Government Policy and Supports Government Policy and Supports

for Energy Efficiency in Industry for Energy Efficiency in Industry

SectorSector

Krairit NilukuhaKrairit NilukuhaDirector GeneralDirector General

Department of Alternative Energy Development and Department of Alternative Energy Development and EfficiencyEfficiency

Ministry of Energy, ThailandMinistry of Energy, Thailand

www.dede.go.thwww.dede.go.th 16 September 2009

Primary Energy Supply 2008Primary Energy Supply 2008

Source: Statistic Division, DEDE

Total Primary Energy Supplpy 110,074 ktoe

Oil 36.8%

NG 29.6%

Coal 13.6%

Renewables 20.1% (including hydro)

Energy Consumption in 2008

transporttransport 3 351. %51. %

CommerciCommercialal 71. % 71. % residentialresidential

151. %151. %

agriculturagriculturalal 5. 5.33%%

miningmining 0 .2 0 .2

%%

constructiconstructionon 02. 02.%%

Source: Statistic Division, DEDE

IndustryIndustry

370. %370. %

Food&Bev 276. %

textile 3.4 %

Wood & Furniture 0.8 %

paper 23. %

chemical 15.7%Non Metal 313.

%

Basic metal 4.7%

Metal Frab 69. %

other 72. %

Energy Consumption in Industry and Business 29,222 ktoe

( about 16.7 billion USD)

Total Final Energy Consumption 66,284 ktoe

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

Thailand’s Energy Situations

• Energy is basic factor of economic development

• In 2008, energy costs accounted to about 14% of GDP

• Oil imports accounted to 10% of total import values

• 44% of commercial energy was imported or about 800 billion baht

• Still rooms for energy efficiency improvement

Transport 37%

Industry 36%

Resident & Commercial 21%

Agriculture 5%Agriculture 5%

Target

Business as UsualBusiness as Usual

Actual

Energy Conservation Target(industry and commercial sector only)

Consumption in 200323,614 ktoe

15,000

25,000

35,000

45,000

55,000

65,000

75,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Ktoe

Target

Business as Usual

Actual

Consumption in 200323,614 ktoe

25% savings by 2022(17,862 ktoe)

EE Conceptual Framework

Energy Management Practice Energy Management Practice

TrainingTraining

High Tech.

Process Improvement

Energy Management

Revolving FundRevolving Fund

Tax Incentive Tax Incentive

RegulationRegulationData/Information Data/Information

Conceptual Framework

Demonstration & DisseminationDemonstration & Dissemination

ESCO FundESCO Fund

Energy Conservation Promotion Fund Energy Conservation Promotion Fund

– collect small levy (0.04 – 0.25 baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene

– Annual Revenue around 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

Objective and Source of FundObjective and Source of Fund

Energy Conservation Promotion Fund Energy Conservation Promotion Fund

Measure/Program - Results and Plan

Main componentsMain componentsResults 2003 - 2008Results 2003 - 2008 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 84%•1,964 Designated Buildings - PRE appointed 93% - EC Report 92% - T&P submitted 82%3,313 Designated Factories - PRE appointed 86% - EC Report 83% - T&P submitted 69%

•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

Energy Saving Potential 261 ktoe/year

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)

• Support over 240 EE/RE projects• Total investment around 500 million USD – of 150 million USD of Government’s Revolving Fund• Energy savings of 120 million USD per year.

2009• Secured additonal 60 million USD of budget

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 knowledge

Participating BanksParticipating Banks

Results -200220

0 8Results -200220

0 8

Measure/Program - Results and Plan

DescriptionDescription Future PlanFuture Plan

ESCO Fund Program ESCO Fund Program

Co-investment fund with private sector/investors• Equity Investment• Venture Capital• Equipment Leasing • Carbon Credit Trading• Technical Assistance• Credit Guarantee Facility

• Set up the Fund (initial budget of 15 million USD• Selected 2 Fund Managers - Energy Conservation of Thailand Foundation - Energy for Environment Foundation

2009• Promoting and Marketing the Fund• Support at least 20 projects • Leverage minimum of 50 million USD• Energy Savings of 10 million USD

Long term Plan• Increase the Fund to 100 to 200 million USD• Corporatise the program to be Investment Company• Open for private investors

Results 2008Results 2008

Measure/Program - Results and Plan

• Approved 5 projects for the total investment of 25 million USD (co-invest by ESCO Fund for 4 million USD)

CurriculumCurriculum Results 2002-2008Results 2002-2008 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 over 4,000 PREs •Trained 250 Senior PREs•Trained over 15,000 people in other courses•Added 4 EE courses in vocational study• Train 40 college teachers to deliver EE course

•Train over 12 000,engineers and building operators•Over 10,000 students attend EE courses every year

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

Main ComponentsMain Components Results 2002-2008Results 2002-2008 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 over 3,000 facilities including• 1250 Designated factories (Metallic ,Food , Chemical , Textile)• 600 Designated buildings (hospitals, hotels)• over 1200 SMEs • energy savings 80 million USD/ y(Housekeeping, Low cost measures)

2009Implement 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

Various ways to provide information and consultation

Various ways to provide information and consultation

Results 2002 - 2008Results 2002 - 2008

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 20,0 00

people have used the services•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

Cooperation and IntegrationCooperation and IntegrationCooperation and IntegrationCooperation and Integration

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Education

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Finance

Science&Tech

Agriculture

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Environment

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Foreign Affairs

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