Market Trends of Thailand Power Industry
Renewable Power Generation to Witness Significant Growth
- The country is significantly witnessing an increase in power generation from renewable sources owing to increase efforts to reduce carbon footprint in the country. As of January 2022, Thailand generated more than half of its natural gas and coal electricity.
- These fuels give out significant emissions leading to higher global warming potential. The country is witnessing a substantial shift towards renewable energy sources for electricity generation to decarbonize its economy.
- As per Energy Policy and Planning Office, Thailnd's Power generation capacity from natural gas was around 114.64 thousand GW-h, and power generation from renewable capacity is approximately 21.86 thousand GW-h in 2022.
- In February 2022, TotalEnergies SE signed a binding long-term agreement to deliver a 2.7 MWp solar rooftop solution for TOA Paint in Samut Prakan Province, Thailand.
- In January 2022, Marubeni Corp. announced that it would partner with Mitr Phol Sugar Corp. Ltd to develop renewable energy projects, among others, in Thailand. This partnership will likely bring new investments in the country's renewable energy power generation segment.
- Due to such developments, the renewable power segment will likely witness significant growth during the forecast period.
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Government Policies to Drive the Market
- The Government of Thailand is encouraging renewable energy installations nationwide to reduce greenhouse gas emissions by 20-25% by 2030. The government also supported renewable energy power plants by providing various incentives and regulatory support.
- The country planned to open its energy market further for private electricity trading through the New Solar Rooftop Regulations 2020. As per the regulation, solar PV owners can be connected to the grid for trading electricity, using the power transmission and distribution infrastructure by paying a transmission fee to the public utilities. The fee for retail power trading will be based on the amount of electricity transferred and the congestion level in the transmission line.
- Moreover, the Thailand Government supports the deployment of floating solar energy farms for green energy development. The Thailand Government set a target for installing 90 MW/year from 2023 to 2025.
- As per International Renewable Energy Agency (IRENA), the country's total installed renewable capacity is around 12,197 MW in 2022. The government is planning to increase this capacity by 29,411 by 2037.
- Therefore, supportive government policies and initiatives are expected to drive the Thai power market in the forecast period.
