The Thailand power market had a cumulative installed capacity of 56.8 GW in 2023 and will grow at a CAGR of more than 4 percent during 2023–2035. The industrial sector accounted for the highest share of power consumption across Thailand in 2023. Approximately 73 percent of Thailand’s electricity is generated from fossil fuels, with natural gas alone accounting for almost 59 percent. Coal contributes around 14 percent to this mix. Low-carbon energy, which includes solar, wind, hydropower, and biofuels, forms about 13.5 percent of the electricity generation. The contributions from biofuels and hydropower are around 6 percent and 3 percent, respectively, while solar and wind power collectively contribute more than 4 percent. Additionally, net imports make up about 13 percent of the electricity supply.
Thailand has renewed its focus on increasing its renewable energy capacity to meet the country’s climate goals of carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065, as announced at COP26. Approximately 60 percent of electric power in Thailand is generated from natural gas. With domestic gas reserves projected to dry up in the next 10–20 years, liquefied natural gas (LNG) will play a critical role in ensuring long-term electricity security. Given that diversification of the energy supply is seen as a necessary step towards enhanced national energy security, the government is importing more natural gas and is expanding gas receiving terminals, the regasification system, and gas storage tanks to increase capacity to 26 million metric tons per annum (MMTPA) by 2037.
The 20-year Alternative Energy Development Plan (AEDP 2018–2037), reviewed in 2020, targets a share of 30 percent of renewables in the final energy consumption in 2037. The AEDP is in line with the revised PDP 2018 that sets a goal of around 28 GW of renewables by 2037 (36 percent of total capacity), comprising 15.5 GW of solar, 4.7 GW of biomass, 3.1 GW of hydropower, 3 GW of wind, and 1.8 GW of solid waste and biogas.
The Ministry of Energy (MOE) is in charge of the country’s energy and electricity sectors and involves multiple agencies: the Department of Alternative Energy Development and Efficiency (DEDE), the Department of Energy Business, the Energy Policy and Planning Office (EPPO), the Department of Mineral Fuels (DMF), the Department of Energy Business (DOEB), the Energy Regulatory Commission (ERC), the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), the Petroleum Institute of Thailand (PTIT), and PTT Public Co., Ltd.
Thailand’s power market was dominated by the Electricity Generating Authority of Thailand (EGAT), a state-owned utility. EGAT owns and operates most of the country’s power generation capacity and all of its transmission network. It operates the system and is the principal offtaker. It sells essentially all the power it generates or purchases from private power producers and neighbouring countries to two state-owned enterprises: the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA). According to Thailand’s Power Development Plan (PDP), 2015–2036, EGAT is projecting average annual growth of 2.68 percent in net electricity demand and 2.67 percent in peak demand during 2015–2036. EGAT forecasts more than 326,000 GWh in consumption by 2036 and a peak generation of 49,655 MW.
Illuminating Thailand
The Electricity Generating Authority of Thailand (EGAT) is known for its innovative power solutions across the country. Their core business is in power generation with its three thermal power plants, six combined cycle power plants, 30 hydropower plants, nine renewable energy power plants (wind, solar, and geothermal), four diesel power plants, and one other power plant. In addition to operating its own power plants, EGAT also purchases bulk electricity from 12 independent power producers (IPPs) totalling 17,648.50 MW, from small power producers (SPPs) totalling 9,483.37 MW, and from neighbouring countries, namely Lao PDR and Malaysia, totalling 6,234.90 MW. EGAT transmits electricity generated by its own power plants and electricity purchased from private power producers through its own grid network, covering all parts of the country.
EGAT also has other businesses, namely by-products from electricity generation and telecommunication service. With its recent development of the Wall and Boiler Cleaning System with Automatic High-Pressure Water Jet: Phase 2 of Mae Moh Power Plant, Lampang Province, EGAT has showcased the consistency of providing outstanding service. At the 80th session of ESCAP, they highlighted the ‘Triple S’ strategy (source transformation, sink creation, support measures mechanism), which aimed to achieve sustainable energy transition. Furthermore, EGAT, EDL, Chiyoda, and Mitsubishi signed a MOC on the Development of Renewable Energy Certificates Utilisation in the Green Hydrogen and Ammonia Project, advancing green energy and moving towards carbon neutrality and net zero emissions.
The Electricity Generating Authority of Thailand (EGAT) also signed a Memorandum of Understanding (MOU) on the development of the EleX model by EGAT Eco Charging Sphere to enhance the EV transition in the Eastern Economic Corridor (EEC). These continuous efforts were lauded at the World Business Outlook Awards 2024, which secured them the title of the Most Innovative Power Solutions Provider Thailand 2024.
Electrifying the Future
EGAT will be a tool that the government uses to adopt more sustainable projects and better energy-efficient procedures while also boosting the country’s economy. As the percentage of electricity generated from renewable energy sources rises, the power system must become even more dependable and efficient in order to deliver fair and competitive rates for high-quality electricity, which will draw in investors and boost the nation’s competitiveness.
Blog by Tamanna Shaikh
