Challenges arise for Thailand's solar energy industry amidst efforts towards carbon neutrality
In a bid to join the global effort towards a sustainable future, Thailand has set a goal to achieve net-zero carbon emissions by 2050. This ambitious target requires a comprehensive approach that addresses both the expansion of solar power capacity and the challenges posed by policy and the gas industry.
## Strategies for Achieving Net Zero
One key strategy involves enhancing solar power capacity and efficiency. This can be achieved through investing in technology to improve the efficiency and reduce the costs of solar panels, making solar energy more competitive with fossil fuels. Additionally, upgrading grid infrastructure is essential to accommodate a higher share of intermittent solar power, ensuring stability and reliability.
Policy and regulatory support play a crucial role in this transition. The Thai government can continue offering tax incentives to encourage investments in solar energy and energy-efficient technologies. Clear long-term policies that support renewable energy development can also reduce regulatory uncertainty and encourage investment.
Addressing opposition from the gas industry is another important aspect. Economic incentives can be offered to gas companies to transition towards cleaner energy sources or to support the development of renewable energy projects. Engaging with stakeholders, including the gas industry and local communities, is also essential to build consensus on the transition to renewable energy, highlighting its economic benefits and environmental necessity.
Promoting nature-based solutions and carbon credits can also contribute to Thailand's net-zero goal. Developing guidelines for generating carbon credits from nature-based solutions like sustainable agriculture practices can help offset emissions. Engaging in international carbon trading under the Paris Agreement's Article 6 can provide additional revenue streams for supporting renewable energy projects.
## Challenges and Opportunities
Despite these strategies, Thailand faces significant challenges. The country needs substantial investment in renewable energy infrastructure and is still heavily dependent on fossil fuels, especially natural gas, which is viewed as a transitional fuel. However, with strong policy support and international cooperation, Thailand can overcome these challenges and accelerate its transition to a net-zero carbon economy.
One of the main challenges is the need for multiple approvals for solar system installation, resulting from overregulation. To address this, the coalition government has removed one of the checks that required anyone developing a system larger than 1 MW to apply for a power plant licence.
Thailand needs to significantly increase its solar power capacity to meet its net-zero goal. Currently, solar energy makes up less than 4% of Thailand's energy generation portfolio, with around 3.78 GW of solar power capacity. To reach the required 250 GW by 2050, significant investment and development are needed.
There is resistance to renewables replacing gas in Thailand, whether from under-the-table politics or influencing decision-makers. However, solar energy has become more affordable, with the price of solar panels and systems much cheaper now compared to when the feed-in tariff was introduced.
Solar rooftop installation reduces revenue for local utility companies, specifically the Provincial Electricity Authority and the Metropolitan Electricity Authority. To address this, solar farms are being developed, where the PEA and MEA buy from them and sell on to the customer, generating revenue.
International cooperation is essential for Thailand to achieve its net-zero goal. Thailand is cooperating with countries like China on floating solar projects, with EGAT using surface area for floating solar farms. However, the US has increased solar tariffs on Thailand to 375%, which could impact the development of solar power in the country.
Despite these challenges, there are opportunities for the development of solar power in Thailand. The Thailand Consumer Council is promoting the development of solar, especially rooftop solar, and is trying to encourage the introduction of quotas for new solar. With strong policy support and international cooperation, Thailand can overcome its challenges and accelerate its transition to a net-zero carbon economy.
- The expansion of solar power capacity and efficiency is a key strategy for Thailand's net-zero carbon emissions goal, requiring investments in technology to improve solar panel efficiency and reduce costs, as well as upgrading grid infrastructure.
- Policy and regulatory support are crucial in this transition, with the Thai government offering tax incentives and clear long-term policies to encourage investments in renewable energy and energy-efficient technologies.
- Addressing opposition from the gas industry is essential, involving economic incentives for gas companies to transition towards cleaner energy sources or to support renewable energy development.
- Promoting nature-based solutions and carbon credits can help offset emissions, developing guidelines for generating carbon credits from sustainable agricultural practices and engaging in carbon trading under the Paris Agreement's Article 6.
- Challenges include substantial investment in renewable energy infrastructure, heavy dependence on fossil fuels, especially natural gas, and the need for multiple approvals for solar system installation due to overregulation.
- To overcome these challenges, the government has taken steps such as removing checks for solar system installation and developing solar farms to generate revenue for utility companies.
- International cooperation is essential for Thailand to achieve its net-zero goal, with countries like China cooperating on floating solar projects, but challenges such as increased solar tariffs from the US impacting development.
- Despite these challenges, opportunities for solar power development in Thailand exist, with the Thailand Consumer Council promoting solar power, especially rooftop solar, and trying to introduce quotas for new solar projects, with strong policy support and international cooperation, Thailand can accelerate its transition to a net-zero carbon economy.
