A plan to have the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) help state agencies manage energy conservation projects under long-term contracts is expected to be approved by the government soon to speed up efforts to save energy in the state sector, says the Department of Alternative Energy Development and Efficiency.
The approval will support campaigns among 800 state agencies nationwide which were instructed by the government to reduce energy usage by at least 20%, said Wattanapong Kurovat, director-general of the department.
MEA and PEA will provide energy solution services under a model similar to the work of an energy service company known as ESCO, he said.
ESCO is a privately-run firm that was established under the MEA, PEA and Electricity Generating Authority of Thailand.
The three state enterprise agencies have their own energy service company as a business unit offering services regarding electricity and energy solutions to businesses and households.
ESCO previously did not work with state agencies under long-term contracts because of its concern over the state budget spending procedures.
The Budget Bureau allocates money to state agencies annually, but this budget allocation does not match energy-saving projects offered by ESCO under long-term contracts.
Under the contracts, ESCO will invest in the installation of energy-saving equipment, including rooftop solar panels, and will get returns each month, based on money its customers can save on electricity usage.
This financial management is new and not familiar to state agencies, leading to worries over business risks, according to ESCO.
But state agencies need specialists to help with their energy management in the long term. This prompted the government to consider having MEA and PEA do the job in place of ESCO, said Mr Wattanapong.
State agencies which want to carry out energy saving projects are worried over the long-term maintenance of equipment and other energy issues, so they need experts to do the jobs and give them necessary advice.
In another related development, the government is planning to encourage households to install rooftop solar panels by offering them tax reductions, said Mr Wattanapong.
He expects 90,000 residents to join this project, which will be implemented between 2024 and 2025.
Mr Wattanapong said the project, which requires a budget of 20.2 billion baht, will reduce electricity consumption from the state grid by 585 million kilowatts-hour per year.