Search

The Government's energy policy is focused on becoming energy independent while maintaining stable and fair prices, supporting the production of renewable and alternative energy and promoting energy conservation. (…)

Thailand's Power Development Plan (PDP) is the master plan for the long-term development of the power system; it aims to fulfil the country's demand for electricity and promote economic growth. In December 2014, the National Energy Policy Council approved the framework of the PDP2015, which will cover the period up to 2036. It has (mid-2015) been submitted for Cabinet approval. Its focus is in three areas: (a) to enhance the energy security of Thailand through fuel diversification (reducing the use of natural gas as the major energy source); (b) to produce electricity at a reasonable cost for both residential and business sectors to support Thailand's long term development and promote energy efficiency; and (c) to alleviate environmental and social impacts (especially CO2 emission reductions). As set out in the plan, fuel share targets in 2036 are: imported hydropower (15-20%); bituminous and lignite (20-25%); renewable energy (15-20%); natural gas (30-40%) and nuclear (0-5%). Two other plans have been revised to also cover the period 2015-2036, so to coincide with the PDP2015. These are the Alternative Energy Development Plan and the Energy Efficiency Development Plan. [41] Moreover the Ministry of Energy is developing an Oil Plan and a Gas Plan, in order to have the country's first Integrated Energy Blueprint.

[41] The Alternative Energy Development Plan (2015-2036) aims to promote the use of renewable energy for power generation by 2036. The projected breakdown would be: biomass (5,570 MW); biogas (600 MW); solar (6,000 MW); wind (3,002 MW); hydro (3,282.4 MW); municipal solid waste (MSW) (500 MW); and energy crop (680 MW). The Energy Efficiency Development Plan (2015-2036) has a target of reducing energy intensity (i.e. the ratio of energy consumption to GDP) by 30% in 2036, compared to 2010 through energy saving and efficiency programs.

(...) The ERC (Energy Regulatory Commission) issues licences to privately owned power and natural gas operations; settles disputes between consumers and operators and makes disbursements under the Power Development Fund. The Fund is, inter alia, used to: (...) promote the use of renewable energy and low impact technology in electricity generation. (...)

(...) Within the Ministry, the Energy Policy and Planning Office (EPPO) develops energy policies, including plans for managing energy shortages and improving conservation as well as coordinating, monitoring, and overseeing implementation of government policy. (...)

Likewise, there have been no changes to the main laws governing the energy sector: the Petroleum Act (1971); the Petroleum Income Tax Act (1971); the Fuel Trade Act (2000); the Energy Conservation and Promotion Act (1992, amended in 2007); and, the Energy Industry Act (2007). (...)

Ethanol blended gasolines with a concentration of 20% ethanol (E20) and 85% ethanol (E85) (largely used by certain automotives) are subsidized in order to promote the use of renewable energy, particularly biofuel. Subsidies are provided through the Oil Fund mechanism; the more ethanol is blended, the higher the subsidy from the Oil Fund. These ethanol blended gasolines are also subject to lower taxation.

(...) Under instructions from the Cabinet [56], the National Energy Policy Council (NEPC) approved a policy framework and guidelines to restructure energy prices on 15 December 2014. This comprises the following elements: (a) energy prices must reflect actual costs; (b) excise taxes applied to each fuel in the transportation sector should be similar; (c) the Oil Fund should be used to stabilize energy prices and encourage the use of renewable energy; (d) energy cross subsidies should be reduced; (e) marketing margins should be at an appropriate level; (f) low-income people should be assisted and, (g) the amount of money collected from each fuel into the Oil Fund should be similar and according to their calorific values. As at mid-2015, only ethanol blended gasolines E20 and E85, NGV, and LPG for low-income households remained subsidised.

[56] In its policy statement delivered to the National Assembly, the Cabinet stated in its policy on energy price reform that fuel prices must be in line with costs, there should be an appropriate tax burden between different fuels and different users in order to increase the country's efficient use of energy and that people should be careful not to use energy wastefully.

(...) As a consequence, it no longer subsidizes the consumption of diesel and liquefied petroleum gas, which had been extremely costly. As at mid-2015, only ethanol blended gasolines E20 and E85 and compressed natural gas for vehicles (NGV) remained subsidized.

Following significant energy subsidy reforms, subsidies remain in place for natural gas for vehicles (NGV) and ethanol-blended gasolines (section 4.5). (...)

(...) Thailand has no nuclear power plants (although one is scheduled to be constructed and commence operations in 2035 according to the PDP2015) and is the third largest producer of biofuels in Asia (behind China and Indonesia) through its 22 ethanol plants (using molasses and cassava) and 11 biodiesel plants (largely using palm oil) (Table 4.11). Thailand ranks 12th out of 189 economies under the category of getting electricity in the World Bank's 2015 doing business report. Likewise, it ranks in 55th place out of 124 countries, in the World Economic Forum's Energy Architecture Performance Index. The latter index assesses whether countries' energy architecture supports economic growth and development in an environmentally sustainable way, while providing energy access and security. Thailand has been commended, in particular, for its efforts to reform gasoline prices by removing distorting subsidies and introducing taxation that promotes efficient energy use (see below). (...)