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Energy Efficiency and Conservation in Thailand

กรมพัฒนาพลังงานทดแทนและอนุรักษ์พลังงาน. Energy Efficiency and Conservation in Thailand. Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy. March 2005. Presentation Outlines. Thailand Energy Policy and Strategies Energy Situation in Thailand

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Energy Efficiency and Conservation in Thailand

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  1. กรมพัฒนาพลังงานทดแทนและอนุรักษ์พลังงาน Energy Efficiency and Conservation in Thailand Department of Alternative Energy Development and Efficiency (DEDE) Ministry of Energy March 2005

  2. Presentation Outlines • Thailand Energy Policy and Strategies • Energy Situation in Thailand • Energy Conservation Promotion Act • Energy Conservation Scheme • Renewable Energy Strategic Plan

  3. NationalPolicy To conserve, develop and promote the efficient consumption of energy, while balancing the development with indigenous Natural resources and the environment, with ultimate goal to Reduce the degree of reliance on energy imports HE. Dr. Thaksin Shinawatra, Feb 26, 2001 Strategic objectives Enhance competitiveness of the real sector Supply the kingdom with clean and continuous energy Energy for better living for all Thailand as SE ASIA Energy Hub Thailand Energy Policy and Vision 2 3 4 1

  4. Thailand Energy Strategies for Economic Development and Regional Integration • Strategy for Energy Security Ensure sufficient and reliable energy supply for at least 30 yrs • Strategy for Efficient Use of Energy Reduce Energy Elasticity from 1.4:1 to 1:1 by 2007 • Strategy for Renewable Energy Development Increase share of RE from 0.5% to 8% of total final energy by 2011 • Strategy for Thailand as a Regional Energy Center Develop Strategic Energy Land Bridge and Energy Hub

  5. Energy Consumption in Transportation Total Consumption of 20,927 ktoe in year 2003 Source: Thailand Energy Situation Report 2003 , DEDE

  6. Energy Consumption in Industry Total Consumption of 19,988 ktoe in year 2003 Source: Thailand Energy Situation Report 2003 , DEDE

  7. Energy Consumption in Residential Total consumption of 8,173 ktoe in year 2003 Source: Thailand Energy Situation Report 2003 , DEDE

  8. Energy Situation in Thailand Total Consumption of 56,289 ktoe in year 2003 Source: Thailand Energy Situation Report 2003 , DEDE

  9. Energy Intensity (Compare with Developed Countries) Thailand USA UK Germany Japan

  10. Energy Intensity (Compare with Developing Countries)

  11. Thailand’sEnergy Conservation Act 1992 • Regulation for Designated Facilities • Established ENCON Fund

  12. ENCON Fundapproximately 450 million USD • Sources • Initial from Oil Fund ~ 40 million USD • Small taxes from the use of benzine, diesel, fuel oil, kerosene ~ 60 million USD annually • Interests • Uses • Grants for R&D, Pilot projects, Training, Studies • Low Interest Loan for Investment - Revolving Fund

  13. Create Conducive Environment for EE Investment Customer Service Low Interest Source of Fund Access to Funds Workshop & Training Technical Assistance Value engineering and EM Standards Tax Incentives Incentives & Subsidies Regulations Energy Codes Promotion Campaign Raise up Confidence Perfect Information List Of Experts Demonstration Project Promotion of ESCOs Directory of Technology Providers

  14. Highlighted Programs

  15. Compulsory 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

  16. Cooperative Efforts on Energy Management • Objective: Sustainable energy management through internal cooperative efforts • Methodologies • Educate on concept & method + evaluation • Help create and implement EC measures • Achievement • Implemented factory 95 plants • Introduced house-keeping measures • Energy saving of 5-10% for each facility ( simple payback of 2.5 yrs)

  17. Revolving Fund for EC Projects 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 • 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)

  18. Cost 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

  19. Performance 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

  20. 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

  21. กรมพัฒนาพลังงานทดแทนและอนุรักษ์พลังงาน www.dede.go.th Thank you

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