Southeast Asia is particularly exposed to the energy supply disruptions following the escalating conflict in the #MiddleEast.
At the same time, the region has substantial potential to scale up renewable energy and build cleaner, more resilient power systems – helping shield economies from global instability and price volatility.
#Thailand shows both what is at stake and what is possible. 1/x
As part of our work under CASE, we have analysed the country’s growing dependence on liquefied natural gas (LNG), outlining a pathway to move structurally away from this reliance and towards a renewables-based #electricity system.
🔎 #Thailand generates around 64% of its electricity from gas, much of it locked in through existing power purchase agreements. As domestic gas resources decline, the country is turning increasingly to #LNG imports. 2/x
The vast majority of these transit the Strait of Hormuz, where around 87% of crude oil and 86% of #LNG flows were destined for Asian markets in 2025.
That reliance on imports already came at a cost. After the 2022 fossil energy crisis, Thailand's #LNG import bill rose 187% and electricity tariffs hit a record THB 4.72/kWh (equivalent to USD 0.14), fuelling inflation and squeezing export competitiveness. 3/x
#Thailand's upcoming Power Development Plan for 2026–2050 comes at a critical juncture. The decisions made now will shape the country’s energy security for decades. Three strategies stand out:
✅ Accelerating #renewables, modernising the grid and improving #efficiency to reduce LNG demand and manage a just transition to a more resilient renewable-based electricity system.
✅ More resilient procurement strategies and stronger consumer protections to limit exposure to global LNG volatility. 4/x
✅ Aligning #LNG infrastructure with the clean energy transition to avoid overcapacity and stranded assets.
📈 #Thailand is one of many countries in Southeast Asia navigating this shift. As domestic production falls and demand grows, the region's exposure to volatile global fuel markets deepens. #Renewables and #electrification offer a pathway to stabilise costs, reduce import dependence and strengthen long-term energy security. 6/x
Read more in our studies on the energy transition in Southeast Asia:
🔗 https://www.agora-energiewende.org/publications/rethinking-liquified-natural-gas-lng
🔗 https://www.agora-energiewende.org/publications/thailands-natural-gas-crossroads
Agora Energiewende