Investment in the development of new electricity generation facilities with a focus on advancing renewable energy is projected to hit 1 trillion baht over the next six years under a new power development plan (PDP), as disclosed by energy permanent secretary Prasert Sinsukprasert.
While the PDP places a strong emphasis on renewable energy, spanning from 2024 to 2037, investments in fossil fuel-powered plants will be sustained, though at a reduced pace.
Addressing concerns raised by certain energy investors regarding the orientation of the PDP towards diminishing the significance of fossil fuels in power generation, Mr. Prasert stated that investments in both conventional and renewable energy plants under existing contracts or forthcoming ventures scheduled through 2030 will progress as intended.
The PDP anticipates that renewable energy will constitute 51% of the total fuels utilized for power generation by 2037, up from 20% in the previous year. Coal and gas are forecasted to contribute 48% to the energy mix for power generation by 2037, with the remaining 1% sourced from nuclear energy and new energy solutions directed at curbing fossil fuel consumption and conserving electricity.
Under the purview of the PDP, which recently underwent a public consultation process, investments in renewable energy from 2024 to 2030 are estimated at 525 billion baht, leading to an electricity generation capacity of 13.3 megawatts. Meanwhile, investments in fossil fuel-fired power plants, with a combined capacity of 5.3MW, are projected at 125 billion baht.
An allocation of 400 billion baht has been set aside for the establishment of a smart grid to support the utilization of renewable energy.
Authorities have selected fuels and technologies that would enable Thailand to establish an appropriate power tariff, crucial for calculating electricity bills and ensuring long-term energy stability, according to Mr. Prasert.
In the same vein, the Electricity Generating Authority of Thailand (Egat) is budgeting 1 trillion baht for energy investments slated between 2021 and 2031, with 600 billion baht designated for renewable and fossil fuel-powered plant initiatives, while the remaining amount is reserved for the enhancement of transmission infrastructure.
To align with the new PDP’s objectives, Egat is tasked with constructing a new grid of high-voltage power lines nationwide to accommodate the increased deployment of renewable power, as stated by Yuthapong Tancharoen, director of power system planning at Egat.
Furthermore, there is a keen interest from authorities in procuring gas from Block A-6 in Myanmar to decrease reliance on imported liquefied natural gas, as detailed by the Energy Policy and Planning Office.
