energy efficiency and conservation in thailand
DESCRIPTION
กรมพัฒนาพลังงานทดแทนและอนุรักษ์พลังงาน. Energy Efficiency and Conservation in Thailand. Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy. March 2005. Presentation Outlines. Thailand Energy Policy and Strategies Energy Situation in Thailand - PowerPoint PPT PresentationTRANSCRIPT
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Energy Efficiency and Conservation Energy Efficiency and Conservation
in Thailandin Thailand
Department of Alternative Energy Department of Alternative Energy
Development and Efficiency (DEDE)Development and Efficiency (DEDE)
Ministry of EnergyMinistry of Energy March 2005
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Presentation OutlinesPresentation Outlines
• Thailand Energy Policy and Strategies
• Energy Situation in Thailand
• Energy Conservation Promotion Act
• Energy Conservation Scheme
• Renewable Energy Strategic Plan
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Thailand Energy Policy and VisionThailand Energy Policy and Vision
To conserve, develop and promote the efficient consumptionof energy, while balancing the development with indigenousNatural resources and the environment, with ultimate goal toReduce the degree of reliance on energy imports
HE. Dr. Thaksin Shinawatra, Feb 26, 2001
National Policy
Strategic objectives
Enhancecompetitivenessof the real sector
Supply the kingdomwith clean and
continuous energy
Energy forbetter
living for all
Thailand asSE ASIA
Energy Hub
1 2 3 4
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Thailand Energy Strategies Thailand Energy Strategies for Economic Development and Regional Integrationfor Economic Development and Regional Integration
• Strategy for Energy Security Ensure sufficient and reliable energy supply for at least 30 yrs
• Strategy for Efficient Use of Energy Reduce Energy Elasticity from 1.4:1 to 1:1 by 2007
• Strategy for Renewable Energy Development Increase share of RE from 0.5% to 8% of total final energy by 2011
• Strategy for Thailand as a Regional Energy Center Develop Strategic Energy Land Bridge and Energy Hub
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Energy Consumption Energy Consumption in Transportationin Transportation
Air Transport
16%
Land Transport
79%Water Transport
5%
Total Consumption of 20,927 ktoe in year2003
Source: Thailand Energy Situation Report 2003 , DEDE
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Energy Consumption Energy Consumption in Industryin Industry
Metal5.3%
other6.5%
Chemical12.8%
Non-Metallic 28.3%
Metal Fabrication
6.6%
Textile5.7%
Paper3.5%
Food & Beverage
30.5%
Wood & Furniture
0.8%
Total Consumption of 19,988 ktoe in year2003
Source: Thailand Energy Situation Report 2003 , DEDE
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Energy Consumption in ResidentialEnergy Consumption in Residential
Rural Area 79%
Bangkok Metropolitan
13%
Municipal Area 8%
Total consumption of 8,173 ktoe in year 2003
Source: Thailand Energy Situation Report 2003 , DEDE
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0
10,000
20,000
30,000
40,000
50,000
60,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
ktoe
Transportation 37%
Industry 36%
Residential & Commercial 21%
Agriculture 6%
Industry=Manufacturing+Mining+Construction
Final EnergyConsumptionby Economic Sectors 5Total Consumption of 6,28 2229 200 3
Source: Thailand Energy Situation Report 2003 , DEDE
Energy Situation in ThailandEnergy Situation in Thailand
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Energy IntensityEnergy Intensity
6http:/ / www.eia.doe.gov/ pub/ international/ iealf/ tablee1g.xls
Energy Intensity [Total Primary Energy Consumption Per Dollar of Gross Domestic Product]
02,0004,0006,0008,00010,00012,00014,00016,00018,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Btu pe
r 1995
US D
ollars
Using
Mark
et Ex
chang
es Ra
tes
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
Thailand
USA
UKGermanyJapan
(Compare with Developed Countries)
1010
Energy IntensityEnergy Intensity
6http:/ / www.eia.doe.gov/ pub/ international/ iealf/ tablee1g.xls
Energy Intensity [Total Primary Energy Consumption Per Dollar of Gross Domestic Product]
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Btu pe
r 199
5 US
Dollar
s Usin
g Mark
et Ex
chan
ges R
ates
Malaysia
China
India
Thailand
Vietnam
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
(Compare with Developing Countries)
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Regulation for Designated Facilities
Established ENCON Fund
Thailand’sThailand’s
Energy Conservation Act 1992Energy Conservation Act 1992
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ENCON FundENCON Fundapproximately 450 million USDapproximately 450 million USD
• Sources– Initial from Oil Fund ~ 40 million USD– Small taxes from the use of benzine, diesel, fuel oil,
kerosene ~ 60 million USD annually– Interests
• Uses– Grants for R&D, Pilot projects, Training, Studies– Low Interest Loan for Investment - Revolving Fund
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Customer Service
Customer Service
Workshop &
Training
Workshop &
Training
Low InterestSource of Fund
Low InterestSource of Fund
ListOf
Experts
ListOf
ExpertsDirectory
of Technolo
gy Provider
s
Directory of
Technology
Providers
Promotion of
ESCOs
Promotion of
ESCOs
Promotion
Campaign
Promotion
CampaignDemonstration Project
Demonstration Project
Access to Funds
Technical Assistance
Raise up Confidence Perfect Information
Regulations
Value engineering and
EM Standard
s
Value engineering and
EM Standard
s
Tax Incentive
s
Tax Incentive
s Incentives & SubsidiesEnergy Codes
Energy Codes
Create Conducive Environment for EE Create Conducive Environment for EE InvestmentInvestment
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Highlighted ProgramsHighlighted Programs
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Compulsory ProgramCompulsory Program
• Over 1 MW peak demand or consume more than 20 TJ annually
• More than 4000 large buildings and factories (so called Designated Facilities)
• Mandatory Tasks– Assign Energy Manager– Report Monthly Energy Use– Develop EE Target and Plan– Compile all energy codes
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Cooperative Efforts on Energy Cooperative Efforts on Energy ManagementManagement
Objective: Sustainable energy management through internal cooperative efforts
Methodologieso Educate on concept & method + evaluationo Help create and implement EC measures
AchievementImplemented factory 95 plantsIntroduced house-keeping measuresEnergy saving of 5-10% for each facility
( simple payback of 2.5 yrs)
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Revolving Fund for EC ProjectsRevolving Fund for EC Projects
Budgets allocation from ECP Fund
Loan approval by Bank Technical assistance by
DEDE Key conditions
Loan size < 1.2 mill USD/project
Interest rate less than 4% (fixed rate)
Repayment in the defined time frame (7yr)
Present Status 79 approved and under construction projects with leverage 80 million USD of EC Investment
Average investment 1 mill USD / a project & average payback 2.3 yrs
Annual savings > 250 GWh and 91 mill. liter of fuel oil
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Cost Based Tax IncentiveCost Based Tax Incentive
• 25% Tax Break for the Investment in EE Projects Result in Efficiency Improvement
• Applicable for the First 50 mill baht Investment ( 1.25 mill USD )
• Incentive Spread Over 5 Years
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Performance Based Tax IncentivePerformance Based Tax Incentive
• 100% of achieved energy saving will become tax deduction
• Max Incentive of 2 mill baht (50,000 USD) / Facility
• Pre and Post Audit will be required
2020
Incentive through Board of Investment ( BOI )
Import duties and Cooperate tax exemption on new investment in• Energy conservation business
• High efficiency machine or equipment and renewable energy equipment manufacturing
• Solar PV manufacturing
• Energy Service Company – ESCO
– Renewable energy production business
• Alcohol or fuels from agricultural products
• Electricity or steam generation
Incentive last for the max period of 8 years
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www.dede.go.thwww.dede.go.th
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