New economic growth sectors need a clean power system

This report by Ember examines Thailand's need to accelerate its clean energy transition to maintain global competitiveness and support the growth of electric vehicle (EV) and data centre sectors. It highlights the tension between rising electricity demand from these sectors and the country's carbon reduction targets, suggesting that a clean power system is essential to attract foreign investment and meet the sustainability requirements of global tech companies.

• Thailand's updated 2022 Nationally Determined Contribution (NDC) commits to reducing greenhouse gas emissions by 30% below a business-as-usual level (approximately 388 million tonnes of carbon dioxide) by 2030, with a potential target of 40% (333 MtCO2) if international support is provided. To reach carbon neutrality by 2050, emissions must decrease by 73-83% relative to 2015 levels.
• The energy sector is the primary driver of emissions, accounting for about 69% of total emissions in 2019, with the power and transport sectors specifically representing up to 68% of total emissions in 2022. The draft RPDP aims to reduce power sector CO2 emissions by 18% in 2030 and 38% in 2037 compared to the previous plan, projecting a drop from 95.5 to 77.7 MtCO2 by 2030 and from 99.7 to 61.8 MtCO2 by 2037.
• Under the 30@30 policy introduced in 2021, Thailand aims for zero-emission vehicles to comprise at least 30% of total auto production by 2030. The RPDP projects that EVs will account for approximately 68 terawatt-hours (TWh) of electricity demand by 2037, representing roughly 20% of total consumption. However, Ember's analysis suggests the RPDP underestimates peak demand; a more realistic scenario starting in 2026 would add 3,355 megawatts (MW) above the baseline, increasing total peak demand to 57,901 MW by 2037.
• Thailand's data centre market is expected to grow at an annual rate of 7.5%-8.5% between 2025 and 2027. Electricity demand for these centres is forecast to grow at an 8% CAGR from 2025 to 2027, reaching 6 TWh by 2030 (2.2% of total demand) and adding approximately 10 TWh by 2037. To support this, the government approved a direct power purchase pilot project in late 2024, allowing data centre investors with at least 50 MW to purchase electricity directly from renewable generators, with a total expected procurement capacity of 2,000 MW.
• Thailand can gain a competitive advantage over Malaysia and Indonesia, which are considering increasing gas capacity or delaying fossil fuel phase-outs to meet data centre demand. This is critical because major investors like Microsoft, Amazon, and Google have committed to 100% renewable or carbon-free energy targets by 2030.

APA

Ember (2025). New economic growth sectors need a clean power system. https://ember-energy.org/chapter/new-economic-growth-sectors-need-a-clean-power-system/

Chicago

Ember. New economic growth sectors need a clean power system. 2025. https://ember-energy.org/chapter/new-economic-growth-sectors-need-a-clean-power-system/.

Wikipedia

{{cite report |author=Ember |title=New economic growth sectors need a clean power system |date=30 September 2025 |url=https://ember-energy.org/chapter/new-economic-growth-sectors-need-a-clean-power-system/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025new, author = {{Ember}}, title = {{New economic growth sectors need a clean power system}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/chapter/new-economic-growth-sectors-need-a-clean-power-system/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }