Thailand Delays Multilateral Power Deal Amid Political Changes

Thailand has postponed the renewal of a vital multilateral power trade agreement, impacting energy collaboration in Southeast Asia. According to Malaysia’s Minister of Energy Transition and Water Transformation, Fadillah Yusof, the delay stems from recent political shifts within Thailand. The Lao PDR-Thailand-Malaysia-Singapore (LTMS) Project, which facilitates the supply of hydropower from Laos through Thailand and into Malaysia, is now anticipated to be renewed in November 2023.

On the sidelines of an energy ministers’ meeting held in Kuala Lumpur, Fadillah explained that the political dynamics in Thailand were the primary reason for the delay. Thailand’s Prime Minister Paetongtarn Shinawatra was removed from office by the Constitutional Court in August 2023, leading to the appointment of Anutin Charnvirakul as the new Prime Minister in September. Fadillah stated, “It’s not put on hold, but because of the political changes in the (Thai) government…that’s why there’s a bit of a delay on Thailand’s side.”

The LTMS project is crucial as it serves as a precursor to the broader ASEAN Power Grid (APG) initiative. This ambitious plan aims to interlink all ten member states of the Association of Southeast Asian Nations, significantly reducing the region’s dependence on fossil fuels for power generation. Fadillah emphasized the importance of energy for economic growth, stating, “APG is the backbone of ASEAN. If we want to be one of the economic powerhouses in the world, we need energy.”

In addition to the LTMS project, Malaysia is making strides with the Borneo Power Grid. Fadillah announced that by the end of this year, the Malaysian state of Sabah will be connected to Sarawak, while West Kalimantan has already begun purchasing power from Sarawak. He also mentioned that Brunei’s connection to the grid is currently in progress, and the Philippines is expected to join the network eventually.

Malaysia is actively working to reduce its reliance on coal and enhance its renewable energy capacity. The country’s power demand is projected to rise by 10 percent in 2026 and 8 percent in 2027, primarily driven by the increasing energy needs of data centers and high-demand industries.

Meanwhile, in a related development, Laos’ deputy energy minister indicated that the country is contemplating halting electricity supply to cryptocurrency miners. This move aims to redirect domestic power resources to sectors that contribute more significantly to the nation’s economic growth.

The ongoing discussions surrounding these energy initiatives highlight the intricate balance of political stability and energy collaboration in Southeast Asia. As countries navigate their internal changes, the region’s collective energy future remains a pivotal focus for economic development.