Market Trends of Thailand Solar Energy Industry
Solar Photovoltaic (PV) Segment Expected to Dominate the Market
- The solar PV segment is likely to hold the major market share during the forecast period, owing to declining costs of solar modules and the versatility of these systems for various applications, like electricity generation and water heating.
- According to the International Renewable Energy Agency (IRENA), the installed solar PV capacity in Thailand was around 3,060 MW in 2022, up from 1,420 MW in 2015. The growth is the result of large deployments of solar installations, particularly for utility projects. The government has plans to increase the solar PV installed capacity as well.
- The country has several upcoming solar PV projects. the Electricity Generating Authority of Thailand is developing a 778 MW Bhumibol Dam Solar PV Park in Tak. The major project is likely to commence in the year 2024 and is expected to enter into commercial operation after two years.
- Moreover, in February 2023, Charoen Pokphand Foods Public Company Limited (CP Foods) will increase the installation of solar panels at 180 animal farms, feed mills, and processing plants across Thailand, with a total capacity of 65 MW this year. The company is gearing up to reach 100 MW of solar energy in its supply chain in two years.
- Owing to such developments, the solar PV segment is expected to have a dominant market share in Thailand during the forecast period.
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Supportive Government Policies to Drive the Market
- The Thai government is encouraging renewable energy installations across the country to reduce greenhouse gas emissions by 20-25% in seven years. The government has also supported the solar power market by providing various incentives and regulatory support.
- The country has planned to further open its energy market for private electricity trading through the New Solar Rooftop Regulations. As per the regulation, solar PV owners can be connected to the grid for trading electricity, using the power transmission and distribution infrastructure by paying a transmission fee to the public utilities. The fee for retail power trading will be based on the amount of electricity transferred and the congestion level in the transmission line.
- The Thailand's Energy Regulatory Commission is responsible for the promotion of renewable energy in Thailand and its recently issued regulations establish Thailand's feed-in-tariff regime for the sale of electricity by renewable energy projects to state electricity authorities up until this year.
- The country has revised its Power Development Plan (PDP). As per PDP 2020, Thailand plans to add 50 MW of residential rooftop solar and increase up to 250 MW by next year.
- Thailand has set a target for renewables to account for 30% of the power mix by 2037. In 2022, the country installed 12,197 MW of renewable energy capacity, which was higher compared to 7,902 MW in 2015.
- In May 2023, the Electricity Generating Authority of Thailand (EGAT), under the Smart Grid Pilot Project in Mae Hong Son Province, held a Commercial Operation Date (COD) ceremony for the 3 MW Solar Power Plant and 4 MW Battery Energy Storage System (BESS) Project.
- Moreover, the Thai government is supporting the deployment of floating solar energy farms as part of its green energy development plans. Recently, the Industrial Estate Authority of Thailand signed a memorandum of understanding with the Provincial Electricity Authority to build four floating solar plants in four industrial estates with a total capacity of 60 megawatts.
- Therefore, supportive government policies and initiatives are expected to drive the Thai solar energy market in the forecast period.
