You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

July 2, 2025

The European Power Outage: Could It Happen in Thailand?

On April 28, 2025, a massive power outage swept across the Iberian Peninsula, plunging Portugal, Spain, and parts of southwestern France into darkness for up to ten hours. As Thailand advances its energy transition by increasing renewable integration and regional interconnections, the European blackout serves as a stark reminder of the grid vulnerabilities that still exist.

This article marks the second installment of From Crisis to Clarity, a three-part series analyzing the recent European blackout and its implications for Thailand. In the first article of the series, we examined the root causes of the outage in the Iberian Peninsula. The current article assesses the likelihood of a similar event occurring in Thailand, considering the country’s current energy infrastructure and its increasing reliance on renewables. The third and final article will present key lessons and recommendations that Thailand can adopt to strengthen its energy system and prevent comparable disruptions in the future.

Thailand’s Power Grid

The European power outage has sparked a debate about energy security in other countries, including Thailand. The resilience of a power grid to sudden shocks depends heavily on its “inertia”—a term that refers to the ability of the power system to resist changes in frequency when there is a sudden imbalance between supply and demand. Inertia is typically provided by large, spinning generators (such as those in gas, coal, or hydroelectric power plants) that physically store energy in their rotating mass, helping to stabilize the grid during disturbances.

Thailand’s power grid is structurally different from that of Spain and Portugal, but it is not immune to large-scale outages. The Thai grid is centrally managed by the Electricity Generating Authority of Thailand, supported by the Metropolitan Electricity Authority of Thailand and the Provincial Electricity Authority of Thailand. This centralized structure allows for more controlled grid stability, but it also means any major transmission failure could have widespread consequences.

Thailand’s current energy mix is still dominated by gas-fired generation, which provides a degree of inertia and stability. However, as Thailand moves toward greater adoption of renewable energy, the risk of similar incidents could increase if the grid is not properly adapted to accommodate the higher proportion of intermittent energy sources. The latest Power Development Plan for 2024–2037 sets an ambitious target for renewables to account for 51% of total electricity generation capacity by 2037, with a focus on increasing solar, wind, and biomass. While these energy sources are crucial for meeting climate targets, their variable nature introduces new challenges in balancing supply and demand, requiring more advanced grid management and flexibility.

In addition to domestic changes, Thailand is increasingly connected to its neighbors through the ASEAN Power Grid initiative, which seeks to interconnect the electricity systems of ASEAN countries. Thailand already imports significant amounts of hydropower from Laos, while cross-border exchanges with Malaysia exist, though at a smaller scale. Projects to enhance interconnections with Cambodia and Myanmar are underway, aiming to boost regional power trade and energy security.

While regional interconnections provide economic and environmental benefits, they also increase the complexity of grid operations. The European blackout showed how interdependent systems can amplify local faults into wide-area blackouts when coordination and real-time responsiveness are insufficient.

To ensure long-term energy security, Thailand must proactively strengthen its grid infrastructure, enhance real-time coordination mechanisms, and invest in technologies that can support a high share of renewable energy within an increasingly interconnected regional power system.

 

Look next week for the third article in the series: “Key Takeaways for Thailand from the European Blackout.”

RELATED INSIGHTS​ 

January 23, 2025
In 2023, compliance inspections by Vietnam’s Government Inspectorate identified several violations of policies and laws in the management and implementation of planning and investment in renewable energy projects. Since then, many renewable energy enterprises and projects have encountered significant operational challenges. In December 2024, the Ministry of Industry and Trade (MOIT) issued two reports, Report 321/BC-BCT and Report 345/BC-BCT, to implement the 2023 Inspection Conclusion of the Government Inspectorate and address obstacles faced by renewable energy enterprises, Investors in renewable energy projects in Vietnam should carefully consider the potential impacts of proposed solutions in these reports. The reports re-emphasize the types of violations related to renewable energy projects identified in the Inspection Conclusion, with a significant expansion in the number of affected projects. Key violations include: (i) misapplication of FIT (feed-in tariff) incentives; (ii) recognition of COD (commercial operation date) and receipt of FIT prices without written approval of construction acceptance; (iii) overlap with mineral planning, irrigation planning, national defense land use, or other restricted land uses; (iv) incomplete land procedures and documentation; and (v) installation of rooftop solar on agricultural and forestry land used for farming and aquaculture models. Further, these reports mention the government’s solutions to resolve difficulties for renewable energy projects, which include: Allowing additional planning where projects do not violate national security. Allowing rectification of projects’ violations in land and construction process as per law. For projects violating planning on minerals, irrigation, or defense, socio-economic efficiency will be assessed for adjustments or integration. Adjusting electricity prices and recovering incorrect FIT prices for projects not meeting conditions. Requiring rooftop solar projects on non-farming land to comply with regulations or, if land violations occur, FIT prices will be revoked, and electricity prices must be redetermined and recovered. For items (iv) and (v), the authority will issue regulations
January 14, 2025
Thailand’s Department of Industrial Works (DIW) has issued a new regulation (Ministerial Regulation Re: Designation of Type, Kind, and Size of Factories (No. 3) B.E. 2567 (2024)), which removes the factory license requirement for electricity generation from solar energy installations on rooftops, roof decks, or any part of a building used for residential or other purposes, regardless of capacity. The new rules took effect on December 28, 2024. Under the previous regulations, solar rooftop installations had to seek approval from the DIW if their capacity exceeded 1,000 kW (1 MW), which added time and administrative costs when adopting renewable energy solutions. Benefits and Further Compliance The updated regulation benefits industrial operators by facilitating faster installation times and lower costs, as solar rooftops can now be installed without the need for prior approval of a factory license from the DIW. Operators can now more easily contribute to environmental sustainability and carbon reduction efforts. Despite the lifting of the factory licensing requirement, other compliance obligations, such as an energy business license (or exemption from an energy business license), a controlled energy production license, and a construction permit, may still apply. Reason for the Change Removing the classification of rooftop or building-installed solar power plants as factories aligns with Thailand’s renewable energy goals and reduces regulatory burdens for industrial operators. Additionally, it supports the achievement of energy policies aligned with the UN’s Sustainable Development Goals and Thailand’s international commitments to reduce greenhouse gas emissions through the participation of all sectors. For further details on how this change affects business operations or to explore strategies for renewable energy implementation, please contact Supasit Boonsanong at [email protected], Charuwan Charoonchitsathian at [email protected], or Phareeya Yongpanich at [email protected].
December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
August 12, 2024
With the growing prominence of ESG (Environmental, Social, and Governance) factors, businesses in Vietnam are increasingly recognizing their importance in driving global demand, societal impact, and economic value. A comprehensive acknowledgment of ESG-related legal requirements is critical for investors and companies operating in Vietnam to meet stakeholder expectations and ensure compliance. Our guide provides a basic overview of the rapidly evolving ESG landscape in Vietnam, covering a range of key issues for companies doing business in the country: What is ESG, and what does the ESG legal framework look like in Vietnam? Who needs to follow ESG regulations in Vietnam? What are the benefits of ESG compliance? How can enterprises enhance ESG best practices in Vietnam? Please click on the link below to view the full article.