Part of the government's spending plan for the transition to clean energy involves encouraging the public to switch to electric vehicles (EVs) on a wider scale, says finance permanent secretary Lavaron Sangsnit.
Several ministries have begun discussions and are designing projects to request funds for the energy transition initiative, with a total budget framework of 200 billion baht from the 400-billion emergency loan decree, he said.
The energy transition represents a golden opportunity for Thailand to rework its energy infrastructure for long-term sustainability and energy security, said Mr Lavaron.
Three ministries are preparing to seek funding for energy transition initiatives. The Interior Ministry, in cooperation with the Provincial Electricity Authority and the Metropolitan Electricity Authority, proposed a project to install solar panels on as many government buildings as possible within a year, in a bid to reduce electricity costs for state agencies.
The Transport Ministry is studying support measures to encourage public transport vehicles such as buses, trucks, taxis and motorcycles to switch to EVs in order to lower operating costs and reduce pollution.
The Excise Department under the Finance Ministry is preparing a project that offers incentives to promote wider adoption of EVs.
Authorities are also considering alternatives beyond trade-in schemes to better meet the needs of motorists.
The details of the transition projects depend on the agencies submitting proposals, Mr Lavaron said.
State-owned specialised financial institutions such as Government Savings Bank and Government Housing Bank are preparing solar energy programmes for the public to make household solar panel installations more affordable.
He said the government also wants to build a domestic manufacturing supply chain.
The Board of Investment and the Thai Industrial Standards Institute are holding discussions to promote local production of solar panels that meet Thai standards, yet are priced competitively on the global market.
A major challenge are the limited economies of scale compared with major manufacturers such as China, said Mr Lavaron.
The government's main objective in driving these projects is to reduce dependence on imported energy, which is highly volatile in terms of both price and supply, he noted.
If Thailand can achieve a 50% energy transition, it would generate enormous economic value by cutting electricity and fuel import costs, which are currently sourced almost entirely from abroad.
The details of each project are still being drafted. The Finance Ministry said the approval process will be transparent and auditable through the project database system managed by the Public Debt Management Office (PDMO), which serves as secretary to the project screening committee.
Regarding loan management, PDMO oversees the use of funds to ensure compliance with the objectives clearly specified under the emergency loan decree.
Borrowing is to be conducted on a monthly basis in four instalments to align with actual funding needs, and to avoid unnecessary interest burdens.
All borrowed funds must be fully disbursed by Sept 30, 2027.
As for a vehicle trade-in scheme, which was proposed to encourage the transition to EVs, a source from the Finance Ministry said this project may be shelved due to unresolved issues such as determining the eligible age for old vehicles, assessing the value of used cars, and deciding how the old vehicles would be disposed of or exported.
