Six municipalities and the Provincial Electricity Authority (PEA) today signed a Memorandum of Understanding (MOU) to design and implement local-based energy efficiency programmes.
The "Mainstreaming Energy Efficiency Measures in Thai Municipalities" project, which is financed by the Asian Development Bank (ADB) under a US$1 million technical assistance, will also help local government units structure innovative financing arrangements, as well as help PEA prepare business plans to roll out the programme across the country. The project will further strengthen the capacity of both PEA and the municipalities to undertake these initiatives.
The municipalities - Lamphun, Udon Thani, Nong Khai, Ban Pong, Trang and Krabi - aim to reduce 10 per cent of energy consumption in municipal buildings and street lights. This could result in a savings of more than Bt200 million annually. The energy efficiency initiative will be expanded later to residential consumers.
Aside from the six municipalities in the pilot phase, other municipalities and organisations are expected to replicate the project findings in their own systems.
The six are among the 1,000 municipalities in Thailand. Electricity consumption for public services and municipal activities has increased rapidly over the years due to increased services. Currently, electricity used by municipalities is partially subsidised by PEA.
The state-owned PEA is the largest electricity distribution utility in Thailand, serving more than 14 million customers. It is a key stakeholder in the country's energy sector, and has played a vital role in supporting and promoting the government's energy conservation policy.
