Results and PlanResults and Plan Energy Efficiency Promotion Energy Efficiency Promotion

ActivitiesActivities

in Thailandin Thailand

Prasert Sinsukprasert, Ph.D.Prasert Sinsukprasert, Ph.D.Department of Alternative Energy Development and Department of Alternative Energy Development and

EfficiencyEfficiency

1111thth ASEAN EE&C SSN Annual Meeting ASEAN EE&C SSN Annual MeetingSingapore, 6 June 2007Singapore, 6 June 2007

Energy Consumption in Thailand 2006Energy Consumption in Thailand 2006

Transport360. %

Agriculture 5 .3 %Industry382. %

Residential and Commercial 205. %

Source: Statistic Division, DEDE

Natural Gas

3.9% Coal14.7%

Electricity20.9%Oil

60.5%

Total Final Energy Use 63,180 ktoe ( value 1,374,648 million baht)*

Energy Situation 2006

transporttransport 33 6.06.0%%

businesbusinesss 62. 62.%%

residentialresidential 1 4 .3 %1 4 .3 %

agriculturagriculturalal 5. 5.33%%

miniingminiing 0 .2 0 .2

%%

constructiconstructionon 02. 02.%%

Source: Statistic Division, DEDE

IndustryIndustry

33 7.87.8%%

Food&Bev 28 .2%

textile 4 .5%

Wood & Furniture 0.9 %

paper 36chemical 1 2%Non Metal 33.8%

Basic metal 4.4%

Metal Frab 6.5%

other 6.1%

Energy Consumption in Industry and Business 27,768 ktoe (15,100 mill USD)

Thailand’s Energy Situations

• Energy is basic factor of economic development

• In 2005, energy costs accounted to about 15% of GDP

• Oil imports accounted to 12% of total import values

• 60% of commercial energy was imported or about 700 billion baht

• Still rooms for energy efficiency improvement

0

10,000

20,000

30,000

40,000

50,000

60,000

2535 2536 2537 2538 2539 2540 2541 2542 2543 2544 2545

ktoe

Transport 37%

Industry 36%

Resident & Commercial 21%

Agriculture 6%Agriculture 6%

Industry Energy ConsumptionIndustry Energy Consumption 1998-20051998-2005

165160145

136123

118113100

0

5,000

10,000

15,000

20,000

25,000

30,000

1998 1999 2000 2001 2002 2003 2004 2005

0

50

100

150

200

Ktoe (%)

Food & Beverage Textile Wood and Furniture

Paper Chemical Non-Metalic

Basic Metal Fabricated Metal Others

change % [ 1998 = 100 )

GDP in Industries 1998 - 2005GDP in Industries 1998 - 2005

162154

143129

120119112100

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

1998 1999 2000 2001 2002 2003 2004 20050

25

50

75

100

125

150

175

200

Million baht (%)

Food & Beverage Textile Wood & Furniture

Paper Chemical Non-Metalic

Basic Metal Basic Metal Others

Change % ( 1998 = 100 )

Energy ElasticityEnergy Elasticity 1998 - 20051998 - 2005

y = 1.0507x + 1.0245

R2 = 0.99064.10

4.15

4.20

4.25

4.30

4.35

4.40

2.95 3.00 3.05 3.10 3.15 3.20

Log (GDP)

Lo

g (

En

erg

y)

AVG Energy ElasticityAVG Energy Elasticity1.05:11.05:1

Energy IntensityEnergy Intensity 1998 - 20051998 - 2005

923.60 1,033.43 1,096.17 1,111.46 1,190.81 1,318.28 1,426.09 1,500.10

13,754

15,48816,208 16,922

18,67919,988

21,96122,643

15.0915.4015.1615.69

15.2314.7914.9914.89

0

5,000

10,000

15,000

20,000

25,000

30,000

2541 2542 2543 2544 2545 2546 2547 2548

0

2

4

6

8

10

12

14

16

(ktoe), Billion Baht Energy IntensityToe/Million baht

Energy Consumption (ktoe) GDP (billion baht) EI (toe/million baht)

EE Conceptual Framework and Target

Energy Management Practice Energy Management Practice

Energy Elasticity = Growth (Energy)

Growth (GDP)

Original Target 12. : 1 1 : 1 New Challenge 0.85 :

1EE 0.9 :

1

EE0.85 :

1

800mill USD/y

2000, mill USD/y

ktoe

TrainingTraining

High Tech.

Process Improvement

Energy Management

Revolving FundRevolving Fund

Tax Incentive Tax Incentive

RegulationRegulation

Accumulative Savings 2004–2011 worth over 7 billion USD

Accumulative Savings 2004–2008 worth over 1.5 billion USD

Data/Information Data/Information

Conceptual Framework Demonstration & DisseminationDemonstration & Dissemination

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2006 2007 2008 2009 2010 2011

– collect small levy (0.07 baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene

– Annual Revenue around 2 – 2.5 billion baht– Supervised by Energy Conservation Promotion

Fund committee – chaired by Deputy Prime Minister

– To be used for energy conservation promotion including research, study, development, demonstration, incentives (grants/soft loan), capacity building, and policy study

Energy Conservation Promotion Fund

Objective and Source of FundObjective and Source of Fund

Measure/Program - Results and Plan

Main componentsMain componentsResults 2003 - April 2007Results 2003 - April 2007 Plan in ProgressPlan in Progress

• Modify the law-- Use different measures/criteria for public / private buildings-- Issue Energy Management Standards-- Issues new building codes for each type of buildings (Hotel, Office, Hospital, Department store)

•Overall compliance rate of 87%•1,917 Designated Buildings - PRE appointed 1,598 - EC Report 1,743 - T&P submitted 1,384 - EE Potential 593 million baht• 3,160 Designated Factories - PRE appointed 2,253 - EC Report 2,587 - T&P submitted 1,598 - EE Potential 3,640 million baht

•Appointment of Energy manager (PRE)

•Reporting energy consumption and EE project implementation

•Development of Target and Plan

•Enforce only large energy consuming buildings and factories (over 1 MW peak)

Law and Regulation Law and Regulation

Main ComponentsMain Components Results 2002-2006Results 2002-2006 Future planFuture plan

Cooperative Efforts for Energy Conservation Cooperative Efforts for Energy Conservation

• On-siteTechnical Assistance to embed Sustainableenergy management system in facilities• Establish EC Team and assess energy situation •Identify EE opportunities•Implement EE Projects•M&E

• implemented in 20,27 facilities including• 854 Designated factories (Metallic ,Food , Chemical , Textile)• 479 Designated buildings (hospitals, hotels) • energy savings 2071 million baht per year(Housekeeping, Low cost measures)

2007

Implement in over 600 buildings and factories•saving 450 million baht per year

Long term plan• Cost Sharing between government and private sector•Develop Energy Management Standards as Ministerial Orders

Measure/Program - Results and Plan

CurriculumCurriculum Results 2002-2006Results 2002-2006 Future PlanFuture Plan

EE Training and Capacity BuildingEE Training and Capacity Building

•General courses– PRE – Senior PRE

•Specialized Courses - Energy Management

- Energy Audit - Energy Efficiency in Major Systems such as airconditioning, lighting, heating, etc

- Energy Efficiency in Specific groups of industries (e.g. Textile, paper, Cement, etc.0

•Cooperate with Vocational Study Department to add EE study in regular curriculum

•Trained 6,000 PREs •Trained 250 Senior PREs•Trained 6,750 people in other courses•Added 4 EE courses in vocational study• Train 40 college teachers to deliver EE course

2007

•Train over 2000

engineers and building operators•Over 5,000 students attend EE courses

Next Step•DEDE develop Curriculums and allow private sectors to deliver the courses and charge trainees•Train 500 vocational school teachers all over the country

Measure/Program - Results and Plan

Various ways to provide information and consultation

Various ways to provide information and consultation

Results 2002 - 2006Results 2002 - 2006

Future PlanFuture Plan

Information and Knowledge Dissemination Information and Knowledge Dissemination

•EE Display Center• display over 54 EE technologies for building industry and residential sector• EE Demonstration houses• Energy Conservation building

•EE and RE Knowledge center :

•Center of Data and Information concerning EE and RE development•Compile EE/RE data for planning and evaluation•Disseminate information through internet web-based

•Over 13300,people have used the services•90% Completion of EE Display Center

•Develop Thailand EE/RE Knowledge Network

Measure/Program - Results and Plan

•EE Cliniques•EE One Stop Service•EE Consulting Centers and Branches

DescriptionDescription

Results 2002-2006Results 2002-2006PlanPlan

Tax Incentives Tax Incentives

• Cost-based :Deduct Taxable Income 125% of EE investment costs• Performance-based : Reduce Taxable Income with Actual Energy Savings• BOI : exemption of cooperate income tax and import duties for EE equipment manufacturers/ESCOs

Cost-Based - support 94 projects - energy savings of 10 million USD/y - leverage EE investment of 17 million USD - Tax reduction of 3.2 million USD

Performance-Based - support 76 projects - energy saved 11.6 million USD/y - leverage EE investment 16.6 million USD - Tax reduction of 1.3 million USD – in a form of susidyBOI - support 14 projects - energy savings of 2.8 million USD

2007

Continue the supportsEstimated energy savings of additional 10 million USD/y

Next Steps• Increase the incentives to a deduction of 200% of EE Investment cost• Install performance based incentives into the TAX system

Measure/Program - Results and Plan

DescriptionDescription Future PlanFuture Plan

Revolving Fund Program Revolving Fund Program

Low interest loan for Energy Efficiency via financial institutes• Less than 4% interest• Loan period of 7 years with one year grace period• Up to 50 million baht (1.3 milion USD)

phase - 1 pilot: (2 0 0-22005)

• Support 80 EE/RE projects•Total investment around

100million USD – of 54 million USD of Revolving Fund• Energy savings of 42.7 million USD per year.

phase 2 : (2 0 0 6 )• Support 75 EE/RE projects•Total investment around

785 million USD – of 41.2 million USD of Revolving Fund• Energy savings of 36 million USD per year.

2007

• Secured additonal 57 million USD of budget for the phase 3

Long term Plan•Reduce DEDE roles on Funding Sources – providing more technical assistance• More co-financing from the banks• Training banking officers on EE technical knowledgeParticipating BanksParticipating Banks

Results -200220

06

Results -200220

06

Measure/Program - Results and Plan

DescriptionDescription PlanPlan

Demonstration of High and Advanced EE TechnologyDemonstration of High and Advanced EE Technology

• select industrial groups with high energy intensity and economy significance• study energy consumption patterns/ behaviors, production process and identify new-advanced technologies that have great potentials • cooperate with industries to demonstrate the application of technologies (20% subsidy)• disseminate results

2007

•Demonstration of 10 Advanced EE Technologies such as

•Hybrid heating•Slag foaming technology•Innovative heat storage•Coal water mixer

• Energy savings worth 5 million USD per year

Results 2002 - 2006Results 2002 - 2006

Various industry groups have been studied - Food & Beverage - Textile - Plastic - Steel - Electronics - Petrochemical - Non-metallic - Paper - Hotel - Hospital

Measure/Program - Results and Plan

DescriptionDescription Future PlanFuture Plan

Public Private PartnershipPublic Private Partnership

• cooperate with Thai Chamber of Commerce, Federation of Thai Industry, and Industrial Estates to provide information and technical assistance to private sector

• cooperate with major industrial groups in Thailand, to raise EE awareness, provide technical assistance and training

Results 2002-2006Results 2002-2006

• Extend the cooperation to SMEs

• Extend the services through provincial portals/branches

Measure/Program - Results and Plan

Cooperation and IntegrationCooperation and IntegrationCooperation and IntegrationCooperation and Integration

Min

stry

of

Min

stry

of

Energy

Energy

Min

stry

of

Min

stry

of

Energy

Energy

Education

Industry

Finance

Science&Tech

Agriculture

Transport

Environment

Private

Sect

or

Foreign Affairs