This will particularly benefit the solar and biomass sector, Fitch Solutions reported.

The looming power supply shortage in Thailand could have upside risks for non-hydropower renewable energy sources, Fitch Solutions reported.

Thailand is currently facing power supply issues as domestic gas production and piped gas imports from Myanmar decline amidst growing demand.

“We highlight the solar and biomass sectors to benefit from this the most as Thailand has a readily available supply of power resources for these power types,” the report read in part.

Fitch noted the market is already capitalising on its reservoirs and dammed water bodies for floating solar PV installations. There is also a noticeable interest for rooftop solar amongst companies.

Meanwhile, Thailand’s agricultural activities are expected to supply the fuel feedstock for biomass power generation.

“Thailand is also diversifying its electricity supply by relying on electricity imports generated from hydropower plants in Laos, with EGAT planning to increase electricity import capacity from Laos by 1.2GW through new hydropower projects,” Fitch added.