{"id":3750,"date":"2025-08-20T13:17:10","date_gmt":"2025-08-20T06:17:10","guid":{"rendered":"https:\/\/thereporter.asia\/eng\/?p=3750"},"modified":"2025-08-20T13:17:10","modified_gmt":"2025-08-20T06:17:10","slug":"abb-thailand-asian-energy","status":"publish","type":"post","link":"https:\/\/thereporter.asia\/eng\/2025\/08\/abb-thailand-asian-energy\/","title":{"rendered":"Thailand Poised for Asian Energy Leadership, But Must Close Critical Gaps"},"content":{"rendered":"<h3>A landmark report by <a href=\"https:\/\/new.abb.com\/th\">ABB<\/a> reveals Thailand&#8217;s strong potential to lead Asia&#8217;s energy transition, backed by 80% corporate confidence. However, critical structural gaps in strategy, public reporting, and a severe green skills shortage threaten to undermine this potential, demanding immediate and collaborative action.<\/h3>\n<p><b>BANGKOK, THAILAND<\/b> \u2013 Amid a global push towards climate goals, the Asia-Pacific region has emerged as a pivotal battleground and beacon of hope, set to define the future of global energy. Driven by dynamic economies and escalating energy demands, a significant 79% of business leaders in Thailand believe that the current geopolitical shifts linked to the energy transition present a golden opportunity for the region to assume a world-leading role.<\/p>\n<p>To navigate this complex landscape, ABB&#8217;s Energy Industries division has released its comprehensive <b>&#8220;Energy Transition Readiness Index 2025,&#8221;<\/b> a robust benchmark assessing the region&#8217;s preparedness. The report&#8217;s deep dive into Thailand paints a compelling picture of strong confidence juxtaposed with formidable structural challenges that require urgent resolution.<\/p>\n<p>&#8220;Thailand\u2019s performance across readiness indicators is commendable, fueled by rapid and widely accepted renewable energy adoption, rising investment, and the visionary use of AI, all underpinned by a strong national commitment,&#8221; stated <strong>Anders Maltesen, President of ABB\u2019s Energy Industries division, Asia<\/strong>. &#8220;The nation is well-positioned to steer the region&#8217;s energy transition. To fully realize this potential, Thai organizations must fortify their strategic planning and workforce skills. With targeted investment and cross-sector collaboration, we can close these gaps and forge a more sustainable energy future.&#8221;<\/p>\n<p>The index&#8217;s credibility is founded on a rigorous double-blind survey conducted between May and June 2025, involving 4,085 business and energy leaders directly responsible for technology, sustainability, electrification, and automation strategies. The study spanned 12 key APAC markets and 10 energy-intensive sectors, including chemicals, data centers, power generation, manufacturing, and transportation.<\/p>\n<h3><b>A Bright Outlook: Thailand&#8217;s Strong Confidence and Investment Momentum<\/b><\/h3>\n<p>The energy transition, at its core, is a shift from high-emission fossil fuels to clean energy sources, aiming for Carbon Neutrality by 2050. <b><a href=\"https:\/\/thereporter.asia\/eng\/2025\/08\/thailand-energy-digital-security\/\">Chatuporn Wanichsooksombat<\/a>, Director of Process Automation Business at ABB Thailand Ltd.<\/b>, explained that Thailand&#8217;s journey is a delicate balancing act known as the &#8220;Energy Trilemma.&#8221;<\/p>\n<p>&#8220;Thailand&#8217;s challenge lies in balancing three core factors: <b>Security<\/b> (ensuring a sufficient, uninterrupted energy supply), <b>Affordability<\/b> (maintaining energy costs accessible to the public), and <b>Sustainability<\/b> (using clean, environmentally friendly energy). Over-indexing on any one factor inevitably impacts the others. Therefore, a synchronized and balanced management of all three is imperative,&#8221; he noted.<\/p>\n<p>The survey results reflect a positive and proactive stance from Thailand&#8217;s private sector, where commitment is translating into tangible action.<\/p>\n<ul>\n<li><b>Steadfast Amidst Volatility:<\/b> While 67% of respondents remain concerned about energy transition investments, an impressive <b>80% of Thai organizations<\/b> affirm that their roadmaps are proceeding unaffected by global geopolitical shifts, signaling robust long-term planning.<\/li>\n<li><b>Widespread Renewable Adoption:<\/b> Solar power is overwhelmingly recognized as the primary renewable source today (<b>79%<\/b>), followed by hydropower (<b>64%<\/b>) and wind power (<b>55%<\/b>). Looking ahead five years, solar (<b>63%<\/b>), hydro (<b>59%<\/b>), and wind (<b>56%<\/b>) are still viewed as the most critical game-changers.<\/li>\n<li><b>Action Over Words:<\/b> More than a third of Thai organizations (<b>39%<\/b>) report that over half of their current energy consumption already comes from renewable sources. The real estate and infrastructure sector leads this charge at a remarkable <b>80%<\/b>.<\/li>\n<li><b>Future Growth Trajectory:<\/b> A vast majority of Thai firms (<b>77%<\/b>) anticipate increasing their renewable energy usage by more than <b>20%<\/b> within the next five years.<\/li>\n<\/ul>\n<h3><b>The Reality Gap: A Disconnect Between Sentiment and Urgency<\/b><\/h3>\n<p>Despite this wave of optimism, the report uncovers a significant chasm between perception and reality. While <b>59%<\/b> of respondents feel the country&#8217;s energy transition is progressing at an &#8220;adequate&#8221; pace, a nearly unanimous <b>94%<\/b> believe that business leaders can and should be &#8220;doing more&#8221; to accelerate change. This cognitive dissonance suggests that the current definition of &#8220;adequate&#8221; may be dangerously insufficient to achieve the nation&#8217;s ambitious goals.<\/p>\n<figure id=\"attachment_3752\" aria-describedby=\"caption-attachment-3752\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3752 size-full\" src=\"https:\/\/thereporter.asia\/eng\/wp-content\/uploads\/2025\/08\/abb-energy-transition-readiness-index-2025-TheReporterAsia-2.jpg\" alt=\"Asian Energy\" width=\"600\" height=\"400\" srcset=\"https:\/\/thereporter.asia\/eng\/wp-content\/uploads\/2025\/08\/abb-energy-transition-readiness-index-2025-TheReporterAsia-2.jpg 600w, https:\/\/thereporter.asia\/eng\/wp-content\/uploads\/2025\/08\/abb-energy-transition-readiness-index-2025-TheReporterAsia-2-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-3752\" class=\"wp-caption-text\">Chatuporn Wanichsooksombat, Director of Process Automation Business at ABB Thailand Ltd<\/figcaption><\/figure>\n<p>To understand the root causes of this disconnect, the report analyzes Thailand&#8217;s readiness across four foundational pillars, revealing deep-seated structural challenges.<\/p>\n<h3><b>Deep Dive: The Four Pillars of Structural Challenge<\/b><\/h3>\n<h4><b>1. Strategy: A Crisis of Vision and Communication<\/b><\/h4>\n<p>The strategic pillar exposes the most alarming gaps. While ambition is high, it is often undermined by a lack of concrete plans and transparent communication.<\/p>\n<ul>\n<li><b>Absence of Clear Targets:<\/b> Only <b>39%<\/b> of Thai organizations have established formal Net-Zero targets. This means a staggering <b>61%<\/b> are operating without a clear, guiding objective. The industrial and manufacturing sector shows the highest adoption rate at 61%. Furthermore, <b>42%<\/b> of companies lack an overarching sustainability plan altogether.<\/li>\n<li><b>Transparency and Reporting Deficit:<\/b> A shocking <b>74%<\/b> of Thai respondents admit their organizations <b>&#8220;lack regular public reporting (at least annually) on progress toward emissions reduction goals.&#8221;<\/b> This issue is most acute in the real estate and infrastructure (<b>86%<\/b>) and water and waste management (<b>84%<\/b>) sectors. This lack of transparency erodes credibility and prevents stakeholders from tracking progress.<\/li>\n<li><b>Leadership Misalignment:<\/b> Even within organizations that have a sustainability plan, <b>40%<\/b> report a lack of alignment between their global, regional, and local leadership teams, hindering cohesive execution.<\/li>\n<\/ul>\n<h4><b>2. Technology and Infrastructure: The Chasm Between Potential and Practice<\/b><\/h4>\n<p>Technology is widely seen as a critical enabler, yet its deployment is hampered by practical barriers and a crisis of confidence.<\/p>\n<ul>\n<li><b>Potential vs. Reality Gap:<\/b> A majority of respondents (<b>65%<\/b>) identify technological advancement as a driver with the &#8220;highest potential&#8221; to accelerate the energy transition. However, only <b>34%<\/b> state that it is a &#8220;primary driver&#8221; <i>today<\/i>, indicating that technology&#8217;s full potential remains largely untapped.<\/li>\n<li><b>Implementation Hurdles:<\/b> <b>20%<\/b> of organizations cite &#8220;technological limitations&#8221; as a direct barrier to achieving their goals, while <b>28%<\/b> point to &#8220;public opposition or lack of awareness&#8221; as a primary cause for delay.<\/li>\n<li><b>A Crisis of Data Confidence:<\/b> In a deeply concerning finding, nearly half of all respondents (<b>47%<\/b>) confess to a <b>&#8220;lack of confidence in the accuracy of their own organization&#8217;s energy and sustainability technology data.&#8221;<\/b> This foundational problem means strategic decisions may be based on flawed information.<\/li>\n<li><b>A Positive Outlook on AI:<\/b> AI and automation are viewed favorably, with <b>41%<\/b> seeing them as &#8220;transformational&#8221; for enhancing efficiency and reducing carbon, and another <b>28%<\/b> viewing them as &#8220;supportive&#8221; to existing technologies.<\/li>\n<\/ul>\n<h4><b>3. Finance: Strong Investment Tempered by Concern<\/b><\/h4>\n<p>While financial commitments are robust, there remains a disconnect between spending levels and the perceived scale of the challenge.<\/p>\n<ul>\n<li><b>Committing Capital for the Future:<\/b> <b>74%<\/b> of Thai organizations are allocating over <b>10%<\/b> of their CAPEX to energy transition projects over the next five years. The real estate and infrastructure (<b>93%<\/b>) and industrial manufacturing (<b>89%<\/b>) sectors are leading this investment drive.<\/li>\n<li><b>Anticipated Investment Growth:<\/b> The investment outlook remains positive, with <b>32%<\/b> expecting investment to increase by over 50% in the next year, a figure that rises to <b>48%<\/b> within the next 4-5 years.<\/li>\n<li><b>The Confidence Paradox:<\/b> Although <b>58%<\/b> strongly agree that their organization&#8217;s investment is &#8220;sufficient&#8221; to meet its goals, this figure stands in stark contrast to the <b>94%<\/b> of all respondents who believe business leaders can do more, suggesting a potential overestimation of their own efforts.<\/li>\n<\/ul>\n<h4><b>4. Talent: The Most Acute Crisis<\/b><\/h4>\n<p>The talent pillar represents the most severe and complex challenge, potentially acting as the primary bottleneck for Thailand&#8217;s entire energy transition.<\/p>\n<ul>\n<li><b>Widespread Resource Shortages:<\/b> Nearly one-third of organizations (<b>32%<\/b>) report having insufficient resources to support their strategies and plans. This problem is most severe in the transportation sector, reaching <b>62%<\/b>.<\/li>\n<li><b>The War for Green Talent:<\/b> More than half (<b>51%<\/b>) of all organizations state they are currently struggling to recruit personnel with the necessary environmental and green skills.<\/li>\n<li><b>Root Causes of the Talent Gap:<\/b> The report identifies three primary obstacles to recruitment:\n<ul>\n<li>A lack of available talent in the market (<b>70%<\/b>).<\/li>\n<li>Companies not offering sufficiently high salaries (<b>67%<\/b>).<\/li>\n<li>A corporate belief in upskilling existing employees rather than hiring new specialists (<b>66%<\/b>).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>The Way Forward: Collaboration is the Only Answer<\/b><\/h3>\n<p>Faced with these deep-rooted structural challenges, collaboration is no longer an option but a necessity for success. Respondents identified <b>Public-Private Partnerships (PPPs)<\/b> as one of the most significant untapped opportunities (<b>33%<\/b>).<\/p>\n<p>To meaningfully accelerate the energy transition, respondents highlighted the most critical forms of collaboration needed:<\/p>\n<ol start=\"1\">\n<li><b>Cross-regional government collaboration on grid infrastructure (65%).<\/b><\/li>\n<li><b>Increased private sector investment (61%).<\/b><\/li>\n<li><b>Stronger government incentives and subsidies (56%).<\/b><\/li>\n<\/ol>\n<p>Furthermore, Thai organizations are already engaging with external institutions to develop talent, collaborating most frequently with universities and research institutes (<b>41%<\/b>), followed by international development organizations (<b>36%<\/b>), industry groups (<b>33%<\/b>), and government agencies (<b>32%<\/b>).<\/p>\n<h3><b>Conclusion: From Potential to Sustainable Leadership<\/b><\/h3>\n<p>The ABB Energy Transition Readiness Index 2025 delivers a clear and urgent message: Thailand possesses the genuine potential to become a regional energy leader. However, this path is not guaranteed. Transforming this potential into reality requires a sober acknowledgment of the facts and decisive action to address these structural weaknesses.<\/p>\n<p>From establishing clear corporate Net-Zero targets and fostering transparency through public reporting, to reforming education to build the green workforce of tomorrow and creating stable policy environments to attract long-term investment\u2014Thailand&#8217;s sustainable energy future depends on the collective will and collaborative action of all sectors, starting today.<\/p>\n<p><strong>#EnergyTransition #Thailand #ABB #RenewableEnergy #SustainableFuture #EconomicNews #CleanEnergy #NetZero #GreenSkills #AIPower #EnergyPolicy #Investment #Sustainability<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A landmark report by ABB reveals Thailand&#8217;s strong potential to lead Asia&#8217;s energy transition, backed by 80% corporate confidence. However, critical structural gaps in strategy, public reporting, and a severe green skills shortage threaten to undermine this potential, demanding immediate&#8230; <\/p>\n","protected":false},"author":1,"featured_media":3751,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[161],"tags":[1132,4264,4296,443,4297,2798,2672,57,1325,1320,333,2061,37],"class_list":["post-3750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-economicnews","tag-abb","tag-aipower","tag-cleanenergy","tag-energypolicy","tag-energytransition","tag-greenskills","tag-investment","tag-netzero","tag-renewableenergy","tag-sustainability","tag-sustainablefuture","tag-thailand"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Thailand Poised for Asian Energy Leadership, But Must Close Critical Gaps - 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