Commitment to Increase Renewable Energy Production

Spotlight Activity: Commitment to Increase Renewable Energy Production

A February 12, 2019 report by Asian Power highlights that Thailand’s renewable energy production is expected to increase in 2019 and in the near future. One of the major reasons for the increase is the strong government support towards renewable energy. It has been estimated that “the capacity of non-hydro renewable may expand to 21% of Thailand’s total power capacity mix at 14,858 MW by 2028.”

The report by Asian Power elaborates upon the estimates made by Fitch Solutions, which predicted the future growth of renewable energy in Thailand. For instance, Fitch Solutions predicted that “the capacity growth in the renewable sector to be robust over the coming decade driven by the biomass and solar sectors.” Another estimate made by Fitch Solutions claimed that  “coal-fired power growth will stagnate amidst popular opposition, meaning that there are ample opportunities for renewable as the Thai government seeks to deliver increased power sector investment to meet rising electricity demand in the country.”

In addition, Fitch Solutions also emphasized the “aim to raise the share of renewable energy from 10% to 30% in the domestic power mix by 2037 through Thailand’s Power Development Plan (PDP 2018-2037).” Here, feed-in-tariffs (FiT) are to be made available for new renewable energy projects to support their growth. Additionally, Fitch Solutions predicted that there will also be peer-to-peer private electricity trading, for enhancing the growth of solar power. The Power Development Plan (PDP 2018-2037) which was “approved by the National Energy Policy Council is expected to take effect from Q2 2019.”

It has been further determined by Fitch Solutions that “opportunities in Thailand’s renewable energy market will be supported by a strong demand for electricity on the back of continued economic growth, an increasing population, and improved standard of living.” The Fitch Solutions estimates further mentions that “Thailand’s power consumption is forecasted to grow at an average of 3.1% YoY.” However, in the coming years Thailand will still be dependent on natural gas for power generation. For instance, “natural gas will make up nearly 70% of Thailand’s power mix by 2028.”

With respect to the enhancement of solar power and biomass, the estimates by Fitch Solutions suggests “solar capacity to more than double between end-2018 and 2028, from 3 GW to more than 6.7 GW; while biomass capacity will expand from 4 GW to 5.8 GW over the same time frame.” To facilitate the growth of renewable energy sources for power generation in Thailand, the “State-run Electricity Generating Authority of Thailand (EGAT) is expected to start installing floating solar panels in five provinces in April 2019 and begin commercial operations in 2020.”

Similarly, the Asian Development Bank “invested an additional $160m (THB 5b) into B. Grimm, which is one of Thailand’s largest power producers. This is on top of a $235m, ADB agreement in 2018 to enhance renewable energy capacity in Thailand.” Finally, to boost renewable energy production in Thailand, the International Renewable Energy Agency (IRENA) “signed a Memorandum of Understanding (MoU) with ASEAN in late-2018 to provide technical support and required tools for the development and financing of renewable energy in the region.”

To know more about Thailand’s projected estimates of renewable energy production, please visit the report at https://asian-power.com/regulation/news/renewables-eat-21-thailands-energy-mix-2028

Status: Right Direction

Thailand is certainly moving in the right direction in terms of enhancing renewable energy production. To ensure that Thailand is able to achieve its INDC commitments; the Thai government is investing more in renewable energy projects. For instance, the partnership with Thailand and the Asian Development Bank will be significant for facilitating the growth of renewable energy projects through investments in renewable energy project-based infrastructures. Finally, under the Power Development Plan (2018-2037), once it becomes effective from Q2 2019, renewable energy projects will be created at a much larger-scale through increased feed-in-tariffs and subsidies provided by the government. Therefore, the projected growth of renewable energy sources for power generation in Thailand will, in turn, contribute towards the main goal of the Paris Agreement of promoting a clean and energy-friendly environment in Thailand.

Take Action

To help enhance Thailand’s renewable energy production, you can contact members of the Ministry of Energy, Thailand with the following Action Alert message:

We congratulate the government of Thailand for taking steps to enhance renewable energy production. To ensure the growth of renewable energy production in Thailand in the upcoming years, your role will be vital. As a prominent member of the Ministry of Energy, Thailand, I kindly request you to propose a detailed roadmap for boosting renewable energy. The roadmap should incorporate infrastructures, which will be used for producing renewable energy; appropriate budget allocations should be in place for facilitating renewable energy projects; along with the implementation of technologies that can maximise the extent and power generating capacity of renewable energy resources.

Send Action Alert Message to:

Mr. Yongyut Jantararotai

Director General

Email: yongyutJ2@gmail.com

Telephone: +662-223-0021-9, Ext: 1021

Mailing Address:

Department of Alternative Energy Development and Efficiency, Ministry of Energy

17 Rama 1 Rd, Kasatsuk Bridge,

Pathumwan, Bangkok 10330

Thailand

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