. Can we still rely on Activity 7.1.2?

A: Not on the facts stated. Activity 7.1.2 requires solar projects to meet the minimum installed solar cell capacity of 200 kW per power distribution point. If the project falls below that threshold, the incentive position must be reassessed against the exact configuration and any other eligible activity code. (Source: BOI Investment Promotion Guide 2025, p. 105.)

Q: We want 100% foreign ownership for an energy project in Thailand. Does BOI usually make that possible?

A: Often yes, but the answer depends on the promoted activity and any sector-specific licensing rules. The BOI guide states that many activities under List Two and List Three of the Foreign Business Act can proceed without foreign equity restrictions where promotion criteria are met. That does not eliminate the need to confirm any separate energy, utility, or concession approvals. (Source: BOI Investment Promotion Guide 2025, p. 10.)

Q: Our project combines green hydrogen production with fossil-based inputs. Which incentive bucket should we model?

A: You should not assume the higher green-hydrogen tier applies. The guide separates green hydrogen / green ammonia from water electrolysis using renewable electricity from hydrogen produced from hydrocarbons or fossil fuels, with different conditions and incentive groupings. Mixed-process projects need a line-by-line technical review before filing. (Source: BOI Investment Promotion Guide 2025, pp. 83-84.)

Q: We plan to add serious R&D spending after approval. Can that extend the tax holiday?

A: Potentially yes. The competitiveness enhancement incentive can provide up to 5 additional years of CIT exemption if the project satisfies the R&D, technology licensing, or advanced technology training thresholds set by the BOI. Investors should design evidence collection early, because the enhancement depends on documented expenditure and qualifying activities. (Source: BOI Investment Promotion Guide 2025, pp. 17-27.)

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Sources

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Endnotes & Next Steps

The 2025 BOI Investment Incentives reflect Thailand's accelerated transition toward a clean energy ecosystem and aim to modernize its public utilities infrastructure.

Our upcoming client alerts will cover developments in Foreign Business License (FBL) exemptions for clean energy projects, carbon credit trading mechanisms, and related sandbox initiatives, highlighting regulatory directions that reflect Thailand's integration of green technology into its core economy. Businesses operating in the renewable energy and ESG sectors should closely monitor these regulatory updates and prepare to structure their investments to maximize BOI privileges as Thailand moves toward a fully sustainable market.

For tailored advice on BOI applications, investment structuring, and compliance in Thailand's energy sector, please contact our FDI & Compliance team at business@lexcelsiam.com.

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