Last updated Jul. 26, 2024.
I. Introduction
Thailand relies heavily on fossil fuels in generating the majority of its electricity. In 2022, 63% of the electricity produced was sourced from gas, and 19% from coal. Conversely, the share of renewables in the mix was significantly lower compared to fossils: hydro at 3.66%, solar at 2.71%, and wind by 1.90%.1Ember.
With Thailand’s high electricity demand, major increases in capacity and in generation are required. The country’s high per capita demand merits expansion of more electricity systems that would guarantee electrification for all. Unshackling from fossil fuels through building upon more electricity sourced from renewables will aid in meeting the country’s demand, keeping the price of electricity low, abundant, and detached from the volatility of prices and supply of fossil fuels.
II. Current Status of Renewable Energy
Installed capacity of major renewable sources (2022):
- Solar – 3.19 GW
- Hydropower – 3.11 GW
- Wind – 1.55 GW
Electricity generation of major renewable sources (2022):
- Solar – 4.88 TWh
- Hydropower – 6.60 TWh
- Wind – 3.42 TWh
In 2022, major renewable energy sources generated a total of 14.9 TWh or 8.27% of electricity in the mix. The electricity produced from RE failed to meet the electricity demand of the same year which was 212.55 TWh. Due to the lack of RE in the mix, the country relied on 84% of fossils in meeting its electricity demand.hare of renewables by 20% in 2025, the RE share would not be enough to displace fossil fuels out of the mix.
III. Renewable Energy Potential
Thailand has immense potential for generating electricity from solar and wind power.2Beyond Tripling, Ember. However, its potential is held back by its government’s modest target. By 2037, Thailand aims to achieve a 30% share of renewables and other non-RE sources in its electricity generation mix.3AEDP 2018.
The government aims to increase solar capacity additions of 11.5 GW and wind of 1.5 GW.4Beyond Tripling, Ember, supra. This entails that while renewable capacity will increase, fossil fuels will still be present to meet the high per capita power demand of the country. In essence, Thailand’s current plans may not fully capitalize on its renewable energy potential. By setting more ambitious targets and accelerating the deployment of renewable energy sources, Thailand could ensure that it meets its growing electricity needs., development, deployment of renewable energy sources is crucial for achieving its 2050 target.
IV. Summary of Renewables Policies and Incentives
| TYPE OF POLICY | THAILAND | |
| REGULATORY POLICIES | Renewable energy in INDC or NDC | ✔ |
| Renewable energy targets | ✔ | |
| Feed-in tariff/auctions/premium payment | ✔ | |
| Net-metering/billing/direct consumption-supply | ||
| Biofuel blend obligation/mandate/target | ✔ | |
| Electric utility quota obligation/RPS | ||
| Tradable REC | ||
| Renewable heat obligation/mandate | ||
| FISCAL INCENTIVES AND PUBLIC FINANCING | Tax incentives | ✔ |
| Public investment/loans/grants/subsidies/rebates | ✔ | |
| Reductions in sales, CO2, VAT or taxes | ✔ | |
| Tendering | ||
| Investment or production tax credits | ||
| Energy production payment | ✔ | |
View comprehensive list of Thailand’s Renewables Policies here.
V. Summary of Identified Challenges
Analysts have identified challenges that surface in lieu of the four governing entities on renewable energy policies:
- Functional overlap
- Fragmented governance of the RE sector
- Communication issues between central and provincial energy authorities
- Lack of coordination across agencies5NUPI.
View comprehensive list of identified challenges here.
VI. Future Outlook
- The Thai government sets a target of 30% for RE and non-RE shares in the mix by 2037, and 50% by 2050. Both targets set by the government do not reach the global target of 60% of RE in the electricity mix.
- Thailand’s 13th National Economic and Social Development Plan 2023-2027 targets a low-carbon sustainable society, indicated by an increase in the proportion of renewable energy in the final energy consumption by no less than 24% by 2027.
VII. Conclusion
- Thailand relies heavily on fossil fuels, particularly natural gas and coal, for electricity generation.
- Despite significant potential for solar and wind power, renewables contribute a much smaller share to Thailand’s energy mix compared to fossil fuels.
- Shifting to renewables can address Thailand’s growing electricity needs while offering a stable, abundant, and price-independent energy source.
- The involvement of multiple agencies in renewable energy policy creates challenges with overlapping functions, communication gaps, and lack of coordination.
- By adopting more ambitious renewable energy targets and streamlining policy implementation, Thailand can unlock its full renewable energy potential and achieve a more sustainable energy future.