09/26/2024/mx
In recent years, Thailand has increasingly positioned itself as a pioneer in solar energy in Southeast Asia. With a strong focus on renewable energy, the country aims to further diversify its energy production and reduce its dependence on fossil fuels over the next few decades. Solar energy plays a key role here, as Thailand has excellent natural conditions for using this energy source. The government has set ambitious targets for promoting solar projects, and numerous new projects are currently being funded or receiving government support.
Funded projects and grants
The Thai government has committed to significantly expanding installed capacity of solar energy by 2037 Power Development Plan Under this plan, more than 10 GW of solar capacity will be added by 2037. This includes both small, decentralized solar systems on roofs and large-scale solar parks. Such projects are funded in various ways:
- Subsidies and tax incentives : Companies that invest in solar projects can benefit from tax incentives such as tax breaks and subsidies. These include corporate tax relief and customs concessions for the import of solar cells and modules.
- Net metering and feed-in tariffs : Private households and companies that install solar systems can feed excess electricity into the grid and receive compensation for this. This is an attractive incentive for smaller, decentralized solar systems and is particularly promoted by the government in order to increase self-production of electricity.
- Special solar projects for rural areas : The expansion of solar systems is particularly encouraged in remote and rural regions of Thailand. The government sees this as a way to bring electricity to regions that are difficult to connect to the central grid.
- Floating Solar Farms : A particularly innovative development in Thailand is the construction of “floating solar farms” on reservoirs and bodies of water. This is seen as a way to make the most of limited land space while increasing the efficiency of the solar cells as the water surface cools the panels. Several pilot projects of this kind have already been launched, such as the floating solar system on the Sirindhorn reservoir, one of the largest of its kind in the world.
attitude of politics and economy
The Thai government has shown clear political support for solar projects in recent years. The Power Development Plan is the central political instrument for advancing the expansion of renewable energies. Of particular note is that Thailand aims to obtain around 30% of its total energy from renewable sources by 2037. Solar energy plays a key role here.
The Thai government has recognized that switching to renewable energy not only reduces carbon emissions but also increases the country's energy security. In particular, reducing dependence on energy imports, especially natural gas, is a key political goal. The current geopolitical uncertainty and fluctuations on the international energy markets make the expansion of renewable energies in Thailand all the more urgent.
From an economic perspective, solar energy is also strongly supported by the private sector. Thai companies, especially in real estate and manufacturing, are increasingly recognizing the economic benefits of solar energy. Many companies are installing solar panels on their roofs to reduce energy costs while meeting their sustainability goals.
In addition, there are numerous investments by international companies in the solar energy sector in Thailand. Large multinational energy companies as well as investors from Japan, China and Europe see Thailand as an attractive market for solar projects. Thanks to the well-established legal framework and political commitments to the expansion of renewable energies, Thailand remains an interesting destination for international investors.
Challenges and outlook
Although solar energy in Thailand is well on its way, there are also some challenges. The bureaucracy and the still uncertain legal situation for certain solar projects (particularly in the area of grid feed-in) can delay investments. The expansion of the infrastructure in order to efficiently feed the electricity generated into the grid also requires even larger investments.
Overall, however, solar energy remains a growing sector that will continue to gain in importance in the coming years. With political support and existing natural resources, Thailand is well positioned to achieve its renewable energy goals and establish itself as a leading player in the region in the long term.
