Global Floating Solar Surpasses 5GW: Southeast Asia Becomes Biggest Growth Engine
According to the latest statistics released by the International Renewable Energy Agency (IRENA) on July 28, 2026, the cumulative installed capacity of global floating solar has officially surpassed the 5GW (gigawatt) mark, growing over 80% year-on-year. Southeast Asia contributed approximately 1.8GW, accounting for 36%, becoming the largest driver of the technology's commercialization. Thailand, as one of the largest economies in Southeast Asia, has shown strong momentum in reservoir floating solar projects, with cumulative installations reaching 650MW, ranking third globally after China and India.
Thailand's Reservoir Solar Projects Flourishing
Thailand's government clearly designated floating solar as a priority in the National Energy Plan passed in 2024, targeting 2GW of installed capacity by 2030. Seven large reservoirs have already installed floating solar panels, including the 45MW project at Sirindhorn Dam and the recently grid-connected 80MW project at Ubolratana Dam. These projects are led by the Electricity Generating Authority of Thailand (EGAT), combining with existing hydropower plants to form a 'hydro-solar complementarity' model, significantly improving grid stability.
Dual Drive of Policy and Technology
In June 2026, Thailand's Ministry of Energy further relaxed foreign investment restrictions, allowing wholly foreign-owned equity in floating solar projects and providing five-year tax exemptions and green loan subsidies. Technologically, local companies such as Energy Absolute and Gunkul Engineering have developed patented pontoon systems resistant to typhoons and high salt-spray corrosion, adapted to tropical climates. Industry analysis indicates that Thailand has large idle reservoir areas along the Mekong River, with potential development capacity exceeding 10GW, attracting developers from China, Japan, and South Korea to actively position themselves.
Technological Maturity and Cost Advantage Open New Blue Ocean
Compared to ground-mounted and rooftop solar, floating solar has advantages such as not occupying land, reducing reservoir evaporation, and improving power generation efficiency (water cooling effect can increase generation by 5-10%). With system costs dropping from $0.9 per watt in 2020 to $0.55 per watt in 2026, floating solar has become economically competitive with traditional coal-fired power in Southeast Asia. The latest feed-in tariff (FIT) approved by Thailand's Energy Regulatory Commission (ERC) is $0.08 per kWh, providing investors an internal rate of return of 8-10%.
International Cooperation and Financing Innovation
In July 2026, the Asian Development Bank (ADB) announced $500 million in green financing to support the 'Mekong Floating Photovoltaic Cluster' project on the border of Thailand and Laos, with a total capacity of 500MW. Additionally, the Stock Exchange of Thailand (SET) recently launched a 'Green Bond Index' that includes three floating solar developers, providing indirect investment channels for retail investors. Analysts note that as carbon credit trading markets gradually take shape in Southeast Asia, floating solar projects can generate both Renewable Energy Certificates (RECs) and carbon reduction credits, further boosting returns.
Investment Insights: From Thailand to Regional Supply Chain
For investors focused on Thailand's stock market, the floating solar industry chain includes the following opportunities: upstream pontoon and mooring system manufacturers (e.g., SCG Chemicals developing weather-resistant plastics), midstream EPC contractors (e.g., Italian-Thai Development), and downstream operators (e.g., EGAT and its contracted IPPs). Additionally, Thailand's largest EV battery manufacturer GPSC has announced it will use floating solar power plants to supply its factories, forming a 'solar-storage-charging' closed loop.
Looking ahead, the Southeast Asia floating solar market is expected to reach 5GW of new annual installations by 2028, with Thailand maintaining its leading position. Investors should closely monitor the results of the third round of floating solar bidding to be announced by Thailand's Ministry of Energy in Q4 2026, which will determine the next wave of growth. Amid the global carbon neutrality wave, floating solar is transforming from an experimental technology into a mainstream investment target, and Thailand has already caught the wave.
