To reduce the country’s overall energy consumption, the Thai government is launching an energy-saving program targeting public sector agencies. This initiative will adopt an energy service company (ESCO) model to assist with the installation of solar panels and other energy-saving measures through long-term contracts, aiming to save 585 million kilowatt-hours of electricity annually.

State power organizations to accelerate energy-saving measures

The Department of Alternative Energy Development and Efficiency (DEDE) under Thailand’s Ministry of Energy has announced that the program will involve the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA). These organizations will collaborate with newly established private energy service companies (ESCOs) to provide energy-saving solutions to government agencies.

Previously, ESCO services were limited to businesses and households due to the challenge of long-term contracts with government budgets, which are reviewed and revised annually. However, the new plan will allow ESCOs to assist government organizations in installing energy-saving equipment, such as rooftop solar panels, and charge fees based on the electricity savings each month.

Although ESCOs are concerned about the risks of investing in unfamiliar public sector collaborations, the Ministry of Energy believes that expert assistance in long-term energy management is necessary. As a result, MEA and PEA may replace ESCOs in executing the new plan if needed.

Thailand's public sector aims to cut 20% energy use

The Thai government has been advocating for energy savings to reduce imports of fossil fuels and address rising electricity prices driven by geopolitical conflicts and strong demand. This situation has led to frequent complaints from the public and concerns within the industry that it might deter foreign investment in Thailand.

According to Thailand's 20-Year Energy Efficiency Development Plan, one of the goals is to reduce energy consumption by 20% by 2030 compared to 2005 levels, with initial measures focusing on the transportation and manufacturing sectors. Recently, the government has also instructed 800 state agencies to reduce their energy consumption by 20%.

Additionally, Thailand is actively developing renewable energy. Prime Minister Srettha Thavisin has pledged to increase the share of renewable energy to 50% by the end of 2040 and is preparing a new Power Development Plan (PDP) that may include low-carbon nuclear energy, with the aim of achieving net-zero emissions by 2065.

According to Recessary.com