Thailand's Renewable Energy Revolution: Solar Leads the Way Towards Net-Zero Goals
Key Ideas
- Solar power has been the cheapest source of electricity generation in Thailand since 2022, surpassing gas and coal-fired plants.
- Retrofitting thermal power plants for hydrogen blending or ammonia co-firing is more expensive and less effective in reducing emissions.
- Thailand's focus on renewables and energy storage is cost-effective, reducing reliance on costly LNG imports and improving long-term energy security.
- Direct renewable energy use is more effective and affordable than hydrogen-gas blending in power generation for Thailand's decarbonization efforts.
BloombergNEF's recent report on Thailand highlights the country's shift towards renewables as the most economical path to achieve climate-related goals. Solar power, paired with batteries, has become more financially viable than newly constructed gas and coal power plants. However, the use of clean hydrogen and ammonia to lower emissions from thermal power plants is deemed less cost-effective. Thailand, aiming for carbon neutrality by 2050, can greatly benefit from prioritizing renewables and energy storage to meet growing electricity demand while reducing the need for expensive LNG imports. The report emphasizes that direct renewable energy use is a more efficient and affordable way to decrease power-sector emissions compared to hydrogen-gas blending. Despite solar and wind power accounting for only 5.6% of Thailand's domestic electricity supply in 2024, BloombergNEF projects that they could supply 60% by 2050, enhancing energy security and eliminating emissions. By focusing on clean hydrogen for hard-to-abate sectors and leveraging solar and wind energy, Thailand can pave the way towards a net-zero power grid and achieve its ambitious climate goals.
Topics
Green Hydrogen
Renewable Energy
Energy Security
Climate Goals
Carbon Neutrality
Electricity Generation
Ammonia Co-firing
Clean Hydrogen
Energy Affordability
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