More renewable energy will be able to meet rising demand from electric vehicle charging and data centres reliably to keep the country’s economic growth ambitions on track
Bangkok, 30 September – Thailand can save $1.8 billion in power generation costs between 2026 and 2037 by adding more solar and battery storage than the current draft revised Power Development Plan (RPDP) targets. A new report by energy think tank Ember finds that adding 89% more solar capacity and 60% more battery storage capacity by 2037 than the RPDP targets will help achieve savings, avoid excess new fossil fuel-fired capacity, enhance energy security and attract investments. The RPDP targets 36 GW of solar and 10.5 GW of battery storage capacity by 2037.
Ember’s proposed cost-optimal pathway, based on the RPDP, suggests adding a total of 32 GW of solar and 6 GW/15GWh of battery storage beyond the RPDP’s targets and reducing a net 2 GW of new gas-fired capacity. The cost savings primarily come from 11% lower natural gas use, 1,815 billion cubic feet, by Thailand’s power sector compared to the RPDP’s trajectory, and 2.4 million tonnes of avoided coal use.
The cost-optimal pathway’s total fixed expenditure from 2024 to 2037 is higher, $168 billion compared to the RPDP’s $153 billion. However, the avoided fossil fuels-use help save nearly $16 billion over the same period compared to the RPDP’s trajectory. As a result, Thailand’s net power generation cost savings are $1.8 billion in the cost-optimal pathway, including $0.8 billion of savings in variable operation and maintenance costs.
