Energy demand is expected to increase this year, though total consumption dropped for much of 2024 amid slow economic growth, says the Energy Policy and Planning Office (Eppo).
Tourism, export expansion and state budget spending will drive demand for energy, said Wattanapong Kurovat, secretary-general of Eppo.
"We initially thought energy demand would drop in 2024 because of decreased energy consumption during the first nine months, but usage changed during the last three months," he said.
Economic activities in the final quarter, which is also the tourism high season, are expected to help increase the 2024 energy demand by 0.3% to 2.01 million barrels of oil equivalent per day (BOED), Mr Wattanapong said, in line with the improving economy.
In the first quarter of 2024, GDP growth was 1.5%, rising to 2.2% and 3% in the second and third quarters, respectively, according to the National Economic and Social Development Council.
The think tank expects the economy to grow by 2.6% this year, up from 1.9% the previous year.
According to Eppo, energy consumption from January to September decreased by 0.1%, mainly attributed to decreased lignite usage in the industrial sector.
Though overall consumption decreased, demand for some key fuels increased during the nine-month period.
Consumption of crude and refined oil increased by 0.5%. Demand for natural gas rose by 2.6%, driven by more use of natural gas for power generation.
The consumption of imported hydropower also increased during this period by 7.3%.
Throughout 2024, Mr Wattanapong expects total oil consumption to tally 821,000 BOED, a year-on-year increase of 1.2%, as tourism drives up jet fuel consumption.
Natural gas consumption is expected to total 860,000 BOED, up 2.6%, as the fuel is needed for power generation.
Demand for lignite and imported coal is forecast to decline by 10% to 260,000 BOED based on lower usage in the industrial sector.
However, power plants are expected to use more lignite to produce electricity because of high demand, he said.
Tourism activities, export manufacturers and the hot weather are key factors that will drive power demand, said Mr Wattanapong.
