Solar Power Demand in Thailand to Soar in Coming Years

February 08, 2005 by Jeff Shepard

Demand for solar energy in Thailand is projected to soar over the next six years, driven by the government's program to promote renewable energy. According to the Energy Ministry, demand for solar energy will increase to 250 MW in 2010 from just 6 MW in 2003.

Renewable energy sources such as solar, wind, biomass and hydropower abound in Thailand and could be harnessed to generate electricity. So far, they represent less than a 1% share of fuel used in electricity generation. The energy conservation plan aims to increase the share of renewable energy to 8% by 2011. In 2011, renewable energy sources would consist of 250 MW of solar, 100 MW of wind, 100 MW of municipal solid waste, 350 MW of hydro, and 1,040 MW of biomass.

The plan calls for the Energy Ministry to issue a regulation under the Renewable Portfolio Standard, which requires that 5% of the energy from new power facilities be generated from renewable sources. The government would provide incentives for the purchase of power generated by renewable energy such as tax credits and privileges, and capital subsidies.