Country experience: Renewable energy in Thailand
In 2009, the Government of Thailand set the goal of generating 20 per cent of the country’s energy from renew-
able sources by 2020. To achieve this, the Thailand’s Ministry of Energy directed the Department of Alternative
Energy Development and Efficiency to include a policy on alternative energy in the national agenda. The subse-
quently designed Alternative Energy Development Plan aims to generate 40,000 new jobs, reduce migration
from rural to urban areas, decrease greenhouse gas emissions, save 460 billion baht per year in foreign currency
reserves (value), currently spent to import fossil fuels, and generate up to 14 billion baht annual revenue from
international carbon markets.
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The Alternative Energy Development Plan features provisions for the production and utilization of alternative
energy in order to improve energy security. The Government will use a mix of market-based instruments as well
as an oil fund to maintain energy prices at stable and affordable levels. Related policies included in the plan
promote R&D of renewable energy from biofuels and co-generation from biomass and biogas, energy
efficiency standards for electrical appliances and buildings, revision of existing obstructive legislation and updat-
ing of feed-in tariffs. The 8 baht added cost per kWh for solar energy, for example, may be reduced to 6.5 baht
per kWh due to the reduction in the cost of solar technology.
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Additionally, import duties on equipment for
renewable energy will be waived and exemptions from corporate income tax for new investments and start-ups
will be granted. Funding for new commercial alternative energy technologies will be encouraged by tax incen-
tives and investments from a revolving fund.
In the long run, the alternative energy policy aims to expand the use of new green technologies, such as hydro-
gen and bio-hydrogenated diesel from palm oil, extend green city models to the communities in the country
and encourage the export of biofuels and indigenous green technologies to the ASEAN region.
