Financing solar thermal technologies under DSM programs: an innovative approach to promote renewable energy

Abstract

A wide range of demand side management (DSM) options has been practiced so far in developed as well as in developing countries. However, solar thermal technologies have been left out from DSM programs considering them as supply side options. This study argues that a number of solar thermal technologies, which provide the same services as electric appliances, can be considered as DSM options and examines the possibility of promoting solar water heaters (SWH) under DSM programs in Thailand. The study found that installation of SWH in place of conventional electric water heaters (EWH) to meet hot water demand in the residential sector would be economically beneficial to the country as a whole. However, switching to SWH from EWH would be unlikely without having government interventions as there would be no incentives to individual consumers in doing so. If the government or state electric utilities provide funding to residential consumers through DSM programs for replacing their EWH by SWH, the total electricity generation in Thailand during the 2000–2015 period would decrease by 3.8 per cent. Moreover, promotion of SWH under DSM programs would cause 3.35 and 1.41 per cent reductions of total power sector CO2- and NOx-emissions respectively, during the same period. This study also reveals that solar thermal technologies, especially the SWH, could be better options for DSM programs compared to the end-use efficiency improvement options in Thailand. Copyright © 2000 John Wiley & Sons, Ltd.