Report Thailand's Energy Delays May Deter Foreign Investors

[snoop1130]

Picture courtesy of Bangkok Post

 

Thailand's appeal to foreign investors is at risk as the country struggles to keep pace with neighbours in managing its long-term power supply. Gunkul Engineering, a prominent clean energy developer listed on the Stock Exchange of Thailand (SET), warns that despite offering enticing investment incentives, the delay in power supply projects could undermine the country’s attractiveness.

 

Naruechon Dhumrongpiyawut, Gunkul’s chief executive, points to the new national energy plan (NEP) as a prime example. The NEP, which charts a course towards a low-carbon society, has been delayed despite being scheduled for implementation from 2024 to 2037. This delay is attributed partly to the lengthy process of forming a new cabinet under Paetongtarn Shinawatra. One significant aim of the plan is to increase renewable energy's share to 51% of total power supply by 2037, up from 22% by 2024. However, Naruechon argues that these targets are insufficient for achieving net-zero emissions by 2065, particularly as other Southeast Asian nations set their sights on 2050.

 

Furthermore, there’s unease over the stalled pilot programme for direct power purchase agreements (PPAs). Approved in June last year, this initiative was meant to facilitate businesses, like energy-intensive data centres, in buying electricity directly from producers. While the National Energy Policy Council sanctioned trading under direct PPAs up to 2,000 megawatts, execution remains pending. This hinders prospective investors who are keen on data centre projects but await policy clarity on renewable power trade.

 

In comparison, countries like the Philippines and Vietnam already leverage direct PPAs, and they boast certain advantages over Thailand. For instance, Vietnam's solar and wind capacity stands at 23,000MW, overshadowing Thailand’s 5,000MW. Vietnam achieved in one year what took Thailand a decade. Additionally, Thailand's utility green tariff, meant to standardise renewable energy pricing, is deemed too high to entice foreign investment.

 

Naruechon highlights that these delays not only affect net-zero targets but also pose a strategic disadvantage. Without significant progress, Thailand risks losing out to neighbours with more dynamic energy sectors and attractive demographic profiles, potentially diverting international investment to countries with more robust energy policies and larger working-age populations.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-06

 

 

[ozz1]

You would have to be crazy to invest in Thailand at the moment with all that's going on

[redwood1]

What we need more of is coal fired power plants....So we can have cheap power...I would like to run my aircon 24/7...