Thailand invests in grid-side energy storage

The Thailand energy grid needs modernisation and optimisation to support the increasing usage of renewables with this expected to be a point of emphasis in the upcoming Thailand National Energy Plan.

Smart Grid development in Thailand has been fragmented, as EGAT, PEA, and MEA mostly focus on their own projects rather than collaborating. All three agreed to jointly research a National Energy Trading Platform in 2018, but updates have been scarce.

The potential limitations of the Thailand energy grid are coming into focus as the country seeks to expedite its green transition. With more renewables slated to come online over the next few years, there is a pressing need to make faster progress on Smart Grid advancements.

Thailand can manage its energy transition and solve the energy trilemma of sustainability, security and affordability by accelerating renewable power additions and grid capacity expansion, while limiting new thermal power capacity addition.

It would also need to scale the programs to expand in tandem with the growth of its renewable energy market. According to the Ministry of Energy, Thailand has a power capacity reserve margin of 50%, significantly higher than the recommended reserve margin of 15-20%.

As Thailand plans to add significant amount of renewables capacity in the next 13 years, the government would consider more flexible gas power contract. As a result, thermal power plants will likely see their operational hours cut further. This will lead to costlier coal and gas power.