CanCham Thailand in collaboration with Chandler MHM, Ministry of Energy, Begium-Luxembourg, Finnish, French, Irish, the Netherlands, Norwegian, Singaporean, South African, Swedish, and Joint Foreign Chamber of Commerce in Thailand would like to invite you to attend the insightful luncheon address “Thailand’s Updated Power Development Plan: Energy Roadmap to 2037” on Wednesday, March 6 at SO Sofitel Bangkok.
TOPIC OF DISCUSSION
Update to Thailand’s Power Development Plan (PDP)
The PDP is part of the government’s long-term strategic blueprint for energy development and is generally updated every 3-4 years. Previous revisions have occurred in 2012 and 2015. The PDP outlines government policy priorities, and allows the Energy Regulatory Commission (ERC) and government-owned utilities to implement concrete regulations and development plans.
On January 23, 2019, the National Energy Policy Council (NEPC) approved revisions to the PDP. The revised PDP, which will cover a period from 2018 to 2037, reportedly contains several targets which are likely to raise the interest of private investors. Once approved by the Cabinet, the updated PDP will take effect immediately without any additional formalities, and will be published on the website of the Energy Policy and Planning Office (EPPO).
The PDP presents numerous opportunities for private investors, including:
- Forecasted growth in renewables. The PDP envisions renewables comprising 20% of the sources of energy feeding the grid by 2037, with an additional 10% of Thailand’s total energy supply coming from off-grid renewable sources. New regulations are expected to make private solar installations more attractive, as they will allow the owners of solar installations to sell surplus energy back to the grid. Off-grid installations are also being encouraged for fuel sources other than solar, meaning there will likely be potential for innovators to devise new methods and business models for delivering electricity to consumers.
- Increased demand for LNG. Thailand’s reliance on natural gas as a fuel source for electricity generation will continue to rise over the coming two decades. Already a net-importer, Thailand’s natural gas reserves are dwindling quickly, meaning the country will need to rely on LNG from abroad. This will present opportunities for foreign gas producers as well as the developers of infrastructure needed, such as pipelines and LNG receiving terminals.
- New auctions for independent power producers (IPPs). The government’s long-term strategy involves the Electricity Generating Authority of Thailand (EGAT) generating a smaller proportion of the country’s electricity. New projects will be put to tender, and IPPs will be invited to enter into long-term power purchase agreements to supply electricity to EGAT. In short, the private sector will be playing a far bigger role in Thailand’s electricity market over the next two decades.