11

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 6th January 2005

22

Presentation OutlinesPresentation Outlines

• Thailand Energy Policy and Strategies

• Energy Situation in Thailand

• Energy Conservation Promotion Act

• Energy Conservation Scheme

• Renewable Energy Strategic Plan

33

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

44

Thailand Energy Strategies Thailand Energy Strategies for Economic Development and Regional Integrationfor Economic Development and Regional Integration

• Strategy for Efficient Use of Energy Reduce Energy Elasticity from 1.4:1 to 1:1 by 2007

• Strategy for Energy Security Ensure sufficient and reliable energy supply for at least 30 yrs

• Strategy for Thailand as a Regional Energy Center Develop Strategic Energy Land Bridge and Energy Hub

• Strategy for Renewable Energy Development Increase share of RE from 0.5% to 8% of total final energy by 2011

• Strategy for Development of Energy Information Technology

Be an modern energy center in providing domestic and international energy information

• Strategy for Participation and Environment Concern Promote utilizing of clean fuels i.e. ethanol, biodiesel and nat. gas

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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

66

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

77

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

99

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)

1111

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

1212

EC Implementation SchemeEC Implementation Schemess

ECEC

Standard &

Regulations

Financial

Incentives

Technical

Assistance

Awareness

Raising

Information

Service

1313

Designated FacilitiesDesignated Facilities

Appoint Person Responsible for Energy

Submit Energy Consumption Data

TARGET&PLAN

Investment in EC Projects

Designated FacilitiesBuildings/Factories Installed power meter of > 1000 kW

Total Transformer Capacity of 1175 kVA Annual Energy Consumption>20 mill MJ

Designated : 1800 Buildings 2600 Factories

Achievement : >70% Energy Audit ~40% Target&Plan

~10% Investment

Goal :Saving 440 ktoe

(2008)

Monitoring andEvaluation

-Tax Incentive , Soft Loan, ESCOs

1414

ObjectivesObjectives

Set up Energy Set up Energy Conservation Promotion Conservation Promotion FundFund

Target & Plan for Energy Target & Plan for Energy ConservationConservation

Energy Performance Energy Performance StandardsStandards

R & DR & D

HRDHRD

Promotional CampaignPromotional Campaign

Energy Conservation Energy Conservation Promotion Act 1992Promotion Act 1992

ENCON FundENCON Fund

Sources of fundSources of fund– Initial from Oil FundInitial from Oil Fund

(~ 40 million USD)(~ 40 million USD)– Tax from gasoline, Tax from gasoline,

diesel, etc. diesel, etc. (~ 0.1 (~ 0.1 cents/lt )cents/lt )

– Interests Interests Applications Applications

– Grants for R&D, Pilot Grants for R&D, Pilot projects, Training, projects, Training, Higher EducationHigher Education

– Soft Loan for Soft Loan for Investment Investment

i.e. Revolving Fundi.e. Revolving Fund

1515

OngoingOngoing Programs Programs

Standard & Regulations– Designated Facilities

Financial Incentives– Low Interest Loan– Grant for small

Investment– Import Duty Reduction

Technical Assiatance– Workshop & Training – Energy Audit and Cons

ulting– Techno. Demonstration

Awareness Raising– Public Relations

Information Service– Directory of Technology Prov

iders– Database of Energy Experts– Guidelines– One Stop Service Unit

1616

Highlighted ProgramsHighlighted Programs

1717

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 43 approved and under construction projects with leverage 40 million USD of EC Investment

Average investment 1 mill USD / a project & average payback 2.26 yrs

Annual savings > 132 GWh and 37 mill. liter of fuel oil

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Technical Assistance via Free Technical Assistance via Free Energy AuditEnergy Audit for SMEsfor SMEs

• Provide free energy Audit for SMEs

• Recommend EC measures for implementing

• More than 500 SMEs have been audited during 2002-2003

• Expect energy saving of 6.5 mill USD/year

2020

FutureFuture EC EC ProgramsPrograms

• Standard & Regulations– Designated Facilities– Energy Management StandardEnergy Management Standard

• Financial Incentives– Low Interest Loan– Import Duty Reduction– Tax IncentivesTax Incentives

• Technical Assiatance– Workshop & Training – Free Energy Audit and Con

sulting– Technology Demonstration– Promotion of ESCOsPromotion of ESCOs

• Awareness Raising– Public Relations– Competition for Best Competition for Best

Practices in ECPractices in EC

• Information Service– Directory of Technology

Providers– Experts data base– One Stop Service Unit– Energy Display CenterEnergy Display Center

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More InformationMore Information VisitVisit

www.dede.go.thwww.dede.go.th

Thank you