Asia's growing manufacturing, industry and services sectors are increasing demand for electricity in Southeast Asia, which too often results in more power plant pollution and a rise in climate-warming greenhouse gas emissions. Fortunately, regional leaders are blazing ahead with clean energy.
About one billion people live in slums or informal settlements. Thailand's Bann Mankong program, which improved the living conditions of more than 90,000 households at a cost of just $570 per family, offers lessons on solutions.
Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.
This is part three of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.
Until recently, the Electricity Generating Authority of Thailand (EGAT) held a monopoly on Thailand’s power generation and transmission since the 1970s. While EGAT provided a relatively stable supply of electricity to consumers, it was unregulated, leading to inefficiencies in the sector, such as wrongly estimated fuel supply. Consumers experienced high prices, while new power projects moved forward with little public consultation, sparking social conflict and concerns over environmental impacts.
The situation worsened in 2003, when Prime Minister Thaksin Shinawatra set forth a plan to restructure Thailand’s electricity sector and privatize EGAT. Rather than improving Thailand’s electricity sector in the public interest, the plan for privatization was designed to increase capital for powerful stakeholders and upper management employees. It called to maintain EGAT’s unregulated monopoly in order to maximize profits, even at the expense of public needs and environmental vulnerabilities.
Thailand’s electricity sector seemed poised to worsen--until civil society groups stepped in.
Developing countries will need about $531 billion of additional investments in clean energy technologies every year in order to limit global temperature rise to 2° C above pre-industrial levels, thus preventing climate change’s worst impacts. To attract investments on the scale required, developing country governments, with support from developed countries, must undertake “readiness” activities that will encourage public and private sector investors to put their money into climate-friendly projects.
WRI’s six-part blog series, Mobilizing Clean Energy Finance, highlights individual developing countries’ experiences in scaling up investments in clean energy and explores the role climate finance plays in addressing investment barriers. The cases draw on WRI’s recent report, Mobilizing Climate Investment.
The development of Thailand’s energy efficiency sector is an interesting case study. It demonstrates how strong government leadership combined with strategic support from international climate finance can drive the transition toward an energy-efficient economy.
In the early 1990s, Thailand’s economy was growing rapidly at 10 percent per year; the power sector was growing even faster. The government recognized that conserving energy would provide a low-cost way to meet its citizens’ rising demand for energy.
WRI has conducted in-depth studies in a number of key river basins around the world.
This post was co-authored with Elizabeth Moses, an intern with The Access Initiative.
Today is International Right to Know Day, a global initiative to share ideas and stories on right to information (RTI) laws and transparent governance. This blog post provides an inside look at how citizens from one Thai community are seeking access to information in order to protect themselves from environmental pollution.
On May 5, 2012, 12 people were killed and 129 injured in Thailand’s Rayong Province. The devastation occurred when a holding tank containing toluene exploded at the Bangkok Synthethics petrochemical factory in Map Ta Phut Industrial Estate, an area housing nearly 150 industrial facilities. The very next day, a mixture of hypochlorite and hydrochloric acid gas leaked from Map Ta Phut’s Aditya Birla Chemical Plant, sending 138 people to the hospital.
As the Bangkok Post noted, the more than 49,000 residents in areas surrounding Map Ta Phut received no warnings about the industrial accidents. They were not told if it was safe to remain in the region or if they should evacuate. In fact, details about the toxic chemicals released during the accidents were not even immediately provided to community members.
Leaving residents in the dark about the dangers they faced undeniably threatened their health. But what would have happened if community members already had information about the chemicals regularly used and emitted by Map Ta Phut’s industries? What if they understood the risks of being exposed to these chemicals and how to cope with these dangers should accidents happen? Would having easy access to information about the industrial estate help them protect themselves from industrial accidents and pollution?
An Assessment of Electricity Governance in Thailand
The Thai assessment was completed by the Health Systems Research Institute in partnership with Palang Thai, the Thailand Environment Institute, and King Prajadhipok's Institute. This report examines efforts to privatize the electricity sector....