Intellify Industry Report

Thailand's energy industry outlook 2025-2030

This industry report is updated regularly on a periodic basis by our local research analysis team to ensure accuracy and relevance. The content is developed using publicly available information, insights gathered from primary interviews with industry stakeholders, and other relevant market research methodologies. Market size estimations presented in this report are based on actual data collected from relevant government agencies and industry sources. Our data analyst team applies a proprietary projection model to forecast future growth potential. While we strive to maintain the highest standards of data accuracy and analysis, the findings in this report are subject to change as new information becomes available. This report is intended for informational purposes only and should not be considered as financial, investment, or strategic advice.

Important Notice

Table of Contents

Executive summary

Thailand’s electricity generation is projected to reach 242,770 GWh in 2025 and grow to approximately 282,431 GWh by 2030, expanding at a compound annual growth rate (CAGR) of 3.1%. Electricity consumption is expected to rise broadly in line with GDP growth, supported by steady industrial activity, urbanization, and the electrification of transport and services. Total power demand is forecast to increase from 217,349 GWh in 2025 to 259,324 GWh by 2030, with the industrial sector remaining the largest consumer, followed by residential and commercial segments.

Natural gas will continue to serve as the mainstay of electricity generation, accounting for 57.5% of the mix in 2025. Renewables are expected to increase their share gradually, reaching 21,403 MW in installed capacity by 2030, driven by solar PV, biomass, and floating solar. Imports from neighboring countries, particularly Laos, will play a supportive role, covering around 15.7% of domestic generation in 2025.

On the supply side, private-sector producers will account for 54.8% of installed capacity in 2025, up slightly from 54.5% a decade earlier. Growth will continue among Small and Very Small Power Producers, reflecting a broader policy push toward decentralization and diversification. While grid modernization and energy storage deployment are still in early phases, these areas are being addressed through targeted investment programs and regulatory adjustments under the Power Development Plan (PDP2024). Therefore, for energy producers, investment considerations will increasingly depend on alignment with long-term planning frameworks, fuel diversification targets, and the cost trajectory of distributed and low-carbon technologies.

Intellify's View

Thailand’s power sector in 2025 remains largely shaped by the direction laid out in national energy planning documents, particularly the Power Development Plan (PDP) and the Alternative Energy Development Plan (AEDP). Developments in generation capacity, the gradual increase in renewable shares, and the rising role of private-sector participants continue to reflect long-standing policy priorities rather than abrupt structural shifts. While demand growth remains steady, the composition of supply is changing incrementally, with more projects adopting hybrid formats and distributed generation. The entry of new technologies, such as solar floating, energy storage, and smart grid infrastructure, is progressing, although still at a measured pace relative to system-wide baseload needs.

For energy producers, this landscape presents a more diversified but also more segmented operating environment. While core revenue remains stable under long-term PPAs, new areas of investment are emerging particularly in solar-plus-storage, energy services, and localized generation. These trends may not alter the fundamentals in the near term, but they point to a more competitive environment over time. For firms planning new capacity or reviewing their portfolio strategies, there may be opportunities in smaller-scale or hybrid developments, especially those that align with BOI incentives and future grid planning. Continued attention to cost structures, regulatory pilots (such as direct PPAs), and fuel supply risks will also be important in navigating medium-term investment decisions.

Energy industry market size projection

Overview of key energy indicators

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
19 intellify 31/03/2025 05:03 PM intellify 31/03/2025 05:03 PM Electricity generation, total GWh 212056 206023 209717 215838 223283 235512 242770 250271 257975 265896 274043 282431
20 intellify 31/03/2025 05:03 PM intellify 31/03/2025 05:03 PM Electricity consumption, total GWh 189551 183461 186674 193189 199495 209808 217349 225162 233256 241640 250326 259324
21 intellify 31/03/2025 05:03 PM intellify 31/03/2025 05:03 PM Electricity import, total GWh 25547 29551 33356 35472 32805 35985 38146 40356 42565 44775 46984 49194
22 intellify 31/03/2025 05:03 PM intellify 31/03/2025 05:03 PM Electricity export, total GWh 2882 2618 1969 2062 2256 3577 3176 3324 3473 3621 3770 3918

From 2025 to 2030, Thailand’s electricity system is expected to expand in line with economic growth. Total generation capacity will increase from 52,655 MW to 59,321 MW, while electricity generation will grow from 242,770 GWh to 282,431 GWh. Consumption is projected to rise from 217,349 GWh to 259,324 GWh. Electricity imports will grow from 38,146 GWh to 49,194 GWh, while exports remain limited, increasing slightly from 3,176 GWh to 3,918 GWh.

Thailand’s electricity generation by major sources

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
23 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation, total GWh 212050 206023 209717 215838 223283 235512 242770 250271 257975 265896 274043 282431
24 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from natural gas GWh 121841 113859 113113 114637 129402 136373 139490 142678 145939 149274 152686 156176
25 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from coal & lignite GWh 35825 36823 36065 35523 30433 33259 33499 33741 33984 34229 34476 34725
26 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from import GWh 25547 29551 33356 35472 32805 35985 38146 40356 42565 44775 46984 49194
27 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from non-hydro renewables GWh 21402 20529 21927 21876 23167 23204 24875 26667 28589 30648 32856 35223
28 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from hydro power GWh 6310 4540 4540 6599 6588 6415 6476 6537 6600 6662 6726 6790
29 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from diesel GWh 137 97 294 1626 877 237 242 248 253 259 264 270
30 intellify 31/03/2025 05:05 PM intellify 31/03/2025 05:05 PM Electricity generation from fuel oil GWh 988 624 422 105 11 39 41 43 46 48 50 53

Thailand’s total electricity generation is projected to reach 242,770 GWh in 2025, representing a compound annual growth rate (CAGR) of 3.1% from 2025 to 2030. The generation structure remains largely unchanged, with conventional thermal sources accounting for 67-70% of the country’s output. Natural gas remains the dominant fuel type, contributing 57.5% of total electricity generation or approximately 139,490 GWh in 2025, followed by coal and lignite at 13.8% or 33,499 GWh.

Thailand’s reliance on natural gas is shaped by both infrastructure availability and historical resource development. Domestic production from offshore fields in the Gulf of Thailand, including Erawan and Bongkot, has underpinned the fuel mix for several decades. However, output from these fields is in structural decline. Supply disruptions from Myanmar’s gas fields, especially Yadana and Zawtika, which together account for 17% of Thailand’s total gas supply, continue to constrain gas availability. Despite the commissioning of new contracts by PTTEP, the long-term outlook remains limited by the lack of new reserves and political risks in upstream territories.

The share of imported electricity, mainly hydropower from Laos, is expected to rise to 15.7% in 2025 (38,146 GWh). This trend supports diversification but remains exposed to seasonal volatility and geopolitical constraints related to the Mekong River basin.

Non-hydro renewables will contribute 10.2% of generation, or around 24,875 GWh. The role of hydro remains marginal, with projections placing it at 2.7% of generation. No large domestic hydro projects are scheduled in the current pipeline. Thailand’s current import agreements with Laos provide a buffer for peak-hour supply, although risks from drought and transboundary water policy continue to affect import stability.

Thailand’s electricity generation by producer types

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
31 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation, total GWh 212056 206023 209717 215838 223283 235512 242770 250271 257975 265896 274043 282431
32 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation from EGAT GWh 65218 66490 63892 64773 70713 69755 71654 73610 75610 77658 79755 81905
33 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation from SPP GWh 54629 53467 52975 50962 52675 53230 55267 57383 59571 61835 64177 66603
34 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation from IPP GWh 55152 45269 47709 52695 54920 64586 64787 64943 65040 65077 65050 64959
35 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation from VSPP GWh 11511 11248 11784 11936 12171 11957 13103 14310 15578 16908 18305 19770
36 intellify 31/03/2025 05:06 PM intellify 31/03/2025 05:06 PM Electricity generation from import GWh 25547 29551 33356 35472 32805 35985 38146 40356 42565 44775 46984 49194

Thailand’s electricity is generated by a mix of state-owned and private-sector producers under the enhanced single-buyer model. In 2025, the Electricity Generating Authority of Thailand (EGAT) is expected to account for 29.5% of total generation, or 71,654 GWh. The Independent Power Producers (IPPs) contribute 26.7% (64,787 GWh), followed by Small Power Producers (SPPs) at 22.8% (55,267 GWh), imports at 15.6% (38,146 GWh), and Very Small Power Producers (VSPPs) at 5.4% (13,103 GWh).

The structural role of EGAT has remained stable. Its share is expected to decline slightly over the forecast period as more renewable capacity comes online and as direct private participation expands under the evolving PPA regime. IPPs, which operate under long-term fixed-tariff contracts with EGAT, are mainly responsible for large gas- and coal-fired generation. SPPs play a dual role by supplying electricity to EGAT and nearby industrial clusters, often through cogeneration systems. VSPPs continue to operate at small scale, mostly rooftop solar or community-scale biomass.

Although VSPPs have a lower output share, their capacity is expected to grow at a CAGR of 8.6% through 2030, supported by government incentives and lower technology costs. This growth, however, remains constrained by grid limitations and the absence of energy storage infrastructure at scale.

Thailand’s electricity consumption by sectors

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
37 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption by sector, total GWh 189551 183461 186674 193189 199495 209808 217349 225162 233256 241640 250326 259324
38 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in industrial sector GWh 86104 82158 86427 88574 86274 88226 91777 95470 99310 103302 107453 111769
39 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in residential sector GWh 49202 52860 54290 53747 57726 62188 64191 66258 68391 70591 72862 75204
40 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in business sector GWh 49128 43950 41529 46097 49962 53184 54969 56814 58721 60691 62727 64831
41 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in government & non-profit sector GWh 211 204 201 216 222 249 251 253 255 257 258 259
42 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in agricultural sector GWh 468 417 398 335 484 476 484 491 498 505 512 519
43 intellify 31/03/2025 05:08 PM intellify 31/03/2025 05:08 PM Electricity consumption in others GWh 4438 3872 3829 4219 4826 5486 5678 5876 6082 6294 6515 6742
wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
44 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in top industrial sectors, total GWh 59427 56470 60286 60913 58849 60115 60385 60698 61052 61449 61888 62368
45 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Food & beverage GWh 14220 14106 14397 14593 14481 15114 15300 15487 15677 15870 16064 16262
46 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Metal, iron, steel and mineral products GWh 13210 12555 13845 14036 12663 12499 12362 12226 12091 11958 11827 11697
47 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Machinery & electrical appliances GWh 6857 6646 7251 7110 7253 7806 8011 8222 8438 8659 8887 9120
48 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Plastic products GWh 5073 4886 5065 5042 4909 5073 5073 5073 5074 5074 5074 5074
49 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Transport equipment GWh 5333 4337 5063 5234 5033 4750 4642 4536 4432 4331 4232 4135
50 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Rubber products GWh 3520 3479 3770 3998 3934 4153 4293 4438 4587 4741 4901 5065
51 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Agriculture & livestock GWh 2741 2842 2908 2902 3167 3516 3696 3885 4083 4292 4511 4742
52 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Textiles GWh 4378 3549 3626 3704 3192 3018 2802 2601 2415 2242 2081 1932
53 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Wood products GWh 1942 1998 2164 2094 2189 2179 2230 2282 2335 2389 2445 2502
54 intellify 31/03/2025 05:09 PM intellify 31/03/2025 05:09 PM Electricity consumption in Industrial chemicals GWh 2153 2072 2195 2200 2028 2004 1976 1948 1920 1893 1866 1840
wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
55 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in top business sectors, total GWh 35967 31758 29845 33911 36772 39042 39721 40423 41148 41898 42673 43474
56 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in hotel & hospitality GWh 9967 7810 7034 8740 10303 11400 11711 12030 12357 12694 13040 13395
57 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in retail & department stores GWh 6153 5273 4853 5347 5587 5855 5797 5740 5683 5626 5571 5516
58 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in healthcare & veterinary services GWh 2919 2910 2970 3105 3336 3537 3675 3819 3969 4124 4285 4453
59 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in government administration GWh 2906 2872 2791 2871 3033 3182 3241 3300 3360 3422 3484 3548
60 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in education GWh 3023 2619 2128 2644 2996 3137 3160 3183 3206 3230 3254 3278
61 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in food, beverage & tobacco stores GWh 2667 2485 2375 2542 2730 2936 2993 3051 3110 3170 3232 3294
62 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in real estate GWh 3036 2671 2467 2626 2798 2915 2892 2869 2845 2822 2800 2777
63 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in transport-related services GWh 1798 1774 1911 2031 2086 2239 2339 2444 2554 2668 2788 2913
64 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in water supply GWh 1945 1942 1971 1923 1996 2098 2130 2163 2196 2229 2263 2298
65 intellify 31/03/2025 05:10 PM intellify 31/03/2025 05:10 PM Electricity consumption in electricity & gas supply GWh 1552 1404 1346 2083 1908 1742 1783 1825 1868 1912 1957 2003

Electricity demand in Thailand is projected to reach 217,349 GWh in 2025. The industrial sector remains the largest consumer, with a 42.2% share or 91,777 GWh, followed by residential users at 64,191 GWh and the business sector at 54,969 GWh.

Industrial consumption is concentrated in energy-intensive subsectors including food processing, rubber, metal products, and machinery. While electricity use in food and rubber industries continues to grow steadily, some subsegments such as steel and transport equipment show a flat or declining trend due to efficiency improvements and structural shifts in production.

Residential demand has increased steadily, supported by population growth in urban centers and rising adoption of electrical appliances. Despite government initiatives to manage household consumption through progressive tariffs and subsidized rates for low-usage households, residential electricity use has grown at a CAGR of 4.5% from 2019 to 2025.

Business sector electricity consumption remains correlated with retail and tourism activity. Growth is driven primarily by recovery in hotels and retail trade post-COVID-19. However, certain commercial subsegments such as real estate and department stores show limited consumption growth, partly due to saturation and energy efficiency programs.

Thailand’s renewable energy consumption

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Indicator Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
66 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption, total MW 11852 12005 12386 12666 12810 14539 15683 16827 17971 19115 20259 21403
67 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from solar energy MW 2983 2979 3015 3135 3249 3623 4278 4933 5588 6243 6898 7553
68 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from solar floating MW 0 0 45 45 45 69 273 478 682 886 1091 1295
69 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from biomass MW 3410 3517 3646 3759 3870 3930 4073 4216 4359 4502 4645 4789
70 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from wind turbine MW 1507 1507 1545 1545 1544 1777 1870 1963 2057 2150 2243 2336
71 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from biogas MW 530 557 635 643 559 1113 1148 1183 1217 1252 1287 1322
72 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from municiple solid waste MW 315 334 389 377 377 900 900 900 900 900 900 900
73 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from industrial waste MW 0 0 0 34 34 19 24 28 32 37 41 45
74 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from small hydro power MW 188 190 192 207 214 188 197 206 216 225 234 243
75 intellify 31/03/2025 05:13 PM intellify 31/03/2025 05:13 PM Renewable energy consumption from large hydro power MW 2920 2920 2918 2918 2918 2920 2920 2920 2920 2920 2920 2920

Thailand’s installed renewable capacity is expected to reach 15,683 MW in 2025, and grow to 21,403 MW by 2030, at a CAGR of 6.4%. Key contributors include solar PV, solar floating, biomass, and wind. Solar PV will increase from 4,278 MW in 2025 to 7,553 MW by 2030, driven by government feed-in-tariffs and rooftop deployment programs.

Solar floating, a relatively new segment, is expected to grow to 1,295 MW by 2030. EGAT has announced several pilot projects combining hydro and solar floating systems, with integration supported by energy management platforms.

Biomass remains one of the more stable segments, with installed capacity projected to reach 4,789 MW by 2030. Growth is supported by agricultural residue availability, though the sector remains vulnerable to feedstock price fluctuations and collection logistics.

Wind power, which peaked in earlier years, is growing at a slower pace. Installed capacity is expected to reach 2,336 MW by 2030. Project announcements have been limited in recent years, with development focused primarily in northeastern provinces where wind resources are viable.

Despite government targets under the Alternative Energy Development Plan (AEDP), several constraints persist. Grid congestion, particularly in rural areas, and the absence of utility-scale battery storage systems have limited the contribution of renewables to the baseload mix. Over the next five years, these limitations are expected to persist unless grid infrastructure and regulatory pathways for energy storage improve.

Meanwhile, Thailand maintains relatively efficient transmission and distribution systems, with losses averaging below 7%—lower than the regional average. The grid covers 100% of the population, with ongoing investments in grid upgrades and smart technologies to accommodate distributed generation and improve reliability. However, the current grid configuration is not yet fully prepared for a decentralized renewable system. Capacity expansion plans under the Power Development Plan (PDP2024) include investment in substations, high-voltage lines, and digital control systems. Energy storage remains underdeveloped. Although pilot programs are in place, large-scale storage deployment is still in early stages, and cost remains a barrier. The government has introduced new pricing mechanisms and incentive structures to encourage investment in solar-plus-storage systems. Feed-in-tariffs for hybrid systems have been approved, but market uptake remains limited. Broader reforms in power market regulation may be required to scale these technologies.

Key growth drivers

Rising domestic electricity demand

Electricity consumption in Thailand is forecast to grow at a compound annual growth rate (CAGR) of 3.6% between 2025 and 2030, rising from 217,349 GWh in 2025 to 259,324 GWh in 2030. Growth is led by the industrial sector, which will maintain the largest share of demand, accounting for 42.2% of national electricity consumption in 2025. The industrial sector is expected to consume 91,777 GWh in 2025, increasing to 111,769 GWh by 2030.

The concentration of demand in the industrial sector is shaped by the structure of Thailand’s production economy. Manufacturing activities, particularly in food processing, metals, rubber, plastics, and electronics, require continuous energy input. Consumption by metal, iron, and steel industries alone amounted to 12,362 GWh in 2025 and is expected to remain flat or marginally decline due to efficiency gains. In contrast, segments such as machinery, rubber, and agriculture-related industries are expected to post moderate increases in energy demand, supported by rising production activity and infrastructure development.

Residential and business sectors also contribute meaningfully to overall demand. Residential consumption, supported by growing household formation and appliance ownership, stood at 64,191 GWh in 2025 and is forecast to reach 75,204 GWh by 2030. Demand in the commercial segment, which includes hospitality, retail, and real estate services, is projected to rise from 54,969 GWh in 2025 to 64,831 GWh in 2030. This is supported by increased activity in tourism-related services and continued urban development in provincial economic corridors.

Continuing adoption of electric vehicles

The electrification of Thailand’s transport sector is contributing to structural changes in electricity demand. Although electricity consumption from electric vehicles (EVs) currently represents a small share of total power usage, ongoing developments in production, infrastructure, and consumer uptake are expected to increase its contribution over the medium term. According to our automotive report, battery electric vehicle (BEV) registrations in Thailand are projected to reach 154,735 by 2030. This expansion is supported by state-led incentives, a maturing policy framework, and the establishment of domestic EV manufacturing capacity by global and regional automakers.

The growth of EV usage is directly linked to rising investment in charging infrastructure. In 2023, the number of public EV chargers increased by more than 100% year-on-year, with an expected ramp-up in both urban and intercity corridors. The expansion of home charging systems is also contributing to shifts in electricity consumption patterns, particularly in urban residential areas where load profiles are beginning to reflect combined household and vehicle usage.

At the system level, transport electrification is anticipated to affect load distribution more than overall generation in the near term. Key impacts include changes in peak demand profiles, higher load concentration in urban grids, and increased variability in localized consumption. The Power Development Plan (PDP) incorporates these trends into demand-side management strategies, including time-of-use tariffs and grid upgrades to accommodate distributed energy loads. The PDP also outlines support for smart charging infrastructure and storage integration, which are expected to play a more prominent role as EV adoption expands beyond passenger vehicles to include buses, commercial fleets, and logistics. Transport electrification, while currently a marginal power consumer, is positioned to become a more material demand factor as charging behavior scales and converges with smart energy systems at the residential, commercial, and municipal levels.

National direction to support long-term stable electricity supply

Thailand’s electricity sector operates within a highly centralized planning framework anchored by the Power Development Plan (PDP) and the Alternative Energy Development Plan (AEDP). These documents serve as the main policy instruments used by the Energy Policy and Planning Office (EPPO) to guide generation capacity expansion, manage the national fuel mix, and synchronize investment direction across the public and private sectors. The most recent iteration, the draft PDP2024, which is set to be adopted by 2025, outlines the addition of 77,407 MW in new generation capacity by 2037. The plan targets renewables to contribute over 51% of the total electricity mix by the end of the planning period, compared with 12.9% in 2025. This marks a substantial shift from the legacy structure dominated by conventional thermal generation.

Under this roadmap, the government will procure over 10,000 MW of renewables between 2023 and 2030, with further tranches planned thereafter. The PDP also incorporates targets to phase out ageing fossil fuel plants while introducing more efficient combined-cycle gas turbine (CCGT) technology and distributed renewable installations. By mapping peak demand, reserve margin requirements, and fuel source diversification over a 15-year horizon, the PDP provides visibility for generation license holders, grid operators, and financiers. The AEDP complements the PDP by detailing fuel-specific pathways, particularly for biomass, solar, wind, and small hydro. Taken together, these plans form the institutional backbone of Thailand’s energy transition, and their continuity has been maintained despite recent changes in political leadership.

Board of Investment’s incentives for renewable investments

Alongside strategic planning documents, the Thai government has adopted a series of financial and regulatory instruments to incentivize private investment in renewables. These are primarily administered by the Board of Investment (BOI), which provides both tax-based and non-tax-based support mechanisms. Investors in renewable energy projects—especially those focusing on solar, wind, biomass, and biogas—qualify for corporate income tax exemptions of up to eight years, as well as waivers on import duties for machinery and components. In addition, foreign investors benefit from simplified procedures for land ownership, expatriate work permits, and remittance approvals. These incentives are structured to lower entry barriers, improve project bankability, and attract long-term capital into the sector.

The results of these initiatives are reflected in investment approvals. From 2022 to 2023, the BOI granted support to an annual average of 450 renewable energy projects, with a combined investment value of THB 30 billion per year. This represents a significant increase from the pre-2020 average of 200 projects valued at THB 20 billion. The use of Feed-in Tariffs (FiTs), priced between THB 2.6 to 4.1 per kWh depending on the technology and capacity, has also enhanced revenue certainty for project developers. These policy tools are calibrated to align with the fuel targets under the PDP and AEDP, helping to accelerate distributed renewable capacity and reduce the system’s reliance on gas and coal over time.

Shift toward private-led generation

Thailand has increasingly supplemented its domestic generation with electricity imports, particularly from neighboring countries such as Laos. In 2025, imported electricity is projected to reach 38,146 GWh, representing 15.7% of total electricity generation, compared with 12% in 2019. This growth is enabled through bilateral power purchase agreements coordinated under the Greater Mekong Subregion (GMS) power cooperation framework. Laos remains the primary source of imported electricity, particularly from large-scale hydropower facilities including Nam Theun 2, Xayaburi, and other Mekong-based plants. These imports offer a relatively low-cost and reliable baseload supply, contributing to Thailand’s reserve margin while reducing the need for new domestic thermal plants. However, the expansion of hydropower imports faces structural constraints. Water availability in Laos is subject to seasonal droughts, and transboundary water management issues remain unresolved. The Mekong River Commission and the Lancang-Mekong Cooperation framework have raised environmental and community-based concerns about excessive damming, which may limit future import growth.

While cross-border electricity trade provides short-term flexibility and supports diversification goals, it does not eliminate the need for domestic investment in firm generation and storage technologies. Nonetheless, current import levels help balance the system during peak periods, particularly when solar output is low or LNG prices are elevated.

Expansion of cross-border power trade

Thailand has increasingly supplemented its domestic generation with electricity imports, particularly from neighboring countries such as Laos. In 2025, imported electricity is projected to reach 38,146 GWh, representing 15.7% of total electricity generation, compared with 12% in 2019. This growth is enabled through bilateral power purchase agreements coordinated under the Greater Mekong Subregion (GMS) power cooperation framework. Laos remains the primary source of imported electricity, particularly from large-scale hydropower facilities including Nam Theun 2, Xayaburi, and other Mekong-based plants. These imports offer a relatively low-cost and reliable baseload supply, contributing to Thailand’s reserve margin while reducing the need for new domestic thermal plants. However, the expansion of hydropower imports faces structural constraints. Water availability in Laos is subject to seasonal droughts, and transboundary water management issues remain unresolved. The Mekong River Commission and the Lancang-Mekong Cooperation framework have raised environmental and community-based concerns about excessive damming, which may limit future import growth.

While cross-border electricity trade provides short-term flexibility and supports diversification goals, it does not eliminate the need for domestic investment in firm generation and storage technologies. Nonetheless, current import levels help balance the system during peak periods, particularly when solar output is low or LNG prices are elevated.

Continuing grid modernization

Thailand’s grid infrastructure is relatively well-developed, supporting stable supply across all provinces with a reported electrification rate near 100%. The country maintains an extensive transmission network of over 35,000 kilometers, and its transmission and distribution losses are consistently lower than regional averages, estimated at just under 7% of total generation. This level of operational efficiency reflects both strong grid planning by EGAT and ongoing investments in T&D infrastructure.

However, the current grid structure is based on centralized power generation and one-directional flows, which present limitations in integrating a higher share of variable renewable energy. To address this, the government has initiated a series of grid modernization programs. These include pilot projects for energy storage systems (ESS), upgrades to substations, and smart grid deployment at the distribution level.

EGAT and the Energy Regulatory Commission (ERC) are also advancing regulatory frameworks to accommodate future innovations such as peer-to-peer energy trading, direct PPAs, and time-of-use pricing. These efforts aim to create a more flexible and responsive grid environment, particularly as the share of solar and wind generation increases. Over the medium term, these enhancements will be essential to accommodate the structural shift away from fossil fuels and to improve overall system resilience.

Key risks & challenges

Declining natural gas import from Myanmar

Natural gas continues to play a material role in domestic electricity generation. As of the early 2020s, gas imports from Myanmar contributed an estimated 17% of Thailand’s total gas supply. Two major fields—Yadana and Zawtika—have faced ongoing disruption due to Myanmar’s political instability and civil conflict. International companies have exited the upstream sector, leaving Thai state-owned PTTEP to assume larger operational responsibility.

The risk associated with Myanmar gas is twofold. First, supply reliability remains fragile due to unstable on-ground conditions. Second, any further disruptions will require Thailand to compensate with increased LNG imports at higher cost. LNG prices are inherently more volatile, driven by global demand-supply dynamics and foreign exchange fluctuations. This dynamic imposes direct cost pressures on gas-fired generators, particularly those with limited fuel-switching capabilities or exposure to spot markets.

In the context of a power system still dependent on gas for more than half of total electricity generation, these risks present a challenge to both cost management and fuel security over the medium term.

Consistent political turmoil

Thailand’s energy transition is largely policy-driven. Changes in political leadership, administrative restructuring, or shifts in energy governance priorities can affect the speed and clarity of implementation.

The transition in government leadership in 2024, including the court-ordered dissolution of the Move Forward Party and changes to the prime ministership, has so far not materially altered national energy plans. However, policy execution may face short-term delays, particularly if inter-agency roles are reassigned or approval processes are restructured. The energy sector’s reliance on cross-ministerial coordination—across the Ministry of Energy, Energy Regulatory Commission (ERC), and other state bodies—means that alignment in decision-making is essential for implementing the Power Development Plan (PDP), Alternative Energy Development Plan (AEDP), and regulatory instruments such as Feed-in Tariffs (FiTs).

In addition, uncertainties around the legal framework for Direct Power Purchase Agreements (PPAs), grid access regulations for private-sector players, and tariff adjustment mechanisms could introduce further hesitation among investors. While the overall direction of policy remains consistent, temporary uncertainty could affect the timing of planned investments and project rollouts.

Global energy price volatility

Thailand’s power sector is increasingly exposed to global energy markets. The shift toward greater use of imported LNG, combined with exposure to imported solar panels, turbines, and storage equipment, introduces risks related to external price shocks and trade restrictions.

Geopolitical conflict remains a primary driver of commodity price volatility. For example, the Russia-Ukraine war contributed to elevated global LNG prices in 2022–2023, directly impacting Thailand’s power generation costs. Although prices moderated in 2024, the underlying risk remains, particularly in scenarios involving Middle East tensions or renewed disruption in major shipping routes.

Trade protectionism is also a rising concern. Global efforts to secure energy supply chains have prompted countries to impose export restrictions, tighten component certification standards, and raise tariffs on critical energy inputs. These dynamics could impact Thailand’s ability to procure solar modules, batteries, or wind components from traditional suppliers such as China, the EU, or the US.

If trade restrictions intensify or escalate into broader trade conflicts, the cost structure of renewable projects could be affected. Additionally, delays in supply chains may hinder the deployment timeline of new capacity. These risks are particularly relevant as Thailand seeks to scale up renewable energy to meet national targets.

Thailand’s reliance on imports of natural gas from Myanmar has declined steadily in recent years, and so as of 2022, the country was the source of just 42.1% of all Thailand’s imports of natural gas, down by more than half from 2012’s 86.3%. running threats to stability in Myanmar may impact the supply of energy to Thailand, and there is a risk that this will add to domestic electricity prices.

Rising operational costs from ESG compliance

Thailand’s power producers are facing a gradual increase in operating costs as environmental, social, and governance (ESG) considerations become embedded into energy policy and project financing frameworks. Regulatory pressure, investor expectations, and alignment with global sustainability commitments have made ESG compliance an operational requirement rather than an optional strategy.

This has led to increased expenditure across multiple areas. For thermal power operators, the transition to lower-emission technologies—such as co-firing hydrogen or deploying carbon capture systems—requires significant upfront investment and long-term adjustments in plant efficiency. Even among renewable energy producers, meeting ESG-related reporting standards, maintaining environmental safeguards, and adapting to evolving community engagement requirements all add layers of compliance costs.

Additionally, energy companies seeking to remain bankable for international lenders or qualify for public-private partnership (PPP) frameworks must demonstrate alignment with ESG metrics. This includes disclosure on emissions intensity, water usage, biodiversity impact, and labor practices. As these standards tighten, operators will likely incur higher capital and operating costs, particularly when adopting technologies that are still in early commercial deployment stages (e.g. hydrogen-ready turbines, grid-forming inverters, battery-integrated solar farms).

Growing competition from distributed and self-generated power

Private-sector energy producers in Thailand are facing growing competition from distributed power systems, particularly among residential users and industrial operators investing in their own electricity generation. The availability of rooftop solar technology, combined with supportive policies such as net metering and BOI incentives, has allowed more consumers to become producers of electricity. As a result, the demand for grid-supplied electricity is becoming increasingly segmented.

Industrial estates and large commercial facilities have also begun to install on-site renewable energy systems, including solar PV and, in some cases, battery storage. These systems reduce reliance on central suppliers and allow operators to manage energy costs more directly. While these investments support Thailand’s transition to a cleaner energy mix, they also reduce electricity offtake volumes from traditional producers.

For traditional power producers, particularly those with large-scale assets and fixed operating costs, this shift toward decentralized energy consumption may result in lower capacity utilization and pressure to revise pricing models in the future.

Emerging key trends & industry developments

Increasing importance of carbon credit trading

Carbon credit mechanisms are gaining traction in Thailand as a supporting tool to manage the cost of decarbonization in the power and industrial sectors. While Thailand does not yet operate a national emissions trading scheme (ETS), voluntary carbon markets (VCMs) have emerged as a transitional mechanism. The Thailand Greenhouse Gas Management Organization (TGO) is responsible for accrediting domestic carbon offset projects under the T-VER framework (Thailand Voluntary Emission Reduction).

In the power sector, energy producers investing in renewable energy, energy efficiency, or waste-to-energy infrastructure may register their projects with TGO to generate credits. These can then be sold to local firms seeking to meet sustainability commitments under corporate social responsibility (CSR) programs or ESG-linked investment frameworks.

Adoption of carbon credits is currently concentrated among larger energy firms, including companies within the PTT Group and other IPPs with sustainability-linked strategies. As of 2024, over 500 projects have been registered under T-VER, and while most are tied to reforestation or agriculture, power generation-related credits are expected to expand.

Nonetheless, the depth of this market remains limited by pricing uncertainty, verification bottlenecks, and the absence of binding emissions caps. Current trading values for T-VER credits hover between THB 80–120 per tonne of CO₂, which is below breakeven for many carbon abatement projects. However, new efforts to link Thai credits with international carbon markets including the Article 6 mechanisms under the Paris Agreement may unlock future demand from global buyers. For electricity producers, this could evolve into a secondary revenue channel, particularly for projects with high up-front investment costs.

Early development of hydrogen as long-term fuel alternative

Hydrogen remains a long-term strategic option for Thailand’s energy sector, with current efforts focused on feasibility assessments and pilot-scale initiatives. Although hydrogen adoption remains several years away from commercial integration, the fuel is being explored by large energy conglomerates, especially in relation to decarbonization of gas-fired generation and industrial operations.

PTT Group, for example, has positioned hydrogen as one of its future energy transition priorities with medium to short-term focus on internal restructuring. In 2021, PTT and its power subsidiary GPSC initiated studies into the use of green hydrogen produced via electrolysis using renewable electricity. Pilot projects are being considered in industrial zones in Rayong and Chonburi, targeting applications in transport, petrochemicals, and eventually co-firing in gas turbines.

From a policy perspective, hydrogen is included in the Ministry of Energy’s Alternative Energy Development Plan (AEDP) and National Energy Plan (NEP), although specific targets for hydrogen deployment remain undefined. Current feasibility barriers include the cost of electrolysis (above $4/kg), absence of storage and transport infrastructure, and a lack of demand-side anchor projects. Given Thailand’s limited surplus of low-cost renewable electricity, green hydrogen production at scale remains economically challenging under current conditions.

However, partnerships with international energy firms and equipment manufacturers may accelerate development. The Energy Policy and Planning Office (EPPO) has also signaled interest in exploring cross-border hydrogen cooperation in the longer term, particularly with Japan and South Korea, where technology transfer and capital support could offset early investment constraints.

For the power sector, hydrogen is most likely to be adopted in a co-firing model with natural gas, reducing emissions while using existing gas infrastructure. This pathway would also allow the gradual blending of hydrogen as costs decline and domestic production scales up.

Technological advancement in carbon capture and storage (CCS)

Carbon Capture and Storage (CCS) is gaining attention as a mitigation strategy for thermal power generation, especially in scenarios where natural gas or coal remains part of the energy mix beyond 2030. While CCS has not yet been deployed commercially in Thailand, corporate strategies are beginning to reflect long-term interest in the technology.

PTT Group, through its upstream arm PTTEP, has initiated technical studies into CCS applications at offshore gas fields. These include depleted fields in the Gulf of Thailand where geological formations could potentially serve as long-term carbon storage sites. PTTEP’s pilot programs include partnerships with Japanese and South Korean firms to assess both the engineering feasibility and regulatory frameworks required to operate CCS in the Thai context.

In addition, EGAT has included CCS as part of its 2050 carbon neutrality roadmap, though project-level details remain at the conceptual stage. For power plants such as Mae Moh, which continues to operate coal-fired units, CCS could extend plant lifespans while reducing total emissions. However, the economic case for CCS remains weak without external pricing mechanisms such as carbon taxes or mandatory emission quotas.

Capital costs for post-combustion capture systems typically exceed $1,000 per kilowatt, and transport and storage costs remain uncertain due to the lack of a domestic carbon pipeline network. The absence of a carbon price signal further limits private-sector investment in this area. That said, interest in CCS may increase if Thailand proceeds with international carbon trading mechanisms or adopts a domestic carbon pricing policy.

CCS is also being considered for industrial decarbonization, particularly in cement, refining, and petrochemical sectors, where process-related emissions cannot be avoided through fuel switching alone. In this context, power sector CCS projects could benefit from co-location or shared infrastructure, potentially reducing cost per unit of CO₂ captured.

Emergence of floating solar projects

Floating solar, or solar photovoltaic (PV) systems installed on bodies of water, is emerging as a distinctive element within Thailand’s renewable energy strategy. While still at a relatively early stage of deployment, floating solar has gained policy-level traction and investment interest due to Thailand’s geographic constraints, seasonal water storage capacity, and grid development objectives.

For context, Thailand faces increasing limitations in developing large-scale land-based renewables due to land-use competition, zoning restrictions, and high development costs in urban and agricultural areas. Floating solar offers a way to mitigate these constraints by utilizing underused water surfaces, particularly at existing dam reservoirs managed by the Electricity Generating Authority of Thailand (EGAT). EGAT has taken the lead in rolling out hybrid floating solar projects by combining solar PV with existing hydropower infrastructure. These systems provide several advantages: they allow the use of shared grid connections, reduce water evaporation, and enable complementary generation. Solar output peaks during the day, while hydropower can fill in during evening hours or during solar intermittency, effectively smoothing output fluctuations without requiring large-scale battery storage.

The Sirindhorn Dam in Ubon Ratchathani, launched in 2021, was the first utility-scale floating solar project in Thailand, with 45 MW of capacity. The plant spans over 450,000 square meters and serves as a pilot model for future projects. Building on this, EGAT has outlined a pipeline of nine additional floating solar-hydro hybrid projects with a combined target capacity of 2,725 MW by 2037, as laid out in the draft Power Development Plan (PDP 2024).

The Ubol Ratana Dam project (24 MW solar + 36 MW hydro), also in operation, integrates a 10 MWh Battery Energy Storage System (BESS), enabling enhanced load balancing. These projects reflect a broader intention to leverage existing reservoirs to scale solar energy capacity without incurring land acquisition costs.

The viability of floating solar is supported by ongoing reductions in the cost of solar modules and floating structures. While initial capital expenditure (CAPEX) for floating systems remains higher than ground-mounted PV (mainly due to mooring and platform costs), this gap is narrowing. EGAT and private developers have also benefited from public procurement frameworks and concessional financing support.

Therefore, floating solar is likely to become a mainstream component of Thailand’s renewables portfolio by the end of this decade. In addition to EGAT-led projects, independent power producers (IPPs) and provincial energy authorities are exploring deployment at irrigation canals, industrial reservoirs, and aquaculture farms. Private-sector interest is also emerging in pairing floating PV with commercial-scale fishery operations, offering dual-use potential in rural provinces.

Overview of Thailand’s electricity generation system

State-owned enterprise involvement

Thailand’s electricity system operates under the Enhanced Single Buyer (ESB) model, in which state-owned enterprises oversee generation, procurement, transmission, and distribution of power. The Electricity Generating Authority of Thailand (EGAT) serves as the central operator under this model. EGAT is responsible for generating electricity through its own facilities, purchasing electricity from private producers, and managing the national transmission grid. It remains the sole buyer of electricity for the system, ensuring that all power flows through a centralized mechanism before reaching end-users.

EGAT currently owns 45 power plants, covering a range of generation technologies including thermal, hydropower, and renewable energy. In addition to operating these facilities, EGAT manages national grid infrastructure and purchases power under long-term agreements from Independent Power Producers (IPPs), Small Power Producers (SPPs), and Very Small Power Producers (VSPPs). Electricity is then distributed to users through two entities: the Metropolitan Electricity Authority (MEA), which serves Bangkok and nearby provinces, and the Provincial Electricity Authority (PEA), which covers the remaining areas nationwide.

EGAT’s system operation functions include the management of grid stability and planning for energy integration. It has introduced several advanced technologies such as energy storage systems, hybrid hydro-floating solar platforms, and a dedicated center for renewable energy forecasting. These technologies support the integration of variable renewable energy sources into the national grid and improve the efficiency of overall system operation.

Despite its central role, EGAT faces several internal challenges. Operating profits have declined by an estimated 3.5 to 4 percent per year, prompting plans to streamline its workforce from 22,413 employees in 2017 to approximately 15,000 by 2025. The organization is also undertaking strategic asset management projects. For example, a capital investment of 35 billion baht has been allocated to extend the life of coal-fired units 8 and 9 at the Mae Moh power plant.

EGAT also plays a role in regional power cooperation through cross-border electricity trade and interconnection projects. These efforts are consistent with Thailand’s broader energy policy direction under the national Power Development Plan (PDP), which sets long-term targets for system capacity, reliability, and the transition to lower-carbon energy sources. State-owned enterprises remain central to both planning and execution in Thailand’s power sector, particularly in managing future supply and ensuring system security.

Following a market liberalization effort since 1992, private companies were encouraged to enter the market to build and operate generation plants. 

Types of private-sector players

Alongside state-owned utilities, private sector participation plays a central role in Thailand’s electricity generation system, following progressive liberalization efforts since the early 1990s. The government adopted the Independent Power Producer (IPP) framework in 1992 to address growing demand and reduce public investment burdens. Over time, additional schemes were introduced to enable smaller-scale generation and promote renewable energy adoption. As of 2025, private power producers collectively contribute over 58% of the country’s total installed capacity, with the remainder still operated by EGAT.

Private power producers in Thailand are broadly classified into three categories based on generation capacity and buyer relationships: Independent Power Producers (IPPs), Small Power Producers (SPPs), and Very Small Power Producers (VSPPs). These categories differ in scale, fuel source, contracting structures, and access to the national grid.

Independent Power Producers (IPPs)

IPPs are the largest class of private producers, with installed capacities exceeding 90 megawatts. Electricity generated is sold exclusively to EGAT through long-term Power Purchase Agreements (PPAs), typically lasting 25 years. IPPs play a key role in supporting base-load and firm supply for the national grid. The fuel mix among IPPs is primarily based on natural gas and coal, although recent investments have been directed toward hybrid and renewable projects.

As of 2024, there are 13 IPP operators, including Gulf Energy, RATCH Group, BLCP Power, and Global Power Synergy. Total installed capacity from IPPs stands at approximately 18,973 megawatts. Revenue is derived mainly from fixed tariffs and guaranteed minimum offtake agreements, ensuring predictable cash flows. Some IPPs also generate income from overseas power assets, particularly in Laos, Indonesia, and Vietnam. The business strategy of leading players includes diversification into LNG-to-power infrastructure, regional interconnection projects, and hybrid systems combining conventional and renewable sources

Small Power Producers (SPP)

SPPs operate generation facilities with capacities between 10 and 90 megawatts. Power generated is typically sold to EGAT under firm or non-firm contracts, and in some cases, directly to industrial users located near the power plants. A notable feature of the SPP segment is its use of cogeneration systems, which produce both electricity and thermal energy for use in manufacturing processes.

Major SPP operators include B.Grimm Power, Rojana Power, and Gulf TS. While natural gas remains the primary fuel source among firm SPPs, non-firm SPPs tend to rely on renewable sources such as biomass, solar, and waste-to-energy. Revenue models combine long-term sales to EGAT with variable earnings from industrial clients, which are subject to changes in sectoral demand. Operators in this segment often benefit from Feed-in Tariff (FiT) incentives and tax privileges granted under Thailand’s Board of Investment (BOI) programs.

Very Small Power Producers (VSPPs)

VSPPs are limited to projects with capacity below 10 megawatts and are primarily focused on renewable energy. This includes solar, wind, biogas, biomass, and small-scale hydropower. Electricity is sold to either the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA), depending on the location of the project. In most cases, VSPPs serve localized demand and contribute to grid decentralization.

Operators in this segment include rooftop solar system providers and community-based biogas projects. The revenue model relies on FiT mechanisms that vary by technology type, as well as net metering arrangements that allow excess electricity to offset grid consumption. As of 2024, there are 981 registered VSPP projects contributing a combined 5,240 megawatts to the grid. While entry costs remain high for new installations, particularly in solar and wind, long-term project viability is supported by operational cost savings and BOI incentives. Earnings may vary depending on fuel input availability, especially for biogas and biomass projects that rely on agricultural or waste feedstocks.

Pricing system in Thailand

Thailand’s electricity pricing structure operates under a multi-tiered mechanism that incorporates infrastructure costs, fuel price volatility, and regulatory policy. The system comprises three primary components: the base tariff, the fuel adjustment charge (Ft), and value-added tax (VAT). Each element plays a role in maintaining financial sustainability of power operations while managing affordability for different consumer groups. The pricing structure differs by user category, including residential, commercial, and power producers.

Residential Electricity Pricing

Residential electricity users are billed under a progressive tariff schedule where unit prices increase with higher consumption levels. As of 2025, households using fewer than 150 kWh per month pay a lower marginal rate, starting at 2.35 THB/kWh for the first 15 units and reaching up to 4.42 THB/kWh for consumption exceeding 400 kWh. This step-based pricing is designed to encourage energy conservation among higher-consuming households. The base tariff, which reflects infrastructure, transmission, and fixed generation costs, averages 3.25 THB/kWh for the first 150 kWh for low-voltage users and is revised every three to five years.

The Ft charge is reviewed quarterly to reflect changes in actual fuel procurement and generation costs. In early 2025, the Ft stood at 0.3972 THB/kWh, a decline from nearly 0.90 THB/kWh in 2024 due to reduced LNG spot prices. A 7% VAT is applied on the total electricity bill, following a government decision to maintain the reduced rate (from 10%) through 2024 as part of post-pandemic economic relief.

Households consuming less than 300 kWh per month currently benefit from a subsidized fixed rate of 3.99 THB/kWh, although this policy is under review due to EGAT’s rising financial obligations. During periods of extreme weather, middle-income households consuming above the subsidy threshold often bear higher bills.

Commercial and Industrial Pricing

Commercial and industrial users are subject to differentiated pricing based on voltage level and time-of-use. Energy charges vary between 4.18 and 4.32 THB/kWh, while demand charges range from 132.93 to 210 THB/kW depending on service type. For users under the Time-of-Use (TOU) scheme, peak-hour rates may reach 5.11 THB/kWh, with off-peak rates as low as 2.60 THB/kWh. TOU pricing is designed to reduce stress on the grid during high-demand hours.

These users are more exposed to fluctuations in Ft charges, given their higher consumption volumes. In early 2025, the Ft reduction led to estimated cost savings of 2% to 4% for small and medium-sized enterprises (SMEs). In addition, industrial consumers indirectly support household subsidies through cross-subsidization, with commercial tariffs incorporating a transfer cost of roughly 0.50 THB/kWh. This has been a point of contention regarding the efficiency and fairness of the current pricing structure.

Approximately 4% of the commercial tariff is allocated toward policy obligations, including funding feed-in tariff (FiT) schemes for solar and biomass producers. These surcharges are embedded in the base rate and used to finance long-term renewable energy development.

Electricity Pricing for Energy Producers

Electricity producers operate under contractual pricing structures that vary by scale and generation technology. Large-scale Independent Power Producers (IPPs) sign long-term PPAs with EGAT, locking in fixed tariffs for up to 25 years. Natural gas-fired plants typically receive between 2.60 and 3.20 THB/kWh. Grid-supporting projects, such as LNG-to-power plants, may receive additional premiums to reflect their system-stabilizing role.

Renewable producers, particularly Very Small Power Producers (VSPPs), are compensated under the FiT scheme, which provides guaranteed rates between 2.60 and 4.10 THB/kWh depending on technology and project scale. Biomass projects may receive additional incentives of 0.30 THB/kWh through the former adder scheme, which was gradually phased out between 2016 and 2019.

The Ft mechanism also plays a role in reimbursing producers when actual fuel costs exceed original tariff assumptions. In 2024, this led to deferred payments to LNG suppliers, with EGAT reporting outstanding obligations of approximately THB 98 billion.

Renewable Energy Certificates (RECs) provide an additional revenue stream for eligible producers. These are traded between 50 and 100 THB per megawatt-hour and support voluntary clean energy commitments among large corporate buyers.

Historical Timeline of Pricing Policy in Thailand

Thailand’s pricing system has evolved in parallel with power market liberalization. Key milestones include the introduction of the IPP program in 1992, which enabled private investment in large-scale generation and reduced EGAT’s generation share to 41.7% by 2025. The Ft adjustment mechanism was introduced in 2000 to increase pricing transparency by separating fuel costs from base tariffs.

The FiT policy was first implemented in 2006 under the “adder” framework, targeting biomass, biogas, wind, and small hydro projects. In 2013, feed-in tariffs for solar rooftop systems were introduced, followed by a broader FiT rollout in 2015 covering all renewable energy sources (excluding certain solar rooftop systems). Competitive bidding for FiTs began in 2017, including special incentives for projects in border provinces. As of 2022, updated FiT rates apply to solar, wind, biogas, and industry waste projects under new procurement rounds.

Recent reforms include the 2024 Direct PPA pilot for peer-to-peer renewable energy trading. This initiative aims to diversify market access for renewable producers but has faced challenges related to reserve margin levels and limited grid capacity.

Regulatory bodies & agencies

Thailand’s energy regulatory framework operates under a centralized governance model that places strategic policymaking and oversight in the hands of a few core authorities. At the center is the Ministry of Energy (MOE), which directs long-term energy planning, national infrastructure policies, and decarbonization targets. Supporting the MOE is a network of regulatory commissions, planning agencies, and specialized departments, each responsible for ensuring security, affordability, and system reliability across the energy value chain.

Energy Policy and Planning Office (EPPO)

As the central policymaking body under the MOE, the Energy Policy and Planning Office (EPPO) is responsible for designing Thailand’s long-term energy strategy. EPPO leads the development of the Power Development Plan (PDP), which outlines the country’s electricity generation roadmap, and the National Energy Plan (NEP), which integrates climate targets including Thailand’s 2050 carbon neutrality goal. The office also manages energy security planning, such as fuel reserve policies and responses to geopolitical risks.

EPPO plays a coordinating role among state utilities, regulators, and private investors. Its work ensures that various plans such as the Alternative Energy Development Plan (AEDP) or the Energy Efficiency Plan (EEP) are consistent with broader national priorities.

Energy Regulatory Commission (ERC)

The ERC serves as Thailand’s independent regulator for the electricity and natural gas sectors. Its core responsibilities include tariff setting, licensing, and market oversight. The ERC determines the structure of electricity prices for residential, commercial, and industrial users, including the fuel adjustment charge (Ft), and enforces market transparency. It also issues licenses for new generators and oversees transmission and distribution operators, ensuring compliance with regulatory obligations.

In recent years, the ERC has introduced key regulatory instruments to encourage renewable energy growth, including the Feed-in Tariff (FiT) system, Time-of-Use (TOU) pricing, and guidelines for Direct Power Purchase Agreements (PPAs) between producers and end-users. These mechanisms are intended to increase competition, manage grid stability, and support investment in clean energy.

National Energy Policy Council (NEPC)

Chaired by the Prime Minister, the NEPC functions as a high-level policy steering body. It reviews and endorses energy plans proposed by the MOE and EPPO and ensures coordination across ministries. NEPC decisions influence energy pricing, subsidy schemes, and sector-wide regulatory direction. It also approves national commitments, including decarbonization timelines and energy security protocols.

The council’s membership includes the Ministers of Finance, Industry, and Natural Resources, reflecting the cross-sectoral nature of energy policymaking in Thailand.

Department of Alternative Energy Development and Efficiency (DEDE)

DEDE is the lead agency in implementing Thailand’s clean energy transition. It manages the AEDP, which aims to increase the renewable share of total energy consumption to 30% by 2036, and the EEP, which targets a 30% reduction in energy intensity by 2030. DEDE also promotes pilot programs involving smart grid systems, battery storage, and energy-efficient technologies for the industrial and residential sectors.

The department works closely with both public and private stakeholders to support the deployment of solar, wind, biomass, and other renewable projects. Its activities are essential to meeting Thailand’s emissions goals and ensuring distributed energy generation can integrate effectively with the national grid.

Reference data sources

Energy Policy and Planning Office (EPPO)

Bureau of Policy and Strategy

National Statistical Office of Thailand

Office of the National Economic and Social Development Council (NESDC)

Provincial Electricity Authority (PEA)

Metropolitan Electricity Authority (MEA) 

Electricity Generating Authority of Thailand (EGAT)

Department of Alternative Energy Development and Efficiency (DEDE)

Thailand Board of Invesment (BOI)

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