Fuel ethanol mandate

Thailand is among the early adopters of ethanol in Asia. The government has taken many measures, including investment incentives for ethanol plants, price incentives, tax incentives, and funding for research into biofuels, to promote the use of ethanol.

However, unlike other Asian countries, Thailand’s ethanol mandate is set through future targets in the Alternative Energy Development Plan (AEDP). The latest plan titled Renewable and Alternative Energy Development Plan 2018-2037 (AEDP 2018) was approved by the Cabinet on October 20, 2020.

AEDP 2018 reduces the ethanol blending target from 11.3 million liters per day (MLPD) by 2036, set in AEDP 2015, to 7.5 MLPD by 2037. This reduction is mainly because biofuel subsidies have significantly increased demand for water. Biof