Thailand: MEA cost-saving services spur privatisation considerations

Thailand: MEA cost-saving services spur privatisation considerations

The Metropolitan Electricity Authority of Thailand (MEA) is considering a
plan to spin off its energy services to capitalise on rising demand, says
deputy governor Ruj Herabat.

He said the MEA began providing energy services under the Better Care MEA
banner in late 2016, providing installation of electrical equipment,
power-saving equipment and solar systems.

Better Care MEA is a department within the MEA, which is being considered to
be spun off as a private company as it has more than 20 projects from
several private and public organisations and demand for its services is
rising substantially.

The plan to spin off the business must first be approved by the Interior
Ministry.

Mr Ruj said the move to spin off the business falls in line with energy
policymakers' efforts to enhance the country's energy consumption
efficiency, which include plans to help reduce total power consumption by
around 30% by 2036.

Demand for energy services has been growing in the double-digits every year,
mostly from private firms that want to lower energy consumption and cut
energy costs.

The most prominent service is solar rooftop panel and light emission diode
(LED) installations, which help cut energy costs sharply.

The MEA yesterday introduced a project to install solar panels and LEDs at
the Chaeng Wattana Government Complex in Laksi district.

It is the largest MEA project yet, with a total area of 1.04 million square
metres across four buildings.

The MEA has provided solar panel rooftops with a capacity of 2.2 megawatts
and replaced lighting systems with 38,000 LEDs thus far using the Treasury
Department's budget of 190 million baht.

This project aims to reduce energy costs by 5 million units a year, Mr Ruj
said.

He said the MEA will allow owners of houses and buildings to join the pilot
project to install solar rooftops in residences and private buildings with a
combined total capacity of 100MW as part of a feasibility study to
liberalise solar rooftop regulations.

The Department of Alternative Energy Development and Efficiency reported the
energy service business in Thailand is expected to gain jobs from households
and buildings worth up to US$300 million.

During the first stage of introducing the energy service business in
Thailand during 2010-12, investment value in the sector was just $80
million.

The number of energy service firms is also expected to increase to 200,
rising from 50.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1219573/mea-cost-saving-services-sp
ur-privatisation-considerations

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com