With a cumulative score of 1.69, Thailand ranks number 27 among emerging markets and number 55 in the global ranking.
- Emerging markets
1.83 / 5
1.36 / 5
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Net-zero goal and strategy
Thailand has yet to adopt a long-term net-zero goal or decarbonization strategy, yet Prime Minister Prayut Chan-o-cha stated at COP26 that the country could aim for carbon neutrality in 2050 if technology transfers and access to financing were widely available.
Nationally Determined Contributions (NDC)
Thailand aims to reduce its greenhouse-gas emissions by 20% from a business-as-usual scenario by 2030 under its Nationally Determined Contributions submitted to the United Nations.
Fossil fuel phase-out policy
There is no fossil fuel phase-out policy in Thailand
Thailand achieved 100% electrification in 2014. In its 2018 Power Development Plan, total electricity demand is forecast to increase at an average growth rate of 3.2% over 2018-36. Average demand growth is estimated to be 3.9% during 2019-22 and 3% during 2023-37.
Thailand was the first country in Southeast Asia to implement a feed-in premium to spur investments in renewable energy projects. The generous feed-in premium and subsequent feed-in tariff programs implemented by the government supported the growth of the renewables industry.
Power prices and costs
Thailand's retail tariffs consist of a base tariff that is reviewed every three to five years and an adjustment tariff component reviewed every four months. The adjustment tariff reflects changes in fuel costs, electricity purchase costs and the impact of government policies.
The costs of various renewable energy schemes are passed through to retail consumers and have contributed to an increase in retail tariffs over the years. Compared with neighboring countries such as Malaysia and Vietnam, retail tariffs in Thailand are higher.
Thailand's power market is partially liberalized, with the generation sector open to private players. State-owned utility Electricity Generating Authority of Thailand (EGAT) is the sole offtaker of all generated electricity. The introduction of Small Power Producers (SPPs) and Very Small Power Producers (VSPPs) promoted the decentralization of power generation using renewable energy.
In 2020, renewables, including large hydro, accounted for 26% of domestic power generation capacity and 14% of domestic electricity generation. Natural gas is still the backbone of Thailand’s power system, accounting for 65% of domestic electricity generation in 2020. In addition to domestically generated power, Thailand also imported about 5.7 gigawatts of power from neighboring countries like Laos.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
The investment climate in Thailand is stable. There are no known defaults by EGAT. The grid in Thailand is also relatively robust, with few instances of supply interruptions and no known curtailment. There are no barriers to entry in the form of foreign ownership restrictions or local content requirements.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Thailand is the largest market for electric vehicles in Southeast Asia currently. Electric vehicle sales in the country surged from less than 500 in 2015 to over 7,200 in 2020. Tax breaks offered by the government to manufacturers helped increase the sales of plug-in hybrid electric vehicles (PHEV) from luxury brands like Mercedes-Benz and BMW since 2015.
Battery electric vehicle (BEV) sales rose to almost 1,300 in 2021 from about 100 in 2018. Some 1,700 electric two-wheelers were also sold in Thailand in 2020. There were about 2,500 passenger BEVs in 2021 and 3,100 electric two-wheelers in Thailand’s vehicle fleet in 2020.
Thailand is also the largest vehicle manufacturing hub in Southeast Asia and the government is looking to promote the local manufacturing of electric vehicles. The Thai government aims for at least 30% of all vehicles manufactured locally in 2030 to be hybrids, plug-in hybrids, battery electrics or fuel cell vehicles.
Fuel economy standards
Does the country have a fuel economy standard in place?
Thailand’s 20-year Energy Efficiency Development Plan (EEDP) (2011-2030) aims to reduce energy intensity of the economy by 25% in 2030 compared to 2005. The country has also defined the Minimum Energy Performance Standards for appliances and buildings, which came into effect in 2021.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
The government has yet to implement any substantive policy support in this sector.
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