The Electricity Generating Authority of Thailand (Egat) plans to overhaul its long-term business strategy to tap into the rising renewable energy trend, says its chairman of the board.
The plan is due to be discussed by the company's executives next weekend, said chairman Areepong Bhoocha-oom.
Egat, which is focused on generating power mostly from fossil resources, will start diversifying into other energy fields and businesses, he said.
Mr Areepong, who is also the energy permanent secretary, said the global power-generating trend is shifting to renewables, starting from Europe and North America, with more countries turning away from fossil fuels.
"Some global oil firms like PTT Plc have diversified into petroleum exploration and production, mining and power storage," he said. Egat also needs to adjust its business strategy to keep up in a changing world.
Last month, Egat announced plans to develop renewable power. The state enterprise aims to have 2,000 megawatts of renewable power-generating capacity by 2036, up from the 513MW currently supplied by its domestic hydroelectric power plants.
Egat's plan to focus more on renewable energy would represent a big change in the sector, which has mostly been developed by private firms over the past two decades, with the rest being bought from a hydroelectric power plant in neighbouring Laos, Mr Areepong said.
Power generators are attempting to make renewables their primary source of energy to consistently meet the energy needs of the state, he said. For instance, some private power firms will use biogas or biomass resources to help secure power from solar farms, allowing them to generate energy at night.
Energy policymakers are planning to switch to using firm power purchasing agreements, which require power companies to consistently supply energy to the grid. The Energy Regulatory Commission is to open auctions soon for renewable power development and operations to investors, mostly for small power producers and very small power producers.
Egat's long-term overhaul will involve subsidiaries such as Ratchaburi Electricity Generating Holding Plc, Electricity Generating Plc and Egat-i Co, Mr Areepong said.