thailands energy conservation policy : industry programs prasert sinsukprasert ph d department of...
TRANSCRIPT
Thailand’s Energy Conservation Policy :Industry Programs
Thailand’s Energy Conservation Policy :Industry Programs
Prasert Sinsukprasert Ph DDepartment of Alternative Energy Development and Efficiency
[email protected]. 662 226 3998Fax. 662 226 4172
Thailand’s Energy Outlook Thailand’s Energy Outlook
Transportation37%
Agriculture 6%
Industrial36%
Res & Com 21%
Thailand consumes energy about 1 mill barrels of oil per day(0.75% of World energy consumption)
11.2
35.450.8
2
OilNatural Gas
Coal Hydro
Supply Demand
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
Thailand
USAUK
GermanyJapa
n
(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)
Thailand’s Energy SituationsThailand’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%
Strategy
Energy Efficiency Improvement TargetEnergy Efficiency Improvement Target
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 Consumption/ Energy 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
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
CampaignDemonstration Project
Demonstration Project
Access to Funds
Technical Assistance
Raise up ConfidencePerfect Information
Regulations
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
Compulsory ProgramCompulsory Program
• Over 1 MW peak demand or consume more than 20 TJ annually
• More than 4000 large buildings and factories (so called Designated Facilities)
• Mandatory Tasks– Assign Energy Manager– Report Monthly Energy Use– Develop EE Target and Plan– Compile all energy codes
Cooperative Efforts on Energy Management Cooperative Efforts on Energy Management
Objective: Sustainable energy management through internal cooperative efforts
Methodologieso Educate on concept & method + evaluationo Help create and implement EC measures
Achievement Implemented 500 facilities Introduced house-keeping measuresEnergy saving of 5-10% for each facility
( simple payback of 2.5 yrs)
Revolving Fund for EC Projects Revolving 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)
Phase I Results 82 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
Phase II Status – 6 months • 11 commercial banks joined• Loan for EE projects over 300 million USD (mostly from banks)
Cost Based Tax IncentiveCost Based Tax Incentive
• 25% Tax Break for the Investment in EE Projects Result in Efficiency Improvement
• Applicable for the First 50 mill baht Investment ( 1.25 mill USD )
• Incentive Spread Over 5 Years
Performance Based Tax IncentivePerformance Based Tax Incentive
• 100% of achieved energy saving will become tax deduction
• Max Incentive of 2 mill baht (50,000 USD) / Facility
• Pre and Post Audit will be required
Incentive through Board of Investment ( BOI )
Import duties and Cooperate tax exemption on new investment in• Energy conservation business
• High efficiency machine or equipment and renewable energy equipment manufacturing
• Solar PV manufacturing
• Energy Service Company – ESCO
– Renewable energy production business
• Alcohol or fuels from agricultural products
• Electricity or steam generation
Incentive last for the max period of 8 years
Promotion of ESCOsPromotion of ESCOs
• BOI – Tax Incentive– Maximum 8 years tax exemption for ESCO projects –
Cooperate Income tax
• Access to Revolving Fund– Eligible to borrow the low-interest loan from RF
program on project-by-project basis
• ESCO promotion activities– Website– Seminars, workshop– Publications– Lists of ESCOs and successful cases
Holistic ApproachHolistic Approach
Organizational Restructure
Paradigm ShiftEnforcer / Regulator Facilitator / Supporter
Mission Adjustment Value Creation
www.dede.go.th