Thailand to shift from LNG towards renewables in wake of Iran war
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Thailand aims to generate 60 per cent of its electricity from clean energy sources such as solar, wind and hydro in 25 years.
PHOTO: BLOOMBERG
- Thailand plans to shift from imported LNG to renewables and nuclear power, aiming for 60% electricity from clean energy in 25 years, doubling its previous target.
- The move reduces reliance on imported natural gas, which accounts for over 60% of current power but exposes Thailand to global conflicts and price surges.
- The new power plan includes nuclear energy and a $7.8 billion investment in renewables to meet rising electricity demand from data centres and manufacturing growth.
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BANGKOK – Thailand plans to shift away from imported gas and embrace renewables and nuclear power as it seeks to build an energy system less vulnerable to external shocks such as the Iran war.
The South-east Asian nation aims to generate 60 per cent of its electricity from clean energy sources such as solar, wind and hydro in 25 years, said Energy Minister Akanat Promphan.
That is double the previous goal. The targets will be officially announced in an updated 25-year national power plan to be released in October, he added.
“The ongoing conflict in the Middle East demonstrates that we must urgently reduce imports of LNG (liquefied natural gas) and other fuels,” he said in an interview at the Thai Parliament late on Aug 26. “We need to build a cleaner and more self-reliant power system.”
Thailand currently generates more than 60 per cent of its electricity from natural gas, most of which is imported, leaving it exposed to events such as the Middle East conflict that spurred a surge in the price of seaborne LNG.
Increasing renewable capacity – around 15 per cent of the power mix at the moment – would curb the need for imported fuel and support the nation’s goal of getting to net zero by 2050.
The doubling down on renewables – which will require a rapid build-out – comes as Thai power demand is expected to increase sharply.
The country has attracted billions of dollars of investment in data centres, cloud computing and advanced manufacturing. The government has been taking steps to ensure it has enough generation capacity to accommodate the rising demand and limit the impact on household power bills.
“The next wave of investment – from data centres to advanced manufacturing – will require enormous amounts of electricity,” Akanat said.
The new power plan will include nuclear energy for the first time, a significant shift in Thailand’s energy strategy, the minister said.
The government has been studying small modular reactors as a potential source of stable, low-carbon electricity to complement intermittent renewable energy, he added.
Akanat defended a government proposal in Parliament this week to spend 200 billion baht (S$7.7 billion) on renewable energy, including rooftop solar for villages.
Thailand last revised its 25-year power development plan in 2023, before the Iran war and the artificial intelligence boom. BLOOMBERG
