Low oil prices have not greatly impacted the use of renewable energy in Thailand for generating electricity. Given this, KResearch projects that investments in renewable energy will increase to reach THB110-150 billion in 2016-2018. Most such investments will be in solar power, followed by wind, biomass and waste. By the end of the current Power Development Plan 2015-2036 (PDP 2015), investments in these industries will likely soar to THB535 billion.
From 2H16 onward, we may expect increasing investments in solar power as relaxed restrictions allow selected projects to start their electricity generation. Over the coming period, growing interest in investments in waste and wind energy may also be anticipated as capacity falls greatly behind the established target.
Challenges and issues warranting close monitoring include the gradual phase out of feed-in-tariff (FIT) subsidies on power purchased from renewable energy producers, which should motivate producers to improve production processes with new technology yielding greater efficiency and power output. Furthermore, renewable energy producers may consider managing costs so as to cut unnecessary expenses for greater competitiveness.