Thailand Targets 25,000 Megawatts of Clean Power for Industrial and Data Demands
In this article (4)
Thailand must boost renewable electricity generation to between 65 percent and 80 percent by 2050 as expanding industrial operations and data centres demand roughly 25,000 megawatts of clean power.
Green Investment Hub Chairman Kulit Sombatsiri delivered the capacity forecast at the ESG Symposium 2026 in Bangkok, warning that heavy reliance on imported energy leaves regional supply chains vulnerable to price shocks.
The investment roadmap requires capital deployment across modernised power grids, virtual power plants, carbon capture utilisation and storage, and small modular nuclear reactors. Meeting the target demands public-private partnerships across energy producers, industrial consumers, and regulatory agencies to maintain grid stability without driving power tariffs higher for commercial users.
Powering Industrial Expansion
Thailand’s industrial base faces rising pressure from export markets to prove low-carbon production credentials. Heavy manufacturers and emerging data centre operators require dedicated green power contracts to fulfill global corporate net-zero pledges.
SCG President and Chief Executive Officer Thammasak Sethaudom said Southeast Asian economies cannot afford to view decarbonisation as a trade-off against economic expansion. Regional operators must link green investments directly to cost reductions and factory floor efficiency rather than treating sustainability as a regulatory compliance burden.
Supply Chain Pressures and Market Realities
Large multinational brands and retailers sourcing out of Southeast Asia are tightening Scope 3 emissions reporting, shifting procurement orders toward suppliers that run on certified clean grids. Thai manufacturers that delay equipment upgrades risk exclusion from regional export networks.
“The AND matters because the old either-or framing has constrained too many decisions for too long and sometimes led to making big industrial mistakes.”
Payong Srivanich, co-chairman of the Joint Standing Committee on Commerce, Industry and Banking, said structural reform must address the informal economy and assist small and medium-sized suppliers. Without targeted financing, smaller vendors cannot afford the capital expenditure required to comply with international carbon standards, threatening supply continuity for major consumer goods producers.
Industrial Execution at the Factory Level
Dr. Ilham Kadri, chair of the executive committee of the World Business Council for Sustainable Development, pointed to the Saraburi Sandbox project in central Thailand as an operating model for industrial clusters. The platform links industrial plants, local farms, and logistics operators to turn agricultural waste into alternative industrial fuels and create revenue from carbon credits.
“The AND matters because the old either-or framing has constrained too many decisions for too long and sometimes led to making big industrial mistakes.”
Kadri stated that green transition projects must pass strict internal hurdle rates at investment committees before scaling across factory operations and regional retail distribution channels.
Infrastructure Milestones Ahead
Southeast Asian governments are coordinating regional investment frameworks to share cross-border power transmission and build integrated supply chains for solar photovoltaic systems, smart grids, and low-carbon construction materials.
Thai energy authorities are scheduled to review regulatory structures for direct power purchase agreements and carbon accounting frameworks, establishing the commercial terms under which industrial operators and data centre developers can procure green electricity directly from private renewable generators.