YOG INFRA Q4 2024 insights
THAILAND is undertaking development of large transport and clean energy infrastructure projects across ports, roads, e-mobility (EVs charging infra) and urban infra sectors. We see continued focus on e-mobility and wide adoptation of e-buses for public use, alogn with expansion in EV charging infrastructure. We also see multiple projects being developed under PPP route; as well as investments being made in bilateral or regional projects.
Read more about key developments in Infrastructure and PPPs in the country in our latest insight for the country.
OCTOBER 2024
MITSUBISHI POWER COMPLETES GAS TURBINE AT A 5.3 GW COMBINED CYCLE POWER PLANT IN THAILAND
Mitsubishi Power has completed the installation of the final M701JAC gas turbine at a 5.3GW combined cycle power plant in Rayong, Thailand.
The project is a joint venture (JV) with Gulf Energy Development and Mitsui & Company, consists of two Gas turbine combined cycle (GTCC) plants in Chonburi and Rayong. Each plant features four gas turbines, steam turbines, and heat recovery generators, ensuring a stable energy supply for Thailand. The first units have already operated for over 100,000 hours. Mitsubishi will manage the plants under a 25-year service agreement. A 25-year Power Purchase Agreement (PPA) was also signed with the Electricity Generating Authority of Thailand (EGAT).
Gas turbines can provide reliable and economically viable electricity to the consumers whilst offering a practical, gradual transition solution. All gas turbines to be installed in these projects will be capable of utilising 30% hydrogen upon commencement of commercial operation.
UPGRADES PLANNED FOR UDON THANI AIRPORT BY 2028
The Government of Thailand has announced plans to upgrade Udon Thani Airport by 2028, including a new passenger terminal and enhanced public transport access. The expansion aims to increase capacity from 3.45 Mn to 7.2 Mn passengers annually.
Construction works are expected to start in 2026, with a focus on creating seamless connections between terminals and establishing a public transport centre for easier access to local tourist destinations. The upgrades align with Udon Thani’s promotion as one of Thailand’s Meetings, Incentives, Conferencing, Exhibitions (MICE) cities. The project costs THB 3.52 Bn (USD 104.30 Mn).
THE GOVERNMENT OF THAILAND APPROVES KEY HSR PROJECT TO ENHANCE CONNECTIVITY
The Government of Thailand has approved the high-speed railway (HSR) project connecting Suvarnabhumi, Don Mueang, and U-Tapao airports with Pattaya. After Cabinet review and finalisation of contract details with contractor Asia Era One, construction is set to begin in early 2025. The total project cost is estimated at USD 8.3 Bn, this 220-km-long rail line will support high-speed train travel, fostering Thailand’s tourism and economic growth by enhancing connectivity and reducing travel time between key hubs. To enhance its transportation network, Thailand’s new HSR line will use an initial investment of USD 460 Mn for rolling stock, while other high-speed trains like the CR300AF are under consideration for other national lines.
These trains can reach speeds of up to 300 kilometers per hour, but in Thailand, their maximum operational speed will be limited to 250 kilometers per hour. The choice of equipment reflects the requirements of local infrastructure. The high-speed railway project plays a key role in developing Thailand’s economy and tourism. Fast connections between the capital and resort regions will significantly enhance the country’s attractiveness for tourists and business travellers. It will also facilitate freight transport, boosting the national economy.
TOTALENERGIES ENEOS COMPLETES A 1.8 MWp FLOATING SOLAR PHOTOVOLTAIC SYSTEM PROJECT
TotalEnergies ENEOS has successfully completed the installation of a 1.8 megawatt-peak (MWp) floating solar photovoltaic (PV) system project in Thailand with S. Kijchai Enterprise, a Thailand-based manufacturer of wood-based panels. This is the second PV system that TotalEnergies ENEOS has installed for the company within 4 years and the first floating solar PV system for TotalEnergies ENEOS in Asia Pacific.
With over 3,000 modules installed, the solar PV system generates approximately 2,650 megawatt-hours (MWh) of renewable electricity annually. This results in a reduction in the company's overall carbon footprint by approximately 1,125 tons of CO2 emissions, equivalent to planting around 16,800 trees.
Under a long-term Power Purchase Agreement (PPA), TotalEnergies ENEOS fully funded, installed, and will operate the solar system for the next 12 years. With no upfront investment required, S. Kijchai Enterprise will only pay for the cost of electricity generated during the tenure, leading to significant cost savings for the company.
FIRST PHASE OF NAGA WITHI ROAD ALONG MEKONG RIVER TO OPEN IN 2027
The first phase of Naga Withi, a new scenic road along the Mekong River in the Northeast of Thailand, is expected to open in 2027. The construction of a scenic road from Loei to Ubon Ratchathani provinces aims to promote tourism and local life there. Of the total 750-kilometre-long road, the department recently signed a contract for the first phase of a 43.48-kilometre stretch from Mukdahan to Nakhon Phanom provinces costing THB 615 Mn (USD 17.59 Mn).
The first phase will cover the Mukdahan governor's residence, Thai Lao Friendship Bridge 2, Manopirom Beach, Wat Songkhon, Kaeng Kabao Islet and Phra That Phanom pagoda. The construction period of the first phase Naga Withi Road was three years. It expects the construction to begin in 2026 and be completed in 2027.The construction will cover a road with two traffic lanes, a water drainage system, electricity and safety facilities, as well as landscape improvement.
CONSTANT ENERGY AND IDEMITSU LUBRICANTS THAILAND FORGE LONG-TERM SOLAR PPA
Constant Energy has signed a long-term Power Purchase Agreement (PPA) with its Japanese client, Idemitsu Lubricants Thailand. Idemitsu Lubricants Thailand is a subsidiary of Idemitsu Kosan, one of Japan’s leading energy companies. The agreement includes the installation of a 916-kW solar rooftop system at Idemitsu’s facility in the Rayong Industrial Estate.
This project is aligned with Thailand’s Nationally Determined Contribution (NDC) targets aiming for a 30-40% reduction in greenhouse gas emissions by 2030, and the long-term strategies to achieve carbon neutrality by 2050 and net-zero emissions by 2065. Over the next two decades, the large-scale solar installation is expected to reduce carbon dioxide emissions by approximately 10,332 tons.
NOVEMBER 2024
THE GOVERNMENT OF THAILAND ENHANCES ECO-FRIENDLY INFRASTRUCTURE AT LAEM CHABANG PORT
The Government of Thailand has announced plans to enhance environmental and social sustainability in infrastructure projects, notably with Phase 3 development at Laem Chabang Port, its only deep-sea port.
The project aims to increase container handling capacity from 11 Mn to 18 Mn twenty-foot equivalent unit (TEUs), the project integrates eco-friendly measures and strict environmental oversight. A committee of experts and community representatives monitors these initiatives to ensure minimal environmental impact, with a focus on reducing global warming factors. In addition to enhancing port efficiency, Laem Chabang prioritises corporate social responsibility (CSR). Its CSR programs support education, health, social safety, and environmental conservation, including protecting local mangroves and coastlines.
THE GOVERNMENT OF THAILAND EXPANDS EV CHARGING NETWORK AMID GROWING DEMAND
The Electricity Generating Authority of Thailand (EGAT) has been boosting its electric vehicle (EV) charging infrastructure by increasing its outlets from 211 to 321, with plans to add 100 more in 2025. This expansion aligns with Thailand’s EV growth, supported by regulatory measures to set EV charging standards.
EGAT aims to lead Thailand’s EV market by integrating a smartphone app for queue management and offering consultancy for charging setups. These efforts underscore EGAT’s commitment to advancing Thailand’s position in the EV sector.
THE DEVELOPMENT OF SIX NEW REGIONAL AIRPORTS IN THAILAND ACCELERATED
The Ministry of Transport (MoT) of Thailand has expedited the construction of six new airports in Mukdahan, Bueng Kan, Satun, Phayao, Kalasin, and Phatthalung to meet rising passenger demand and establish itself as a regional aviation hub.
The Mukdahan and Bueng Kan airports are currently in the design and environmental impact assessment (EIA) stages. Satun Airport is moving forward with contractor selection for its design and EIA. Phayao Airport is set for budget approval for design and EIA in 2025, meanwhile, feasibility studies for Kalasin and Phatthalung airports have been completed. These projects aim to enhance regional connectivity and align with the expected doubling of passenger numbers over the next 20 years.
THE GOVERNMENT OF THAILAND GREENLIGHTS USD 3.2 BN EXPRESSWAY PROJECT TO EASE BANGKOK CONGESTION
The Government of Thailand has approved a USD 3.2 Bn expressway project aimed at alleviating traffic congestion south of Bangkok. The 72 km route will link Highway 35 (Rama II Road) in Samut Sakhon to Highway 34 (Bang Na-Trat Road) in Bang Phli District, Samut Prakan, enhancing travel efficiency for drivers. The expressway, named the Samut Sakhon-Samut Prakan Riviera Project, is part of Thailand’s larger Motorway and Railway Master Plan (MR-Map) under the Department of Highways (DoH).
A feasibility study for the project is scheduled to start between 2026 and 2027, with completion expected within two years. The new infrastructure aims to provide smoother connectivity between these major highways, reducing travel times in the Bangkok metropolitan area.
EGAT TO BUILD THREE PUMPED STORAGE POWER PLANTS WITH 2.5 GW CAPACITY
The Electricity Generating Authority of Thailand (EGAT) has announced plans to develop three pumped storage power plants (PSPPs), utilising existing dams across the country. The plants will be in Chaiyaphum, Kanchanaburi, and Nakhon Si Thammarat, with a combined capacity of 2.47 gigawatt (GW) and expected to be operational between 2034 and 2037. The USD 2.6 Bn project aims to enhance energy storage and support the growing share of renewable energy, such as wind and solar. These PSPPs will help stabilize the grid by storing low-cost energy during off-peak hours and discharging it during peak demand.
Thailand’s energy mix is shifting towards low-carbon sources, with the share of such energy rising from 8 % in 2013 to 16 % in 2023. Despite this, gas-fired plants still dominate, providing 68 % of the country’s electricity. The country’s gas production has been declining, leading to increased Liquefied natural gas (LNG) imports. Meanwhile, coal’s share in power generation has decreased, with the rise of renewable energy and the gradual phase-out of coal-fired plants.
THAILAND’S MOT PARTNERS WITH TURKEY-BASED TÜRASAŞ TO BOOST RAIL MANUFACTURING
The Ministry of Transport (MoT) of Thailand will collaborate with Türasaş, Türkiye’s state-owned rail manufacturer, to advance its high-speed rail (HSR) projects and domestic train production. Türasaş’s experience in cost-efficient, locally integrated train manufacturing will support Thailand’s Bangkok-Nakhon Ratchasima high-speed line and dual-track system expansion. This partnership aligns with Thailand’s goal of becoming a transport hub while fostering local manufacturing for sustainable economic growth and export opportunities.
Türasaş partnered with Italian firm Blue Engineering in 2019 to develop an electric train for Turkey’s rail system that can run at the European standard of 160km/hour. By incorporating 75% locally made parts, the Türasaş high-speed train is 20% cheaper than imported alternatives. Türasaş has collaborated with several leading companies in the global rail industry, including Hyundai Alstom and Siemens, to produce train parts locally and reduce reliance on imports.
DECEMBER 2024
ADB AND GULF RENEWABLE ENERGY INK USD 820 MN LOAN FOR THAILAND’S GREEN ENERGY PROJECTS
The Asian Development Bank (ADB) and Gulf Renewable Energy Company Limited (a subsidiary of Gulf Energy Development Public Company Limited) have signed a USD 820 Mn loan to fund a series of renewable energy (RE) projects in Thailand. This portfolio includes eight ground-mounted solar photovoltaic (PV) plants with a total contracted capacity of 393 MW, and four solar PV plants integrated with Battery Energy Storage Systems (BESS), totalling 256 MW and 396 MWh of storage capacity.
The financing package includes USD 260 Mn from ADB’s ordinary capital resources and USD 529 Mn in parallel loans from several institutions such as the Asian Infrastructure Investment Bank (AIIB) and Deutsche Investitions- und Entwicklungsgesellschaft (DEG), among others. ADB will also contribute concessional finance of USD 31.35 Mn from the Clean Technology Fund to mitigate the risks associated with solar–battery energy storage projects. These projects align with Thailand’s goal of achieving carbon neutrality and expanding RE capacity, aiming for 50 % renewable generation by 2037.
PHUKET INTRODUCES ELECTRIC BUSES FOR SUSTAINABLE TRANSIT
The Government of Phuket has launched electric buses marking a shift toward eco-friendly public transport. The initiative is transformative, aimed at reducing traffic, air pollution, and enhancing tourism. The trial involves 24 air-conditioned buses, with three currently operating between Saphan Hin and Central Phuket. Fares are THB 15 (USD 0.44), free for specific groups. This initiative aligns with Phuket’s Smart City goals, improving accessibility and environmental sustainability.
Each bus, which seats 21 passengers, is equipped with advanced features, including GPS, USB chargers, CCTV cameras and a smartphone app for checking schedules. The project aims to improve public transportation access, reduce travel costs, ease traffic congestion and enhance the province’s image. The project's cost is estimated to be THB 121.70 Mn (USD 3.56 Mn).
NEW M9 MOTORWAY TO BOOST BANGKOK CONNECTIVITY BY 2029
The Government of Thailand has approved a 35 km M9 motorway project connecting Bangkok’s Bang Khunthian and Nonthaburi’s Bang Bua Thong district. With an investment of THB 47.5 Bn (USD 1.39 Bn) through a Public-Private Partnership (PPP) model, the motorway will reduce congestion, enhance logistics, and support regional growth. The project, using the PPP Net Cost format, allows private partners to manage construction and toll collection for 30 years. Set to open in 2029, the six-lane motorway will include automated toll systems and multiple access points.
The partner will have the right to collect toll fees for three decades following the motorway’s opening, projected to occur in about four years. The bidding process is expected to commence late in 2025, with the contract anticipated to be signed in the latter half of 2026. The motorway is slated for completion and opening in 2029.
The government plans to share the financial burden of both land expropriation, estimated at THB 4.25 Bn (USD 124 Mn), and the construction costs with the private partner. Approximately 33 rai (13.05 acres) of land will need to be expropriated for this project. The government has committed to contributing its share of the investment through annual instalments over at least 15 years from the M9 motorway’s opening. Designed with six lanes, the M9 will feature eight entrances, six exits, and five separated intersections. An automatic toll collection system will be in place to streamline operations and enhance user experience.
DIG AND STP TO ADD 1.5 GW OF DATA CENTRE CAPACITY IN THAILAND’S EEC
Singapore-based data centre park developer Doma Infrastructure Group (DIG) has formed a joint venture with Thai technology park operator Silicon Tech Park (STP) to boost Thailand’s data centre capacity to gigawatt levels. Under a Memorandum of Understanding (MoU), DIG and STP will purchase 300 acres of freehold land across Chachoengsao, Chonburi, and Rayong provinces that comprise Thailand’s Eastern Economic Corridor (EEC).
The land will be used to develop three AI-ready green data centre parks with a total planned power capacity of 1.5 GW. The parks will feature scalable power core and shell facilities that will be integrated with renewable energy solutions and sustainable water systems. Their refined master plan for the data centre parks in the coming months but noted that the facilities will be designed to cater especially to hyperscalers and Graphics processing unit (GPU)-as-a-service providers. The parks are projected to be ready for service by the Q3 of 2026. The overall project is designed to align with the Thai government’s EEC strategy under the broader Thailand 4.0 initiative to drive economic development.
THAILAND TO INVEST USD 19 BN IN RAIL EXPANSION FOR 2025
The Ministry of Transport (MoT) of Thailand has announced plans to invest USD 19 Bn in rail infrastructure in 2025, including USD 8.7 Bn for six double-track railway projects covering 1,312 km. These routes aim to position Thailand as a key logistics hub between China and Southeast Asia (SEA). The projects, approved by the Budget Bureau, await review from the Finance Ministry and the National Economic and Social Development Council (NESDC), with final approval expected in January 2025.
The six routes include:
Pak Nam Pho to Den Chai (USD 2.4 Bn)
Chira Junction to Ubon Ratchathani (USD 1.3 Bn)
Hat Yai to Padang Besar (USD 230 Mn)
Chumphon to Surat Thani (USD 890 Mn
Surat Thani to Hat Yai-Songkhla (USD 1.9 bn)
Den Chai to Chiang Mai (USD 2 Bn).
Additionally, the USD 10 Bn second phase of the high-speed Bangkok-Nong Khai line, spanning 357 km, is under review, with bidding anticipated in 2025. These developments are expected to significantly enhance Thailand’s rail connectivity and economic growth.
HUA HIN AIRPORT TO BECOME INTERNATIONAL BY 2026
Hua Hin Airport in Thailand is set to achieve international status by 2026 following major upgrades to its infrastructure. The airport, which currently handles domestic flights, recorded over 75,000 passengers in 2024. The Department of Airports (DoA) of Thailand has expanded the runway to meet international standards, with inspections underway by the Civil Aviation Authority of Thailand (CAAT). The total cost of the completed runway expansion stands at THB 239 Mn (USD 6.90 Mn).
The next phase of development, scheduled to begin in Q1 2025, will focus on enhancing the runway-end safety area, road tunnel, and runway strip. This phase is expected to cost an additional THB 300 Mn (USD 8.67 Mn), pending approval from the Budget Bureau. Once completed, the airport will accommodate larger aircraft like Boeing 737 and Airbus A320, with international operations projected to begin by April 2026. The upgrade aims to boost tourism in Prachuap Khiri Khan and improve connectivity across Thailand.
GAC AION AND PEA TO BUILD EV CHARGING NETWORK IN THAILAND
GAC AION, GAC Energy, and Thailand’s Provincial Electricity Authority (PEA) have signed an agreement to develop 200 PEA VOLTA electric vehicle (EV) charging stations nationwide by 2028. The partnership focuses on advancing EV infrastructure through intelligent energy management and seamless charging connectivity. The initiative also aims to promote EV adoption among public and private organizations using the VOLTA Fleet system for efficient fleet management.
The collaboration introduces innovative business models to meet growing EV demand. With over 400 existing charging stations, PEA will integrate GAC Energy’s certified chargers into its network. This partnership is set to enhance public confidence in EV infrastructure and drive Thailand’s transition to sustainable transportation.
Also, Thailand’s EV market, currently at 20 % user share, is poised for growth through this initiative. AION and GAC Energy will focus on energy storage and advanced charging technologies to meet global standards.
IRPC LAUNCHES 74.88 MW SOLAR PROJECT IN THAILAND
Integrated Refinery & Petrochemical Complex (IRPC) has launched a 74.88 MW solar power project in Songkhla, aimed at boosting energy security and supporting Thailand’s renewable energy goals. The plant, developed in partnership with Global Power Synergy, is set to begin operations by 2028 and will have a 25-year power purchase agreement with Electricity Generating Authority of Thailand (EGAT).
This project aligns with Thailand’s Power Development Plan, enhancing sustainable energy sources and contributing to IRPC’s Net Zero objectives, reinforcing its role in advancing the country’s clean energy transition.
J&V ENERGY AND ESPRO TO ADVANCE SOLAR POWER IN THAILAND
J&V Energy has signed a memorandum of understanding (MoU) with ESPRO to establish a joint holding company focused on solar energy development and management in Thailand. This partnership aims to boost renewable energy adoption and operational efficiency in Thailand, aligning with the region’s sustainability goals.
The collaboration represents a strategic move to strengthen green energy infrastructure, supporting Thailand’s transition to cleaner energy sources and fostering innovation in solar power solutions.
List of Transactions - Thailand Q4 2024
Source: YOG INFRA, Public Information
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