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Manual on Compliance with and Enforcement of Multilateral Environmental Agreements
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Demand-Side Management in the Power Sector in Thailand

An interesting success story is the Demand-side Management Programme in the power sector of Thailand, partly funded by the Global Environment Facility (GEF). Recognising the severe impacts of accelerated energy demand, the Thai Government has adopted a comprehensive Demand-Side Management (DSM) Plan for the power sector. A Energy-Efficient Fluorescent Light Bulbfive-year (1993-97) DSM Master Plan was formulated and implemented with a total budget of US$189 million. By the end of October 1997, the DSM programmes were saving 295 MW of peak demand and 1,564 GWh a year of electrical energy. The reduction in carbon dioxide emissions through implementing the DSM programmes was estimated at more than 1 million tonnes a year while investment requirement in power generation was reduced by US$295 million.

The programmes also resulted in consumer savings of US$100 million a year in terms of electricity bills. The DSM programmes include: switching lamp production from fat tubes (40 W and 20 W) to slim tubes (26 W and 18 W) and promotion, by the Electricity Authority of Thailand (EGAT), of compact fluorescent lamps instead of incandescent lamps through price differentials.

There is also the Green Building Program, through which commercial buildings can obtain Compact Fluorescent Lights (CFLs) at a subsidized price. For existing buildings, EGAT carries out an energy audit, design, and retrofitting of electrical systems to comply with the energy efficiency requirements set by the Government. EGAT also provides interest-free loans to building owners for energy-saving modifications; a programme to replace fluorescent lamps for rural street lighting with subsidized high-pressure sodium vapour lamps; a campaign to test refrigerators and air-conditioners for efficiency, and interest-free loans to purchase efficient air-conditioners. Another programme under EGAT encourages manufacturers and importers of electric motors to produce or import high-efficiency motors, and industrial entrepreneurs to utilise high-efficiency motors by providing interest-free loans to meet the additional cost.

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Guideline 41(g)
Case Studies
Equitable Distribution of Funds from Mining in Sierra Leone
Economic Mechanisms in Asia
Gambia’s Environmental Awards
Demand-Side Management in the Power Sector in Thailand
Ecotourism in Kenya
Economic Instruments in Barbados
Financing Conservation Efforts by Selling the Naming Rights of New Species
USEPA’s Economic Instrument Providing Incentives to Exceed Compliance
Environmental Compensation in Brazil
Georgia’s Renewable Energy Revolving Fund
The Green Fund of Trinidad & Tobago
Uganda’s National Environment Fund
Ghana’s Environmental Fund
Environmental Funds in Bulgaria
EECCA Environmental Funds and Good Practices of Public Environmental Expenditure Management
The Polluter-Pays Principle and the Ecological Fund in Uzbekistan
Philippines’ Integrated Protected Area Fund
Zimbabwe’s Carbon Tax and Environmental Fund
Environment Funds in the Kyrgyz Republic
Developing and Enhancing Green Taxes in Norway
The Gambia’s Environmental Taxes
Ecological Goods and Services Tax at the Sub-National Level in Brazil
Tax Provisions to Implement MEAs in St. Lucia
Tax Exemptions for Private Natural Heritage Reserves in Brazil
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