Thai stocks related to clean energy are expecting to reap gains from the upcoming energy infrastructure and transition bill that is currently facing challenge in the court, regarding the legality of the decree.
B.Grimm Power Public Company Limited (SET: BGRIM), Gunkul Engineering Public Company Limited (SET: GUNKUL), Absolute Clean Energy Public Company Limited (SET: ACE) and Gulf Development Public Company Limited (SET: GULF) are among top names that would gain if the bill is approved.
The ongoing case challenging the constitutionality of the government’s Emergency Decree authorizing the Ministry of Finance to borrow 400 billion baht for addressing the national energy crisis and driving the energy transition is approaching its final verdict at the Constitutional Court.
The petition, initiated by opposition parties, questions whether the decree contravenes Section 172, paragraph one, of the constitution—focusing specifically on the 200 billion baht allocated for energy infrastructure and transition projects. The Court’s decision is expected to be positive for the government.
Mr. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, emphasized the necessity of the Emergency Decree, stating that the administration’s budget management was efficient and justified due to the inadequate annual budget of 70-80 billion baht, which falls short of covering pending expenditures exceeding 140 billion baht. He reiterated that borrowing would not have been necessary if sufficient budgetary funds were available.
The government currently has access to two main sources of funds: regular annual budget and the 400 billion baht loan from the Emergency Decree. The annual budget can be used at the government’s discretion, while funds from the decree must be strictly allocated for two purposes:
1) Supporting citizens, farmers, and businesses impacted by the energy crisis and rising living costs, and stabilizing economic activities;
2) Promoting the shift from fossil fuels to renewable or alternative energy, including the development of energy skills and innovation.
The urgent need for energy transition was highlighted, given Thailand’s electricity production relies heavily on imported gas and maintains oil reserves for only 90 days. Prolonged conflicts that disrupt energy imports would pose immediate risks. Consequently, investment in renewable energy infrastructure is seen as essential for reducing oil dependency, mitigating the crisis, and securing the country’s long-term energy stability.
Mr. Vinit Visessuvanapoom, Director of the Fiscal Policy Office, assured that the 400 billion baht loan process has been conducted with full transparency and in accordance with all legal process.
