The Thai industrial sector is projected to see a continuous increase in clean energy adoption in 2569, driven by rising demand from both public and private sectors, the European Union's Carbon Border Adjustment Mechanism (CBAM) which will come into full effect in 2569, and private sector investments in RE100 projects. These are key driving factors. The Thai government continues to prioritize the transition to clean energy, with a target to reduce greenhouse gas emissions by 47% by 2578 and achieve Net Zero by 2593.
Biomass and solar energy are projected to be the primary renewable energy sources in the industrial sector. In 2569, these two energy types will account for approximately 79% of electricity supplied to the public sector and 96% of electricity supplied to the private sector, demonstrating their significant role in sustainable energy production.
The private sector has begun to adapt and invest concretely in clean energy technologies. For example, Ajinomoto factories in Kamphaeng Phet and Phra Nakhon Si Ayutthaya provinces have adopted biomass boilers using rice husks as fuel, enabling a reduction in fuel oil consumption by up to 60 million liters per year. Additionally, the installation of rooftop solar cells is another option that can save up to 75% on electricity costs. The Siam Cement Public Company Limited (SCG) has also installed over 137.2 MW of solar energy in total.
The Ministry of Industry has supported the installation of Solar Rooftops and the use of biofuels, while also holding discussions to drive the industry towards low-carbon emissions. However, several challenges remain, such as the intermittency of solar energy, the quality of biomass fuels, and infrastructure limitations. Furthermore, Waste-to-Energy is not yet considered green energy in the EU Taxonomy and therefore does not fall under the CBAM measures.
To help entrepreneurs, especially small and medium-sized enterprises (SMEs), access clean technologies more easily, the draft Climate Change Act has established a Climate Fund, which will be a crucial mechanism to support Thailand's transition to a green economy.
Data Sources
kasikornresearch.com
hoonsmart.com
geo-agni.com
krungsri.com
recthailand.com
papower.co.th
ecoplantservices.com
diw.go.th