How Thailand and Australia’s Energy Collaboration is Accelerating the Path to Net Zero

Achieving global net-zero targets by mid-century requires unprecedented cooperation across borders, especially in regions with shared environmental challenges and aspirations for clean energy. Countries like Thailand and Australia exemplify how collaborative efforts can enhance their own energy transitions and build frameworks for sustainable energy systems. 

Thailand faces significant climate and disaster risks, which intensify the need for a resilient and sustainable energy system. As the country works toward net-zero objectives, enhancing renewable energy supply and improving grid stability are crucial for mitigating climate impacts and ensuring a reliable energy supply during extreme weather events. 

Similarly in Australia, the impact of floods and bushfires on Australia's energy sector have highlighted vulnerabilities in energy infrastructure. The need to address this risk, combined with the insights from the Finkel Review, accelerated a shift towards building more resilient, climate-adaptive renewable energy systems, integrating lessons learned into planning for a sustainable energy future.

At the fist Thai Australia Energy Policy Dialogue, organised by the Ministry of Energy Thailand (MOEN) and the Australian Embassy, held on 5-6 November 2024, both countries highlighted the importance of sharing resources, expertise, and innovative models to address common energy transition challenges. Both Thailand and Australia are navigating complex energy transitions, balancing renewable integration with the need for energy security, affordability, and grid stability. 

Thailand is committed to achieving carbon neutrality by 2050 and net zero greenhouse gas (GHG) emissions by 2065. However, the path to reaching net-zero demands transformative approaches, including significant investments. The Clean Energy Finance and Investment Roadmap of Thailand estimates that Thailand will need USD 22 billion in investments to support renewable power between 2022-2037. Over the same period, to achieve the necessary energy efficiency improvements across the industrial, commercial, residential and agricultural sectors investment needs are estimated to be USD 28 billion.

Australia faces similar hurdles, with ambitious goals to achieve 82% renewables by 2030, underpinned by extensive policy planning, including the Net Zero Plan and National Electricity Market (NEM) Reform Implementation roadmap. With work to do on energy market structures to attract investment and enable a smooth and secure transition, an alignment in strategy across countries opens doors to knowledge exchange, particularly in areas like energy regulation, carbon markets, and renewable energy storage.

Energy storage the key to a successful transition

One standout area of cooperation is energy storage. Battery, green hydrogen and pumped hydro energy storage (PHES) are crucial technologies for stabilising grids reliant on intermittent renewable energy sources like solar and wind.  Storage is an essential component of the renewable energy transition and grid modernisation.

Thailand has target to promote battery as a new S curve industry through demand creation, cost management, research on storage for renewable energy integration and transmission. P4I, together with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), is working with MOEN and the Electricity Generation Authority of Thailand (EGAT) on ways to exchange expertise and meet shared goals through battery storage collaboration. In Australia, battery storage capacity and size is increasing exponentially to support renewable energy integration. 

While Thailand explores potential PHES locations and is working closely with Australia’s Mekong-Australia Partnership, the Australian National University has developed modeling tools and methodologies, such as the Pumped Hydro Energy Storage Atlases, that can aid Thailand’s feasibility studies. The deployment of PHES systems not only supports grid stability but also addresses periods of low renewable energy generation, or "renewable droughts," as Australia’s models have shown. 

The collaboration extends to hydrogen technology, essential for decarbonising energy-intensive sectors. Both nations see hydrogen’s potential for domestic use and export, with Thailand aiming to integrate hydrogen into its energy mix and Australia focusing on becoming a global hydrogen leader through investment in production and infrastructure.

This bilateral partnership underscores a broader regional necessity: to build resilient, clean energy networks that benefit the economy, environment, and society. With shared goals, resources, and innovative frameworks, Thailand and Australia are setting a precedent for cross-border energy cooperation that aligns with the global pursuit of sustainability and a net-zero future.