Thailand to shift from LNG towards renewables in wake of Iran war

By the Editorial Team · Friday, August 28, 2026

Thailand is accelerating its shift from imported liquefied natural gas to renewable energy and nuclear power, targeting 60 percent of electricity generation from clean sources within 25 years to reduce dependency on volatile global fuel markets. The new plan, to be released in October, includes the introduction of small modular nuclear reactors and a proposed investment of 200 billion baht to expand renewable capacity, aiming to ensure energy security and support growing economic demand.

Thailand is set to overhaul its energy strategy by accelerating its transition from imported liquefied natural gas (LNG) toward renewable sources and nuclear power, aiming to reduce vulnerability to global supply shocks such as the ongoing conflict in the Middle East. The country plans to generate 60 percent of its electricity from clean energy—including solar, wind, and hydro—within the next 25 years, doubling the previous target.

Energy Minister Akaradej Promphan announced the updated objectives during an interview in the Thai Parliament on August 26. He stressed the urgency of cutting LNG and other fuel imports, highlighting recent geopolitical tensions as a catalyst for change. “We need to build a cleaner and more self-reliant power system,” he said, emphasizing the necessity to shield Thailand’s energy sector from external disruptions.

Currently, natural gas accounts for more than 60 percent of Thailand’s electricity generation, with most of the supply imported. This dependence exposes the nation to fluctuations in global LNG prices, which have been exacerbated by the conflict in the Middle East. By expanding renewables—now comprising roughly 15 percent of the energy mix—Thailand intends to reduce its reliance on foreign fuel and advance its commitment to achieve net zero carbon emissions by 2050.

The shift toward renewables will require a significant ramp-up of infrastructure investment, as the country’s electricity demand is projected to grow sharply. Robust economic activities, especially in data centers, cloud computing, and advanced manufacturing, have pushed the government to ensure adequate electricity supply to maintain affordability for households and support industrial growth.

For the first time, the forthcoming 25-year national power development plan, scheduled for release in October, will include nuclear energy. The government is evaluating small modular reactors as a potential source of stable, low-carbon power that could complement variable renewable sources. This marks a notable change in Thailand’s energy policy, signaling greater diversification of its power generation portfolio.

Earlier this week, the government defended a proposal to allocate 200 billion baht (approximately S$77.7 billion) toward expanding renewable energy capacity, underlining the strategic priority of sustainable and resilient energy systems.

Thailand last revised its long-term power development plan in 2023, and the upcoming update underscores the evolving approach to securing energy independence amid shifting geopolitical and economic conditions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.