thailand’s energy conservation policy and programs
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Thailand’s Energy Conservation Policy and Programs. Prasert Sinsukprasert Bureau of Energy Conservation and Regulation Dept. of Alternative Energy Development and Efficiency Ministry of Energy 20 October 2005 Presented in the FIRST ASIA ESCO Conference, Bangkok, Thailand. - PowerPoint PPT PresentationTRANSCRIPT
Thailand’sThailand’sEnergy Conservation Policy and Energy Conservation Policy and
ProgramsProgramsPrasert SinsukprasertPrasert Sinsukprasert
Bureau of Energy Conservation and RegulationBureau of Energy Conservation and RegulationDept. of Alternative Energy Development and EfficiencyDept. of Alternative Energy Development and Efficiency
Ministry of EnergyMinistry of Energy
20 October 200520 October 2005Presented in the FIRST ASIA ESCO Conference, Bangkok, ThailandPresented in the FIRST ASIA ESCO Conference, Bangkok, Thailand
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19801990200020102020
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19801990200020102020
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19801990200020102020
1.51.5
1.11.1
2.42.4
1.61.6
1.01.0
0.40.4
2.02.0
1414
1010
1.31.3
3.13.1
2.32.3
1.01.0
1.81.8
6.66.6
2.62.6
World Energy SituationWorld Energy Situation
Total Energy Other Wind and Solar
HydroHydro
NuclearNuclear
Biomass,MSW
Biomass,MSW
Wind & SolarWind & Solar
OilOil
GasGas
CoalCoal
OtherOther
Growth rate 2000-2020, %
Growth rate 2000-2020, %
SolarSolar
WindWind
MBDOE MBDOE MBDOE
Growth rate 1980-2000, %
Growth rate 1980-2000, %
1.71.7 1.71.7
Source : ExxonMobil Projection
Thailand’s Energy Outlook Thailand’s Energy Outlook
Transportation37%
Agriculture 6%
Industrial36%
Res & Com 21%
Thailand consumes energy about 1 mill bls of oil per day(0.75% of World energy consumption)
11.2
35.450.8
2
OilNatural Gas
Coal Hydro
Supply Demand
Thailand’s Energy SituationsThailand’s Energy Situations
Energy is basic Energy is basic factor of economic factor of economic developmentdevelopment
In 2002, energy costs In 2002, energy costs accounted to 14.31% accounted to 14.31% of GDPof GDP
Oil imports Oil imports accounted to 12% of accounted to 12% of total import valuestotal import values
60% of commercial 60% of commercial energy was importedenergy was imported
Still rooms for Still rooms for energy efficiency energy efficiency improvementimprovement 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%
Energy IntensityEnergy Intensity
6h t t p : / / w w w .e ia .d o e .g o v / p u b / in t e r n a t io n a l / ie a l f / t a b le e 1 g .x ls
E n e r g y I n t e n s i t y [ T o t a l P r im a r y E n e r g y C o n s u m p t io n P e r D o l la r o f G r o s s D o m e s t i c P r o d u c t ]
02,0004,0006,0008,000
10,00012,00014,00016,00018,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Btu
per 1
995
US D
ollar
s Us
ing M
arke
t Exc
hang
es R
ates
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
ThailandUSAUKGermanyJapan
(Compare with Developed Countries)
Energy IntensityEnergy Intensity
6h ttp : / / w w w .e ia .d o e .g o v / p u b / in te rn a tio n a l/ ie a lf / ta b le e 1 g .x lsE n e rg y I n te n s ity [ T o ta l P r im a ry E n e rg y C o n su m p tio n P e r D o lla r o f G ro ss D o m e stic P r o d u c t]
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
Doll
ars U
sing Ma
rket E
xcha
nges
Rate
s
Malaysia
China
India
Thailand
Vietnam
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
(Compare with Developing Countries)
New Vision for Energy New Vision for Energy DevelopmentDevelopment
“…Utilities sector is in transition …. focusing more on Economic Value, rather than revenue generation.”
Prof. Michael E. PorterInternational Utilities and Energy Conference 2003
“ …In the future, the competitive advantage of nations will partly
depend on Energy Efficiency of the domestic real sectors…”
William RamseyExe. VP of International Energy Agency (IEA)
Energy Strategies for Better Energy Strategies for Better CompetitivenessCompetitiveness28 August 200328 August 2003
20032003
Strategy
1.Improve EE in Transportation Sector
Objective
ประเทศไทยมีพลั งงานใช้�
อย�างต่�อเน��อง เพยงพอต่�อ
ความีต่�องการไปอก 50 ป�ประช้าช้นมีพลั งงานใช้�
อย�างท �วถึ�ง ในราคาท�เป น
ธรรมีแลัะเพ��อค#ณภาพช้ว&ต่ท�
ดีขึ้�)น
Improve end-use energy
efficiency
11
22
ประเทศไทยเป นศ*นย+กลัาง
พลั งงานในภ*มี&ภาค
33
44
• Cooperate with Ministry of Transportation to improve structure of public transports
• Changing Modes from roads to rails
• Good Management of mass transportation
• Comprehensive development of transportation system – integration of water and railways
• Enhance City planning• Promote high efficient cars
using tax incentives• Promotion campaign to
change behaviors• Ect.
Transportation sectorTransportation sectorPrograms
50
100
150
200
250
300
2524 2525 2526 2527 2528 2529 2530 2531 2532 2533 2534 2535 2536 2537 2538 2539 2540 2541 2542 2543 2544
Industrial and Building sectorIndustrial and Building sector
ประเทศไทยมีพลั งงานใช้�
อย�างต่�อเน��อง เพยงพอต่�อ
ความีต่�องการไปอก 50 ป�ประช้าช้นมีพลั งงานใช้�
อย�างท �วถึ�ง ในราคาท�เป น
ธรรมีแลัะเพ��อค#ณภาพช้ว&ต่ท�
ดีขึ้�)น
11
22
ประเทศไทยเป นศ*นย+กลัาง
พลั งงานในภ*มี&ภาค
33
44
Cooperate with Ministry of Industry to change industrial structure to be less energy intensive
Support by energy conservation promotion programs
Regulation Incentives, subsidies Soft loans for EE investment Technical assistance Research and development Training, capacity development
Tax Incentives Tax breaks for ESCOs Import duty exemption for high energy efficient products, machines
Performance-based incentives
Basic Metal
Chemical
(ป� 2
52
4 =
100
)
ทิ�ศทิางและมาตรการยั�งไม�ชั�ดเจน
ทิ�ศทิางและมาตรการยั�งไม�ชั�ดเจน
Paper
Fabricated Metal
Textiles
Non Metalic
Food and Beverages
Energy Intensity =EnergyGDP
Improve end-use energy
efficiency
2. Improve EE in Industrial and building
Sector
StrategyObjective Programs
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
Campaign
Demonstration Project
Demonstration Project
Access to Funds
Technical Assistance
Raise up Confidence Perfect Information
Regulations
Grant for small investm
ent
Grant for small investm
ent
Free Energy Audit and
consulting
Free Energy Audit and
consulting
Tax Incentive
s
Tax Incentive
s
Incentives & SubsidiesEnergy Codes
Energy Codes
Create Conducive Environment for EE Create Conducive Environment for EE InvestmentInvestment
Strategy
Energy Efficiency Energy Efficiency Improvement Improvement
TargetTarget
2. Improve EE in Industry
Objective
ประเทศไทยมีพลั งงานใช้�
อย�างต่�อเน��อง เพยงพอต่�อ
ความีต่�องการไปอก 50 ป�ประช้าช้นมีพลั งงานใช้�
อย�างท �วถึ�ง ในราคาท�เป น
ธรรมีแลัะเพ��อค#ณภาพช้ว&ต่ท�
ดีขึ้�)น
Energy Efficiency
Improvement
11
22
ประเทศไทยเป นศ*นย+กลัาง
พลั งงานในภ*มี&ภาค
33
44
1. Improve EE in Transportation
Energy Elasticity= 1:1 in 5 years
Indicators
Energy Elasticity = Energy Elasticity = ∆∆tt Energy Energy Consumption/ Consumption/ ∆∆tt GDPGDP
Ave. Energy Elasticity1.4 : 1.0
Ratio of energy growth rate to GDP growth rate = 1.0 by 2008
3. Awareness raising
campaign
Compulsory ProgramCompulsory Program
Over 1 MW peak demand or consume Over 1 MW peak demand or consume more than 20 TJ annuallymore than 20 TJ annually
More than 4000 large buildings and More than 4000 large buildings and factories (so called Designated Facilities) factories (so called Designated Facilities)
Mandatory TasksMandatory Tasks Assign Energy ManagerAssign Energy Manager Report Monthly Energy UseReport Monthly Energy Use Develop EE Target and PlanDevelop EE Target and Plan Compile all energy codesCompile all energy codes
Cooperative Efforts on Energy ManagementCooperative Efforts on Energy Management
Objective: Sustainable energy management Objective: Sustainable energy management through internal cooperative efforts through internal cooperative efforts
MethodologiesMethodologieso Educate on concept & method + evaluationEducate on concept & method + evaluationo Help create and implement EC measures Help create and implement EC measures
AchievementAchievement Implemented factory 95 plantsImplemented factory 95 plants Introduced house-keeping measuresIntroduced house-keeping measures Energy saving of 5-10% for each facilityEnergy saving of 5-10% for each facility
( simple payback of 2.5 yrs)( simple payback of 2.5 yrs)
Revolving Fund for EC ProjectsRevolving Fund for EC Projects
Budgets allocation Budgets allocation from ECP Fund from ECP Fund
Loan approval by BankLoan approval by Bank Technical assistance Technical assistance
by DEDEby DEDE Key conditionsKey conditions
Loan size Loan size << 1.2 mill 1.2 mill USDUSD//projectproject
Interest rate less than Interest rate less than 4% (fixed rate)4% (fixed rate)
Repayment in the Repayment in the defined time frame (7yr)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
Cost Based Tax IncentiveCost Based Tax Incentive
25% Tax Break for the Investment in EE 25% Tax Break for the Investment in EE Projects Result in Efficiency ImprovementProjects Result in Efficiency Improvement
Applicable for the First 50 mill baht Applicable for the First 50 mill baht Investment ( 1.25 mill USD )Investment ( 1.25 mill USD )
Incentive Spread Over 5 YearsIncentive Spread Over 5 Years
Performance Based Tax IncentivePerformance Based Tax Incentive
100% of achieved energy saving will 100% of achieved energy saving will become tax deductionbecome tax deduction
Max Incentive of 2 mill baht (50,000 Max Incentive of 2 mill baht (50,000 USD) / FacilityUSD) / Facility
Pre and Post Audit will be requiredPre and Post Audit will be required
Incentive through Board of Investment ( BOI )
Import duties and Cooperate tax exemption on Import duties and Cooperate tax exemption on new investment innew investment in• Energy conservation business Energy conservation business
High efficiency machine or equipment and High efficiency machine or equipment and renewable energy equipment manufacturingrenewable energy equipment manufacturing
Solar PV manufacturingSolar PV manufacturing Energy Service Company – ESCO Energy Service Company – ESCO
Renewable energy production businessRenewable energy production business Alcohol or fuels from agricultural productsAlcohol or fuels from agricultural products Electricity or steam generation Electricity or steam generation
Incentive last for the max period of 8 Incentive last for the max period of 8 years years
Promotion of ESCOsPromotion of ESCOs
BOI – Tax IncentiveBOI – Tax Incentive Maximum 8 years tax exemption for ESCO Maximum 8 years tax exemption for ESCO
projects – Cooperate Income taxprojects – Cooperate Income tax Access to Revolving FundAccess to Revolving Fund
Eligible to borrow the low-interest loan from Eligible to borrow the low-interest loan from RF program on project-by-project basisRF program on project-by-project basis
ESCO promotion activitiesESCO promotion activities WebsiteWebsite Seminars, workshopSeminars, workshop PublicationsPublications Lists of ESCOs and successful casesLists of ESCOs and successful cases
Holistic ApproachHolistic Approach
เพิ่��มม�ลค่�าเพิ่��มม�ลค่�าเปล��ยันโค่รงสร�างเปล��ยันโค่รงสร�างปร�บกระบวนทิ�ศน!ปร�บกระบวนทิ�ศน!
Paradigm Shift
Enforcer / Regulator Facilitator / Supporter
For More InformationFor More Information
www.energy.go.thwww.energy.go.th
www.dede.go.thwww.dede.go.th