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Growing cities like Bangkok are experiencing increased energy consumption.Total energy supply in Thailand, 2023.
Energy in Thailand refers to the production, storage, import and export, and use of energy in the Southeast Asian nation of Thailand. Thailand's energy resources are modest and being depleted. The nation imports most of its oil and significant quantities of natural gas and coal. Its energy consumption has grown at an average rate of 3.3% from 2007 to 2017. Energy from renewables has only recently begun to contribute significant energy.
In 2023, natural gas accounted for the highest total power generation capacity, followed by coal and lignite, with a significant presence of 13 natural gas production facilities, primarily in the Gulf of Thailand. From January to November 2023, the value of energy imports and exports amounted to almost 1.89 trillion Thai baht. Energy consumption that year was around two million barrels worth of commercial primary energy oil equivalent, mainly from petroleum products and natural gas. The Thai government is actively promoting renewable energy to reduce fossil fuel dependency and has seen a year-on-year increase in the usage of renewables.[1]
There is some disparity in published figures: according to the Ministry of Energy, the country's primary energy consumption was 75.2 Mtoe (million tonnes of oil equivalent, equalling around 875 TWh) in 2013.[2] According to BP, primary energy consumption in 2013 was 118.3 Mtoe, rising to 133 Mtoe in 2018.[3]:8
The energy policy of Thailand is characterized by 1) increasing energy consumption efficiency, 2) increasing domestic energy production, 3) increasing the private sector's role in the energy sector, 4) increasing the role of market mechanisms in setting energy prices. These policies have been consistent since the 1990s, despite various changes in governments. The pace and form of industry liberalization and privatization has been highly controversial.
Offshore production wasn't enough to bring the country close to self-reliance.
Oil and oil products make up 41% of Thailand's total energy supply.[4]
Thailand first began producing oil[5] in 1981, when it started producing 2,000 barrels (84,000 US gallons) per day. By 2013, daily production had increased to 459,000 barrels. Crude oil sources are located in the north and central region, as well as coastal areas of Thailand.[6] Three quarters (79.5%) of total crude oil supply is imported into Thailand.[7] Proved oil reserves are estimated at 0.3 thousand million barrels, giving it a reserves-to-production ratio (R/P) of 1.8. meaning that its oil is virtually exhausted.[3]:14 Indications are that Thai oil peaked in 2016 at 486,000 barrels per day[8] and has slowly declined since then.[9]
Gas
Much of the country's gas is imported.
Natural gas makes up 27% of Thailand's total energy supply and[10] fuels approximately 60–65% of Thailand's electrical power generation.[11]
Natural gas makes up 32% of Thailand's domestic energy production. Natural gas domestic production in Thailand peaked in 2013.[12] Thailand's proved natural gas reserves amount to 0.2 trillion m3. Its production in 2018 was 37.7 billion m3 (32.4 Mtoe) giving it an R/P ratio of only five years. It consumed 49.9 billion m3, making up the shortfall with 6.2 billion m3 in liquid natural gas (LNG) imports and 7.8 billion m3 via pipeline from Myanmar.[3]:30–41 The Erawan gas field in the Gulf of Thailand supplies about 20% of Thailand's gas production. The field is estimated to have a capacity of 885 million cubic feet (c. 25 million m3) per day.[13]
Coal and coal products make up 11.6% of Thailand's total energy supply.[14] All of Thailand's total coal production is in the form of lignite. Coal imports have increased by 365% since 2000.[15] In 2019 Thailand's reserves-to-production ratio was 72 (years).[3]:42–47
Thailand has no nuclear power plants. Earlier plans to produce five gigawatts of electricity by 2025 using nuclear technology were scaled back to 2 GW in the aftermath of the Fukushima disaster.[16]
As memories of Fukushima recede, interest in nuclear power has revived. Seven ASEAN nations, including Thailand, have signed cooperation agreements with Rosatom, Russia's state nuclear energy agency. EGAT is working with China, Japan, and South Korea on nuclear power generation technology and has sent 100 specialists to train for nuclear power plant projects. EGAT plans for up to five percent of the country's power generation to be generated from nuclear by 2036.[17]
Renewable energy in Thailand is a developing sector that addresses the country's present high rate of carbon emissions and energy security risks.[18] Thailand still relies heavily on fossil fuels, with renewables accounting for one fifth of the country's energy generation in 2024. The major source of renewable energy in Thailand is biomass (95%), with hydro, solar, and wind power making up small additional contributions.[19]
Thailand's renewable electricity generation by source (non-combustible) in 2023.
Policies such as the Thirteenth National Economic and Social Development Plan (2023-2027) and the Alternative Energy Development Plan (2018-2037), set future goals for increasing the capacity of renewable energy and reduce the reliance of nonrenewable energy.[20][21] The government aims to increase the use of renewables to 51% of energy generation by 2037, which could save over $9 billion every year.[22][23] The Thai government also wants all new cars sold to be electric by the year 2035.[24]
Total energy generating capacity for renewables has doubled since 2012, a trend that should continue with policy support.[23] Solar power will likely play a central role in Thailand's energy transition due to the country's tropical climate, the falling costs of photovoltaic technology, and supportive policies such as tax incentives. Thailand's growth is hoped to lead to renewable energy cost reduction and increased investment for the ASEAN countries.[25]
Total renewable energy capacity 2014–2023 (MW)[26]:3
In 2023 Thailand emitted 244.291 MtCO2 from fuel combustion, equivalent to 0.7% of total global emissions from combustable fuels. This represents a 59% increase for Thailand from 2000 to 2023. The largest emissions sources were oil (45%) and natural gas (31%).[27]
Carbon dioxide emissions from energy, 2011–2021 (MtCO2)[28]:12
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
249.3
266.7
265.8
273.7
281.1
286.8
287.5
293.2
288.4
270.0
269.4
Thailand has set ambitious targets to reach net-zero emissions by 2065 and a 30% reduction in greenhouse gas emissions by 2030. The Thai government has begun to implement a carbon pricing mechanism, encompassing carbon taxes and Emission Trading Schemes (ETS), as a pivotal element of its climate policy. These efforts are complemented by a phased withdrawal of fossil fuel subsidies and the introduction of supportive policies aimed at reducing the nation's carbon footprint. A 2023 World Bank report underscored the dual benefits of such policies, not only in mitigating climate change but also in reducing the financial and health impacts of air pollution, as evidenced by the substantial costs associated with PM2.5 exposure in Thailand. The report concluded that while the initial steps towards carbon pricing are critical, they would need to be significantly bolstered after 2030, alongside the adoption of additional measures such as the expansion of electric vehicle infrastructure and renewable energy skills development, to achieve the deep emission cuts required for Thailand to meet its climate objectives.[29]
Ninety percent of Thai electrical generating capacity is conventional thermal. Oil-fired plants have been replaced by natural gas, which in 2018 generated 65% of Thailand's electricity. Coal-fired plants produce an additional 20%, with the remainder from biomass, hydro, and biogas.[16]
Thailand's Electricity generation sources in 2023.
Energy experts working for the World Wildlife Fund have calculated that Thailand and four Mekong Region neighbours could achieve 100% renewable energyelectricity generation by 2050. Their study showed that these countries can produce and use electricity from solar power, wind power, biogas, and small run-of-the-river hydroelectricity. The findings conflict with government plans that discount renewables.[31]
Evolution of electricity generation sources in Thailand since 2000.
Rising temperatures increase electricity demand. It is estimated that cities the size of Bangkok may require as much as 2 gigawatts of additional electricity for each increase of 1 degree Celsius in temperature due to increased demand for air conditioning.[32]
As the April 2024 report highlights, Thailand is facing an extraordinary increase in electricity consumption due to an ongoing severe heat wave. The country recorded a historic peak in electricity usage at 34,443.1 megawatts, surpassing the previous record of 34,130.5 megawatts set in May 2023. This significant spike in power usage is primarily driven by the revival of key sectors such as business and tourism, which are still rebounding alongside the extreme temperatures. The Electricity Generating Authority of Thailand (EGAT) has acknowledged this trend and now anticipates that electricity demand may further escalate, potentially exceeding 35,000 megawatts in the near future.[33]
Allowing private companies, independent power producers (IPPs), to build and operate power generation plants, selling all of their output to the Electricity Generating Authority of Thailand (EGAT)
Allowing smaller private companies, SPPs or small power producers, to build and operate small power generation plants (mostly co-generation plants), selling a portion of their output to EGAT
Delegating to the National Energy Policy Organisation (NEPO) the task of developing a master plan for the privatisation of EGAT. Piyasawat Amranand, head of NEPO, designed a plan which would closely replicate the English power pool, break EGAT up into several smaller companies, and privatise the smaller companies.
Chuan Leekpai government
The subsequent government of Chuan Leekpai (1992–1995, 1997–2001) continued Anand's policies, with Sawit Bhodivihok taking a leading role in industry reform. The reforms were fiercely attacked by members of the EGAT, Metropolitan Electricity Authority (MEA), and Provincial Electricity Authority (PEA) unions. As a result, no significant changes in industry structure or ownership occurred during Chuan's term.
In September 2001, the National Energy Policy Office approved the partial listing of PTT, the state-owned oil and gas company.[34] PTT swiftly became the largest company by market capitalisation upon listing in the Stock Exchange of Thailand (SET). PTT greatly profited from the global increase in worldwide oil prices following the 2003 invasion of Iraq, and the rise in its stock price helped propel the SET to a boom. However, anti-Thaksin critics have claimed that PTT's bull run was due to manipulation by Thaksin.[35]
Attempted privatisation of EGAT
Electrical power grid with 500 kV (brown), 225 kV (green) and 110 kV (blue) lines in 2022
Under Shinawatra the government pursued the corporatisation and planned IPO of the Electricity Generating Authority of Thailand (EGAT) to raise approximately 42 billion baht for new gas-fired power plants, framing privatisation as a modernisation and capital-raising strategy. However in 2004 strong employee protests, civil society opposition, and concerns over regulatory weakness and conflicts of interest intensified political resistance.[36] This culminated in a 23 March 2006 ruling by the Supreme Administrative Court of Thailand that nullified EGAT’s transformation into EGAT PLC on grounds, including flawed public hearings and improper retention of state expropriation powers, effectively halting the privatisation and making it a landmark judicial reversal of state enterprise reform in Thailand.[37]
International electricity exchanges
In 2020, Thailand imported 29.55 TWh of electricity and exported 2.62 TWh. With an import balance of 26.93 TWh, it ranks third globally among electricity importers, behind the United States (47.3 TWh) and Italy (32.2 TWh).[38]
In 2021, eight Laotian power plants, with a combined generation capacity of 5,420 MW, were committed to exporting their production to Thailand. Among these, seven were hydroelectric plants (3,947 MW) and one a coal-fired plant (1,473 MW). In August 2021 the Electricity Generating Authority of Thailand planned to import an additional 1,200 MW from Laos' hydropower plants under a long-term purchase contract, bringing the total purchases to 10,200 MW21.[39]
In 2024 electricity imports from Lao PDR served 15% of Thailand’s electricity demand .[40]
Thailand's Power Development Plan, 2015-2036
According to Thailand's Power Development Plan for 2015-2036,[41][42] the country intends to build 20 additional gas-powered electrical generating stations (17,728 MWe), nine "clean coal" power stations (7,390 MWe), and 14,206 MW of renewable energy, including hydro, a large proportion of which will be imported from Laos or Myanmar. Up to two nuclear plants are also in the plans.[43]
Critics charge that power needs are overstated. Thailand plans for a reserve margin—the amount of energy available over that used at peak demand—of 15%. However, the plan identifies reserve margins as high as 39% in some years. The root cause is that Thailand regularly overestimates its economic growth, assuming it to be over four percent when it is historically around three percent.[43]
The role of imported hydro is also at issue. In 2015, hydro accounted for approximately seven percent of Thailand's power output. Under the plan, it will rise to 15-20% by 2036, and additional hydro will be imported from the Xayaburi Dam in Laos on the Mekong River and from the Hat Gyi and Mong Ton dams in Myanmar. While these sources may look clean on Thailand's balance sheets, the devastating environmental impacts to locals are simply outsourced.[43]
Many have asked why Thailand pursues a few very large coal power plants when it could be adopting safer, possibly cheaper routes, such as biomass reactors, like the 40 MWe plant operated by Double A in Prachinburi using wood and offcuts. The answer may lie in the fact that large, centralised mega-projects benefit the centralised system of project approval. With a public sector corruption rate of 25%, according to the Thai Chamber of Commerce,[44] they can be very beneficial for unscrupulous officials. One reason, however, is the required base load of electricity.[43]
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