Thailand has recorded one of its sharpest declines in electricity consumption in decades, with power use falling more than 5% in the first seven months of 2025. The drop, reported by several news sources, is being linked to unusually cool weather, heavy rainfall, and slower economic activity that together cut household and business demand.
National energy data shows electricity generation and imports between January and July fell by 5.4% compared with the same period last year. Residential usage took the hardest hit, dropping by more than 7%, while commercial and industrial demand slipped by nearly 3%. The slump is steeper than what was seen during the COVID-19 lockdowns in 2020.
Mae Moh power plant in Lampang province, one of Thailand’s largest coal-fired facilities, as the country records its sharpest drop in electricity demand in years Photo Courtesy Bangkok Post
Thailand’s energy mix also shifted as a result. Natural gas-fired generation fell 12%, driving down liquefied natural gas (LNG) imports by over 15%. To compensate, coal and hydropower – including imports from neighboring Laos – were used more heavily.
The impact is being felt differently across the economy. For households, electricity bills have eased, offering rare relief from rising costs in other areas. For utilities and policymakers, however, the downturn raises questions about revenue shortfalls and the long-term sustainability of infrastructure projects designed on the assumption of steady growth.
The decline also comes at a politically sensitive moment. The government is already under pressure from a strong baht hurting exporters, a slide in foreign visitor arrivals, and rising cost-of-living complaints. Lower power demand may ease fuel import pressures in the short term, but it complicates planning for the years ahead.
Analysts expect electricity use to recover in 2026 as more electric vehicles take to Thai roads and as regional demand for data centers increases. Until then, the country faces an unusual situation: a national grid built for expansion is running below capacity, while policymakers weigh how to adjust strategies without stalling future growth.
