Thailand Green Energy Transformation: Market Insights
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Thailand Green Energy Transformation: Market Insights

Published on: May 02, 2025 | Author: Marketing & Communications

Thailand Green Energy Transformation is more than a trend—it’s a national priority. The country has pledged to reach carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065. With the energy sector responsible for 69% of Thailand’s total GHG emissions in 2018, reforming the energy landscape is essential. To guide this shift, Thailand’s Long-Term Low Emissions Development Strategy (LT-LEDS) sets a clear path: by 2050, 50% of new power generation capacity will come from renewables. Looking ahead, renewables are expected to generate 74% of Thailand’s total electricity by 2050, up from 68% in 2040.

Current Energy Mix: Gas Still Dominates

Despite bold targets, Thailand's present energy mix still leans heavily on fossil fuels.


In 2025, natural gas will contribute 57.5% of total electricity generation, or about 139,490 GWh. However, renewables are gaining ground, with non-hydro renewable generation expected to grow from 24,875 GWh in 2025 to 35,223 GWh by 2030. By then, total electricity generation is projected to reach 282,431 GWh, up from 242,770 GWh in 2025, growing at a compound annual growth rate (CAGR) of 3.1%. This steady rise reflects Thailand’s expanding economy and growing energy needs.

Read Also: Thailand Automotive Industry Trends are Shifting to EV Dominance

Renewables on the Rise for Thailand Green Energy Transformation

Thailand’s renewable energy generation is forecasted to hit 28.11 billion kWh in 2025, with a 2.59% annual growth rate through 2029. A key part of this growth will come from solar PV, which is expected to post the highest CAGR of 10.04% from 2023 to 2035. Biopower follows with a 3% growth rate.

By 2035, renewable capacity is expected to reach 21 GW, up steadily at a 5% CAGR. This shift positions Thailand as a rising leader in Southeast Asia’s clean energy landscape.

Read Also: The Promise of Thailand Renewable Energy Initiatives

Investment Fuels the Transition

Thailand’s green energy push isn’t happening by chance—it’s backed by serious investment. From 2022 to 2037, THB 779 billion (USD 22 billion) will be needed for new renewable power projects. On top of that, THB 974 billion (USD 28 billion) is planned for energy efficiency improvements across industries, households, and agriculture.

These funds aim to modernize the grid, upgrade technology, and support Thailand’s decentralization push, where private-sector producers will make up 54.8% of installed capacity by 2025. This shift opens the market and encourages innovation in both urban and rural areas.

Thailand Green Energy Transformation Policy Drives Progress

Government plans and policies are driving this transformation. The LT-LEDS strategy and Thailand’s power development roadmap set ambitious, measurable targets that align with the global climate agenda. The decentralized model is also key. By encouraging local energy production and involving private stakeholders, Thailand hopes to reduce dependency on fossil fuels and increase energy security.

The Journey Ahead: Thailand Green Energy Transformation

The Thailand Green Energy Transformation is well underway. While natural gas remains a dominant player, the rapid growth of renewables, especially solar, marks a shift in direction. Backed by long-term strategies, rising investment, and a focus on clean innovation, Thailand is moving steadily toward a more sustainable energy future. This transformation won’t happen overnight, but the building blocks are in place. If targets are met, Thailand could become a regional leader in green energy—reducing emissions while powering economic growth.

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