The government is set to approve a plan enabling the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) to manage energy conservation projects for state agencies under long-term contracts, accelerating energy-saving efforts within the state sector.
The approval will support government campaigns targeting 800 state agencies nationwide, which have been instructed to reduce energy consumption by at least 20%. The MEA and PEA will provide energy solutions under a model similar to that of an energy service company (ESCO).
ESCO, a privately-run entity established under the MEA, PEA, and Electricity Generating Authority of Thailand, offers electricity and energy solutions to businesses and households. Previously, ESCO did not engage in long-term contracts with state agencies due to concerns over state budget spending procedures, as the Budget Bureau allocates funds annually, which did not align with ESCO’s long-term project financing.
Under the proposed contracts, ESCO will invest in energy-saving equipment, including rooftop solar panels, and receive monthly returns based on the savings in electricity usage. This financial model, new to state agencies, has raised concerns about business risks. To address these concerns, the government plans to have the MEA and PEA take over these responsibilities from ESCO.
State agencies seeking to implement energy-saving projects require specialists for long-term equipment maintenance and energy management, prompting the government’s consideration of MEA and PEA for these roles. (NNT)
