, Thailand

Thailand to turn to renewable energy amidst gas supply challenges

This is to ensure security in electricity supply in the country.

Thailand is seen turning to its renewable energy sector for a steady electricity supply as its natural gas power sector faces supply challenges amidst political and civil unrest in Myanmar. 

Thailand is heavily reliant on natural gas as it accounts for 63% of its generation mix, which it imports mainly from Myanmar. The country, however, faces supply strains as the domestic situation drove out businesses, such as oil giant Total.

“Thailand has been a strong performer of renewables growth in Asia, supported heavily by its solar, and biomass and waste-to-energy power sectors,” the report read in part.

“We expect this trend to continue, with upward pressures from the developments in the gas power sector, as Thailand will seek to ensure electricity supply security.”

The Thai government has also looked at importing electricity from Laos hydropower dams to serve an increasing power demand. 

Citing a March 2022 Bangkok Post report, Fitch noted that developers and operators of four hydropower dams in Laos are already in discussions with Thailand’s energy policymakers to sign electricity import deals in May 2022. 

The power purchase agreement is seen boosting electricity imports to 10.5 gigawatts from 9.0GW. 

“As a result, we also expect upside risks to our net imports forecast for Thailand, which is already elevated,” Fitch said.


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