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Thailand orders restart of coal-fired power units amid LNG price insecurity

Thailand's Energy Regulatory Commission (ERC) has ordered the restart of two decommissioned units at the Mae Moh coal-fired power plant, adding 600 MW to the plant's current 700 MW, in an attempt to contain rising electricity bills amid LNG price surge and supply disruptions linked to Middle East tensions.

The move is expected to offset soaring LNG costs and help the government maintain electricity tariffs at THB3.88/kWh (USD11c/kWh) for the May-August 2026 billing period. Caretaker energy minister acknowledged that "natural gas costs have risen sharply", but stressed the government is "committed to keeping electricity rates at current levels" and the ERC has already secured additional spot LNG shipments for delivery in March-April 2026.

Gas accounts for around 2/3 of Thailand's power generation, with coal covering 15% in 2024