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ERC cancelled 31 Projects of ERC Sandbox Phase 2

The Office of the Energy Regulatory Commission (ERC) has cancelled 31 Projects of ERC Sandbox Phase 2 due to the amount of installed power generation capacity exceeding the criteria and launched the “ERC Sandbox Project (additional)” with an implementation period not exceeding 1 year.

ERC Sandbox Project is a pilot project between ERC and participant for testing a new business model, innovation, system, and service to increasing efficiency & reducing costs of energy services.

ERC launched 34 approved projects under ERC Sandbox Project phase I since 2019 and announced 36 selected projects under ERC Sandbox Project phase II in 2022. However, the total installed capacity of 31 power trading projects is greater than the amount of capacity approved by the National Energy Policy Committee (NEPC). Therefore, it is necessary to cancel the project.

In September 2023, The ERC Sandbox Project (additional) was launched. The project implemented under ERC Sandbox scheme shall be not exceeding 1 year. For the power trading project, the participant can trade not exceeding 3 months and must not receive commercial profits during project implementation. The detail of Project scope can be divided into 5 types as follows:

1. Additional test from the ERC Sandbox Phase I

2. Platform for Trading Service such as trading on Renewable Energy, Carbon credit, and Renewable Energy Certificate (REC).

3. Testing on Smart Grid Innovation, Grid flexibility, new business model, Third-Party Access and Wheeling Charge.

4. Testing on structure of new tariff and new power purchase agreements such as Virtual PPA, Sleeved PPA etc.

5. Model for Green Innovation, Green Regulation.


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