Thailand Plans to Boost Renewable Energy Output to 25% of Total

Thailand plans to increase production of electricity from renewable sources to 25 percent of total output over the next 10 years to reduce imports and boost energy security, the Ministry of Energy said. 

Power generation from renewables will jump by 51 percent to 13,927 megawatts by 2021, from a current target of 9,201 megawatts, the ministry said in a statement yesterday. 

Under the new goal, approved by the National Energy Policy Committee, output from biomass will be 4,800 megawatts; biogas 3,600 megawatts; solar 3,000 megawatts; wind 1,800 megawatts and the balance will come from hydropower and waste, it said. 

Thailand is providing incentives for renewable energy projects to reduce its reliance on fossil fuels, which account for more than 80 percent of the nation’s energy consumption, the U.S. Energy Information Administration said on its website. 

Demco Pcl (DEMCO), a builder of electricity networks, rose 7.1 percent to 9.05 in Bangkok as of 3:50 p.m. local time, poised for its highest close in almost three weeks. Gunkul Engineering (GUNKUL) Pcl, a power producer and engineering company, gained 4.6 percent. Both companies will benefit from the government’s plan to diversify Thailand’s energy sources, Maybank Kim Eng Securities Thailand Pcl (MBKET) wrote today in a note to clients.

Source: http://www.bloomberg.com