A renewable energy expert from the Federation of Thai Industries (FTI) revealed in a recent seminar that Thailand is “lagging behind” its Asia-Pacific counterparts.
Power Development Plan
FTI Chairman of the Renewable Energy Industry Group, Natee Sithiprasasana revealed in his seminar titled, “Energy Transition: Thailand’s shift towards a low-carbon economy,” that the country has yet to catch up to the region’s rate of clean energy growth. Thailand’s clean energy growth rate from 2020 to 2025 was measured at 14 to 17 per cent, below Asia-Pacific’s average rate.
Natee also revealed that only 10 per cent of Thailand’s power generation mix comes from renewable energy sources. In the overall mix, fossil fuels take up 70 per cent while natural gas accounts for more than half.
The country’s energy experts are urging the Thai government to “urgently modernise” the Power Development Plan (PDP). If not, Thailand will fall behind its competition on a global scale, citing the issue as not just environmental but of “economic survival.”
A revised version of the PDP is in development. Reports allege that it outlines a target of 60 per cent renewable energy by 2050, driven by solar power installations, a full EV transition, and biofuel support.
Financial risks
Industry leaders’ concerns stem from rapidly changing global trade rules. These range from decarbonisation regulations set by organisations such as the European Union (EU) or emissions targets established by individual corporations. With several institutions making environment-conscious moves, Thailand has yet to catch up with the changing tides.
According to Natee, companies and their equipment in Thailand are not yet up to date with some international standards, decreasing factories’ viability to lessen carbon emissions as part of their organisational goals.
Speaking on behalf of the FTI, Natee emphasised that the upcoming PDP revision must updated and prioritise the following:
- Opening up Third Party Access (TPA) and Direct Power Purchase Agreements (Direct PPA), allowing private sector electricity trading through the national grid to increase competition and reduce system constraints.
- Restructuring expired renewable energy incentives, with more than 2,500 MW of projects transitioning out of Adder schemes, enabling cheaper redistribution of renewable supply.
- Promoting next-generation technologies, including small modular nuclear reactors (SMRs), energy storage systems (ESS) and smart microgrids to enhance long-term grid stability.
- Broadening investment participation in energy infrastructure through public infrastructure funds rather than concentrated ownership.
Without addressing the recommended changes, Thailand could potentially fall even farther behind globally and in its renewable energy goals.
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