Thailand bets on rooftop solar to guard against LNG price shocks

Bangkok, September 2 - To protect citizens from volatile energy prices caused by the Iran war, Thailand plans to install 5 gigawatts of rooftop solar panels on 1 million households within a year. Funded by a 200 billion baht ($6.01 billion) energy transition emergency fund, this initiative aims to hedge against rising prices, following similar moves by the Philippines and Bangladesh.

Currently, renewables like solar account for approximately 10% of Thailand's power generation, while gas provides over 60%. Over a quarter of the gas used for electricity generation is imported, making Thailand more susceptible to price shocks. The government aims to double Thailand's small-scale solar capacity, currently at 3.6 GW by the end of 2025, leveraging the emergency fund for incentives and loans to households for rooftop solar panel installations.

Additionally, the government is exploring new domestic gas sources and long-term LNG agreements to diversify its import mix.