Power Sector Transition in Krabi

From Global Energy Monitor

Introduction

Krabi is a province in Southern Thailand known for its rich biodiversity and ecologically significant wetlands, both of which attract tourists from around the world, as well as its large agricultural output.[1]

Krabi's energy transition is rooted in four A's: Availability, Affordability, Accessibility, and Acceptability.[2] Federal and provincial actors can support renewables deployment by comprehensively approaching public policy that prioritizes renewables over fossil fuels, incentivizes renewable projects to reduce costs, supports state entities in their transition away from fossil fuel infrastructure, and modernizes the grid to enable widespread deployment of new energy generation sources.[1] While Krabi's electricity demand has been continuously increasing, domestic supply and transmission limitations inhibit the power sector from meeting needs.[2]

Barriers to the Renewable Energy Transition in Krabi:[2]

  • Power purchasing policy: Electricity generated from Very Small Power Producers (VSPPs) is sold to consumers through non-firm power purchase agreements, which allow the electric purchasers and sellers to deny the sale when conditions are inopportune. This leads to insecure power supply.
  • Quota System: Passed in 2022, Thailand's Feed-in Tariff (FiT) creates a quota of 100 MW for solar projects between 2024 through 2030, which experts believe will hinder project development by encouraging program oversubscription and only allowing a few projects per year.[3]
  • Energy Politics: Since Krabi is a major tourist destination in Thailand, city planning and stakeholder coordination are critical for all future energy planning.
  • Opposition to biomass and Waste-to-Energy (WtE): While biomass and waste-to-energy are considered major potential energy sources in Thailand, locals near facilities tend to be in opposition. This is largely due to the combustion pollutants and smell, though stakeholders note that high efficiency end-of-pipe treatment facilities and real-time monitoring systems can help mitigate these effects.
  • Lacking expertise: Renewable energy systems are highly technical, and significant expertise is required to manage them effectively.

Current System Description

Current Power Capacity Mix

Krabi's annual energy demand peaked in 2020 at 162 MW, though that is projected to increase to 320 MW by 2037.[2] To meet this demand, in 2020, Krabi generated:

  • 9.5 MW of Biomass
  • 37.3 MW of Biogas
  • 18.81 MW of Solar[4]
  • 6 MW of Waste-to-Energy
  • 315 MW of Oil&Gas(see Krabi power station)


The remaining 94.6 MW of energy demanded comes from the national grid.[2] Also in 2020, natural gas accounted for 59.1% of Thailand's overall generating capacity.[5]Approximately 15% of Thailand's installed capacity is generated by Small Power Producers (SPP).[6] SPPs can be either publicly or privately owned and may generate power through wind, solar, and mini-hydro, as well as fossil fuels (usually in a co-generation setup).[6] As of 2020, Krabi had approximately 20 SPPs, all of which are smaller than 1 MW in capacity.[2]

IRENA: Thailand's power supply mix spanning from 1987 through 2015. Please note that GWh = gigawatt-hour.
Thailand's 2022 power generation mix in gigawatt-hours. Data from the Ministry of Energy's Energy Policy and Planning Office.
















Prospective Power Capacity

In their 2018 report "Krabi Goes Green," Greenpeace estimates Krabi's renewable energy generating capacity to be 1,125 MW for solar, 200 MW for wind, and 10 MW for mini-hydro.[1]

Renewable Energy in Krabi

Renewable Energy Potential

Krabi has the potential to generate electricity from wind, solar and biomass up to 1,700 MW.[7]

Thai government has classified biomass as renewable energy in the country.* Because Thailand's workforce and GDP are largely rooted in agriculture, significant amounts of agricultural waste (namely rice hulls, sugar cane, corn, cassava, palm crude oil, rubber, soy, mung bean, and peanut) are produced and can be used for energy generation.[8]

  • GEM's database generally does not include biomass as renewable

Renewable Targets

Thailand's national Alternative Energy Development Plan (AEDP 2018) has set a target of increasing the share of renewable energy to 30% of energy consumption by 2037.[9] A 2019 update to the plan increases national renewable energy targets to:

  • 12,139 MW land-based solar
  • 2,725 MW of floating solar
  • 2,989 MW of wind
  • 308 MW of small hydropower
  • 2,920 MW of large hydropower[9]

Additionally, the Power Development Plan outlines generation mix targets by 2036, namely 53% solar, 11% wind, 10% large hydropower, and 1% small hydropower.[10]

Other Targets

The AEDP 2018 also increased goals for biomass (5,790 MW), biogas (1,565 MW), and waste-to-energy (975 MW).[9] The Nationally Determined Contribution (NDC) Roadmap 2021-2030 set a target of 20-25% greenhouse gas reduction by 2030 and net-zero emissions by 2065.[11] These plans and roadmaps are key drivers for the power transition in all provinces.[2]

Major Renewable Projects

Thailand's Power Development Plan anticipates that 20,766 megawatts of renewable energy will be added to the grid between 2019 and 2026.[4] Most of Krabi's renewable energy projects are produced by Small Power Producers (SPP).[4]

Krabi’s Renewable Energy Status, Provincial Electricity Authority, Thailand, 2019[4]
Project Capacity(MW) Status
Wanna Chaideker Solar 0.007 Operating
Thai Green Co.,Ltd. Solar 5 Operating
Kaset Klongya Cooperative Solar 4.16 Operating
Smart Solar Power Co.,Ltd Solar 4.64 Operating
Mar Solar Co.,Ltd. Solar 5 Operating
Total 18.81 --

Potential impacts from renewable expansion

In a study of indicators for Thai Strategic Environmental Assessments, a working group described as favoring coal-fired power highlighted two concerns about deploying renewables: impacts to energy security given wind and solar variability, and electricity price changes as renewables come online. The study also notes that renewable energy may be limited by cost and availability of raw materials needed for construction.[12]

Fossil Fuels in Krabi

Fossil Resources and Retirement

The vast majority of power producers in Krabi are considered "small" or "very small,"[2] so there are only two major fossil fuel projects in the Province:

Overview of current fossil fuel impacts

In 2014, the proposed Krabi coal power station had aroused campaigns from local people, national networks, and international collaboration against its construction for almost a decade. Since Krabi is a famous tourist site with rich biodiversity, the coal-fired power plant would harm the local tourist industry. Furthermore, the local community relies on the fishery for living, and the coal plant is at risk of harming aquatic life.[16] When the project was given the federal greenlight in 2017, protests once again erupted across the Province.[17] Currently, the project is marked as "withdrawn" by EGAT.[15] However, the coal project is under Strategic Environmental Assessment (SEA) and could still proceed.

The Krabi coal power station is planned for land where a decommissioned plant existed previously. Greenpeace has claimed that near the power station, fish stocks have declined with existing populations having had increased incidences of deformities, as well as the collapse of nearby mangrove ecosystems.[18]

The energy sector generated 69.96% of Thailand's total emissions in 2019.[5]

Employment

Current employment by sector

In 2016, approximately 17,758 individuals across Thailand were employed in energy generation with 14,323 jobs in biomass; 2,588 jobs in solar; 1,950 jobs in coal; 757 jobs in biogas; and 90 jobs in wind.[19] This was estimated to rise to 27,415 jobs in energy generation in 2019.[19]

As of March 2023, the following sectors were the top employers in Thailand:

  • Agriculture: 12.1 million employees
  • Retail: 6.63 million employees
  • Manufacturing: 6.44 million employees
  • Hospitality: 3.19 million employees
  • Construction: 2.53 million employees[20]


Energy services (electricity, gas, and steam) employed approximately 110,000 individuals in March 2023,[20] and the Office of Agricultural Economics of Thailand estimated that as of 2019, approximately 5,826,000 farmers' households produce crops that could be used in biomass energy generation, namely rice, rubber, palm, and sugar cane.[4]

Prospective employment from renewable energy sector

Greenpeace estimates that in Thailand, solar energy can generate 0.766 jobs her gigawatt-hour (GWh) per year, and wind can generate 0.262 GWh per year.[19]

Additionally, the study estimates that achieving 100% renewable energy by 2050 would generate approximately 4,670 direct jobs per year with 76,964 jobs generated in solar alone.[19] Additionally, Thailand is well-suited for building different aspects of the renewable energy industry, including solar cell and panel production; rooftop solar installation, operations, and maintenance; solar cell recycling; transmission and distribution construction; and generating raw materials needed for the energy transition.[19]

Renewable Energy Job Creation Estimates for Thailand and neighboring countries across 2018, 2019, and 2050. Source.

Land availability

Land Use in Krabi, Thailand from 2000-2009. Source.

Forests and agricultural land make up approximately 31.95% and 46.54%, respectively, of land cover across Thailand.[5] As of 2020, 23% of total land area in Thailand was covered by conservation designations, including 22 national partns covering 6,416 km^2.[5]

According to the Land Development Department of Thailand, Southern Thailand's land use is dominated by agriculture, namely the cultivation of perennials like rubber trees, as well as undisturbed dense forests.[21] A 2014 academic paper estimated that approximately 330,000 hectares in Krabi are dedicated to rubber cultivation, a crop which may be used in bioenergy production.[22]

Additionally, Krabi is a biodiversity hotspot and contains the Hat Nopparat Thara-Mu Ko Phi Phi National Park. The national park contains seagrass beds, mangroves, and mudflats that are critical for many of the 221 species of birds known to the area.[23]

Symbolic Importance

Currently, Krabi is a net importer of energy. However, full buildout of renewable resources outlined in Krabi Goes Green and Krabi Vision 2020 would shift Krabi toward becoming an electricity exporter and would contribute to improved socioeconomics, public health, and environmental outcomes.[2]

According to the Krabi Goes Green report, experts believe that increased renewable generation would bring significant benefits to residents of Krabi, including improved socioeconomics, lower burden of imported energy, increased employment opportunities, and public health benefits associated with emissions reductions.[1]

Krabi has a history of fighting against the coal-fired power plant, and the campaign was also one of the drivers of the "Krabi Goes Green" initiative. Having a successful energy transition will present a model of how the province develops secured and clean energy after withdrawing the coal-fired proposal.

Community-based power generation presents several distinct benefits to communities:[10]

  1. Reducing energy burden
  2. Generating jobs and increasing community-member retention
  3. Increased incomes will spur local spending
  4. Energy generation can complement existing industries and technical knowledge

Civil Society Transition

In protest against the proposed 800 MW Krabi Coal Power Station, demonstrators and religious leaders began a hunger strike.[24] This effort was supported by the Save Andaman Network (SAN), a community-based nongovernmental organization that aims to "support and strengthen the participation of local fishers and the community in marine and coastal resource management."[25] Through their work, SAN aim to support knowledge exchange; drive locally led conservation, restoration, and sustainable practices; strengthen socioeconomic resilience; promote stakeholder coordination; and maintain political neutrality to work across partisan lines.

Additionally, policies often include robust stakeholder and public engagement processes with committees consisting of representatives from governmental agencies, private sector, and civil society. The six stakeholders involved in Krabi's transition include:[2]

  1. Government and policy makers: both provincial and national levels
  2. Business: both Renewable Energy producers and fossil fuel businesses
  3. Community and civil society network to oppose new fossil fuel projects
  4. Academia: feasibility study, research, briefing of Renewable Energy projects, sharing and monitoring of projects
  5. Prosumers: those who switch themselves from electricity bill payer to electricity generation for sale
  6. Financial institutions: loan providers to support investment for producers and prosumers

Governmental information

Several different bodies have a role in Krabi's energy transition:

Energy Regulatory Commission of Thailand (ERC): Established through Energy Industry Act of 2007, the ERC is the national regulatory body overseeing safe, competitive, and sustainable energy development in line with Thailand's policy framework. It is comprised of seven appointed commissioners.[26]

Energy Policy and Planning Office (EPPO): EPPO is tasked with six key objectives: 1) recommend energy policies and integrate/review energy management plans of the country; 2) recommend national strategies for energy conservation and alternative energy promotion; 3)recommend measures to solve and prevent oil shortage in both short and long terms; 4) supervise, monitor and evaluate the implementation of national energy policies and energy management plans; 5) administer the Information and Communications Technology (ICT) with regard to energy matters of the country; and 6) enhance EPPO to become a strategic organization.[27]

Provincial Electricity Authority (PEA): PEA was established in 1954 and sells electricity generated by EGAT directly to consumers in 74 provinces.[28] Any future policy implications related to regulating net metering, reconsidering Thailand's quota system, or changes to power purchasing mechanisms fall under the purview of PEA.[2]

Additionally, the National Committee on Climate Change Policy (NCCC) defines national climate policy agendas and establishes guidelines for international collaboration.[5] It includes Thailand's Prime Minister, experts from public and private sectors, and relevant provincial and national agencies. The NCCC encompasses seven subcommittees:[5]

  1. Subcommittee on Climate Change Policy and Planning Integration
  2. Subcommittee on Climate Change Knowledge and Database
  3. Subcommittee on Climate Change Negotiation and International Cooperation
  4. Subcommittee on Public Relations and Actions for Climate Empowerment
  5. Subcommittee on Climate Law
  6. Subcommittee on the Mobilization of GHG Mitigation and Carbon Sequestration in the Land-Use Change and Forestry sector
  7. Subcommittee on the Mobilization of GHG Mitigation with Carbon Capture Utilization and Storage Technology Implications

Related government papers

National Energy Plan (NEP): The NEP serves as Thailand's framework for achieving ambitious net-zero and carbon neutrality goals.[29] The NEP includes five action plans: a Power Development Plan, Energy Efficiency Plan, Alternative Energy Development Plan, Oil Plan, and Gas Plan, which include both top-down and bottom-up strategies for achieving 1) 50% renewable energy share by 2050 2) 30% electrical vehicle share by 2030, and 3) carbon neutrality between 2065 and 2070.[29][30]

National Energy Policy Council Act: Created the National Energy Policy Council, which is the highest governmental body overseeing energy management.[31]Alongside the Renewable Energy Development Plan, it aimed to increase energy security by encouraging the use of alternative energy sources, encouraging use of high-efficiency technology, and scaling up community-based green projects.[31]

Energy Development and Promotion Act: Renamed and redefined the duties and responsibilities of the Department of Energy Development and Promotion.[32]

Energy Conservation Promotion Act: Defined duties of relevant government agency with respect to energy efficiency and energy conservation programs.[33]

Energy Industry Act (also referred to as the "Energy Act"): Established the Energy Regulatory Commission, and with it, the regulatory framework for electrical and natural gas sectors with the intention of encouraging stakeholder participation, increasing market competition, and promote energy efficiency and renewable deployment.[34]

20-Year National Strategy 2018-2037: The national strategy employed as Thailand's framework for responsible, well-governed, and sustainable development.[35]

13th National Economic and Social Development Plan: Serves as the plan for a achieving the goals highlighted in the National Strategy by creating tangible implementation strategies focused on improving the social and economic well-bring is Thailand's residents.[36]

Climate Change Master Plan (2015-2050): Provides Thai decision-makers with a long-term framework (policy, technical, and budgetary) for climate change adaptation and sustainable, low-carbon growth.[37]

Relevant political coalitions

Thailand is part of the Association of Southeast Asian Nations (ASEAN), which among other priorities, coordinates on energy development across member state borders. ASEAN's Centre for Energy has identified six key themes for coordination: 1) exploring technologies for grid integration; 2) utilizing fossil fuels throughout the transition; 3) improving industrial efficiency; 4) enhancing dispatchability of renewable energy; 5) financing the energy transition; and 6) managing the safety and social acceptance of nuclear power.[38]

The "Krabi's renewable energy transition towards sustainable energy: drivers, barriers, and challenges" has done an inventory on the accountable authorities related to energy transition in Krabi:[2]

  • Ministry of Energy, ERC and PEA: key governmental institutions of RE policy planning.
  • Krabi Provincial Administrative Organization: representative for provincial policy and planning for RE transition
  • The Ministry of Energy: MOU with the Ministry of Agriculture and Cooperatives to provide land options for solar farm installation.
  • Krabi City Planning Office:land use licensing approval.
  • Krabi Provincial Cooperative Office: approval of cooperatives investment.

Permitting

Several bodies oversee regulatory decision-making related to project development:[39]

Ministry of Energy: Oversees Thailand's energy sector as a whole, and specifically issues energy operating licenses and pricing regulations.
Department of Alternative Energy Development and Efficiency: Promotes and regulates energy: efficiency, conservation, alternative development and use, and technology, as well as works to improve standards of living with respect to energy.
Department of Energy Business: Oversees the industrial safety, environmental concerns, security, and domestic technical knowledge of energy business.
Energy Policy and Planning Office: Recommends policies, strategies, and procedures for energy management, alternative energy promotion and development, and energy conservation. Also supervises and evaluates national energy management plans.
Energy Regulatory Commission: Oversees decisions regulating the nation's electrical system (generation, transmission, distribution) and monitors energy market conditions. Also ensures fairness and protections between consumers, utilities and distribution organizations, and other producers.
Electricity Generating Authority of Thailand: Generates and imports electricity, and sells power to the Metropolitan Electricity Authority and the Provincial Electricity Authority.
Metropolitan Electricity Authority: Generates, procures, distributes, and sells electricity to ratepayers, businesses, and industry in Bangkok, Nonthaburi, and Samutprakan.
Provincial Electricity Authority: Generates, procures, distributes, and sells electricity to ratepayers, businesses, and industry in all 74 provinces not covered by MEA.

The development and transport of energy projects, specifically those powered by natural gas, coal, or renewables, is governed by the Energy Industry Act (Energy Act).[40] Generally, energy developers need the following authorizations:[39]

  • Building construction permits
  • Factory operation license
  • Electricity generation license
  • Controlled energy production license
  • Additional permits specific to the nature of the project, such as generation type or location.


During project pre-approval, developers must submit an environmental impact assessment to the Office of Natural Resources and Environmental Policy and Planning (ONEP). ONEP establishes a committee of technical experts who can choose to endorse the project ahead of its official approval. In addition, power plants must adhere to the environmental, emissions, and waste standards regulated by the Ministry of Natural Resources and the Environment.[40]
Additionally, the Energy Industry Act also requires that licensees who operate in an energy network must allow other licensees and operators to connect to said energy network.[40]

Transmission and Grid

Thailand is currently connected via 500,000 high-voltage transmission lines.[1] While the Electric Generating Authority of Thailand (EGAT) oversees the largest power generation and transmission system in the country, it does not distribute electricity directly to consumers.[1] Instead, the Provincial Electricity Authority (PEA) purchases power from EGAT and sells it directly to consumers in Krabi and 73 other provinces (PEA does not provide service to Bangkok, Nonthaburi and Samut Prakarn, which are serviced by the Metropolitan Electricity Authority [MEA]).[1]

Southern Thailand is considered more challenging with respect to system reliability due to its electrical isolation relative to the rest of the country.[41]

Current transmission resources

Currently, Krabi has a total of eight substations running 500, 230, and 115 kV transmission lines.[1] While the grid owners, i.e. EGAT, PEA, or MEA, are tasked with construction, the cost of transmission lines are the responsibility of the project developer.[42]

Greenpeace: Map of the power grid, substations, and power plants making up Krabi, Thailand's grid infrastructure.

New transmission needed for renewables

Increased deployment of renewable energy may help increase stability of Krabi's power supply and decrease incidences of blackouts, though thoughtful and coordinated transmission planning is required to ensure energy generation matches demand.[1] According to Greenpeace's Krabi Goes Green report, the number of customers and their collective demand is on the rise, which is leading to a shortage in transmission infrastructure. To mitigate this and improve system reliability, and taking into account the relative low-voltage distribution system that Krabi operates within, local decision-makers can add more transformers, construct more power stations, install more transmission lines, and/or connect existing and upcoming transmission systems to create a "looping of circuits."[1]

The maximum energy demand in Southern Thailand is projected to be 5,264 MW in 2037.[10]

Social and environmental impacts of new transmission

National Grid Infrastructure

Renewable Energy Penetration

Of the ten nations comprising the Association of Southeast Asian Nations, Thailand has the highest variable renewable energy (VRE) penetration, most developed grid infrastructure, advanced operational practices, and is relatively flexible.[41] However, as of 2018, VRE penetration in Thailand was only 4%.[41] The International Energy Agency has identified four phases to integrating VREs to the grid:[43][44]

  1. VREs are deployed but highly localized. VRE generation up to 3% at any given time.
  2. Upgrades are made to operational practice to better integrate more VRE plants as they are added to the system. VRE generation between 3% and 15% at any given time.
  3. Systematic increases in power system flexibility are made to balance changes in supply and demand. VRE generation between 15% and 25% at any given time.
  4. VRE output is sufficient to meet majority of power demand; subsequent changes to operational and regulatory approaches are made to support VREs. VRE generation between 25% and 50% at any given time.


IEA considers Thailand to be at the end of Phase 1, approaching Phase 2.[41] Two key aspects of grid planning can hinder VRE deployment: a lack of consistency in grid codes, and a lack of a dedicated control center managing renewable energy.[41]

Thailand's projected annual average VRE penetration for different wind and solar deployment scenarios, as originally published by the International Energy Agency.

Planned Grid Upgrades

In general, grid upgrades consist of five primary phases: 1) forecast future demand and generation mix, 2) transmission bodies develop upgrade or expansion plan, 3) submit plan to regulatory body, 4) regulators review plan and make decision on which transmission plans are feasible and high priority, and 5) transmission organizations construct facilities and recover costs through mechanisms specified during regulatory decision-making.[41]

In 2021, the Provincial Electricity Authority was awarded a technical assistance grant from the Unites States Trade and Development Agency for the purpose of modernizing its grid, which serves 20 million customers. The assistance will allow PEA to digitalize its grid and support the integration of advanced technology, all of which will increase energy efficiency, allow for greater renewable deployment, and lower consumer costs. The Electric Power Research Institute will provide monitoring and analysis.[45]

Thailand is coordinating energy and transmission development with other ASEAN states to maximize regional grid reliability. In February of 2023, EGAT and the Tenaga Nasional Berhad, the primary utility servicing Peninsular Malaysia,[46] signed a memorandum of understanding for a feasibility study for increased interconnection capacity between Thailand and Malaysia.[47]

Strategies for maintaining and upgrading Thailand's are outlined in its Power Development Plan. While the most recent revision occurred in 2018, an updated Plan is expected in 2023.

Civil Society Organizations

Greenpeace Thailand is an active advocate for the country's transition to renewable energy and has published several reports outlining relevant analysis and recommending strategies, namely Krabi Goes Green, Renewable Energy Employment in Thailand, and Retiring Coal for a Fair Transition in Thailand.[48]

Ownership

Major owners of current fossil capacity

The Electricity Generating Authority of Thailand owns significant generating capacity in Thailand, including three thermal power plants, six combined cycle power plants, four diesel power plants, and one unspecified power plant.[49] Total owned capacity, including both fossil and renewable generation, equals 16,082.32 MW.[49] Other major owners (at least 15 projects in Thailand) are B.Grimm Power, Gulf Energy Development, Electric Power Development Company, and PTT Public Company.[13]

Major owners of prospective renewables

The Electric Generating Authority of Thailand owns 29 hydropower plants and nine other renewable (wind, solar, and geothermal) energy power plants.[49] Total owned capacity, including both fossil and renewable generation, equals 16,082.32 MW.[49]

Finance

Experts at the Indonesian Ministry of National Development Planning estimate a USD 2.5 trillion investment gaps in developing and emerging nations hindering their ability to meet United Nation Sustainable Development Goals and Paris Agreement requirements.[38]

Potential providers of wind/solar finance

Four main entities are involved renewable energy investments: the Ministry of Energy, the Energy Regulatory Commission, the Provincial Electricity Authority, and the Board of Investment.[2][50] Most energy investments in emerging and developing nations comes from each country's own public funding, given the perceived high risk within private lending institutions.[38] To address this, international development institutions with multiple donor funds should be prioritized early in the project process to minimize risk and attract other lending entities.[38]

Other

In 2014, Thailand adopted a Feed-in Tariff (FIT) to support financing of Very Small Power Producers (less than 10 MW in capacity) across the country.[51] The FIT is intended to last 20 years for power systems except landfill gas, which only has 10 years of support.

Renewable energy projects will generally be eligible for three main investment incentives: exemption on import duties for equipment for generation, tax holidays for corporate income taxes, and tax exemptions on dividends paid by the developer.[42]

According to the Thailand Board of Investment, nationally, 400 projects totaling 16,550 million baht (~470 million USD) focused on energy efficiency, renewable energy, and reducing environmental impact applied for investment promotions and/or financial incentives in 2022.[52]

Articles and resources

Related GEM.wiki articles

Krabi Coal Power Station

References

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