The world is racing toward clean energy. Thailand, blessed with sun and wind, should be surging ahead. Instead, the country is stuck with one of the lowest shares of clean power in the region—an awkward contrast to its ambitions on paper.

As global demand for electricity jumped by more than 1,050 terawatt-hours in 2024, clean energy took the lead. In Asia-Pacific, it accounted for three-quarters of new power generation. Clean energy is no longer framed as an environmental gesture. It is now a core economic strategy. And in this new landscape, Thailand’s hesitation carries a cost.

On paper, the government’s Power Development Plan (PDP 2024) sets an ambitious goal to produce 51% clean energy by 2027 and 74% by 2050.  Yet Thailand produced only 15% clean electricity in 2023—far below the regional average and far behind Vietnam’s 38%. This is not just “energy statistics.” The lack of clean energy supply weakens the country’s appeal to investors who need reliable access to clean power.

Thailand’s potential is not the problem. The country has sunlight, wind, and falling costs. Solar prices have dropped more than 80% in a decade and are expected to fall further by 2030. Wind technology keeps improving from ongoing development progress. What Thailand lacks is policy coordination and integration, preventing the country from realising its clean energy potential.

Five major plans—the PDP, the renewable energy plan, the energy efficiency plan, the oil plan, and the gas plan—are written in separate rooms, by separate agencies, with little alignment. This is Thailand’s major weakness. The result: a future that looks promising on paper but moves slowly in reality.

The global context has also changed. Clean electricity alone is not enough. As more solar and wind power enters power grids, countries must deal with new instability. That is why energy storage systems (ESS) have become critical. They store excess daytime solar power and release it when demand surges.

Countries like China and the United States now treat ESS as core infrastructure. China requires solar and wind projects to install 10–30% storage. The United States invests heavily in smart grids that balance supply and demand in real time. Thailand plans to adopt storage seriously only after 2032, obviously too late for a fast-moving global market.

Electric vehicles (EVs) help make the power system more stable. They cut transport emissions and can lighten the load on the grid. With “Vehicle-to-Grid” (V2G) technology, EVs can even send electricity back when it’s needed. With smart charging and the right setup, they become a key part of the energy system.

But even with clean electricity and supporting technologies, heavy industries—steel, cement, petrochemicals—cannot cut emissions easily. This is why many countries are investing in carbon capture, utilisation, and storage (CCUS)  and green hydrogen to close the final gap.

The United States, through its Inflation Reduction Act (IRA), offers tax credits of up to USD 85 per tonne of captured carbon to spark CCUS investment. Japan has a national hydrogen strategy to turn hydrogen into a new energy source for heavy industry and the transport sector.

Thailand, however, has no clear policy framework for CCUS or hydrogen. Even though the Global CCS Institute reports that the Gulf of Thailand could store up to 8.4 billion tonnes of carbon and could position itself as a regional hub for hydrogen in the future.

Thailand has all the pieces for a clean-energy system. Sun and wind are here. Technology is available. The market is ready. What is missing is a way to connect these pieces so they move in the same direction. The clean-energy transition won’t work if agencies keep working separately and if businesses and the public still have no say in shaping the policy.

The ongoing revision of the PDP is an opening. It is the biggest opportunity in years not only to adjust targets but also to reset how Thailand plans its energy future to catch up with global reality and make room for new technologies and new players.

To complete Thailand’s clean-energy puzzle, the country should act quickly on four fronts.

First, integrate all national energy plans under a central body with real authority, shared goals, and common long-term indicators. Cut overlapping work and set clear priorities.

Second, upgrade the power system so it can absorb new technologies. Treat ESS and EVs not as add-ons, but as core parts of the future grid, with faster rollout timelines.

Third, create markets and financial incentives that make CCUS and hydrogen investments worthwhile, helping Thailand move from a user of technology to a developer.

Fourth, establish an open, transparent policy process that includes local communities, industry, and the public from start to finish. The clean-energy transition cannot rely on the government alone.

Thailand will not reach its clean-energy ambitions through sunlight and wind alone. The real test is whether the country can link its plans, its technology, and its people in one direction toward the same goal.  

Fail, and the opportunity slips away. Get it right, and the clean-energy puzzle clicks into place to unlock a stronger and more competitive Thai economy.

Areeporn Asawinpongphan, Ph.D., is a research fellow; Annop Jaewisorn and Korn Amnauypanit are researchers at the Thailand Research Development Institute (TDRI). This article is part of the Energy Transition Leadership Training Programme, funded by the Power Development Fund of the Energy Regulatory Commission.