Thailand Power EPC Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Thailand Power EPC Market Trends and Insights

Government-Backed PDP 2022-2037 Capital-Expenditure Pipeline

The THB 2.9 trillion (USD 85 billion) PDP commits 51% renewable penetration by 2037 and phases out subcritical coal, anchoring steady demand for generation, transmission, and distribution packages. Hydrogen co-firing targets of 5% in 2026 and 20% in 2035 compel EPC bidders to pre-qualify combustors that can accept blended gas, as seen in Mitsubishi Power’s 5,300 MW Rayong–Chonburi modular complex commissioned in 2024.^{[3]Mitsubishi Power, “Rayong–Chonburi CCGT Complex Fact Sheet,” mitsubishi-power.com} EGAT’s THB 21.9 billion backbone expansion shifts value toward 500 kV lines and digital substations that evacuate offshore-wind output to EEC load centers.^{[4]Electricity Generating Authority of Thailand, “Hydrogen Co-Firing Roadmap,” egat.co.th} The long-run program flattens order volatility yet crystallizes fuel-mix risk because gas stays above 60% of installed capacity through 2030.

Rapid Growth in Industrial and Data-Center Electricity Demand

Forty-six data-center filings worth THB 168 billion (USD 4.9 billion) in 2024 clustered 90% of requests in the EEC, adding 2,000 MW of direct PPA capacity from January 2026. Amazon Web Services, Google, and TikTok alone plan hyperscale campuses exceeding 400 MW IT load, accelerating solar-plus-BESS and 500 kV line awards. Digital Edge and B.Grimm are building a 100 MW campus, while CtrlS activated 150 MW in 2025 at THB 15 billion spend. Industrial electricity in the corridor grew 4.2% year-on-year in 2024 versus 2.1% nationwide, pulling forward substation upgrades originally slated for 2028. The surge lifts microgrid EPC volumes as estates deploy 5-20 MW captive solar arrays to stabilize tariffs and uptime for semiconductor and EV-battery plants.

Renewable-Energy Targets Under AEDP 2022 Steering EPC Uptake

AEDP 2022 lifts renewables to 51% by 2037, requiring 32 GW of solar by 2030 and 74 GW by 2037 plus 11.8 GW of storage. Gulf Energy delivered 393 MW solar and 256 MW solar-plus-BESS during 2024-2025 using LONGi bifacial modules and Samsung SDI cells. BCPG’s 10 MW wind-plus-BESS site in the South features grid-forming inverters that provide synthetic inertia. Two offshore zones totaling 4.5 GW entered EIA in 2024, with commercial operation targeted in 2030; foreign developers must JV with local builders to meet 40% local-content rules. EPC headroom extends to foundation engineering, export cable laying, and onshore substations.

Grid-Modernization Incentives (Smart Substations, HVDC Links)

EGAT earmarked USD 5.67 billion for smart substations, HVDC studies, and meter digitalization to cut technical losses below 5% by 2030. MEA’s 3.2 million smart-meter rollout by 2027 enables time-of-use tariffs and demand response, creating new EPC scopes in communications, data analytics, and device installation. PowerChina’s 500 kV GIS yard in Thung Song, delivered in October 2024, showcases IEC 61850 digital relays and 3,000 MVA ratings. Gunkul’s June 2025 award for a 37 km 500 kV line to evacuate offshore-wind energy underscores momentum in backbone expansion. HVDC remains conceptual, yet Malaysia-Thailand feasibility work on a ±500 kV intertie progressed in 2024.

Lengthy EIA and Permitting Timelines

Thailand’s EIA regime requires ONEP, provincial offices, and public hearings, extending utility-scale solar and wind approvals to 12-24 months. Offshore-wind zones face permit decisions only by late 2026, pushing foundation and turbine contracts beyond initial schedules. Solar farms in Nakhon Ratchasima met farmer resistance over perceived soil impacts, stalling 200 MW in 2024. Southern wind developers ordered extra marine-biology studies to placate fisheries, adding nine months to timelines. A 2025 fast-track path for <50 MW projects exists but covers only a fraction of the Thailand power EPC market.

High Project-Finance Costs Amid Rising Policy Rates

Bank of Thailand reduced the policy rate to 2.25% in December 2024, yet power-project loans float at 5.5-6.5%, depressing IPP equity returns. Thai Baht swings between THB 33-36 per USD, inflated gas-turbine and PV import bills, eroding fixed-price EPC margins. Gulf Energy reported a 12% turbine-cost jump on Euro weakness, prompting tariff renegotiation with EGAT. Smaller developers face 0.3-0.5 percentage-point hedging premiums they can scarcely absorb, despite an Asian Development Bank USD 200 million concessional line established in 2025.

Segment Analysis

By Technology: Thermal Resilience Amid Emerging Offshore Wind

Thermal generation accounted for 63.8% of the 2025 EPC value, anchored by domestic gas supply and LNG imports. The Thailand power EPC market size for thermal plants reached USD 2.01 billion in 2025. Mitsubishi Power’s 1,400 MW Hin Kong CCGT, commissioned in January 2025, illustrates next-generation 61%-efficiency turbines that already co-fire 5% hydrogen. Renewable capacity is poised for a 5.8% CAGR as AEDP mandates 32 GW of new solar by 2030. The Thailand power generation EPC market share held by renewables should rise steadily once offshore wind breaks ground, yet local foundation expertise and supply-chain gaps remain barriers.

Cost dynamics diverge across technologies. Turbine prices rose 10-12% on currency moves, squeezing thermal EPC spreads, while photovoltaic module oversupply shaved 15% off 2025 panel quotes, widening solar margins. Offshore wind developers must joint-venture to satisfy 40% local content, potentially lifting balance-of-plant costs but embedding knowledge transfer that benefits domestic yards. Hydrogen-ready retrofits represent a niche yet growing bid line as EGAT seeks 20% blending by 2035.

Note: Segment shares of all individual segments available upon report purchase

By Capacity Band: Mid-Scale Dominance, Microgrid Momentum

Projects sized 100-499 MW held 61.5% of installed capacity in 2025 and attracted the bulk of turnkey CCGT and utility-scale solar EPC awards. Hin Kong’s twin 700 MW blocks typify a modular design that trims per-MW civil costs. In contrast, the Thailand power generation EPC market size for microgrids under 100 MW is minor today but expanding 6.1% annually as data centers and industrial estates adopt rooftop solar, diesel-hybrid, and BESS networks.

DER economics improve as lithium-ion prices fall and direct-purchase PPAs bypass MEA and PEA retail tariffs. Southern islands, once reliant on USD 0.44 per kWh diesel, now procure hybrid power at USD 0.23 per kWh, illustrating the commercial appeal of sub-20 MW builds. Projects above 500 MW remain limited to CCGT and future offshore wind, the latter contingent on HVDC export cables and dedicated 500 kV substations that lengthen lead times.

By End-User: Utilities Lead but IPPs Accelerate

Utilities, EGAT, MEA, and PEA claimed 52.9% of 2025 outlays, reflecting statutory supply duties and grid-ownership rights. Still, IPPs logged a 5.7% CAGR outlook as Direct PPA rules unlock captive demand from hyperscalers and industrial zones. The Thailand power generation EPC market share for IPPs should exceed 47% by 2031 if current tender patterns persist.

Gulf Energy and BCPG collectively earmarked USD 2.5 billion for solar-plus-BESS and offshore wind before 2027, enhancing their bargaining leverage on module and inverter procurement. RATCH aims for 1,500 MW of renewable expansion linked to AWS and Google data-center loads. Utilities remain pivotal gatekeepers via grid-connection fees and curtailment clauses, though regulatory reform is narrowing their historic advantage.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The EEC captured 38-42% of incremental builds during 2024-2025, fueled by THB 168 billion in data-center filings and automotive electrification capex. EGAT fast-tracked 2,000 MW of direct-purchase solar allocations to feed these hyperscalers, and 500 kV circuits from Bang Lamung to Pluak Daeng are under construction. Combined with B.Grimm’s 100 MW campus and CtrlS’s 150 MW facility, the corridor anchors near-term EPC revenue.

The Bangkok Metropolitan Region accounts for roughly 30% of T&D spend, led by MEA’s smart-meter rollout and substation digitalization that accommodate 1,200 MW of rooftop solar. Northeastern provinces provide land-rich solar sites but face pushback from farmers worried about crop yields, delaying several 50-100 MW portfolios. Southern Thailand, home to 4.5 GW of planned offshore wind, waits on EIAs; substation groundwork and port-upgrade packages nonetheless appear in 2026 tender schedules.

Cross-border energy flows reinforce Thailand’s hub status. Imports of 7,000 MW from Laos and exports of 300 MW to Malaysia depend on future HVDC nodes under study. Northern provinces focus on biomass and small hydro tied to agro-industrial value chains, though feedstock price volatility hinders capacity-factor performance.