Policymakers plan to set a new long-term goal for renewable energy to make up half of total power capacity in the next 40 years.
The announcement was made by Energy Minister Siri Jirapongphan as part of Shell Thailand's Sky Scenario initiative, a pathway to achieve the environmental goals of the Paris Agreement (COP 21).
In the future, renewable energy technology will experience high price competitiveness when compared with fossil-based energy, while policymakers will be no longer to offer a subsidy programme, Mr Siri said.
"This policy will help mitigate global warming, which is mainly driven by energy production and consumption," he said.
Renewable energy in Thailand rose to 14% of power capacity last year from 7% in 2007, while the national alternative energy development plan (AEDP) aims for renewable energy to account for 30% of total capacity by 2036.
The AEDP must be revised to account for the new goal, together with the national power development plan.
"But I cannot disclose details of the new long-term plans until we come to a conclusion," Mr Siri said.
The next programme in renewable energy promoted by policymakers in 2018 is the nationwide solar photovoltaic rooftop scheme and biomass from agricultural waste in southern Thailand.
Nonetheless, Asada Harinsuit, chairman of Royal Dutch Shell's local unit, said Shell Thailand is committed to supporting the government's aspirations for a low-carbon energy system and expects to encourage dialogue and collaboration between the public and private sectors and civil society to achieve the environmental goal.
"As the country starts to adapt and prepare for the energy transition, we need to support policy, encourage innovation and new technologies, such as biofuel engines for car manufacturers and the use of more advanced technologies by bioenergy manufacturers to improve production," he said, adding that a concerted effort is needed to meet the increasing demand for a greater volume of cleaner energy.
Shell's recent forum discussed new perspectives on the energy transition with the aim of supporting Thailand's Energy 4.0 initiative, which focuses on a successful transition to cleaner energy.
The forum also addressed national policy, the possibilities for new types of energy, how society uses and produces energy, and sharing Shell's expertise and knowledge with Thailand. The Sky Scenario was officially introduced in Thailand after its launch by Shell in March.
Cho Khong, Shell's chief political analyst, said the latest Sky Scenario presents a possible pathway for decarbonising the global economy and achieving net-zero emissions from energy use by 2070.
"The Paris Agreement has sent a signal around the world; if government, industry and society work together, there is the potential for a very different energy system to emerge," Mr Khong said.