• Thailand could add 10,000 MW of Battery Energy Storage Systems as part of its 2024 Power Development Plan
• An estimated 34,851 MW of new energy will come from renewables over the same span
• The government awarded 24 projects with a BESS component in 2022 with these having a total capacity of 994 MW

Thailand intends to source nearly 35,000 MW of new electricity from renewables as it looks to reach carbon neutrality and net zero commitments. However, the deployment of Battery Energy Storage Systems across the country remains limited. There are plans to increase storage capacity, but it may not be enough for the Kingdom to complete a successful clean energy transition. Asian Insiders’ partner in Thailand, Axel Blom, takes an in-depth look at the current situation.

With a draft of the Power Development Plan (PDP) for 2024-2037 made available for public feedback in June, Thailand’s renewable energy targets came into greater focus. These are set to make up 51 percent of the country’s total electricity production, up from 36 percent which was called for in the 2018 PDP.

The 2024 PDP draft provided a more detailed breakdown of how Thailand will reach this goal. During the plan’s lifespan, 47,251 MW of new electricity will be sourced with 34,851 MW coming from renewables.

Top 3 renewable energy sources in Thailand PDP 2024:

1) Solar (24,412 MW)

2) Wind (5,345 MW)

3) Floating solar (2,681 MW)

While this news is a welcome step in the right direction, a vital piece of the puzzle may be missing if Thailand is to meet clean energy requirements, achieve carbon neutrality by 2050, and reach net zero carbon emissions by 2065.

Thailand lacks Battery Energy Storage Systems

Widespread battery storage is required to allow for the greater use of variable renewable energy (VRE) within electricity grids. While the country has strived for a greater output of green power, a place to store it has been less of a priority. 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. It is estimated that three to four times more battery storage could be required for a shift to clean energy.

Increasing renewable energy generation without simultaneously incorporating more BESS and plugging both into the electricity grid means the country will still rely on gas-fired power plants to meet demand.

On a positive note, the 2024 PDP noted that Thai renewable energy generation resources would be allowed to maximise revenues through electricity market-based opportunities, but these plans are still being developed.

The current battery storage situation

There are BESS in the country, but the amount remains limited and are not coming online at a rate that matches the increasing availability of renewables. 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. Interestingly, this allowed generators to sign semi-firm power purchase agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) with minimum availability guarantees.

Many solar projects in Thailand have non-firm PPAs in place due to a lack of storage on site. Arrangements, including BESS, reduce the strain on power grid infrastructure and allow for better planning.

On the downside, these do not improve grid stability, nor do they provide power generators with more pathways to increase revenue. No mechanism granting BESS operators the ability to purchase excess electricity from nearby renewable energy facilities exists.

Thailand’s next step is to solve these challenges. As it stands, the intermittent nature of renewables means they can only be incorporated into present infrastructure at a set level. Even with additional solar and wind coming online in the next decade, gas and coal cannot be phased out until renewables provide greater stability.

That comes from the widespread use of battery storage and improved power grids. Even if the 2024 PDP draft only calls for 10,000 MW of BESS, much more will likely be in demand as the country scales up its production of renewables.

Do BESS opportunities exist in Thailand?

In 2023, the Energy Policy and Planning Office (EPPO) partnered with relevant agencies to create an action plan promoting Thailand’s battery energy storage industry. Four key areas were targeted: production, usage, laws & standards, and research, development & personnel building.

By identifying the battery and battery storage sector as an S-Curve industry, the Thai government hopes to accomplish two goals. The first is to improve the country’s manufacturing competitiveness in this area. The second is to ensure Thailand can benefit from BESS development moving forward.

The EPPO action plan encourages BESS installation together with VRE and using BESS to delay investment in expanding power transmission and distribution lines as ways to help the country reach stated climate goals.

However, the promotion of electric vehicle (EV) batteries under the action plan has taken precedence over BESS and energy goals. In some ways, this mirrors what happened in countries such as Norway, where the development of EV batteries came first before moving to stationary energy storage batteries.

Final thoughts

It is still early in the development and incorporation of BESS in Thailand, but these efforts will have a significant role to play in the country’s push to achieve carbon neutrality by 2050 and net zero by 2065 as well as assisting attempts to be a hub for regional power trading.

Ultimately, companies with expertise in BESS or supporting industries will find opportunities and government support available. There is also room for growth given both a lack of competition in the space and Thailand’s own renewable energy and climate targets.

To learn more about opportunities in Thailand for Battery Energy Storage Systems or other energy-related businesses, schedule a no-obligation call with Jari Hietala, Managing Partner: jari.hietala(at)asianinsiders.com or Axel Blom, Managing Partner, Thailand, axel.blom(at)asianinsiders.com