Electricity Generating Authority of Thailand

EGAT has improved its target setting since the previous benchmark. The company aims to achieve a scope 1 and 2 emissions reduction of 10 metric tonnes of carbon dioxide (MtCO2) by 2030, representing about a 30% reduction compared to 2020. The company plans to achieve carbon neutrality by 2050 and become net zero by 2065. However, its targets lack clarity in terms of emissions coverage and offsets. EGAT should develop targets that align with its 1.5°C pathway. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term actions on its longer-term goals.

The company does not report its capital expenditure (CapEx) in low-carbon technologies in 2022, nor its planned low-carbon CapEx for the next five years. The company’s emissions intensity trend has increased between 2017 and 2022. To align with its 1.5°C pathway in 2027, the company must reduce its emissions intensity by approximately 7% per year.

EGAT is working on a hydro-floating solar hybrid system using its hydroelectric reservoirs as a base, aiming for a 2.7 GW capacity by 2037. The company is also developing mini hydropower plants at 24 dams for a total capacity of 69 MW by 2037. Further, it is exploring green hydrogen production, developing smart grid projects and initiating pumped storage. The company can improve its transparency by disclosing its revenue from low-carbon products and services.

The company can improve its transition planning by establishing a time-bound action plan with verifiable and quantifiable key performance indicators and clearly defined short- and long-term actions towards emissions reduction targets. Moreover, it should support the transition plan with a climate scenario analysis and financial evaluations and commitments towards decarbonisation.

EGAT aims to achieve a scope 1 and 2 emissions reduction of 10 MtCO2 by 2030, representing about a 30% reduction in its scope 1 and 2 emissions compared to 2020. However, the target is not aligned with the company’s 1.5 C pathway. Further, the company plans to achieve carbon neutrality by 2050 and become net zero by 2065, but it does not specify if scope 3 emissions are included in these targets. The company does not disclose the share of offsets it intends to use to achieve its long-term net-zero goals.

EGAT is creating a hydro-floating solar hybrid system, which involves using its hydroelectric reservoirs as the foundation for floating solar panels. The company aims to achieve a hydro-floating solar hybrid capacity of 2.7 GW by 2037. Additionally, EGAT is engaged in the development of mini hydropower plant projects at 24 different dams, with a collective capacity of 69 MW by 2037. This growth would represent about 7% of the company’s current total energy generation capacity (49 GW).

In 2022, EGAT postponed the decommissioning of the Mae Moh (Unit 8) Plant, a 600 MW coal-fired power plant, until December 2025. Additionally, the company reintroduced the decommissioned Mae Moh (Unit 4) Plant, a 655 MW coal-fired power plant, into the system from December 2022 until December 2025. The company is focused on its thermal generation business and did not report its CapEx on low-carbon technologies in 2022.

EGAT’s electricity generation and purchased power both rely on fossil gas as the main fuel, constituting 52% of the total generated electricity. Coal-fired generation makes up 17% of the electricity output, while renewables contribute only approximately 7% to the company’s overall electricity output. Moreover, EGAT’s coal-based production has increased between 2020 and 2022. Consequently, the company’s emissions intensity has increased between 2017 and 2022.

Although EGAT is making some efforts to enhance its low-carbon output, it lacks a strategic plan for significantly reducing emissions intensity. The absence of a well-defined roadmap and financial commitments for decarbonisation, coupled with an escalating dependence on coal for electricity generation, cast doubts on the company’s capability and commitment to transition.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company discloses the share of women in its workforce. However, no other evidence of the company’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

The company describes its process to identify bribery and corruption risks and impacts in its own operations. However, no other company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.