Thailand Energy

In early September Thailand, Laos and Malaysia agreed to extend the Laos-Thailand-Malaysia Power Integration Project (LTM-PIP), pushing Thailand closer to its goal of becoming a regional power hub.

Thailand’s Ministry of Energy has announced plans to expand the role of renewables and coal in the domestic power mix, in addition to increasing opportunities for small-scale electricity producers.

On the back of improved technology and lower costs, the government in Thailand could soon boost the renewable energy segment further by revising upwards the long-term target for its contribution to the electricity generation mix.

Rising domestic consumption and dwindling hydrocarbons reserves will increase pressure on Thailand’s downstream energy and petrochemical firms to secure feedstock, though lower international oil and gas prices have helped reduce production costs for now. 

A return to economic growth in Thailand is expected to drive greater demand for electricity, hastening efforts to look for alternative sources of energy, although continued political uncertainty could slow public investments in power plants and transmission lines.