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Review of Financial Incentives for Renewable Energies

Review of Financial Incentives for Renewable Energies

Workers on a solar panel




1 May, 2017 to 31 December, 2017




Southeast Asia


Thailand is the second-largest economy and the fourth-largest country by population in Southeast Asia. Its economic success has resulted in a steady and steep increase in its energy consumption and, as a consequence, a rising dependency on imported fuels (mainly natural gas-fired generation from Myanmar) and associated exposure to international commodity prices. The Thai energy policy is driven by the three pillars of security, affordability and environmental sustainability. Concerns over fuel diversity underlie all three of these pillars and thus are a major driver of Thailand’s current long-term outlook of power sector development. Renewable energy sources currently make up only 8.5% of generation.

The Alternative Energy Development Plan is a key guiding document of the Thai Integrated Energy Blueprint (TIEB) and sets a national target to increase the share of Renewable Energy in final energy consumption to 30% by 2036. A significant portion of this target is to substitute natural gas power generation with wind, hydro, biomass, biogas and municipal waste.
In order to contribute to the achievement of this target, the EUEI PDF aims to support the Department of Alternative Energy Development and Efficiency (DEDE) to develop “Renewable Energy Action Plans”. The EUEI PDF will proceed in two phases to improve the incentive frameworks for renewable energies in Thailand’s electricity sector:

  • During Phase 1, a revision of the feed-in-tariff, current financial incentives and renewable energy regulations will be undertaken.
  • During Phase 2, technical capacity building support will be provided. Technical assistance will support the drafting of the National Energy Policy Council Proposal, and two further training workshops on financial incentive mechanisms for renewable energies will ensure an effective implementation of the Proposal.

EUEI PDF’s technical assistance and capacity building services will not only improve energy security and increase the share of renewable energy in the Thai electricity market, but will also contribute to Thailand’s NDC target of a 20% reduction in greenhouse gas emissions by 2030.



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  • Energy Efficiency
  • Energy Security
  • Renewable Energy