Thailand backs rooftop solar to guard against LNG price surges, minister says

Bangkok, September 2 - Thailand plans to install rooftop solar panels for 1 million households within a year, according to Energy Minister Akanat Promphan, to protect citizens from volatile energy prices caused by the Iran war. The initiative is funded by a 200 billion baht emergency energy transition fund, and comes as other Asian liquefied natural gas (LNG) importers employ rooftop solar to hedge against rising prices, following the Philippines and Bangladesh.

Currently, renewables like solar contribute to around 10% of Thailand's power generation, while gas makes up over 60%, according to government data. Over a quarter of the gas used for electricity generation is imported, based on IEEFA's data. Thailand purchases half of its LNG on the spot market, making it more susceptible to shocks such as the surge in LNG prices following the U.S. and Israel's war with Iran six months ago.

Thailand's long-term power development plan, set to be released next month, will include the 5 GW rooftop solar target. If met, this would nearly double Thailand's current small-scale solar capacity of 3.6 GW, as per TransitionZero's estimates. Residential rooftop solar currently accounts for 1.4 GW of this capacity. In addition to the solar incentive, the government is also exploring new domestic gas sources and long-term LNG purchase agreements to diversify its import mix.