New gas price plan targets green shift

Small producers get squeezed

- NUNTAWUN POLKUAMDEE

Racks of servers at a data centre. Investment themes in the Thai energy sector have shifted, driven partly by rising power demand from data centres.

Thailand's energy and power sector is entering a major transition, driven by the National Energy Policy Council's (NEPC) approval of a new natural gas pricing structure and shifting investment themes that increasingly favour renewable energy and power demand driven by data centres.

According to analysts, while small power producers (SPPs) face near-term cost pressures, the sector's long-term outlook is supported by liquefied natural gas (LNG) price trends, expanding data centre loads, and expected revisions in the upcoming power development plan (PDP).