BANGKOK – Thailand, sitting in the heart of Southeast Asia, is facing major choices about how it powers its future. For years, the country has depended on natural gas and coal to meet the demands of its growing cities, industries, and technology sector.

But with local gas supplies running low, unpredictable fuel costs, and stronger calls to cut carbon emissions, decision-makers now see nuclear energy as a solution worth considering. Small Modular Reactors (SMRs) are rising as a strong option to replace traditional fossil fuel plants.

They could help deliver cleaner, cheaper, and more reliable electricity. Government officials, energy experts, and business leaders are now supporting this change, which may lead to a new era for nuclear energy in Thailand.

Thailand’s Dependence on Fossil Fuels

Most of Thailand’s electricity still comes from fossil fuels. As of November 2024, figures from the Electricity Generating Authority of Thailand show that natural gas makes up about 62% of the country’s power, while coal adds nearly 20%. This heavy use has created problems. Local gas is running out, forcing Thailand to buy expensive imported LNG, which is often affected by world market swings.

Coal, on the other hand, does not fit with the nation’s or the world’s push for cleaner energy to fight climate change. Renewable sources like solar, wind, and hydropower now provide around 23% of the country’s installed power. Still, their inconsistent output and need for large sites make it hard for them to fully take over from fossil fuels.

Electricity prices in Thailand reflect these issues. The average rate is about 4 baht per kilowatt-hour, which puts a strain on both families and businesses, especially with rising LNG costs. The need for steady, affordable, and low-carbon power is greater than ever as Thailand targets 50% renewable energy by 2040 and carbon neutrality by 2050. SMRs could answer these challenges, fitting in with Thailand’s environmental and economic targets.

Small Modular Reactors: Bringing Change to Thailand’s Power Plan

SMRs are advanced nuclear reactors, each producing up to 300 megawatts of electricity—roughly a third of what traditional large nuclear plants generate. Unlike older designs, SMRs are made in factories, which allows for standard parts, quicker assembly, and lower upfront spending. Their smaller footprint means they need only around 1 square kilometre of land, compared to 16 for a standard nuclear plant. This suits Thailand, where space can be limited.

The government has shown clear interest in SMRs in its Power Development Plan (PDP) for 2024-2037, now waiting for the National Energy Policy Council’s final word. The plan includes two SMRs, each with a 300 MW capacity, set to operate by 2037 in the Northeast and South.

These units are expected to boost the clean energy share to 51% by 2037. EGAT, the state utility, leads this move and is researching over 80 SMR blueprints from 18 countries, such as China’s Linglong One, the world’s first commercial SMR built above ground.

Praipol Khumsap, who teaches economics at Thammasat University and studies energy policy, strongly supports SMRs. He highlights their role in helping Thailand reach net-zero greenhouse gas emissions by 2065. “SMRs are essential for meeting our carbon goals,” he told Krungthep Turakij. He points to safety improvements and greater efficiency in new designs as reasons for their support.

Cost Benefits and Supporting the Economy

Supporters of SMRs highlight their long-term cost savings. While the initial investment for SMRs is higher—about two to three times that of gas-steam plants—their benefits last longer. SMRs can run for up to 60 years, well beyond the expected lifespan of fossil fuel plants.

Their fuel, uranium, usually costs less and avoids the price jumps seen with LNG. EGAT’s governor, Thepparat Theppitak, believes SMRs could drop generation costs to between 2 and 5 baht per unit, down from the current average.

Isares Ratanadilok Na Phuket, deputy head of the Federation of Thai Industries, shares this view. He suggests SMRs could cut prices to as low as 2 baht per unit. “Nuclear power can run all day and night, just like coal and gas, but uses better technology and can be cheaper,” he told Prachachart Business. Lower power bills would help Thailand’s industries, especially high-tech companies and data centres, which need steady, clean power to help the nation’s economy grow.

Still, there are doubts. The International Atomic Energy Agency says SMRs have lower entry costs per unit than big reactors, but their overall value is still being tested. Australian research from CSIRO in 2024 estimated SMR power could initially be 2.5 times more expensive than current nuclear options, though it might fall to 1.6 times by 2030. However, as Thailand focuses on factory-built SMRs and scales up, costs could drop as more are installed and produced.

Helping Thailand Reach Its Clean Energy Goals

SMRs do not release carbon dioxide or other pollutants during operation, matching Thailand’s aims to hit 50% renewables by 2040 and carbon neutrality by 2050. Unlike solar or wind, which depend on the weather and take up a lot of space, SMRs produce steady, round-the-clock power and can work well alongside renewables in a blended system. They can also provide high-temperature steam for tasks like making hydrogen or treating water, which adds to their appeal.

Their clean energy credentials are especially important as Thailand tries to draw foreign investment into industries that need reliable, sustainable power. Narit Therdsteerasukdi, secretary-general of the Board of Investment, says SMRs could offer dependable power to data centres and high-tech projects in the land-limited Eastern Economic Corridor. “SMRs could be a practical option for government plans,” he says.

Safety and Public Trust

Thailand’s nuclear plans face some obstacles. The 2011 Fukushima event in Japan led to a six-year pause in local nuclear efforts, and public doubts remain strong. SMRs, though, use built-in safety systems that reduce these risks. Their design merges the fuel and steam parts into one unit, making things simpler and safer. Many SMRs use passive cooling, running without electricity and relying on natural heat and gravity, and can safely shut down on their own in an emergency.

SMRs are also small enough that their safety zone can be limited to just 1 kilometre, compared to 16 for large plants. This lowers risks for nearby communities. EGAT is working with the Ministry of Education so schools and universities can teach students about SMRs, aiming to build understanding. The Energy Regulatory Commission is also planning public meetings to involve residents and share clear information.

What Lies Ahead: Progress and Obstacles

Thailand is only starting its SMR journey. The country’s new power plan, which includes SMRs, is still waiting for final sign-off, and disagreements among experts have slowed things down. Thailand will need a strong legal and safety structure, trained staff, and support from global partners, like its recent agreement with China on nuclear know-how. Khumsap thinks it may take up to a decade to prepare and build the first SMR.

Worldwide, SMRs are gaining attention, with over 80 designs in the works across 18 countries. Russia’s Akademik Lomonosov, a floating SMR running since 2019, and China’s Linglong One show that the technology is ready. Thailand’s look at these models, along with local partnerships, signals its intent to join the shift.

As Thailand faces the challenges of energy security and climate responsibility, SMRs stand out as a practical solution. They promise lower electricity bills, steady carbon-free power, and support for industries that drive growth.

Although public acceptance and regulation remain hurdles, strong actions from leaders, experts, and business voices point to solid progress. For Thailand, eager to balance development with care for the environment, SMRs could open the door to a cleaner and more affordable energy future.