Matter Snapshot
- Client profile: Foreign-capitalized energy project sponsor — renewable generation developer, hydrogen or green-ammonia producer, solar cell or panel manufacturer, ESCO, EV-charging or battery-swapping operator, or waste-to-energy facility.
- Triggering event: Pre-capex BOI classification review ahead of an investment promotion application filed under the 2025 Investment Promotion Guide.
- Core risk: Small factual misalignments — sub-200 kW solar capacity per distribution point, missing Ministry of Energy pre-approval for ESCO, externally sourced solar cells, coal without clean-coal qualification, a landfill project without prior EIA — will move the project into a weaker incentive bucket or out of eligibility entirely, with downstream consequences for CIT period, CIT cap, and shareholding latitude.
- Time sensitivity: Several activities require pre-application approvals (Ministry of Energy for ESCO, EIA from ONEP for landfill hazardous-waste projects, Factory Licence No. 101 for water-from-waste). These sit in the critical path and must be sequenced before the BOI filing, not after.
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.
BOI Incentive Group Reference
Before examining individual activities, it is essential to understand the incentive group framework applied across all promoted activities:
| Group | CIT Exemption Period | CIT Cap | Import Duty on Machinery |
|---|---|---|---|
| A1+ | 10–13 years | None (unlimited) | Exempt |
| A1 | 8 years | None (unlimited) | Exempt |
| A2 | 8 years | 100% of eligible investment | Exempt |
| A3 | 5 years | 100% of eligible investment | Exempt |
| A4 | 3 years | 100% of eligible investment | Exempt |
| B | None | — | Exempt (machinery only) |
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).
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.
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.
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.
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.
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.
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.
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.
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:
- Project must employ electrolysis of water as the production process.
- 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.
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.
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.
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.
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.
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.
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.
7.1.11 — Manufacture of Refuse Derived Fuel (RDF)
Incentive Group: A2 CIT Exemption: 8 years, with cap
Key Conditions:
- Project must be located in an industrial estate or promoted industrial zone, except where no thermal smelting or burning processes are involved.
- Unwanted materials (feedstock) must originate from domestic sources only.
- Project must employ a modern production process as approved by the Board.
Source: BOI Investment Promotion Guide 2025, p. 106, Activity 7.1.11.
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.
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.
3.17.1 — Electric Vehicle Charging Station
Incentive Group: A3 or A4 CIT Exemption: 5 years (A3) or 3 years (A4)
Key Conditions:
- Project must submit a procurement plan for equipment and parts.
- 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.
- 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.
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.
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):
| Zone / Programme | Additional CIT Exemption | Notes |
|---|---|---|
| BOI-promoted industrial estates / zones | +1 year | All eligible activity groups |
| 20 low-income provinces (e.g., Kalasin, Buriram, Nakhon Phanom) | +3 years; or 50% CIT reduction for 5 years (A1/A2) | After base CIT exemption expires for A1/A2 |
| Special Economic Zones (SEZ) | Up to 8 additional years (A1/A2) | Location-dependent |
| Eastern Economic Corridor (EEC) | Varies; max 13 years total | EEC-specific rules apply |
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.
Consolidated Reference Table — Energy-Related Eligible Activities
| Activity No. | Description | Incentive Group | CIT Exemption | Key Condition Summary |
|---|---|---|---|---|
| 7.1.1 | Electricity/steam from garbage/RDF | A1 | 8 yrs, no cap | — |
| 7.1.2 | Electricity/steam from renewable energy (solar, wind, biomass, biogas) | A2 | 8 yrs, with cap | Solar ≥200 kW per distribution point |
| 7.1.3 | Electricity/steam from hydrogen | A2 | 8 yrs, with cap | — |
| 7.1.4 | Electricity/steam from other sources | A4 | 3 yrs, with cap | Cogeneration or clean coal required |
| 7.1.5 | Water/steam production from waste | A2 | 8 yrs, with cap | Factory Licence No. 101 required |
| 7.1.7 | Energy Service Company (ESCO) | A1 | 8 yrs, no cap | Ministry of Energy pre-approval required |
| 7.1.11 | Manufacture of Refuse Derived Fuel (RDF) | A2 | 8 yrs, with cap | Industrial estate location; domestic feedstock |
| 7.1.12 | Waste treatment or disposal | A2 | 8 yrs, with cap | EIA approval required for landfill projects |
| 6.1.1.1 | Green hydrogen/green ammonia (electrolysis + renewable energy) | A1 | 8 yrs, no cap | Water electrolysis; zero CO₂ process |
| 6.1.1.2 | Hydrogen via hydrocarbons/fossil fuels | A2 | 8 yrs, with cap | CCS/CCU technology mandatory |
| 4.2.12.1 | Manufacture of solar cells and/or raw materials | A2 | 8 yrs, with cap | BOI-approved process and energy yield |
| 4.2.12.2 | Manufacture of solar panels (from in-project cells) | A2 | 8 yrs, with cap | Vertical integration required; BOI-approved yield |
| 3.17.1 | EV charging station | A3/A4 | 5 yrs / 3 yrs | A3 requires ≥40 chargers, ≥25% DC |
| 3.17.2 | EV battery swapping station | A3 | 5 yrs, with cap | No import duty exemption on batteries |
Immediate Actions
- Map the project to a single BOI activity code under the 2025 Guide before fixing shareholding, capex, or equipment procurement. For mixed projects (e.g., manufacturing plus captive power, or hydrogen plus ammonia), split the components and classify each one — do not assume the highest-tier activity carries the rest of the project.
- Audit the technical thresholds that determine the incentive bucket. Solar ≥ 200 kW per distribution point; EV-charging ≥ 40 chargers with ≥ 25% DC for A3; green-hydrogen electrolysis with zero-CO₂ process; vertical integration for solar panels from in-project cells. A miss on any of these drops the project to a weaker tier.
- Obtain prerequisite approvals before filing the BOI application. Ministry of Energy pre-approval for ESCO (7.1.7); Factory Licence No. 101 for water-from-waste (7.1.5); EIA from ONEP for landfill-based hazardous waste (7.1.12). These cannot be cured retroactively — the application will either be rejected or slotted into a weaker incentive bucket.
- Layer area-based and merit-based uplifts deliberately, not opportunistically. Industrial-estate (+1 year), low-income provinces (+3 years or 50% CIT for 5 years), SEZ (up to +8 years for A1/A2), EEC (max 13 years total), and the Competitiveness Enhancement incentive (up to +5 years with R&D thresholds) all stack under documented rules. Model them against the base incentive before making site-selection and R&D-budget decisions.
- Instrument evidence of eligibility from day one. Technical process documentation, renewable-energy sourcing records, battery-import tracking, R&D expenditure ledger — all of these feed back into the CIT exemption claim and the Competitiveness Enhancement extension. Build the file contemporaneously, not retrospectively at audit.
FAQ
<!-- FAQ authoring note (parser rules in lib/generate-schema.ts): - Use **Q<n>. ...** / **A<n>. ...** with a ".", ":", ")", or "：" separator. - Do NOT use --- inside this section; it terminates FAQ parsing. - End the FAQ with ## Sources, not a horizontal rule. -->Q1. We are developing a solar project below 200 kW per distribution point. Can we still rely on Activity 7.1.2?
*A1. 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.)
Q2. We want 100% foreign ownership for an energy project in Thailand. Does BOI usually make that possible?
*A2. 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.)
Q3. Our project combines green hydrogen production with fossil-based inputs. Which incentive bucket should we model?
*A3. 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.)
Q4. We plan to add serious R&D spending after approval. Can that extend the tax holiday?
*A4. 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.)
Sources
| Document | Publisher | Date | URL |
|---|---|---|---|
| BOI Investment Promotion Guide 2025 | Office of the Board of Investment, Thailand | January 2025 | https://osos.boi.go.th/download/BOI_PDF/BOI_A_Guide2025_EN.pdf |
Lexcelsiam Note
This material is for general information only and does not create a lawyer-client relationship. Classification under the 2025 BOI Investment Promotion Guide is fact-specific — small differences in technical configuration, procurement, prerequisite approvals, or vertical integration can move a project between incentive groups (A1 vs A2 vs A3 vs A4) or out of eligibility entirely. Where the outcome depends on activity coding, equipment specification, stacked incentive layering, or the sequencing of Ministry of Energy / Factory Licence No. 101 / EIA approvals ahead of the BOI application, a matter-specific legal and technical review is required before capital is committed.
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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