Thailand’s alternative energy chief unveils 51% renewable power plan
The Department of Alternative Energy Development and Efficiency (DEDE) is forging multiple plans to maximise renewable energy benefits and align with global efforts to combat climate change.
DEDE director-general Wattanapong Kurovat told Nation Group’s Krungthep Turakij on Monday that it was updating this year’s energy plan to meet clean energy requirements for Thailand to achieve carbon neutrality by 2050 and net-zero carbon emissions by 2065.
He explained Thailand’s energy policy planning has become increasingly complex amid the global focus on long-term environmental impacts.
Two draft plans – the Alternative Energy Development Plan (AEDP) and the Energy Efficiency Plan (EEP) – are set for public hearing on Tuesday (June 18).
Both will be included in the National Energy Plan 2024 alongside the Power Development Plan (PDP), Gas Plan and Oil Plan.
“AEDP and EEP will focus on clean energy due to the shift in direction of the energy industry,” Wattanapong said. Thailand will be able to purchase clean energy from abroad under the new National Energy Plan, particularly hydropower, he added.
Focus on solar, wind, biomass energy
The new energy plan aims to increase production of electricity from renewable energy to over 50%, using solar, wind and biomass sources generated from the agriculture sector. Although renewable energy costs more than fossil fuels, Thai industry must adopt renewables to comply with new global trade regulations like the Carbon Border Adjustment Mechanism (CBAM), Wattanapong said.
The DEDE is checking whether existing renewable energy projects – hydropower, energy preservation and efficiency – can be enhanced further to meet requirements.
CBAM’s transitional phase ends next year when importers in six carbon-intensive sectors – aluminium, cement, electricity, fertilisers, hydrogen, and iron and steel – will be required to report their emissions.
From 2026, they will start paying a border carbon tax on their products based on European Union Emissions Trading System prices.
Tax break for household solar
The government is easing regulations to facilitate access to renewable energy, including a tax deduction for householders who install solar panels.
The Energy Ministry is also improving regulations and has appointed the Energy Regulatory Commission to provide a one-stop service for people seeking advice on renewables, Wattanapong said.
He also highlighted the benefits of Thailand adopting nuclear energy as an alternative to solar and hydrogen, adding that digital innovations would boost awareness on energy safety.
“We will continue past successful projects while seeking innovations to meet current needs,” he said.
Under the new Power Development Plan, the ministry aims to procure 77,407 megawatts (MW) of electricity to meet Thailand's forecasted peak of 56,133 MW in 2037.
The plan must also factor in a drop in production capacity to 34,984MW as existing power plants expire.
The plan includes sourcing 47,251 MW of new electricity, 12,957 MW from backup electricity generation and 17,199 MW from power plants contracted to the ministry.
Of the new electricity, 34,851 MW will come from renewable sources: solar power (24,412 MW), wind (5,345 MW), biomass (1,045 MW), biogas (936 MW), floating solar (2,681 MW), industrial waste (12 MW), community waste (300 MW), hydropower (99 MW) and geothermal power (21 MW).
The remaining 12,400 MW will come from combined-cycle power plants (6,300 MW), nuclear power plants (600 MW), overseas procurement (3,500 MW) and other sources like vehicle-to-grid systems (2,000 MW).
The 2024 plan will boost the share of renewable energy in total electricity production to 51%, up from 36% under PDP 2018. The electricity price is expected to fall from 3.94 baht per unit under the previous plan to 3.87 baht.
Reducing reliance on gas imports
To reduce reliance on gas imports, the ministry aims to increase procurement of liquefied natural gas (LNG) from the Gulf of Thailand and Myanmar to meet the country’s demand of around 4.8 billion cubic feet daily, as per the Gas Plan 2024.
The ministry is also considering additional infrastructure to support LNG import, storage and distribution to boost liquidity and support electricity production.
