Fitch forecasts strong growth in Thai renewable energy
American credit rating and data analytics firm Fitch Solutions is forecasting that Thailand’s renewable energy sector will experience strong growth in coming years, as the Kingdom makes good on its commitments under the Paris Climate Accords.
“As a result of the renewed commitment to carbon neutrality and a supportive policy landscape for renewables to support that commitment, we expect Thailand to experience robust growth in non-hydroelectric renewables,” Fitch Solutions commented.
Thailand is already the leader in Southeast Asia in solar and wind power generation.
Support and investment incentives for renewables are part of the Kingdom’s 20-year advanced development strategy. At the recent COP26 climate meeting in Glasgow, Scotland, Prime Minister Prayut Chan-o-cha increased Thailand’s commitments on cutting greenhouse gas emissions.
The Prime Minister pledged that the country would be carbon neutral by 2050 and reach net-zero greenhouse gas emissions by 2065. Fitch said that those pledges were a step up from previously stated goals.
“Apart from what was announced at COP26, Thailand has also made plans to develop renewables in the power sector, with a non-hydroelectric renewables target of 18.7 gigawatts of total capacity by 2037 through the Alternative Energy Development Plan 2018–37,” Fitch added.
The alternative power plan is part of the overall Power Development Plan 2018–37 that aims for 37 percent of the power mix in 2037 to be from non-fossil fuel sources.
“Aside from solar power, biomass will also be a key performer. We expect biomass power plants, which typically generate electricity from biogas, biomass and waste, to be developed in communities outside of metropolitan areas, where most agricultural activities happen,” Fitch wrote.
Photo courtesy of https://fitchsolutions.com/