Thailand: Clean Energy Program
(Carbon Partnership Facility)
UNFCCC Reference No.: PoA 8055
On January 28, 2013, UNFCCC registered the Energy Efficient Street Lighting Program in Thailand as a CDM Programme of Activity (PoA). The program, implemented and paid for by the Provincial Electricity Authority (PEA), will replace 250 Watt High Pressure Sodium (HPS) units with 110 Watt Light Emitting Diode (LED) units resulting in energy savings of almost 65%. Implementation of this street lighting program of almost half a million light bulbs (445,000) will generate energy savings of about 65%, while also generating certified emission reductions, commonly called carbon credits, for PEA.
As is common with street lighting on roads and highways in Thailand, the existing lamps are owned and managed by a number of different governmental entities, but the electricity for the lighting system is provided by the Provincial Electricity Authority (PEA) free of charge. However, the PEA has the obligation to pay its electricity supplier, Electricity Generating Authority of Thailand (EGAT). As a result, the PEA has designed this program to respond to the need of reducing energy consumption in street lighting while providing the same or better service. Although PEA has no obligation to implement this program, it is very interested in options to reduce its operational expenses. The installation of LED-based lighting on roads is expected to substantially reduce the electricity consumption charges paid by PEA. PEA is the investor and implementer of this program, and will benefit from the sale of the carbon credits.
Details of the Program
The proposed POA follows Thailand’s 2010 – 2030 Power Development Plan, which concentrates on the conservation and efficient use of electricity as well as the reduction of carbon dioxide emissions from electricity generation.
To support Thailand in achieving its low carbon growth plan, the proposed PoA will support improvements of energy efficiency in street-lighting on country’s public highways. The proposed program not only allows for technology leap-frogging but will also result in considerable savings of electricity consumption and will therefore contribute to the country’s reduced dependency on imported fossil fuels, leading to savings in foreign exchange and improved energy security. Reduced consumption of electricity based on fossil fuels will also result in reduction of greenhouse gas emissions, especially carbon dioxide.
The LED street-lighting program is innovative in terms of technology and the implementation approach, and will be transformational in promoting energy efficiency in the street-lighting sector. This will have a positive impact on scaling up energy efficiency improvements in the country, and also be potentially replicable to other countries in the region. LED street-lighting has emerged as a new technology over the last few years. However, it has only been deployed in a few (mostly developed) countries on a small scale at the city level due to relatively high cost. This initiative is the first time that a developing country would leapfrog into the state-of-the art LED technology at a large scale, and on a nationwide basis.
In addition, the implementation arrangement is also innovative as it uses a leasing-based energy service company (ESCO) approach, which is a new market-based mechanism in Thailand with potential for replication.