Electricity market restructuring in Thailand: Challenges and emerging policies

Thailand is transitioning from a monopolistic electricity sector toward a more competitive market to improve efficiency, ensure fair cost allocation, and support national greenhouse gas reduction targets. This shift has accelerated the integration of renewable energy technologies at the distribution level and the adoption of policies such as Direct Power Purchase Agreements (Direct PPAs), Third Party Access (TPA), and Renewable Energy Communities (RECs). However, high penetration of variable renewable energy introduces supply uncertainty and operational complexity, posing challenges to grid stability. In the absence of a wholesale electricity market, Thailand must restructure its electricity system with a focus on distribution-level dynamics, where most new participants are connected. This paper examines key aspects of electricity market restructuring in Thailand, including the unbundling of regulated and non-regulated businesses, market design, balancing and settlement mechanisms, cost-reflective tariffs with equity considerations, and the creation of neutral market facilitation platforms. It proposes a system architecture tailored to emerging technologies and actors, addressing technical constraints and institutional realities. Drawing on international experience while reflecting domestic conditions, the study offers policy recommendations for a more inclusive, flexible, and sustainable electricity market. Its findings aim to guide Thailand's reform agenda and inform broader transition strategies in similar developing country contexts.