Investorideas.com

Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS



Share on StockTwits

Renewables key for Thailand to overcome dependency on fossil fuel imports, says GlobalData

 

September 28, 2022 (Investorideas.com Newswire) Renewable energy development is key for Thailand to cut its dependency on fossil fuel imports, as gas-based thermal power generation accounted for nearly 61.3% of the country's annual electricity generation in 2021, says GlobalData, a leading data and analytics company.

GlobalData's latest report, 'Thailand Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2022-2035', reveals that depleting natural gas reserves and rising fuel import bills have become major challenges for Thailand. The country's natural gas reserves are expected to decline sharply by 2030 if no new reserves are found.

Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: "The Erawan field, the largest gas field in Thailand, is facing a decline in output, mainly due to a dispute between Chevron and Thailand's state-owned oil and gas company, PTT Exploration & Production (PTTEP), which took over the field's operations in April 2022. A lack of innovation from PTTEP is also a growing concern since gas deposits are found in small pockets in the Erawan field and hundreds of wells are required to be drilled every year to maintain output."

Due to a decline in supplies from the Gulf of Thailand, the share of domestic gas supply in Thailand fell from 64% to 40% in the first half of 2022, leading to an increase in imports of liquified natural gas (LNG), which, in turn, resulted in high electricity bills for end-consumers.

In April 2022, the government reassured consumers that there would be no electricity shortages like those seen in Vietnam or Sri Lanka. However, the Prime Minister of Thailand ordered the country to cut its power use by 20% as a precaution.

Saibasan continues: "The plan to meet the demand through coal-based generation and imports create a risky scenario for the country. While environmental activists have opposed the increased use of coal-based power, electricity imports from neighbouring countries, such as Malaysia and Laos, to meet the growing demand may not be a viable solution for the country in the long-term given the rise in price of fossil fuels."

In its Power Development Plan (PDP), the government aims to increase the country's power capacity from 46,090 MW in 2017 to 77,211 MW in 2037. The country is aiming to generate 53% of its electricity from natural gas, 35% from non-fossil fuels and 12% from coal in 2037.

The government also announced that under the Feed in Tariff (FiT) mechanism, 282.92 MW of renewable power capacity from small power producers (SPP) and very small power producers (VSPP) will be realized. The electricity generated from these plants will be used to supply to commercial users in 2025-2026.

Saibasan concludes: "Although such measures are encouraging for the renewable power industry, the government should look to bolster its renewable capacity on a large scale to overcome its dependence on thermal power and on fossil fuel imports. The country has a developed market for biopower and there are several solar PV projects underway. The country should look to leverage on its strengths."

For more information

To gain access to our latest press releases: GlobalData Media Centre

Analysts available for comment. Please contact the GlobalData Press Office:

EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
Email: pr@globaldata.com

Notes to Editors

About GlobalData

4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits






RenewableEnergyStocks.com: investing ideas in renewable energy stocks

Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory

Get News Alerts on Renewable Energy Stocks

Buy a renewable energy guest post on Investorideas.com