Investment in the development of new electricity generation facilities, aimed at promoting renewable energy, is expected to reach 1 trillion baht over the next six years under the novel power development plan (PDP), says energy permanent secretary Prasert Sinsukprasert.
While renewable power is highlighted in the PDP, which covers from 2024 to 2037, investment in fossil fuel-fired power plants will also continue, albeit at a slower pace.
"We are aware of some energy investors' concerns over the direction of the PDP, which reduces the importance of fossil fuels for power generation," said Mr Prasert.
Investment, both in conventional and renewable power plants, under existing agreements or new investment scheduled through 2030, will proceed as planned, he said.
The proportion of renewable energy is expected to increase to 51% of total fuels used for power generation by 2037, up from 20% last year, according to the PDP.
Coal and gas is expected to account for 48% of all fuels used for power generation by 2037, with the other 1% coming from nuclear energy and new energy solutions aimed at reducing fossil fuel usage and saving electricity.
Under the PDP, which recently went through a public hearing process, investment between 2024 and 2030 in renewable energy is estimated at 525 billion baht, with an electricity generation capacity of 13.3 megawatts.
Investment in fossil fuel-fired power plants, with a combined capacity of 5.3MW, is estimated at 125 billion baht.
Some 400 billion baht worth of investment is allocated for the development of a smart grid to serve renewable power usage.
Authorities have chosen fuels and technologies that will enable Thailand to set an appropriate power tariff, which is used to calculate power bills, and ensure long-term energy stability, said Mr Prasert.
"An appropriate tariff rate is important because the expense of electricity is among the factors driving the national economy," he said.
Electricity Generating Authority of Thailand (Egat) is also allocating 1 trillion baht for energy investment between 2021 and 2031, with 600 billion baht for renewable and fossil fuel-fired power plant projects, while the remainder is earmarked for the development of transmission lines.
Egat needs to build a new network of high-voltage power lines nationwide to serve greater use of renewable power as stated in the new PDP, said Yuthapong Tancharoen, director for power system planning at Egat.
In another development, authorities are interested in buying gas from Block A-6 in Myanmar to decrease dependence on imported liquefied natural gas, according to the Energy Policy and Planning Office.