Deputy Prime Minister Prawit Wongsuwon said the government did not back down from the planned construction of a coal-fired power plant in Krabi but only "slowed down" its implementation.
Project opponents, meanwhile, demanded a pro-power plant billboard near Krabi airport be removed immediately.
"We're slowing it down in order to proceed," Gen Prawit said as he chaired an opening ceremony of a leadership development course at the National Defence Studies Institute on Monday.
"If we don’t build the coal-fired power plant, the South will experience power outages because the power supply is not adequate.
"There's no need to build it in the South but whether it will use other fuels such as palm oil to replace coal is another topic. In any case, we must build it."
He claimed today's modern coal-fired power plant technology ensured efficient and complete combustion while the use of high-grade coal would minimise pollution.
"The government has not backed down and everything has been carried out according to procedural and legal steps," the deputy premier said.
The government decided on Friday to proceed with a planned 800-megawatt coal-fired power plant in Nua Khlong district of Krabi, saying the facility would help secure power supply for the southern region which consumes more power but has fewer plants than other regions.
About 200 opponents protested against the plan outside Government House during the weekend. The protesters dispersed on Sunday after the government agreed to re-do the environmental and health impact assessments (EHIA) of the project. It was expected to announce the revocation of the existing EHIA report on the contentious project on Tuesday following the cabinet meeting.
Meanwhile, the Krabi plant opponents took to social media and local online forums to express their resentment towards Krabi governor Pinit Boonlert over a billboard on a T-intersection in front of Krabi International Airport in Na Khlong district. They demanded it be removed quickly.
The board has a message, dated on Feb 17, that reads: "Krabi residents thank His Excellency Prime Minster Prayut Chan-o-cha and the Energy Policy and Planning Committee for passing a resolution to build a coal-fired power plant in Krabi".
Many were angered by the use of the generic phrase "Krabi residents" despite ongoing protests by many locals and various groups. They believed some provincial authorities were behind the installation of the sign on Friday -- the same day a group of people showed up at the provincial hall to thank the prime minister for approving the energy scheme.
Kittichai Engchuan, who is on a tripartite committee vetting the construction of the Krabi plant, said the billboard was extremely inappropriate and should be taken down given the split opinions of the people.
He said if the governor kept the sign there, he could be viewed as being partial and urged him to be more neutral.
"A father must be impartial, not taking sides with any of his children; otherwise there won’t be happiness in the house like now," Mr Kittichai said.