Nuclear Energy's New Frontier: Small-Scale Reactors Shaping Thailand's Power Sector
Thailand is set to leverage Small Modular Reactors (SMRs) as a strategic component of its clean energy transition, aiming to establish future energy infrastructure that will drive the economy, enhance energy security, and ensure sustainability for decades to come.
The Electricity Generating Authority of Thailand (EGAT) has a development plan that includes a Small Modular Reactor (SMR) construction project with a total capacity of 600 MW. The project is divided into two main areas: 300 MW in the Northeast and 300 MW in the South.
Key Benefits
Small Modular Reactors (SMRs) offer Thailand key benefits for its clean energy future. As a low-carbon, flexible power source, they can support energy diversification and complement renewables while addressing the limitations of intermittent renewable generation.
SMRs are seen as a viable solution to help Thailand meet its 2037 clean energy targets, especially given the limitations of renewable energy such as intermittency and grid stability concerns. Their smaller scale and modularity can allow incremental capacity additions aligned with demand.
Like other ASEAN countries, Thailand faces pressures from energy security needs and net-zero emissions pledges, making nuclear (including SMRs) an attractive option to ensure reliable, clean electricity.
Thailand’s 123 Agreement with the US on nuclear energy promotes peaceful and safe use, enabling technology transfer, capacity-building, and non-proliferation safeguards, thereby strengthening governance around SMRs.
Challenges
Advanced reactors, including SMRs, face complex and potentially lengthy licensing processes. Thailand will need to develop regulatory frameworks and build nuclear expertise, which aligns with ASEAN’s regional effort to build human-capital and regulatory capacity.
SMRs rely on specific fuels like high-assay low-enriched uranium (HALEU), which currently have limited global supply. Scaling up domestic or regional supply chains will be essential but challenging.
Thailand and the wider ASEAN region currently have limited nuclear science and technology human resources, necessitating training and education investments to safely operate and regulate SMRs.
Public Considerations
Past experience in the region, such as Malaysia’s halted nuclear plans due to waste concerns, highlights the importance of gaining broad public acceptance. Transparent communication about safety features of SMRs and long-term waste solutions will be critical.
Public engagement must address concerns about environmental impacts, emergency preparedness, and benefits distribution, ensuring communities near potential SMR sites are appropriately involved.
Economic Opportunities
The SMR project is expected to offer opportunities for Thai businesses in the supply chain to earn a total of over 43 billion baht during the development phase. Manufacturers and suppliers of electrical equipment for control and distribution are projected to earn 14 billion baht from LWR projects.
Construction and civil engineering businesses in Thailand are expected to earn an estimated 22.6 billion baht from LWR projects. Suppliers of cooling system equipment are expected to earn 6.5 billion baht from LWR projects.
Safety and Regulatory Measures
The "Land-Based Water-Cooled SMRs" (LWR) are the best fit for Thailand, as they feature Passive Safety systems that can automatically dissipate heat and prevent radioactive leakage. Installation sites for SMRs should be near water sources and protected against seismic activity.
The LWR use water as a coolant, which is abundant in Thailand. Emergency shutdown systems and a permanent underground radioactive waste storage facility (DGR) in stable, fault-free geological formations are necessary for long-term safety.
Public consultations and transparent sharing of operational data are crucial for public confidence in SMRs. The SMR project has a lifespan of 60 years.
Timeline
The SMR project is part of the PDP2024 plan and is set to begin construction in 2032, with full commercial operation expected by 2035. The project is projected to generate approximately 780 billion baht in revenue from electricity sales over its lifetime (averaging 13 billion baht annually). The payback period for LWR investment is projected to be 12.6 years. The average internal rate of return (IRR) for LWR investment is approximately 6.8% per year.
In summary, Thailand views SMRs as a promising and strategic component of its clean energy transition to 2037, leveraging international cooperation frameworks and regional trends. Yet, successful deployment will depend on overcoming regulatory, technical, supply, and public acceptance challenges through coordinated policy, capacity-building, and transparent stakeholder engagement. Another option for Thailand is the "Molten Salt SMRs" (MSRs), which are ideal for drought-prone areas as they can dissipate heat using air and can use a variety of fuels like thorium or spent uranium, reducing long-term costs.
- Thailand's business sector can potentially benefit from the SMR project, with Thai businesses anticipated to earn over 43 billion baht during the development phase, particularly in the electrical equipment, construction, and cooling system equipment sectors.
- The implementation of SMRs in Thailand can help the nation meet its 2037 clean energy targets, providing a low-carbon, flexible power source that complements renewables, addresses intermittency issues, and assists with energy diversification.
- Public acceptance is crucial for the success of the SMR project, necessitating transparent communication about safety features of SMRs, addressing concerns about environmental impacts, emergency preparedness, and benefits distribution, and ensuring appropriate involvement of communities near potential SMR sites.
- Thailand is part of an international effort to promote the peaceful and safe use of nuclear energy, as demonstrated by its 123 Agreement with the US, which provides opportunities for technology transfer, capacity-building, and non-proliferation safeguards.
