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Energy Efficiency Promotion Measures in Thailand

Prasert Sinsukprasert

Ministry of Energy, Thailand

5th International Energy Forum

For Sustainable Development

4-7 November 2014

Tunisia

EEDP Plan and Target

Thailand 20-Year Energy Efficiency Development Plan (2011 - 2030)

Final

Ene

rgy

Cons

umtio

n (k

toe)

(BAU)

EE Plan EI (2030)

11.7 ktoe/billion baht

EI (2010)

15.6 ktoe/billion baht 25% reduction

ktoe 162,715

124,515

38,200

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Highlights of EEDP Plan

• Being a long term plan to promote EE in Thailand (20 years from 2011 -2030) • Master Plan was approved by National Energy Policy Committee in April 2011

• Target to reduce Energy Intensity by 25% in 2030 (based on 2010) • Action Plan has been approved by the Cabinet in March 2013 for full implementation

• Result from EEDP will contribute to; 38,200 ktoe energy reduction from BAU in 2030 Saving energy expense up to 707 billion Baht Reduce CO2 emission around 130 million ton

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Current Main EE Programs

Standards &

Regulations EE Designated Facilities

MEPS & HEPS & Labeling

Building Energy Code

Awareness

Raising Thailand Energy Award

Campaign & Media

Financial

Incentives Revolving Fund

Direct subsidy (20-30%)

Tax incentive

ESCO scheme

EE Networking Voluntary Agreement

R&D with Universities

Partnership with Professional Associations

Technical

Support Training & Seminar

Tech. Demonstration

Guideline & Handbook

Energy Efficiency Standard Of Equipments and Machinery

Energy Conservation Act

Energy Conservation Act

Apply to large buildings and factories w 1 MW peak demand

2000 sq.meter - Hotel - Shopping malls - Offices - Hospitals

Energy Management in designated buildings

and factories

Appointing Person Responsible for Energy

(PRE)

Energy Management Auditors

Building Code for New Constructed Big Buildings

- air conditioners - refrigerators - motors - boilers - lighting - insulation materials - stoves

etc.

Energy Conservation Promotion Fund

since 1992

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ENCON Fund

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• Small levy from the consumption of gasoline, diesel, fuel oil and kerosene

• average income : 240 Million US$/year

• average spending : 150 Million US$/year

• 2014: amount approximately 1,000 Million US$

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ENCON Fund

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• Research and Development • Policy studies • Feasibility Studies & Pilot Projects • Leverage EE Investment – grants & soft loan • Promotion campaign • Capacity Building

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ENCON Fund

Energy Efficiency Revolving Fund

since 2005

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EE Revolving Fund

• Limited access to funds

• Not a priority

• Banks were not interested

• Stimulate Investment and Stimulate Interest among

Banking Community

• Commercial Lending

• Simplified Procedures

Concept and Approach

Barriers

Barriers and Concept

Objectives

Stimulate commercial investment for EE Improvement

Familiarize commercial banks with EE lending market and opportunities

Bank

RF

Bank Bank

Bank

Terms and Conditions

Loan Period 7 years maximum

Eligible Borrowers Facilities’ Owners, ESCOs and Project

Developers

Eligible Projects EE improvement or RE development

Loan Size from RF Up to 1.5 million USD / project

( 50 million Baht / project)

Interests charge to

customers

Not more than 4%

1 USD = 32 Bath

11 Participating Banks

1. Bangkok Bank (BBL) 2. Bank of Ayudhya (BAY) 3. CIMB Thai (CIMB) 4. Thai Military Bank (TMB) 5. Siam City Bank (SCIB) 6. Siam Commercial Bank (SCB) 7. Thai Farmers Bank (TFB) 8. Exim Bank (Exim) 9. Krung Thai Bank (KTB) 10. SME Bank (SME) 11. UOB

• 6 Banks participating in the 1st Phrase

• 11 Banks participating in 2nd – 3rd Phrase

• 9 Bank participating in 4th – 5th Phrase

RE, 40%

EE, 60%

Project Financing by Revolving Fund

most Factory proposal

most Buildings proposal

Type of Enterprise Projects

Factory 247

Building 43

ESCO 5

Total 295

Factory Type

1. Food & Beverage

2.Textiles

3. Chemical

Building Type

1.Hospital

2.Hotel

3.Office

Investment

From Energy Conservation Promotion Fund

7,232 Million Baht / y

From Finance Institutions 8,727 Million Baht / y

Total Investment 15,959 Million Baht / y

48%

25%

12%

8% 7%

0%

Co-Gen Power Produce Plant

Fuel Changs

Biogas

Biomass

solarcell

Gasification

Types of RE Measures Implemented

Renewable Energy Investment

Types of EE Measures Implemented

70%

19%

9%

1% 1%

0%

0%

Machine Changes

Manufacturing Improvement

Air-Conditioning System

Boilers

Energy Management

Electrical

Lighting

Energy Efficiency Investment

Samples of Projects

Change of High Efficient

Dyeing Machine

Bua-Sommai Rice Polishing

6 MW Biomass Power Plant

Investment 47 mill baht

Saving 11 mill baht/y

Payback 4.3 year

Nun-Yang Textile Factory

Investment 150 mill baht

Saving 37.5 mill baht/y

Payback 4 year

Viphavadee Hospital

Demand Control, Building

Automation System

Investment 18 mill baht

Saving 3 mill baht/y

Payback 6 years

Samples of Projects

Asian Chemical

High EE Boiler

Asian Supreme Food

gas turbine cogeneration

2.7 MW

Samples of Projects

Investment 2.2 mill baht

Saving 0.4 mill baht/y

Payback 6 years

Investment 200 mill baht

Saving 50 mill baht/y

Payback 4 years

Recommendations to UN regional commission

• Establish Energy Committee

• Monitor energy efficiency progress in the regions

• Exchange and share EE experiences

– Successful Cases

– Handbook / Guidelines

• Capacity building – training programs

• Encourage banking sectors / development banks