Page 45 - Unlocking innovation

2.7
An innovative Utility energy services Model to implement a large-scale energy e ciency program in thailand
producing more with less energy
the challenge
Meeting ambitious targets for electricity savings across multiple sectors
The Government of Thailand aims to build a globally competitive green growth economy that reduces carbon emissions and creates well- paying, skilled employment opportunities that are not easily outsourced to other countries.
To support this, it has set ambitious targets
for electricity savings in three major economic sectors: residential, commercial and public services, and industry. Thailand’s state-owned electricity distribution utility, the Provincial Electricity Authority (PEA), is well-positioned to be a leader in supporting Thailand’s economy to produce more with less energy and enable consumers to reduce their cost of electricity consumption, but it will take an innovative private–public partnership approach to implement an energy savings program that is mutually bene cial to all stakeholder needs.
the innovation
A utility energy services model that scales energy e ciency
Extensive research shows that the electricity generation and distribution utility sector is changing. Utilities are adapting their business model to new technologies and business processes. The PEA requested support from ADB in designing and implementing an innovative private–public partnership approach.
This TA component, which will start in early 2020
and run through mid-2020, will support the PEA with the design of a utility energy services model to scale the implementation of energy e ciency solutions in Thailand. The concept is that the PEA will leverage
its existing relationship with customers (marketing, funding, billing) and manage the delivery of energy savings in residential, commercial and public buildings, and industrial complexes. At the same time, it will partner with third-party providers to enable e cient and focused service delivery (e.g., audits, sales, and installation management).
The objectives of the project are to design the
utility energy services model, establish a nancing mechanism for the PEA to raise capital for their energy e ciency o erings from ADB and other institutions, and prepare the pilot implementation of the energy- e ciency program, which will include identi cation of a small group of customers to test the core elements of the utility energy services model and re ne the customer adoption strategy. The TA project will
also determine the carbon emissions reduction and economic bene ts that will be achieved with a large- scale and nationwide energy e ciency program.
38 Unlocking Innovation for Development