Overview

In the next twenty years, the Royal Thai Government plans to gradually increase electricity generation capacity under Thailand’s Power Development Plan (PDP).  The PDP 2018 aims to increase generating capacity from 46,090 megawatts to 77,211 megawatts by 2037.  This will be accomplished mainly through power plant construction and power purchases from Independent Power Producers (IPPs), as well as the use of renewable energy.   Out of 46,090 megawatts of operational electricity capacity at the end of 2017, Thailand plans to retire 25,310 megawatts during the operational period of PDP 2018.  This means, by the target year of 2037, Thailand must add 56,431 megawatts of new capacity to the current deployment. 

This PDP initiative creates market opportunities for electric power generation equipment using conventional fossil fuels, renewables, and alternative energy.  Note that the Royal Thai Government pushed back its nuclear project following strong protests from local people. 

In addition, Thailand will focus on smart grid infrastructure network development.  If all moves as planned by 2037, natural gas will provide 53% of the total capacity, while renewables will account for 20%, coal and lignite will account for 12%, and the remainder from the other sources, including imported hydropower and energy savings. 

One of the important objectives of the PDP is to diversify energy resources.  Thai government policy aims to support sustainable energy through the development of the electricity supply industry to meet demand and by promoting diversification of the types of fuels used for power generation.  With approximately 70 percent of electric power in Thailand currently generated from local natural gas, diversification of the energy supply is seen as a necessary step towards enhanced national energy security.  The government is importing more natural gas and is expanding gas receiving terminals, the regasification system, and gas storage tanks to increase capacity to 30 million tons by 2037.

Although the growth of energy and electric power demand in Thailand has slowed due to the global economic downturn and the pandemic impact, the power sector remains relatively attractive.  The Thai market continues to demand electric power generation equipment using various types of fuels.  The energy industry is important to Thailand as the country strives to achieve economic growth while maintaining energy security with a minimum of 15% in power reserves.

Leading Sub-Sectors

• LNG Supply and Related
• Renewable Energy Equipment
• Electrical Power Systems
• Operation & Maintenance Service

Major buyers include government-owned electric power authorities, including the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), private power producers (IPPs, SPPs, VSPPs), and industrial estate developers.

Opportunities

Thailand is in an age of energy disruption.  The country needs to adapt to new technologies in the energy sector, and energy efficiency is not only for large corporations anymore.  According to the Permanent Secretary of the Ministry of Energy, the following developments will lead to disruption in the energy sector: digitalization, decarbonization, decentralization, deregulation, and electrification.  Three main themes for energy in Thailand are:

• Energy for All: The Ministry of Energy was instructed to formulate an “Energy for all” policy to support the public as well as raise the level of the country’s competitiveness.  The PDP 2018 revision one has raised the proportion of renewable energy such as solar, biogas, and biomass through community power plants.  Thailand’s power lines will be upgraded from 115kv to 500kv or 800kv in order to support alternative power and reach communities that produce them.

• Power Trade Hub of Southeast Asia:  Thailand aims to be the power trading hub in Southeast Asia by improving high-voltage transmission lines across the country to open regional power trading and sales of surplus electricity.  The improvement of high-voltage transmission lines is part of digitization, with a target to support grid connection in Southeast Asia in the near future.

• LNG Hub for ASEAN:  The Ministry of Energy has been pushing forward a plan to promote Thailand as a free trade hub for LNG since 2016.  To support Thailand as a regional LNG trading hub, the Industrial Estate Authority of Thailand had signed an agreement worth $1.33 billion with the Gulf MPT LNG Terminal Company selected to build the country’s third LNG import terminal. Commercial operations for the project are slated to begin by 2025.  From the Department of Mineral Fuels, Thailand also plans for two floating storage regasification units (FSRUs).  The first project, which will have a capacity of 5 MTPA, will come online in 2024; the second, which will have a capacity of 2 MTPA, will come online in 2028.

Thailand offers promising market opportunities for U.S suppliers and exporters of oil and gas, electrical power systems, and energy equipment. The Power Development Plan (PDP) 2018 will play a significant part in Thailand’s energy market by making fuel electricity more acceptable to the public and reducing environmental impacts. These trends are where U.S. companies could potentially play major roles as advanced know-how and technology suppliers.

Listed below are highlight business opportunities among prospective buyers’ energy projects:

• Power generators, clean coal technology, and alternative/renewable energy technology (such as biomasses, waste to energy, low-speed wind turbine, and solar panels) mainly for the EGAT, Independent Power Producers (IPPs), and Very Small Power Producers (VSPPs).

• Transmission and distribution line infrastructure and equipment, including underground power cables and submarine cable extensions, for the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA).

• Equipment related to natural gas, including transmission pipelines, LNG-receiving terminals, LNG transfer ports, and equipment related to LNG transportation, storage, and infrastructure.

Web Resources

Ministry of Energy

555/2 Viphavadee-Rangsit, Chatuchak, Chatuchak, Bangkok 10900

Phone: 662-140-7000

Department of Mineral Fuels

21st-22nd Floor, Energy Complex Building B

555/2 Vibhavadi-Rangsit Rd., Chatuchak, Chatuchak, Bangkok 10900

Phone:  662-794-3000

Energy Policy and Planning Office (EPPO)

121/1-2 Phetchaburi Road, Ratchathewi, Bangkok 10400

Phone: 662-612-1555

Petroleum Institute of Thailand

11th Floor, Energy Complex Building B
555/2 Vibhavadi Rangsit Road, Chatuchak, Chatuchak, Bangkok 10900

Phone:  662-537-0440/8

Electricity Generating Authority of Thailand (EGAT)

53 Moo 2 Charansanitwong Road, Bang Kruai, Nonthaburi 11130

Phone: 662-436-1416

Metropolitan Electricity Authority (MEA)

Watthanawipat Building, 1192 Rama IV Road, Klong Toei, Bangkok 10110

Phone: 662-348-5000

Provincial Electricity Authority (PEA)

200 Ngamwongwan, Ladyao, Chatuchak, Bangkok 10900

Phone: 662-589-0100/1

PTT Public Co., Ltd.

555 Vibhavadi Rangsit Road, Chatuchak Bangkok 10900

Phone: 662-1365

 

Thailand’s Overall Energy Sector Equipment (USD million)

Total Market Size = Total Local Production + Total Import)-Total Exports]