Partner Country Series - Thailand Renewable Grid Integration Assessment

Thailand’s power sector policy focuses on reducing dependence on natural gas to enhance energy security. With the dramatic reduction in the costs of variable renewable energy (VRE) – solar PV and wind power – Thailand is beginning to experience the transformation of its power sector. Conventional power generation is beginning to give way to new alternative sources and generation is moving from centralised to distributed forms. Thailand has the highest share of VRE in the Association of Southeast Asian Nations (ASEAN) region. Given the unique characteristics of VRE, which are variable and partly unpredictable, there are concerns over the potential operational, economic, and regulatory impacts when integrating VRE into the power sector. Thus, the dynamics shaping the energy policy landscape in Thailand must evolve to accommodate the growth of VRE. Thailand Renewable Grid Integration Assessment undertakes a comprehensive analysis covering the technical, economic, and policy and regulatory frameworks. The analysis comprises the following important areas: 1) the existing VRE penetration context in Thailand, 2) grid integration of VRE in Thailand’s future power system, 3) the technical potential and economic impact of distributed solar PV on stakeholders, and 4) the power sector planning process and system costs. This study provides recommendations to guide decision-making in power sector operation and planning, investment, and policy to support the uptake of VRE in a reliable and cost-effective manner in order to achieve the objectives of Thailand’s power sector policies.