Thailand recalibrates incentives to boost renewable energy initiative

The Industry Ministry is set to recalibrate incentive packages for organisations as part of the RE100 global renewable energy initiative. This move is intended to allure more investors and facilitate new investment within the nation.

RE100, a worldwide initiative comprising hundreds of companies, is committed to 100% renewable energy usage. This aligns with Thailand’s ambitions of reducing carbon dioxide emissions and constructing a low-carbon society by 2050, according to the Industry Ministry chief Pimphattra Wichaikul

The authorities will deliberate on bolstering RE100 in Thailand since Thai and foreign investors have expressed interest in clean energy. This is a trend resonating globally,

In 2021, Prime Minister Prayut Chan-o-cha pledged at the 26 UN Climate Change Conference that Thailand would intensify efforts to combat climate change. The nation aims to achieve carbon neutrality by 2050 and a net-zero goal by 2065. Both targets reflect a balance between emissions and carbon dioxide and greenhouse gas absorption, respectively.

Clean energy development must align with the country’s investment promotion strategies. Currently, Thailand is concentrating on developing 12 targeted S-curve industries. These include new-generation vehicles, particularly electric ones, smart electronics, and medical equipment.

The sectors above are set to develop within the Eastern Economic Corridor (EEC), encompassing Chon Buri, Rayong, and Chachoengsao. The government aspires to transform the EEC into the country’s premier high-tech industrial hub, Pimphattra said.

“Most of these industries have high growth potential in the future and the majority require renewable energy to support their manufacturing processes.”

The Industrial Estate Authority of Thailand (IEAT) is expected to play an instrumental role in aiding and enhancing investment. Veeris Ammarapala, governor of the IEAT, revealed that his agency plans to develop new industrial areas and organise roadshows to acquaint prospective investors with Thailand and its investment policies, reported Bangkok Post.

“The IEAT has set a goal to amplify investment, which should contribute 27% to the country’s GDP by 2026.”