Powering on: Thailand energy plan sparks a 2.9 trillion baht boost

Thailand’s new National Energy Plan (NEP) aims to drive significant investment and promote clean energy, with a projected 2.9 trillion baht in capital spending over the next 13 years. Central to this initiative is the emphasis on solar energy to reduce carbon dioxide emissions.

The NEP 2024, scheduled for implementation from this year until 2037, integrates a comprehensive power development plan, an oil plan, a gas plan, an alternative energy plan, and an energy efficiency plan.

An official from the Energy Ministry, who chose to remain anonymous, stated that renewable energy development will account for the majority of the investment, approximately 1.52 trillion baht (US$45.7 billion), while some funds will still be allocated to fossil-fuel power plants.

“Fossil fuels remain necessary for power generation, but their use will gradually decline.”

The power development plan outlines a reduction in the proportion of coal and gas to 48% of the total fuel mix by 2037, down from nearly 80% earlier this year. Conversely, renewable energy is expected to rise to 51%, up from 20% at the end of last year. The current 20% share includes hydropower imported from Laos.

Additionally, nuclear energy and new energy solutions aimed at reducing fossil fuel usage and conserving electricity will contribute 1%.

In particular, the renewable energy segment is set to see a boost in solar energy development, with an estimated increase in power generation capacity to at least 1,000 megawatts, based on the availability of the country’s transmission systems.

The official clarified that this figure excludes floating solar panels, which will be developed separately by the Electricity Generating Authority of Thailand (EGAT).

EGAT has ambitious plans to install floating solar farms with a combined capacity of 2,700MW at its reservoirs nationwide between 2025 and 2029.

From the total projected investment of 2.9 trillion baht (US$87 billion), 425 billion baht (US$13 billion) will be directed towards new energy businesses such as carbon capture storage, energy storage systems, and small modular reactor (SMR) development.

The International Atomic Energy Agency notes that an SMR is a type of nuclear power technology with a capacity of up to 300MW per unit, about one-third the capacity of larger, traditional nuclear power reactors, reported Bangkok Post.

Further investments include 415 billion baht (US$12.5 billion) for smart grid development, 310 billion baht (US$9.3 billion) for oil and gas-related projects including exploration and production, 115 billion baht (US$3.5 billion) for electric vehicles and oil transport through pipelines, and 114 billion baht for bio-based fuels, including sustainable aviation fuel (US$3.4 billion).