Overview

Thailand’s energy sector is diverse, integrating a mix of traditional and renewable energy sources to meet its growing energy needs. As a developing country, Thailand has seen rapid industrial growth, leading to increased energy consumption. The country relies on a mix of natural gas, imported oil, coal, hydroelectric power, and renewable energy sources to fuel its economy. Thailand’s energy policy focuses on enhancing energy security, promoting renewable energy, and reducing greenhouse gas emissions.

Institutions and Energy Policy

• Ministry of Energy: The key government body responsible for energy policy formulation and implementation. It oversees the country’s energy strategy, including energy conservation, renewable energy development, and energy market regulation.
• Energy Policy and Planning Office (EPPO): Plays a crucial role in planning and policy guidance for the country’s energy sector.
• National Energy Policy Council (NEPC): Sets broad energy policy directions, aiming to ensure energy security, economic competitiveness, and environmental sustainability.

Recent policies have emphasized the transition towards a low-carbon economy, with the Thailand Integrated Energy Blueprint (TIEB) outlining strategies across all energy-related sectors.

Thailand has revised its emissions reduction objectives and announced targets for achieving net-zero greenhouse gas emissions by 2065 and carbon neutrality by 2050. This commitment necessitates a substantial transformation of the power sector, which is a significant contributor to the country’s emissions. The focus is on decarbonizing the power sector by integrating more wind and solar photovoltaic (PV) into the system, supported by analyses on how to efficiently integrate these variable renewable energy sources

Progress in Energy Transition

• Over the past year, Thailand has seen notable progress in its energy transition, exceeding expectations in key areas such as the reliance on liquefied natural gas (LNG), the deployment of renewable energy projects, and the development of an electric vehicle (EV) ecosystem. These developments underscore the nation’s commitment to transforming its energy sector through legislative, regulatory, and policy initiatives aimed at guiding the energy transition forward​​.

Renewable Energy Initiatives

• Prime Minister Srettha Thavisin has pledged to enhance the share of renewable energy within Thailand’s power generation mix. The goal is to cut emissions by 30-34 percent by 2030 and increase the renewable energy share to over 50 percent by 2037, up from a previous target of 20 percent. This includes the implementation of a Power Purchase Plan aiming to add 5 gigawatts of renewable energy, thereby doubling wind and solar capacity. Initiatives also focus on promoting solar rooftop usage and increasing domestic EVs​​.

Incentives and Collaboration for Green Transition

• The Thai government is promoting renewable energy and energy efficiency through incentives and programs. This includes an eight-year corporate income tax exemption for companies engaged in hydrogen production and the promotion of clean energy practices to mitigate environmental impact. The discussion at the “Pioneer the Possible” conference, organized by the Embassy of Sweden, Business Sweden, and Sasin School of Management, highlighted the importance of government promotion, knowledge sharing, technology transfer, and international cooperation in advancing sustainable practices​

Energy Companies

• PTT Public Company Limited: The largest state-owned enterprise in the energy sector, involved in upstream oil and gas exploration and production, downstream petroleum refining, and petrochemical products.
• Electricity Generating Authority of Thailand (EGAT): The main power producer, responsible for electricity generation and transmission.
• Bangchak Corporation Public Company Limited and Thai Oil Public Company Limited: Other key players in the refining and petrochemical sector.
• The renewable energy sector includes companies like B.Grimm Power and Siam Solar Energy.

Energy Supply

Thailand’s energy supply primarily relies on natural gas, coal, and oil. Natural gas is the dominant fuel for power generation, followed by coal. Renewable energy sources, including solar, wind, biomass, and hydroelectric power, are gradually increasing their share in the energy mix.

Energy Prices

Energy prices in Thailand are influenced by global oil and gas prices, government subsidies, and taxation policies. The country has been working towards a more market-based pricing mechanism, especially for electricity and natural gas, to reflect actual costs and promote energy efficiency.

Energy Consumption

The industrial sector is the largest energy consumer, followed by the transportation and residential sectors. Electricity consumption has been growing steadily, driven by economic growth, urbanization, and increased access to electrical appliances.

Issues and Prospects

• Issues: Thailand faces challenges in reducing its dependence on imported energy, managing environmental impacts of energy production, and ensuring affordable energy access to all citizens.
• Prospects: The focus is on increasing the renewable energy share in the energy mix, improving energy efficiency, and investing in smart grid and energy storage technologies to enhance energy security and sustainability.

Looking Ahead

Thailand’s energy sector is undergoing a significant transformation, with a strong emphasis on renewable energy, energy efficiency, and the development of a supportive ecosystem for clean technologies. The country’s ambitious targets and policy initiatives signal a robust commitment to a sustainable and low-carbon future. These efforts are not only crucial for Thailand’s environmental and economic sustainability but also serve as a model for regional and global peers in the transition towards cleaner energy sources.