# Thailand’s Transition to Clean Energy: Embracing Solar, Wind, and Strategic Policies - Link: https://www.thailand-business-news.com/environment/226962-thailands-path-to-clean-energy-solar-wind-and-policies - Published: 2025-09-20T07:16:22+07:00 - Author: Stephanie Chu Solar and wind energy are thriving globally, yet Thailand remains heavily dependent on fossil fuels. The nation is lagging in the clean energy transition—but there’s still time to close the gap. Thailand’s abundant sunlight and wind potential present significant opportunities for renewable energy development. By investing in infrastructure, offering incentives for clean energy projects, and fostering international collaborations, the country can accelerate its shift toward sustainability. Public awareness campaigns and policy reforms will also play a crucial role in reducing reliance on fossil fuels and embracing a greener future. ADVERTISEMENT The climate crisis is deepening. International pressure to cut emissions is growing. Across the world, countries are accelerating their transition to clean energy. This is no longer just about saving the planet. Clean energy has now become a vital strategy for strengthening economic competitiveness. In 2024, the world used over 1,050 terawatt-hours more electricity than the year before, especially in the Asia-Pacific region, where up to 76% of the increased demand comes from clean energy, mostly from solar and wind power.  The trend is clear. Clean energy is fast becoming the main engine of the global energy system—and economic growth. Countries that catch on quickly will attract new investments, especially from industries that need more clean energy to grow. Those who fail to make the transition will miss out. To catch up, it pays to be aware of three key global trends that are shaping global energy policies, production, and investment in clean energy.  Firstly, policy uncertainty in major economies.Leadership changes in powerful nations have far-reaching impacts on international climate efforts. ### Related**Posts** ### 󠀁[Expanding Brunei’s Revenue Base – Insights from the ASEAN+3 Macroeconomic Research Office](https://www.thailand-business-news.com/opinion/338878-expanding-bruneis-revenue-base-insights-from-the-asean3-macroeconomic-research-office)󠁿 ### 󠀁[Trump’s ‘Angry Lame Duck’ Presidency Could Bring Fresh Uncertainty to Asia](https://www.thailand-business-news.com/opinion/338740-trumps-angry-lame-duck-presidency-could-bring-fresh-uncertainty-to-asia)󠁿 ### 󠀁[Building ASEAN+3 Resilience Amid Converging Economic, Climate and Cyber Risks](https://www.thailand-business-news.com/opinion/335385-building-asean3-resilience-amid-converging-economic-climate-and-cyber-risks)󠁿 ### 󠀁[Beyond Food Security: Tapping into Brunei’s Agri-Food Opportunities](https://www.thailand-business-news.com/opinion/337082-beyond-food-security-tapping-into-bruneis-agri-food-opportunities)󠁿 For example, the United States’ withdrawal from the Paris Agreement in 2025 and continued support for fossil fuels under the Trump administration have led to increased hesitation among developed countries in providing climate-related assistance to others. Secondly, the rise of data centers. Data centers are springing up everywhere. They need a huge amount of electricity around the clock. Their demand for stable and clean energy is driving the rise of hybrid systems—a combination of solar, wind, and batteries —to ensure reliable 24-hour electricity.  Thirdly, China’s solar shake-up.  China, the world’s leading solar panel producer, has ramped up production so fast that by 2023, global supply was more than double the demand. Price wars followed as producers fought to maintain market share. Small producers in several countries struggled to survive. In response, major Chinese firms are reducing output and setting floor prices to stabilize the industry. If they succeed, prices may return to more sustainable levels. Although Thailand’s clean energy progress still lags behind, there’s still hoped to catch up with the world. Despite past efforts to promote clean energy, the country still heavily relies on fossil fuels. As of 2023, 85% of its electricity still came from fossil fuels. Only 15% came from clean sources—far below the Asia Pacific average and significantly behind a regional peer like Vietnam, where clean energy accounts for 38% of electricity generation.  This slow transition to clean energy risks undermining the country’s competitiveness to become a key destination for renewable-powered industries. Thailand could easily fall behind in the race to attract long-term investments, particularly from businesses that priorities renewable power. Fortunately, Thailand still has three key enablers for clean energy development. First of all, the right geography. Thailand has a very strong solar potential, making it ideal for large-scale solar farms. Although the country’s wind energy potential remains limited, rapid advancements in wind turbine technology may help improve its viability in the near future. Next, the declining generation costs.  Clean energy, especially solar, is getting cheaper and cheaper to produce. By 2030, the cost of new solar power plants is expected to drop by 27%. In contrast, fossil- fuel plants will only see a 5% cost drop. Wind power is also getting close to being a price-parity. However, as the weakness point of renewables is energy security, the total costs should also account for energy storage systems and the supporting role of gas-fired power plants in stabilizing renewable-based electricity generation. Lastly, growing policy support. Thailand still hasn’t fully liberalized its electricity market, but it has put in place measures to support private-sector participation. These include Feed-in Tariffs (FiT), Corporate Power Purchase Agreements (PPAs), and clean energy certificates. If Thailand embraces wider market reforms, clean power can grow faster and attract more businesses seeking renewable energy solutions. Thailand has set a clear direction. Under the draft Power Development Plan (PDP) 2024, clean energy is expected to account for 51% of electricity generation by 2037 and 74% by 2050, as part of the country’s aim to achieve carbon neutrality. But reaching those goals will require more than just targets. Business as usual won’t get us there. All sectors must change mindsets and adapt accordingly. Achieving these goals demands a solid roadmap, faster reforms, and systems that truly support change.  The clock is ticking. For Thailand to catch up, two things must happen: Synchronize the plans together and let all stakeholders have a say. First, energy policies must align across agencies. Right now, energy planning is fragmented with no shared direction. Each government body has its own mission, leading to misaligned priorities and inconsistent implementation.  The government, therefore, should establish a central coordination mechanism to align the country’s five major energy plans: Power Development Plan (PDP), the Alternative Energy Development Plan (AEDP), the Energy Efficiency Plan (EEP), the Oil Plan, and the Natural Gas Management Plan.  These plans must share common long-term goals for clear directions, enabling a unified response to the rapidly changing global landscape. Second, open the floor for business and the public. A clean energy transition won’t happen unless everyone’s involved.  Real change needs more than feedback, it needs real participation. Let businesses and the public help design policy. Involve them in assessing impacts and in proposing system-wide solutions. Creating open mechanisms for real participation makes this transition to clean energy a shared mission of Thai society—not a government’s job alone. Everyone must have a say in shaping a cleaner energy future. It’s how we ensure steady, sustainable progress. Writer: Areeporn Asawinpongphan, Ph.D. is a Research Fellow, Chakorn Loetnithat is a Senior Researcher and Annop Jaewisorn is a researcher at TDRI.  [Read More ](https://tdri.or.th/en/2025/06/thailands-path-to-clean-energy-solar-wind-and-policies/?rand=86529)