The energy and electricity sector in Thailand is governed by the Ministry of Energy (MOE) and involves multiple agencies:
• Department of Alternative Energy Development and Efficiency (DEDE).
• Department of Energy Business, Energy Policy and Planning Office (EPPO).
• Department of Mineral Fuels (DMF).
• Department of Energy Business (DOEB).
• Office of the Energy Regulatory Commission (OERC).
• Electricity Generating Authority of Thailand (EGAT).
• Metropolitan Electricity Authority (MEA).
• Provincial Electricity Authority (PEA).
• Petroleum Institute of Thailand (PTIT)
• PTT Public Co., Ltd.
As of April 2025, the total installed power generating capacity in Thailand was approximately 52 gigawatts, generated by the state-owned enterprise EGAT, independent power producers (IPPs), small power producers (SPPs), very small power producers (VSPPs), and imports. Renewable energy capacity is around 20 percent of the total installed capacity. Renewable energy in Thailand relies primarily on domestic production, namely solar, wind, small and large hydropower projects, and (at lower levels) biomass, biogas, and waste-to-energy. The country also imports hydropower from Laos. Thailand has renewed its focus on increasing its renewable energy capacity to meet the country’s climate goals of carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065, announced at COP26, and has also increased its focus on nuclear energy, particularly small modular reactors (SMRs), as part of its climate ambitions. On January 14, 2025, the U.S. and Thai governments signed an Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy (or “123 Agreement”) to allow for the transfer of nuclear materials, equipment, and technology in support of the development of civil nuclear energy.
The Royal Thai Government is currently developing the 2024-2037 National Energy Plan (NEP), which reflects the country’s strong commitment to energy security, economic growth, and environmental sustainability – the government plans to release the NEP by end-2025. The NEP emphasizes the adoption of renewable energy, improvements in energy efficiency, increased liquefied natural gas (LNG) imports, and a transition towards a low-carbon economy by 2026.
The NEP will combine and synchronize five action plans:
• The Power Development Plan (PDP) is expected to raise the share of renewable energy in total electricity generation to 51 percent, up from 36 percent under PDP 2018. This shift supports Thailand’s carbon neutrality and net-zero greenhouse gas emissions goals. Solar energy will play a leading role in the transition, complemented by the integration of small modular nuclear reactors and energy storage systems into the energy mix. The PDP predicts power generation capacity increasing from the current 53,868 megawatts to 112,391 megawatts by 2037, with 51 percent of the total power generation mix coming from clean energy. Natural gas, now the predominant fuel at 59 percent, will decrease to 41 percent.
• The Gas Plan envisions natural gas remaining a vital component of Thailand’s power generation mix, given ongoing energy security challenges. Currently, approximately 60 percent of the country’s electricity is generated from natural gas. However, with domestic reserves expected to deplete within the next 10 to 20 years and declining pipeline imports from Myanmar, LNG will play an increasingly critical role in maintaining long-term energy security. LNG is also positioned as a key transitional fuel in Thailand’s shift toward a low-carbon economy. Recognizing the importance of diversifying energy sources to strengthen national energy security, the government is ramping up natural gas imports and expanding infrastructure, including LNG receiving terminals, regasification systems, and storage facilities, with the goal of increasing capacity to 29.8 million metric tons per annum by 2037.
• The Alternative Energy Development Plan (AEDP) aims to increase the share of renewable energy in final energy consumption to 36 percent. Notably, for the first time in Thailand’s energy planning, the AEDP includes sustainable aviation fuel (SAF) and hydrogen as part of the renewable energy mix. The plan sets a SAF blending target of 1 percent by 2026, gradually increasing to 8 percent by 2036.
• The Oil Plan aims to strike a balance between advancing the clean energy transition and ensuring energy security and national competitiveness. According to the plan, although Thailand’s oil demand is projected to peak by 2030, the transport, industrial, households, and commerce sectors will continue to rely on fossil fuels.
• The Energy Efficiency Plan aims to decrease energy intensity by 36 percent, meaning less energy will be consumed for the same level of production or economic activity.
Thailand is currently implementing pilot projects to develop an advanced grid system capable of managing the increased volatility associated with rising renewable energy integration. At the same time, the private sector is exploring opportunities to deploy battery energy storage system technologies to enhance grid stability and efficiency.
The government is actively seeking new policy initiatives that enable households to generate and store electricity and then sell excess electricity back to the grid. The government is also considering incorporating these policies in smart city development to evaluate the potential of expanding this mechanism nationwide.
Other energy and energy-related technologies being sought to facilitate Thailand’s energy transition are carbon capture, utilization and storage (CCUS), hydrogen, sustainable aviation fuels, grid modernization and digitalization, power system operation and management, and small modular nuclear reactors.
In order to protect domestic ethanol producers, Thailand’s Ministry of Energy has never approved imports of ethanol for fuel use but has approved some ethanol imports for bioplastic production that is subsequently exported.
Table: Thailand’s Energy Sector Equipment Market Size (US$ Millions)
| 2022 | 2023 | 2024 | 2025 (estimated) |
|---|---|---|---|---|
Total Market Size | 7,982 | 8,259 | 9,212 | 9,930 |
Total Local Production | 4,400 | 4,590 | 5,070 | 5,570 |
Total Export | 4,977 | 5,418 | 5,458 | 5,745 |
Total Import | 8,559 | 9,087 | 9,600 | 10,105 |
Import from the U.S. | 437 | 1,353 | 607 | 639 |
Exchange Rate: 1 USD | 32 | 32 | 32 | 33 |
(total market size = (total local production + total import)-total exports)
Leading Sub-sectors
• Renewable energy equipment
• Smart grids/microgrids
• Energy storage system: battery energy storage system
• LNG supply and related
• Hydrogen technology
• Carbon capture technology and solutions
• Small Modular Reactors (SMRs)/Micro Modular Reactors (MMRs)
Major buyers include government-owned electric power authorities, including EGAT, MEA, PEA, private power producers, and industrial estate developers.
Opportunities
Thailand is gearing up for a sustainable energy transition and anticipates digitalization, decarbonization, decentralization, deregulation, and electrification will lead to disruptions in the energy sector. The country is striving to adopt new technologies in the sector and focus on energy efficiency.
Thailand offers promising market opportunities for U.S. suppliers and exporters of oil and gas, electrical power systems, and energy equipment. The National Energy Plan plays a significant part in Thailand’s move towards clean energy with aggressive measures to reach carbon neutrality between 2065 and 2070. Reaching carbon neutrality requires deploying new technologies in the energy sector (e.g., advanced energy storage and electric vehicles) and increasing the penetration of existing low-carbon technologies (e.g., solar power) to uncharted levels.
In addition, as Thailand increases it civilian nuclear efforts, opportunities in nuclear energy–especially in SMRs and MMRs–will increase. Demand-side measures such as energy efficiency, fuel switching, grid stabilization, demand response and forecasting, and load shifting may become increasingly important, leading to substantial differences in the timing and makeup of energy requirements.
Resources
Gastech 2026
September 15-18, 2026
Website: https://www.gastechevent.com/
Procurement: Electricity Generating Authority of Thailand (EGAT)
Website: https://www4.egat.co.th/fprocurement/biddingeng/
Procurement: PTT
Website: https://procurement.pttplc.com/en/page/indexnew