Patchr Naripattaband Highlights Thailand's Energy Transition Opportunity Under the 2025 Borrowing Decree
Thailand's energy sector restructuring under the 2025 borrowing decree presents an opportunity to modernize outdated infrastructure and attract foreign investment through competitive renewable energy pricing, avoiding Vietnam's costly mista
On May 10, 2025, Patchr Naripattaband, a commissioner at the Securities and Exchange Commission (SEC), discussed Thailand's impending energy sector restructuring under the 2025 Decree authorizing the Finance Ministry to borrow funds to address energy crisis impacts and drive the country's energy transition.
He emphasized that Thailand's energy prices are not higher than regional peers due to resource scarcity, but because infrastructure designed in a different era continues operating in a fundamentally changed world. Soaring electricity costs, volatile oil prices driven by geopolitics, and declining reliance on dwindling natural gas reserves in the Gulf of Thailand are clear warning signals that serious reform is overdue.
Thailand is not an energy-poor nation. Vietnam, starting its renewable journey only years ago, has already become Asia's largest solar producer, despite Thailand possessing superior resources and geographic advantages as a regional hub. The problem lies not with resources but with non-competitive structures.
Patchr noted that the world is competing fiercely for future industry investments. Lego announced a $1 billion investment to build the world's first carbon-neutral factory in Vietnam using 100% solar power—a clear signal that access to affordable clean energy has become a primary factor in multinational investment decisions.
Vietnam became Asia's largest solar producer in 2023, proving rapid energy transition is possible. However, success carries expensive lessons. Rapid expansion driven by subsidies exposed planning weaknesses and financial sustainability gaps. Vietnam Electricity (EVN) bears a heavy financial burden as electricity procurement costs surged from $4.5 billion in 2018 to $11.5 billion in 2023, while retail prices remained tightly controlled below actual costs, leaving EVN with losses exceeding $1 billion in 2023.
This is a trap Thailand must avoid. Vietnam's problem wasn't expanding renewables too quickly, but locking in high electricity purchase prices through long-term contracts while forcing EVN to sell below cost to contain public dissatisfaction. The difference accumulated as mounting EVN debt, eventually forcing the state to choose between major rate hikes or subsidizing losses with taxpayer funds. Either way, citizens bear the cost, merely postponed.
Vietnam is now transitioning from fixed Feed-in Tariff pricing—the root of EVN's crisis—to competitive bidding where clean energy producers offer the lowest rates to win contracts, rather than the state unilaterally setting prices. This follows India's successful model: solar prices plummeted from 9.72 cents per unit in 2014 to 3.04 cents in 2024—a 68% reduction in a decade—driven not just by better technology but by market competition pressing prices toward true costs.
Vietnam continues expanding Direct Power Purchase Agreements (DPP) as well.
