Thailand’s newly unveiled National Energy Plan (NEP) aims to drive 2.9 trillion baht in capital spending by 2037, focusing on clean energy to cut carbon emissions, with solar energy playing a major role. The 2024 NEP, which includes a comprehensive power development, oil, gas, alternative energy, and energy efficiency strategy, will guide the country’s transition toward renewable energy.
Out of the projected spending, 1.52 trillion baht is expected to be directed toward renewable energy development, including some investments in fossil fuel power plants, according to an anonymous official from the Energy Ministry. While fossil fuels will remain part of the energy mix, their share in power generation is set to decline, making room for renewables.
The power development plan forecasts a significant reduction in coal and gas usage, from almost 80% of total fuel use in early 2024 to 48% by 2037. Meanwhile, renewable energy, currently at 20%, is expected to grow to 51% by 2037, driven largely by solar energy projects. The official stated that the country is planning to add at least 1,000 megawatts of solar power capacity based on the availability of transmission systems.
In addition to conventional solar projects, the Electricity Generating Authority of Thailand (Egat) plans to install floating solar farms, adding 2,700 megawatts of capacity at reservoirs nationwide between 2025 and 2029.
Beyond renewable energy, 425 billion baht will be invested in new energy ventures, including carbon capture storage, energy storage systems, and small modular reactors (SMRs). The development of smart grids is projected to cost 415 billion baht, while oil and gas-related projects, including exploration and production, will require 310 billion baht.
Additional investments include 115 billion baht for electric vehicles and oil transport through pipelines, and 114 billion baht for bio-based fuels, including sustainable aviation fuel.
Thailand’s clean energy shift is part of a broader effort to meet international carbon reduction targets and ensure long-term energy security for the country.