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
World Energy Situation
Total Energy
MBDOE
350
Growth rate
1980-2000, %
300
1.7
1.7
1.1
200
Other
Wind and Solar
Wind & Solar
150
40
1.5
1.0
30
3.1
Coal
1.3
50
50
MBDOE
1.2
0.9
250
100
Other
MBDOE
Growth rate 60
2000-2020, %
1.8
2.4
Gas
Biomass,
MSW
10
Oil
Wind
14
20
2.3
1.0
0.6
6.6
Nuclear
0.4
0.3
1.6
0
1980 1990 2000 2010 2020
Solar 10
Hydro
2.6
2.0
0
0.0
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
Source : ExxonMobil Projection
Thailand’s Energy Outlook
Thailand consumes energy about 1 mill bls of oil per day
(0.75% of World energy consumption)
Coal
Hydro
11.2
Agriculture 6%
2
5 0 .8
3 5 .4
Natural Gas
Industrial
36%
Transportation
37%
Oil
Res & Com 21%
Supply
Demand
Thailand’s Energy Situations
ktoe





Energy is basic factor of 60,000
economic development
50,000
In 2002, energy costs
accounted to 14.31% of
40,000
GDP
Oil imports accounted
30,000
to 12% of total import
values
20,000
60% of commercial
energy was imported
10,000
Still rooms for energy
efficiency improvement 0
Agriculture 6%
Resident & Commercial 21%
Industry 36%
Transport 37%
2535
2536
2537
2538
2539
2540
2541
2542
2543
2544
2545
Energy Intensity
(Compare with Developed Countries)
Thailand
USA
UK
Germany
Japan
Energy Intensity
(Compare with Developing Countries)
New Vision for Energy Development
“…Utilities sector is in transition …. focusing
more on Economic Value, rather than revenue
generation.”
Prof. Michael E. Porter
International 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 Ramsey
Exe. VP of International Energy Agency (IEA)
Energy Strategies for Better Competitiveness
28 August 2003
2003
Transportation sector
1
Objective
Improve enduse energy
efficiency
Programs
Strategy
1.Improve EE in
Transportation Sector
•
2
ประเทศไทยมี
พลังงานใช ้
อย่างต่อเนือ
่ ง
เพียงพอต่อ
ความต ้องการ
ไปอีก 50 ปี
3 ประชาชนมี
พลังงานใช ้
อย่างทั่วถึง
ในราคาทีเ่ ป็ น
ธรรมและเพือ
่
คุณภาพชวี ต
ิ
ทีด
่ ข
ี น
ึ้
4
ประเทศไทย
เป็ นศูนย์กลาง
พลังงานใน
ภูมภ
ิ าค
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.
Industrial and Building sector
1
2. Improve EE in Industrial
and building Sector
Improve enduse energy
efficiency
ประเทศไทยมี
พลังงานใช ้
อย่างต่อเนือ
่ ง
เพียงพอต่อ
ความต ้องการ
ไปอีก 50 ปี
3 ประชาชนมี
พลังงานใช ้
อย่างทั่วถึง
ในราคาทีเ่ ป็ น
ธรรมและเพือ
่
คุณภาพชวี ต
ิ
ทีด
่ ข
ี น
ึ้
4
ประเทศไทย
เป็ นศูนย์กลาง
พลังงานใน
ภูมภ
ิ าค
300
Energy Intensity
=
Energy
GDP
200
150
ทิศทางและมาตรการ
ยังไม่ชดั เจน
Basic
Metal
Chemical
 Tax
Fabricated Metal
100
Regulation
 Incentives, subsidies
 Soft loans for EE investment
 Technical assistance
 Research and development
 Training, capacity development

250
(ปี 2524 = 100)
2
Programs
 Cooperate with Ministry of
Industry to change industrial
structure to be less energy
intensive
 Support by energy
conservation promotion
programs
Strategy
Objective
Food and Beverages
Non Metalic
Textiles
Paper
50
2524 2525 2526 2527 2528 2529 2530 2531 2532 2533 2534 2535 2536 2537 2538 2539 2540 2541 2542 2543 2544
Incentives
Tax breaks for ESCOs
 Import duty exemption for high
energy efficient products,
machines
 Performance-based incentives

Create Conducive Environment for EE Investment
Low
Interest
Source of
Fund
Grant for
small
investmen
t
Access to Funds
Customer
Service
Workshop
& Training
Technical Assistance
Incentives & Subsidies
Regulations
Tax
Incentives
Raise up Confidence
Promotion
Campaign
Demonstration
Project
Promotion
of ESCOs
Free
Energy
Audit and
consulting
Energy
Codes
Perfect Information
Directory
of
Technology
Providers
List
Of
Experts
1
Objective
Energy
Efficiency
Improvement
Energy Efficiency Improvement
Target
Strategy
Indicators
1. Improve EE in Transportation
Energy Elasticity
= 1:1 in 5 years
2. Improve EE in Industry
2
T o ta l F in a l E n e rg y C o n su m p tio n & G D P
3. Awareness raising campaign
4.80
Energy Elasticity = ∆t Energy Consumption/ ∆t GDP
4.70
l o g (E n e r g y )
ประเทศไทยมี
พลังงานใช ้
อย่างต่อเนือ
่ ง
เพียงพอต่อ
ความต ้องการ
ไปอีก 50 ปี
3 ประชาชนมี
พลังงานใช ้
อย่างทั่วถึง
ในราคาทีเ่ ป็ น
ธรรมและเพือ
่
คุณภาพชวี ต
ิ
ทีด
่ ข
ี น
ึ้
4.60 Ave. Energy Elasticity
1.4 : 1.0
Ratio of energy growth
rate to GDP growth
rate = 1.0 by 2008
4.50
4.40
4.30
4
ประเทศไทย
เป็ นศูนย์กลาง
พลังงานใน
ภูมภ
ิ าค
4.20
4.10
3.05
3.10
3.15
3.20
3.25
3.30
l o g (G D P )
3.35
3.40
3.45
3.50
3.55
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
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
o
o

Achievement



Implemented factory 95 plants
Introduced house-keeping measures
Energy saving of 5-10% for each facility
( simple payback of 2.5 yrs)
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)
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 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 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
 Incentive
or steam generation
last for the max period of 8 years
Promotion of ESCOs

BOI – Tax Incentive


Access to Revolving Fund


Maximum 8 years tax exemption for ESCO projects –
Cooperate Income tax
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 Approach
ปรับกระบวนทัศน์
เปลีย่ นโครงสร้ าง
เพิม่ มูลค่า
Paradigm Shift
Enforcer / Regulator
Facilitator / Supporter
For More Information
www.energy.go.th
www.dede.go.th