Sun, wind, and strategy – Thailand’s clean energy path
Amid the global climate crisis and growing pressure from international environmental agreements, many countries are accelerating their transition to clean energy in earnest.
This shift is not only aimed at reducing environmental impact, but also serves as a key strategy to enhance economic competitiveness.
In 2024, global electricity demand increased by over 1,050 terawatt-hours (TWh), with the Asia-Pacific region accounting for more than 76% of the growth, most of it from clean energy sources, led by solar and wind power.
This reflects how clean energy is becoming a “mainstay” of the global energy system and is expected to play an increasingly significant role in national economies.
Countries that can adapt quickly will be better positioned to attract new investments, especially from businesses with growing demand for clean energy. Three key factors are shaping the global direction of policy, production, and investment:
Policy direction of major powers:
Leadership changes in global powers like the United States directly affect clean energy policy worldwide. For example, the US withdrawal from the Paris Agreement in 2025 and its continued support for fossil fuels may cause hesitation among developed nations to assist other countries in reducing greenhouse gas emissions.
The rise of data centres:
These facilities require massive and continuous electricity, particularly “clean and stable” power. This demand is driving the development of hybrid clean energy solutions, such as solar and wind power combined with energy storage systems, to providea reliable 24-hour energy supply.The evolving solar panel market:
China, the world’s largest solar panel manufacturer, rapidly expanded production capacity from 2022 onward. By 2023, global panel production had more than doubled in demand, prompting fierce price competition among manufacturers. This has led to difficulties for smaller producers in many countries.
In response, major Chinese producers are cutting production and setting minimum prices to stabilise the industry. If successful, this could help solar panel prices return to more sustainable levels.
Thailand’s Clean Energy: Progressing Slowly but Still Has a Chance to Catch Up
Although Thailand is also making efforts to promote clean energy, the country continues to face significant challenges due to its energy structure, which still heavily relies on fossil fuels, accounting for up to 85% of the energy mix in 2023. Only 15% of Thailand’s electricity came from clean energy, clearly below the Asia-Pacific regional average.
This reflects that Thailand’s energy transition is slower than that of many countries in the region, particularly Vietnam, where clean energy accounts for 38% of total power generation.
Such a situation could become a “weak point” in terms of competitiveness and the ability to attract long-term investments, especially from businesses that prioritise clean energy use.
While Thailand still lags behind, it possesses three key advantages that could support clean energy development:
Geographic potential – The country has high solar power generation potential, making it suitable for large-scale solar farm projects. Although wind power capacity remains relatively low, rapidly advancing technology may help improve its efficiency in the near future.
Falling costs of clean energy production – Especially in solar power, where the levelized cost of electricity (LCOE) for new plants is expected to drop by up to 27% by 2030. In comparison, the LCOE of fossil fuel power plants is projected to decline by only around 5%. Wind power is also approaching cost-competitive levels.
However, to more accurately compare costs, clean energy calculations should also include energy storage costs and the use of gas-fired power plants to ensure system stability.
Supportive government policies – While Thailand has yet to liberalise its electricity market like many other countries, the government is gradually opening opportunities for private sector participation. This includes mechanisms like Feed-in Tariffs (FiT), Corporate Power Purchase Agreements (PPAs), and clean energy certificate trading systems.
If Thailand can evolve toward a more open market, it will help accelerate clean energy expansion and attract businesses with high clean energy demand to invest.
Thailand’s Clean Energy Goals Are Clear — But Timely Action Is Essential
Thailand has set a clear direction toward expanding its share of clean electricity. According to the draft Power Development Plan (PDP) 2024, the country aims to generate 51% of its electricity from clean energy by 2037 and 74% by 2050 — a crucial step toward achieving net-zero emissions.
However, meeting these ambitious targets requires more than maintaining the status quo. It demands well-integrated planning, accelerated policy reform, and systemic adjustments to support a genuine transition.
Policy Recommendations: Align Plans, Amplify Participation
To translate clean energy ambitions into action, Thailand must urgently move on two key fronts:
Aligning Energy Policies Across Agencies
Currently, Thailand’s energy planning remains fragmented across agencies with different mandates, leading to policy inconsistencies. A centralised coordination mechanism is needed to integrate the five core plans:
– Power Development Plan (PDP)
– Alternative Energy Development Plan (AEDP)
– Energy Efficiency Plan (EEP)
– Oil Management Plan
– Natural Gas Management Plan
These plans should share long-term goals and be implemented in unison to reflect the rapidly evolving global context.
Enabling Genuine Stakeholder Participation
The energy transition can only succeed when all sectors — public and private — are actively involved. This goes beyond one-way consultations; it requires inclusive processes where businesses and civil society help shape policies, assess impacts, and co-create solutions that benefit the entire system.
Establishing strong participatory mechanisms will ensure the energy transition is not the burden of government alone, but a shared mission across society, driving continuous, sustainable development.
Source: https://www.nationthailand.com/blogs/sustaination/40049410
