Thailand Electricity Security Assessment

Thailand’s remarkable social and economic development since the 1970s has resulted in a steep and steady increase in energy consumption and, as a consequence, a rising dependency on imported fuels and associated exposure to international commodity prices. Electricity demand is currently concentrated in the Bangkok metropolitan area and driven by a large industrial and manufacturing base and significant amounts of tourism. But Thailand is a growing country with a large middle class, and a structural transition may change the nature and shape of electricity demand. Thai energy policy is driven by three pillars: security, affordability and environmental sustainability. Concerns about fuel diversity underlie all three pillars and as a result are major factors in long-term plans for power generation. Thailand’s electricity sector is at a turning point similar to that of many International Energy Agency (IEA) member countries, as it transitions to low-carbon power sources. Thailand must decide how to finance massive investments in new generation assets, transmission and distribution networks, as well as the steps to improve system operations and scale up energy efficiency. Partner Country Series – Thailand Electricity Security Assessment 2016 analyses the challenges the country faces, including how regulatory and market arrangements can adapt to best realise the opportunities from potentially disruptive distributed resources like wind and solar photovoltaics. This study draws on IEA member countries’ experiences as well as Agency analysis to recommend policy improvements for a more secure and sustainable electricity sector in Thailand.