Does Thailand need a battery energy storage system?

Thailand may lack the Battery Energy Storage Systems (BESS) necessary to navigate supply and demand challenges. The 2024 PDP draft included 10,000 MW of BESS, but this may see the country struggle to fulfil carbon neutrality and Net Zero commitments over the coming decades.

How will Thailand's energy policy affect the energy sector?

As Thailand plans to add significant amount of renewables capacity in the next 13 years, the government would consider more flexible gas power contract. As a result, thermal power plants will likely see their operational hours cut further. This will lead to costlier coal and gas power. Source: BloombergNEF.

How can Thailand improve its energy security?

By adding more renewables to its power system, Thailand can dramatically reduce the need to run gas power plants as baseload generators, thus reduce annual gas consumption (Figure 38 and Figure 39). This will in turn strengthen Thailand’s energy security and reduce exposure to volatility of global LNG prices.

How can Thailand manage its energy transition?

Thailand can manage its energy transition and solve the energy trilemma of sustainability, security and affordability by accelerating renewable power additions and grid capacity expansion, while limiting new thermal power capacity addition.

Does Thailand need a power reserve margin?

It would also need to scale the programs to expand in tandem with the growth of its renewable energy market. According to the Ministry of Energy, Thailand has a power capacity reserve margin of 50%, significantly higher than the recommended reserve margin of 15-20%.

Why is battery storage a problem in Thailand?

This is partly due to a lack of clarity on how battery storage fits into existing electricity infrastructure. In 2022, the Thai government approved 24 BESS projects, all of which were located alongside solar operations. Their total combined storage capacity was 994 MW.