Navigating the Nuclear Landscape: Understanding Thailand’s Laws and Approach

Time 10 Minute Read
January 29, 2025
Legal Update

Amid growing calls for Thailand to embrace small nuclear power projects as a viable alternative to traditional energy sources, the country is exploring new avenues of using nuclear power for its energy future. One potential approach is the utilization of small modular reactors (SMRs) coupled with renewable energy sources.

According to the Draft Power Development Plan (PDP), which should come into effect from early 2025 to 2037, Thailand plans to introduce two SMRs in the Northeast and Southern regions. Each SMR will have a capacity of 300 MW and is expected to be operational towards the end of the plan period. The Electricity Generating Authority of Thailand (EGAT) will be responsible for the development and operation of these SMRs.

As part of this shift, experts from Hunton offer a comprehensive overview of the historical development of nuclear power in Thailand, the several types of nuclear power generation, and the current regulatory landscape. Our article also considers the potential for foreign investment in nuclear power in Thailand.

Historical Development of Nuclear Power in Thailand

In 1966, Thailand explored the possibility of constructing its inaugural nuclear power plant in Chonburi Province, which was to feature a 600 MW boiling water reactor. However, the discovery of natural gas in the Gulf of Thailand in 1978 resulted in the indefinite postponement of the project.

Fast forward to 2007, Thailand reconsidered the re-introduction of nuclear power. In the PDP2007, superseded by the PDP2010, Thailand planned to construct two 1000 MW nuclear power plants. In 2011, a ‘readiness report’ was submitted to the government, greenlighting the development of nuclear energy.

Following the Fukushima Daiichi Nuclear Power Plant incident in Japan in March 2011, however, the Thai government announced a three-year postponement of the project, which was subsequently extended to six years. In the PDP 2018, there was no mention of the development of nuclear power plants. In the current PDP 2024, which is pending regulatory approval, the proposal for the 600 MW SMRs (two sites at 300 MW each) has been suggested.

According to news reports, the PDP 2024 is facing delays due to disagreement among energy experts; however, it should be noted that the plan has already passed through a public hearing process.

According to the EGAT, in November 2024, Thailand’s electricity generation is heavily weighted towards natural gas, accounting for 61.67 percent of the total energy production. Coal (lignite) follows, contributing at 19.51 percent. Renewable energy sources, including hydropower and others, make up only 17.58 percent of the total. As such, under the premises of the PDP, Thailand is looking to utilize the PDP to increase the greater use of clean power, including nuclear power.

What Are the Different Types of Nuclear Power?

There are currently three different types of nuclear power utilized across the nuclear energy industry:

Boiling-Water Nuclear Reactors 

In a boiling-water reactor system, the reactor core heats the water to extremely elevated temperatures, thus converting it directly into steam within the reactor vessel. This steam then drives a turbine generator, producing electricity.

Pressurized-Water Nuclear Reactors 

In systems that utilize pressurized nuclear reactors, the core of the reactors heats water and keeps it under enough pressure to ensure the water does not turn into steam. This leads to extremely hot radioactive water flowing through tubes into a steam generator. A steam generator is a large cylinder filled with nonradioactive, or clean, water. Within this cylinder, thousands of tubes carry hot radioactive water from the reactor core, which heats the clean water to boiling, producing steam that will result in the creation of power. The radioactive water then returns to the reactor core for reheating before cycling back to the steam generator. The clean water can be sourced from various bodies of water, including oceans, lakes, or rivers.

Small Modular Reactors

In addition, technology providers are also marketing SMRs which can be deployed either as single or module plants, offering the possibility to combine nuclear power with alternative energy sources. SMRs are cutting-edge nuclear reactors with a power capacity of up to 300 MW each, roughly one-third of the output of traditional nuclear reactors. They are named SMRs because they are:

  • Small– physically a fraction of the size of a conventional nuclear power reactor.
  • Modular– making it possible for systems and components to be factory-assembled and transported as a unit to a location for installation.
  • Reactors– harnessing nuclear fission to generate heat to produce energy.

One of the advantages of utilizing SMRs is that they can be deployed in remote regions with less developed infrastructures, and they offer the possibility for synergetic hybrid energy systems that combine nuclear and alternative energy sources, including renewables.

To further explain Thailand’s approach to nuclear power, this update will now detail the relevant authorities and regulatory instruments.

The Office of Atoms for Peace

The Office of Atoms for Peace (OAP) is Thailand’s regulatory entity for nuclear power.

Established in 1961 following the enactment of the Atomic Energy for Peace Act, B.E. 2504 (1961), which was later repealed by the Nuclear Energy for Peace Act, B.E. 2559 (2016), as amended by the Nuclear Energy for Peace Act (No. 2), B.E. 2562 (2019) (the “Nuclear Act”), the OAP is responsible for the research and development of nuclear energy in Thailand. While Thailand did not include any information with regards to nuclear energy in the PDP 2018, it is believed that they were still considering the possibility of introducing nuclear energy into the power spectrum at the time. As such, the Nuclear Act in 2019 was introduced to ensure that the regulatory framework is there to support Thailand’s ambitions to include nuclear energy in its future energy mix.

In line with the Nuclear Act, the OAP is also responsible for numerous other nuclear power-related tasks, including licensing, inspection, and enforcement of nuclear safety regulations. As noted in the Thai press in mid-November 2024, the Energy Regulatory Commission (ERC) is in the process of adopting a Memorandum of Understanding (MOU) with the OAP to conduct a study on the various regulations needed for Thailand to adopt nuclear power.

The OAP will be responsible for overseeing nuclear safety, security, and safeguards. Meanwhile, the ERC will manage energy security and the electrical transmission system. Additionally, the OAP will issue permits in accordance with the Nuclear Act, while the ERC will handle licenses pertaining to its own regulatory framework.

What are the Current Regulations Governing Nuclear Power in Thailand?

The regulations governing nuclear power in Thailand are overseen by the OAP, which, in turn, reports to the Nuclear Energy for Peace Commission and the Ministry of Higher Education, Science, Research and Innovation. The primary legislation is the Nuclear Act, under which various secondary laws have been issued. Notable among these is the Ministerial Regulation on Permitting Nuclear Facility B.E. 2563 (2020), which outlines the requirements and procedures for obtaining permits to operate nuclear facilities in Thailand. It includes provisions for the application process, safety standards, and compliance measures that must be met by operators to ensure the safe use of nuclear energy within the country.

There are currently about 56 Ministerial Regulations and 67 Notices of the OAP that help regulate the nuclear energy industry in Thailand. While these various Ministerial Regulations and Notices are sufficient for the time being as Thailand is yet to introduce nuclear energy into its energy mix, we expect to see an uptick in regulatory instruments to ensure that Thailand’s regulatory regime is prepared for the introduction of SMRs.

Nevertheless, Thailand is still yet to adopt the PDP 2024, which is key to the future of nuclear energy in Thailand. While we cannot provide absolute certainty, we foresee that the PDP 2024 will be implemented during the course of 2025.

Recently, there have been some minor legislative changes, including the Notification on Permit Form for Import and Export of Radioactive Waste, which require a form that includes essential details such as the venue for waste management, the objectives of the imports and exports, among other necessary information. The Thai authorities are actively preparing a range of legislative processes to position the country for the adoption of nuclear power in the coming years. This preparation involves drafting and enacting new laws, updating existing regulations, and establishing frameworks to ensure the safe, secure, and efficient integration of nuclear energy into Thailand's energy mix. These efforts aim to address various aspects such as safety standards, environmental protection, and public health, thereby ensuring a robust and sustainable approach to nuclear power adoption in the country.

Will Thailand Adopt Nuclear Power?

The most challenging aspect for the introduction of nuclear energy into the energy mix is public acceptance and political instability. This is mostly due in part to the Fukushima Daiichi Nuclear Power Plant incident in Japan, which has a severe and lasting impact on Thai people’s perception towards nuclear power.

We do believe; however, that with a growing, strong regulatory framework and the proposed adoption of the PDP 2024, Thailand should be able to adopt nuclear energy into its energy mix in the future.

With regards to a tentative adoption timeline, Thailand is expected to commission nuclear energy into its energy mix by circa 2037.

To further enhance Thailand’s nuclear power capabilities, the country is also looking to develop partnerships with countries that already have existing nuclear power regimes. For example, in mid-January 2025, the United States and Thailand signed an Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy (123 Agreement). The 123 Agreement aims to provide a comprehensive framework for the development of peaceful nuclear cooperation between the two countries, allowing for the export of nuclear components and materials from the US.

Can Foreigners Invest/Run Nuclear Power Operations in Thailand?

There are no foreign ownership restrictions on nuclear power producers or nuclear facility operators under the Energy Industry Act, B.E. 2550 (2007) and the Nuclear Act. Consequently, foreign investors are permitted to operate nuclear power plants in Thailand.

According to the Land Code, however, a company with over 49 percent of its registered share capital owned by foreigners is classified as a "foreigner," even if it is incorporated and registered in Thailand. As a result, such foreign majority-owned company cannot own land outright in Thailand unless it receives explicit permission from the Prime Minister or is covered under specific laws, such as the amended Investment Promotion Act, B.E. 2520 (1977) of the Board of Investment (BOI) or the Industrial Estate Authority of Thailand Act, B.E. 2522 (1979) of the Industrial Estate Authority of Thailand (IEAT).

Regarding the BOI privileges and incentives, electricity generation from nuclear energy is not considered a BOI-promoted business at the moment. In any case, please note that the Energy Industry Act and the Nuclear Act require that the authorized director/representative of the project company must have Thai nationality or a place of residence in Thailand.

What’s Next for Thailand?

Thailand's long, but persistent, journey towards integrating nuclear power into its energy mix is being marked by careful planning, regulatory development, and international cooperation. The potential introduction of SMRs represents a significant step towards a sustainable and low-carbon energy future.

While challenges such as public acceptance and political stability remain, the robust regulatory framework and strategic partnerships with countries experienced in nuclear power will provide a solid foundation for Thailand's nuclear ambitions. To further complicate the situation, the PDP 2024 is yet to be fully announced.

As the country moves forward, continued efforts to address safety, environmental, and public health concerns will be crucial in ensuring the successful and secure adoption of nuclear energy in Thailand and the region.

As a leading law firm for projects and energy in Thailand, combined with Hunton’s global Nuclear Practice, we can support clients globally in navigating all aspects of the civilian nuclear industry.

If you require any further information on our nuclear power capabilities, please do not hesitate to reach out to the Energy and Infrastructure team at Hunton.

This article was authored by Chumbhot Plangtrakul, George Borovas, Thaphanut Vimolkej, Jidapa Songthammanuphap, and Joseph Willan.

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