In order to investigate a potential use of concentrating solar power technologies and select an optimum site for these technologies, it is necessary to obtain information on the geographical distribution of direct normal solar irradiation over an area of interest. In this work, we have developed a method for estimating direct normal irradiation from satellite data for a tropical environment. The method starts with the estimation of global irradiation on a horizontal surface from MTSAT-1R satellite data and other ground-based ancillary data. Then a satellite-based diffuse fraction model was developed and used to estimate the diffuse component of the satellite-derived global irradiation. Based on this estimated global and diffuse irradiation and the solar radiation incident angle, the direct normal irradiation was finally calculated. To evaluate its performance, the method was used to estimate the monthly average hourly direct normal irradiation at seven pyrheliometer stations in Thailand. It was found that values of monthly average hourly direct normal irradiation from the measurements and those estimated from the proposed method are in reasonable agreement, with a root mean square difference of 16% and a mean bias of -1.6%, with respect to mean measured values. After the validation, this method was used to estimate the monthly average hourly direct normal irradiation over Thailand by using MTSAT-1R satellite data for the period from June 2005 to December 2008. Results from the calculation were displayed as hourly and yearly irradiation maps. These maps reveal that the direct normal irradiation in Thailand was strongly affected by the tropical monsoons and local topography of the country. (C) 2010 Elsevier Ltd. All rights reserved.