Thailand commits $6 billion to a rooftop solar push amid energy price shocks

Thailand is putting 200 billion baht, or about $6 billion, into an emergency energy transition fund meant to help 1 million households install a combined 5 gigawatts of rooftop solar within a year, through subsidies and loans. Energy Minister Akanat Promphan said the push is meant to cut the country's exposure to global energy shocks tied to the conflict in the Middle East, warning that without it Thailand would otherwise "be subjected to what's happening in the Middle East forever."

Gas currently supplies more than 60% of Thailand's electricity, while renewables provide about 10%; the country imports more than a quarter of its gas and buys half its liquefied natural gas on volatile spot markets. The announcement highlights a broader problem across Southeast Asia: banks in eight Asia-Pacific markets funneled only 83 cents toward low-carbon energy for every dollar spent on fossil fuels in 2024, according to BloombergNEF, with the ratio even more skewed within Southeast Asia specifically.

Regional finance officials say the gap isn't just about capital — renewable projects also face regulatory uncertainty, limited grid access, permitting delays and currency risk that established fossil fuel companies don't face. The Association of Southeast Asian Nations has set a target of drawing 30% of its primary energy from renewables by 2030, but its energy center estimates an annual financing shortfall of up to $170 billion to get there.

Based on reporting by Taejun Kang for Eco-Business. Read the original: https://www.eco-business.com/news/thailands-us6-billion-solar-push-tests-aseans-green-finance-ambitions/