The Potential Role of Carbon Pricing in Thailand’s Power Sector
Thailand is committed to playing its part in the international efforts aimed at addressing
climate issues. As it is for most countries, the power sector in Thailand is among
the largest emitters, accounting for 38% of energy-related CO2 emissions. Hence, reducing
the emissions from this sector is fundamental in reducing the country’s total emissions.
This report explores the potential role of carbon pricing in driving emissions reduction
in power generation and supporting a clean energy transition in the country. Building
on the understanding of the current power market structure and future development
plans, this report leverages on the results from in-depth 2030 power production cost
modelling to assess the potential impacts of carbon pricing on power generation dispatch
and investment, and the resulting implications on emissions and costs. The recommendations
arising from the assessment suggest that carbon pricing can play an active role in
reducing the emissions from Thailand's power sector, with measures to mitigate the
potential costs and distributional impacts.
Published on July 12, 2021