Bangkok (VNA)ꦇ – Thailand is set to approve an energy saving scheme to speed up efforts to save energy in the state sector, according to the Department of Alternative Energy Development and Efficiency.

The scheme is introduced as Thailand is launching a campaign among 800 state agencies nationwide which were instructed by the government to reduce energy usage by at least 20%. According to the scheme, the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) will help state agencies manage energy conservation projects under long-term contracts. Wattanapong Kurovat, director-general of the department, said that MEA and PEA will provide energy solution services under a model similar to the work of an energy service company known as ESCO. 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. 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. According to ESCO, this financial management is new and not familiar to state agencies, leading to worries over business risks. 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 Wattanapong. In another related development, Thai government is planning to encourage households to install rooftop solar panels by offering them tax reductions, said Wattanapong, adding that it requires a budget of 20.2 billion THB (570 million USD). He expects 90,000 residents to join this project, which will be implemented between 2024 and 2025, aiming to reduce electricity consumption from the state grid by 585 million kWh per year./.