Thailand National Energy Plan includes a significant increase in solar energy usage. (Photo: iStock)
To achieve its carbon reduction targets, Thailand is formulating five major energy plans with a total investment of 2.9 trillion baht (about 93 billion USD). Over 50% of this budget will be allocated to renewable and alternative energy, particularly in the field of solar energy, which officials anticipate will be a key driver in future carbon reduction efforts.
National Energy Plan to cut 220 mln tons of carbon emission
The Thai government previously announced that it would launch the National Energy Plan (NEP) in September, with a goal of reducing carbon emissions by 220 million tons by the end of 2030. This plan includes five important sub-plans:
- Power Development Plan (PDP 2024)
- Alternative Energy Development Plan (AEDP)
- Energy Conservation Plan (EEP 2024)
- Gas Management Plan
- Oil Management Plan
Veerapat Kiatfuengfoo, Director of the Energy Policy and Planning Office (EPPO) of the Ministry of Energy, stated that the NEP aligns with the national carbon reduction targets, aiming to reduce greenhouse gas emissions by 30% to 40% by 2030.
"We are considering raising the target to 40% by increasing renewable energy, particularly solar power," he said.
In addition to solar energy, the AEDP will invest heavily in biofuels for transportation, aiming to increase the share of renewable and alternative energy consumption to 36% by 2037. The Ministry of Energy estimates that this plan could reduce fossil fuel consumption equivalent to 20 million tons of oil, saving over 400 billion baht (about 12.8 billion USD) in fuel costs.
The PDP2024 will significantly increase the capacity of renewable energy installations, aiming for a generation share of 51% by the end of 2037, which is expected to reduce carbon emissions by 24.2 million tons. Veerapat indicated that efforts to promote new clean energy are already underway, and it is anticipated that the share of hydrogen-blended natural gas in power generation will rise to 5% by 2030.
The EEP2024 will focus on electricity and thermal energy, including measures to promote electric vehicles. The overall goal is to reduce energy consumption intensity by 36%, which is expected to save energy equivalent to 35 million tons of crude oil, resulting in savings of 532.4 billion baht (about 17.1 billion USD).
Half of budget allocated to renewable and alternative energy
The Ministry of Energy estimates that of the 2.9 trillion baht, 1.52 trillion baht (about 48.9 billion USD) will be directed toward renewable and alternative energy. Following this, approximately 425 billion baht (about 13.7 billion USD) will be invested in zero-carbon power technologies.The remaining funds will support smart grid development, upgrading fossil fuel infrastructure, infrastructure for transportation transformation, and new businesses that support biofuel consumption models.
Additionally, Thailand has proposed a Nationally Determined Contribution (NDC) Action Plan on Mitigation for 2021-2030, which is currently awaiting approval from the National Economic and Social Development Council (NESDC). This plan covers carbon reduction efforts across energy, transportation, and other sectors, and also aims to develop carbon capture technologies, with aspirations to become a carbon trading hub in ASEAN.
Source: The Nation(1)、(2)、EXRI ASIA
