Renewable energy push to spark growth

Renewable energy push to spark growth

The Energy Ministry has vowed to eliminate regulations that obstruct the expansion of renewable energy, saying investment in the sector is vital to Thailand's economic growth.

Energy Minister Pongsak Raktapongpaisal said yesterday that the ministry is speeding up the revisions to support investments such as rooftop solar panels.

Other investments are community solar farms, biogas from napier grass and municipality waste-to-energy projects.

Spending on renewable energy and energy efficiency will be another tool to stimulate the Thai economy.

The expected delay of the 2.2-trillion-baht infrastructure plan has prompted the state to support renewables.

The Energy Ministry expects investment in the sector to top 400 billion baht between this year and 2020.

Renewable energy use is planned to reach 25% of Thailand's energy mix by 2020, up from 8% now. Based on average GDP growth of 4% a year, the ministry says energy efficiency measures will help reduce consumption by 20% by then.

"To achieve the goal, we need incentives, soft loans, subsidies and project finance," said Mr Pongsak.

The solar rooftop programme will begin next month, while community solar farms will come later this year. The ministry forecasts a global oil price of US$120 a barrel because of the conflict in Syria.

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