PV Analysis of the Belt and Road Initiative

Home News & Analysis PV Analysis of the Belt and Road Initiative

PV Demand Analysis of the Belt and Road Initiative: Thailand of Southeast Asia

Thailand Country Profile

Thailand is the second-largest Southeast Asian economy next to Indonesia, with a population of about 69 million. The GDP growth rate reached 4.8% in 1Q18. There have been many coups in Thailand over the past. The most famous one is the Red Shirt Incident in 2014. The Red Shirt Incident caused the nation’s GDP growth rate to fall sharply, reaching less than 1%. 

Thailand has natural resources with abundant sunshine. Thailand’s average solar radiation reached 5-6.5kWh per square meter every day. The nation is also an ASEAN country with the longest development in PV. Up until 2017, the cumulative PV installation reached 2,697MW. Thailand aims to achieve 6,000MW of installed capacity by 2036. 

Renewable Energy Development in Thailand

Thailand’s renewable energy policy is based on the Thailand Integrated Energy Blueprint (TIEB). TIEB includes three energy plans such as Thailand Power Development Plan 2015-2036 (PDP), Alternative Energy Development Plan 2015-2036 (AEDP), and Energy Efficiency Development Plan 2015-2036 (EEDP) and two other energy plans that focus on gas and oil. 

AEDP is the major policy for Thailand’s renewable energy development. Comparing the latest version of AEDP2015 and the previous version of AEDP2012, policy has been extended from 10 to 20 years. The prioritized focus has shifted from energy price to waste, biomass, and biogas. PV and wind energy projects will witness the same level of importance as natural gas projects. On the other hand, Thailand pushes up the renewable energy installation target from 13.7GW to 19.6GW. 

In the past, hydro dominated the renewable energy market in Thailand. However, the trend has changed. Biomass has taken up the largest proportion in all renewable energy projects, following was hydro and PV. 

Thailand Cumulative installed capacity of renewable energy

Source:Thailand’s Solar Power Status the 50th Task 1 Meeting, Ministry of Energy& International Energy Agency Photovoltaic Power Systems Programme.

Source:Thailand Alternative Energy Development Plan (AEDP 2015) and Progress, Miss Jariya Budnard, Ministry of Energy

PV Policy of Thailand

Thailand has a long PV development history. The earliest policy can be traced back to the off-grid project development plan in 1993. Later in 2007, Thailand implemented Adder and then the FiT. Future policy will focus more on self-consumption.

Feed-in Tariff (FiT)

Thailand’s FiT is specifically for roof-top, ground-mounted, and VSPP projects. FiT for roof-top projects has ended in 2016, meanwhile, FiT still goes on for ground-mounted and VSPP. Argo Solar’s second-phase project is the only one left for ground-mounted types. Its second-phase aims at 100MW of governmental and 119MW of agricultural projects, totalling 219MW. They are subsidized at 4.12THB/kWh (about US$11 cents/kWh). Currently, application is closed for agricultural projects, while only 52MW have been applied for governmental projects. Scheduled Commercial operation date(SCOD) for All projects have to complete grid-connection before December 31st 2018.

Thailand Fit policy

Self-Consumption Scheme - Pilot Project (Ended in 2017)

The plan was launched in August 2016. The core policy is the self-consumption of roof-top projects, aiming at an installation target of 100MW. Contracts can only be renewed every five years with the technology approval from power companies. No subsidies are allowed for surplus electricity.

The result didn’t go well. The actual installation only reached 5.63MW. 

Net-Metering / Net Billing (not approved yet)

The Thai government is planning to come up with Net Metering or Net Billing for roof-top projects. This was originally scheduled to launch in late-2017 – add 300MW of roof-top installation every year till reaching 6,000MW by 2036. But the plan has been postponed. 

Tax Exemption

PV raw materials and cells can enjoy an 8-year income tax exemption. Meanwhile, related PV equipment or component manufacturers can enjoy a 5-year income/import tax exemption.

PV Development in Thailand

Thailand has a relatively low cost of labor and electricity and the infrastructure is also relatively complete compare to other ASEAN countries. As a consequence, Thailand is positioned as an OEM role in the global PV industry. In addition, Thailand has an advantage of third-party manufacturing and is exempted from India’s safeguard tariff. Many countries export products to India through Thailand. 

Thailand has a long history in PV development. Tracing back to 1993, Thailand has put effort in PV development for 25 years. By 2017, Thailand’s cumulative installation has reached 2.7GW, and 95% of which come from ground-mounted installation and only 5% come from roof-top projects.

Thailand is one of the first countries in Asia to introduce the concept of FiT. The Thai government promoted PV development mainly through high subsidies. Yet, they focus more on low subsidies and self-consumption nowadays. We can see that from the current subsidy rate of 4.12THB/kWh (about US$11 cents/kWh) and the pilot scheme that was launched previously.

Import Analysis in Thailand

The market share of modules reached 84% for multi and 16% for mono in Thailand. 

Thailand Multi Mono proportion

However, the ratio may change in the future. Let’s make a comparison from 2017 to August 2018: In 2017/01-2017/12, Chinese module shipment to Thailand reached 28MW for mono (17MW from January to July) and 263MW for multi, taking up 9.6% and 90.4%, respectively, of the total shipment. Yet, in 2018/01-2018/08, China’s module export to Thailand reached 69MW for mono and 250MW for multi, representing 21% and 79%, respectively, of the total export.

Compare the two period of time, the proportion of mono shipment in 2018/01-2018/08 has increased substantially from the same period of time in 2017 or even the entire 2017. This shows that Thailand will have higher demand for mono modules in the future. 

China Export to Thailand Shipment


Thailand hasn’t announced new policies yet. But according to the current policy – 6GW by 2036, this goal can be somewhat conservative based on the installation performance and the abundant natural resources in Thailand. 

Let’s assume if the policy of 6GW by 2036 remains unchanged, from 2018 to 2036, a total of 18 years, the space for newly-installed capacity can only reach 185MW every year. The space is limited. However, if the new target can be higher than the current goal, it can boost installation demand and stimulate market development. 

Previous Go Back Next

欢迎您光临PV InfoLink网站(http://www.pvinfolink.com,以下简称“本网站”),请您详阅下方的本网站的使用条款、以保障双方权益,若使用本网站则表明您已知悉并完全接受这些条款。

§ 1 免责声明

本网站合法获取信息,并尽可能以可靠、准确、完整的信息为基础,但不保证本网站信息的绝对准确性和绝对完整性,亦不对任何人的市场操作、投资建议负任何责任。PV InfoLink保留随时补充、修订或更改有关信息的权利,但并不保证随时发布。

 § 2 版权声明

本网站中的商标、名称、版面设计、自有文章、图片、图表等内容之版权归PV InfoLink所有。对于内容中所含的版权和其他所有权声明,使用者应予以尊重并在其转载、副本中予以保留。如果网站内容无权利声明,并不代表本网站对其不享有权利,也不意味着本网站不主张权利,使用者应根据诚信原则尊重该内容的合法权益并进行合法使用。

§ 3 转载及链接

本网站出于促进业界同仁思想交流和研究探讨之目的,可能包含转载文章或连接到第三方网页上的链接。转载文章所阐述的观点只代表该作者自身观点,本网站转载并不代表赞成或反对其观点。另外,本网站对外部链接并不负审查义务,不担保其准确性及完整性。在收集原始素材时,PV InfoLink尽可能注明文章的作者和来源,如文章作者或版权所有者对此存有异议,并不希望本网站引用、转载,请联系我们,本网站将立即予以删除。

§ 4 拒绝提供担保




本使用条款之订立、修改、更新及最终解释权均属PV InfoLink所有。若您对于本使用条款或本网站有任何问题或建议,欢迎来信service@pvinfolink.com

Welcome to PV InfoLink website (http://www.pvinfolink.com, hereinafter referred to as “this website”). Please read this terms of use agreement carefully to protect the interests of both parties. By accessing this website, you know and fully agree with these terms.

§1 Disclaimer

Information on this website is legally obtained and is based on reliable, accurate, and complete information. But absolute accuracy and completeness is not guaranteed. We assume no responsibility for anyone’s market operation or investment advice. PV InfoLink reserves the right to add, revise, or alter website information anytime, but information will not be guaranteed to be published all the time. 

§2 Copyright statement

The copyright of trademark, name, website layout, articles, photos, charts, etc. on this website are the properties of PV InfoLink. For the copyright and other proprietary statement contained in the content, users should show the respect and cite sources when sharing the article. If the website has no copyright statement, it does not mean that its contents are not protected. Users should respect the legitimate rights for use based on the principle of integrity.

§3 Share and link

This website may share articles or put subcontractor’s link on this website for the purpose of facilitating peer exchange and research. The point of view for the shared article is author’s own point of view. This website does not represent in favor or against the author’s point of view. In addition, this website does not have an obligation to review external links and does not guarantee its accuracy and completeness. For the collection of original sources, we will try to cite the author and source as much as possible. If the author or copyright owner has any opinions and do not want this website to refer or share their content, please contact us. The article will be removed immediately. 

§4 Refuse to provide warranty

This website does not provide any express or implied warranties, including but not limited to commercial suitability, fitness for a particular purpose, and non-infringement of the rights of others.

This website is for reference only. Users should determine the immediacy and applicability of such information themselves and have to be responsible for any transaction or investment decisions made.

If users conduct trade transactions with other manufacturers through this website, only the user and the manufacturer have a contractual relationship. This website is not involved in it. If the product or service has any flaws or disputes, users will have to contact the contractor. This website will assume no responsibility for such matters.

The making, modification, renewal, and final interpretation of this Terms of Use are the properties of PV InfoLink. If you have any questions or suggestions regarding this Terms of Use or this website, please contact us at service@pvinfolink.com.


PV InfoLink的现货价格主要来自平时与业界的面谈、
但每周根据市场分为略有微调,且加上PV InfoLink专业分析群的市场预测。

PV InfoLink gathers price information from face-to-face/phone interviews and other ways of communication with more than 100 PV companies. We get our average price from the most common transactional data in the market (not weighted average), but prices are slightly adjusted every week according to market conditions. With PV InfoLink’s professional market forecast, we seek the fullness and completeness of the information, but this information is just for reference. We assume no responsibility for anyone’s market operation or investment advice.