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
five-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.