Thailand Energy Storage Investment Project

Thailand's 2024 power development plan (PDP) aims to increase renewable energy use, highlighting the importance of BESS alongside solar panels and wind turbines. This could create new business opportunities for entrepreneurs if prices decrease or new technologies emerge for stationary batteries.

Thailand may lack the Battery Energy Storage Systems (BESS) necessary to navigate supply and demand challenges. The 2024 PDP draft included 10,000 MW of BESS, but this may see the country struggle to fulfil carbon neutrality and Net Zero commitments over the coming decades.

Their total combined storage capacity was 994 MW. Interestingly, this allowed generators to sign semi-firm power purchase agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT) with minimum availability guarantees. Many solar projects in Thailand have non-firm PPAs in place due to a lack of storage on site.

This is partly due to a lack of clarity on how battery storage fits into existing electricity infrastructure. In 2022, the Thai government approved 24 BESS projects, all of which were located alongside solar operations. Their total combined storage capacity was 994 MW.

Watcharin Boonyarit, director of solar energy development at the Department of Alternative Energy Development and Efficiency, noted the potential for BESS to create business opportunities as Thailand transitions to renewable power sources. “We should not only import BESS but also consider new investment projects in this battery business.”

Many solar projects in Thailand have non-firm PPAs in place due to a lack of storage on site. Arrangements, including BESS, reduce the strain on power grid infrastructure and allow for better planning. On the downside, these do not improve grid stability, nor do they provide power generators with more pathways to increase revenue.