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Tag: energy transition

  • Thailand Targets 25,000 Megawatts of Clean Power for Industrial and Data Demands

    Thailand Targets 25,000 Megawatts of Clean Power for Industrial and Data Demands

    Thailand must boost renewable electricity generation to between 65 percent and 80 percent by 2050 as expanding industrial operations and data centres demand roughly 25,000 megawatts of clean power.

    Green Investment Hub Chairman Kulit Sombatsiri delivered the capacity forecast at the ESG Symposium 2026 in Bangkok, warning that heavy reliance on imported energy leaves regional supply chains vulnerable to price shocks.

    The investment roadmap requires capital deployment across modernised power grids, virtual power plants, carbon capture utilisation and storage, and small modular nuclear reactors. Meeting the target demands public-private partnerships across energy producers, industrial consumers, and regulatory agencies to maintain grid stability without driving power tariffs higher for commercial users.

    Powering Industrial Expansion

    Thailand’s industrial base faces rising pressure from export markets to prove low-carbon production credentials. Heavy manufacturers and emerging data centre operators require dedicated green power contracts to fulfill global corporate net-zero pledges.

    SCG President and Chief Executive Officer Thammasak Sethaudom said Southeast Asian economies cannot afford to view decarbonisation as a trade-off against economic expansion. Regional operators must link green investments directly to cost reductions and factory floor efficiency rather than treating sustainability as a regulatory compliance burden.

    Supply Chain Pressures and Market Realities

    Large multinational brands and retailers sourcing out of Southeast Asia are tightening Scope 3 emissions reporting, shifting procurement orders toward suppliers that run on certified clean grids. Thai manufacturers that delay equipment upgrades risk exclusion from regional export networks.

    Payong Srivanich, co-chairman of the Joint Standing Committee on Commerce, Industry and Banking, said structural reform must address the informal economy and assist small and medium-sized suppliers. Without targeted financing, smaller vendors cannot afford the capital expenditure required to comply with international carbon standards, threatening supply continuity for major consumer goods producers.

    Industrial Execution at the Factory Level

    Dr. Ilham Kadri, chair of the executive committee of the World Business Council for Sustainable Development, pointed to the Saraburi Sandbox project in central Thailand as an operating model for industrial clusters. The platform links industrial plants, local farms, and logistics operators to turn agricultural waste into alternative industrial fuels and create revenue from carbon credits.

    “The AND matters because the old either-or framing has constrained too many decisions for too long and sometimes led to making big industrial mistakes.”

    Kadri stated that green transition projects must pass strict internal hurdle rates at investment committees before scaling across factory operations and regional retail distribution channels.

    Infrastructure Milestones Ahead

    Southeast Asian governments are coordinating regional investment frameworks to share cross-border power transmission and build integrated supply chains for solar photovoltaic systems, smart grids, and low-carbon construction materials.

    Thai energy authorities are scheduled to review regulatory structures for direct power purchase agreements and carbon accounting frameworks, establishing the commercial terms under which industrial operators and data centre developers can procure green electricity directly from private renewable generators.

  • Japan Offshore Wind Stalls at 253 Megawatts as Developers Turn to AI

    Japan Offshore Wind Stalls at 253 Megawatts as Developers Turn to AI

    Japan has deployed only 253.4 megawatts of offshore wind capacity across seven projects. That falls far short of its 10-gigawatt target for 2030.

    Soaring construction costs doubled project budgets and forced Mitsubishi Corp to abandon three developments in mid-2025.

    Supply chain bottlenecks and high raw material prices have choked development since the initial 2021 government auctions, according to Japan Wind Power Association data. Mitsubishi’s exit dealt a heavy blow to national clean energy planning. Utilities must now find ways to reduce project risk.

    Rising Costs and Cancelled Projects

    Financing pressures are only half the problem for developers along the Sea of Japan coast, Tohoku and Hokkaido. Projects have run into stiff resistance from commercial fisheries and local conservation groups over threats to rare marine wildlife and bird habitats.

    Regulatory disputes and community objections have already suspended or delayed wind projects across Fukui, Shiga and Hokkaido prefectures. Similar pushback is stalling planned developments in Fukuoka and Shizuoka, where developers face strict environmental review standards.

    For industrial power users and data centre operators across Japan, these delays threaten future supplies of zero-emission electricity. Without a working offshore wind pipeline, corporate buyers must rely on imported fossil fuels or pay higher grid tariffs from conventional thermal generation.

    Developers who miscalculate environmental risks face severe financial penalties once turbines are built. Projects that disrupt local ecosystems can be ordered to curtail generation during peak hours or suspend operations entirely. That destroys forecast equity returns.

    Bird Strikes Force Operational Cuts

    Utility operator Eurus Energy had to curtail power output at its Hamasato Offshore Wind Farm in Hokkaido after multiple bird strikes. During seasonal migrations, the facility could run only for a few hours at night, sharply reducing revenue and power delivery.

    A similar conflict halted a planned wind development along the Shiga and Fukui prefectural border in 2023. An environmental assessment failed to account for nesting sites of golden eagles and mountain hawk-eagles. Developers were left with a stranded, suspended asset.

    Onshore sites suitable for large utility-scale turbines are scarce in Japan. That makes coastal waters essential for long-term power supply. Coastal wind corridors overlap directly with migratory pathways for white-tailed eagles, Steller’s sea eagles and red-throated loons.

    Testing AI and Thermal Monitoring

    Operators are deploying automated sensor suites to prevent collisions and keep turbines spinning. At two wind farms in Hokkaido, operators installed Nvbird, an AI system developed by Greek firm Nvisionist. The system uses thermal imaging to spot approaching raptors and throttles blades automatically.

    Leadedge Technology and the Japan Weather Association built a domestic alternative called AI Bird. The platform merges high-resolution cameras, infrared feeds and radar sensors. It achieved a 94 per cent identification accuracy rate in controlled field trials.

    “AI Bird is a proactive step to balance clean energy goals with environmental conservation,” said Ho.

    Environmental Data Gaps

    Tokyo originally framed offshore wind as the pillar of its 2050 net-zero roadmap, targeting 10 gigawatts by 2030 and between 30 and 45 gigawatts by 2040. The earliest auctions in 2021 attracted global players including Norway’s Orsted alongside domestic trading houses, before inflation and local opposition disrupted the pipeline.

    Commercial trials are now underway for the Japan Weather Association’s AI Bird system. At the same time, the Wild Bird Society of Japan is assembling marine sensitivity maps to overhaul future site selections before the next round of government auctions.