According to Thailand media, the Electricity Generating Authority of Thailand
(EGAT) is stepping up construction of a reservoir in Ubon Ratchathani to build
the world’s largest floating solar farm. According to the long-term plan of
EGAT, eight floating solar farms will be built in the next 16 years, and the
total power generation is expected to reach 2725 MW. Thailand hopes to increase
the proportion of renewable energy by building these floating solar farms.
Power shortage once restricted Thailand’s economic development and threatened its energy security. For the sustainable use of energy, Thailand has been constantly adjusting its energy strategies in the past decades. Although natural gas is the main energy source for power generation in Thailand, the reduction of natural gas reserves has prompted Thailand to turn its eyes to renewable energy.
The Thai government has formulated a package plan for the energy development from 2015 to 2036, encouraging the use of solar energy, bioenergy, wind and other renewable energy for power generation. In 2019, Bangkok issued the revised Power Development Plan (2018-2037), which proposes to increase the proportion of renewable energy power generation to 30% by 2037. To achieve this goal, an expected 56431 MW of renewable energy capacity needs to be added.
To support Thailand’s carbon emission reduction goal, Bangkok takes attracting foreign investment as an important path to develop renewable energy. Board of Investment Thailand (BOI) regards the promotion of environmental protection, energy conservation or the use of alternative energy as one of the major investment goals. Enterprises using renewable energy to generate electricity will be exempt from enterprise income tax, machine import tax, etc. In addition, according to Thailand’s Smart Grid initiative, state-owned enterprises are expected to invest nearly 200 billion baht (US $6.354 billion) in smart grid by 2036.
However, although investment opportunities abound in Thailand’s renewable energy market, meeting its strict environmental protection standards is also an important issue for investors to consider when investing in Thailand.
