Energy Security Trumps Low Prices in Thailand's Power Strategy
Thailand's energy policy must prioritise security and cleaner sources rather than focus solely on low prices to cut living and business costs, the Energy Ministry’s permanent secretary said on Wednesday.
"Price considerations must be balanced against security and sustainability", Prasert Sinsukprasert told a Thansettakij news conference titled "The Cheap Energy Price, Thailand's Economic Survival".
"With over half of our energy imported, Thailand remains reliant on external sources and vulnerable to market forces. However, securing a stable supply of greener energy to meet sustainability trends is essential for our economy."
Thailand heavily relies on natural gas and liquefied natural gas (LNG) for electricity generation, importing more than 50% of its requirements. Meanwhile, falling local production of natural gas means the country must increase its LNG imports, despite their volatile pricing.
Prasert acknowledged LNG prices’ strong impact on electricity costs and said authorities are working to stabilise rates to manage consumer bills. He also highlighted ongoing efforts to reduce Thailand’s fossil fuel dependency and boost renewable energy sources.
"Thailand's energy sector is undergoing transformation as we work to balance traditional and sustainable energy sources", he said.
Underscoring the importance of energy security and stability, Prasert pointed to Thailand's ambition to become a regional technology hub.
The country is seeking to attract investment in data centres by leveraging its strategic location, robust power infrastructure and government incentives. The Board of Investment (BOI) recently approved support for two major data centre projects worth over 60 billion baht. The investments come from Quartz Computing (an Alphabet-Google subsidiary), Digitalland Services (a GDS subsidiary), and Equinix, a US-based cloud service provider.
Thailand's data centre market is forecast to expand from $652 million in 2023 to over $1.5 billion by 2030, achieving a 13% compound annual growth rate, according to Developingtelecoms.com. The sector has drawn interest from investors across the US, Australia, China, Hong Kong, Singapore, Japan and India.
