Transcript Thailand Country Analyses: Industrial/Commercial Energy

Thailand’s Energy
Conservation Policy :
Industry Programs
Prasert Sinsukprasert Ph D
Department of Alternative Energy Development and Efficiency
3rd Policy Dialogue on Green Partnership Plan (GPP)
24-25 April 2006, Bangkok
Thailand’s Energy Outlook
Thailand consumes energy about 1 mill barrels 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
Transportation
37%
Industrial
36%
Oil
Res & Com 21%
Supply
Demand
Thailand’s Energy Situations
ktoe
• 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
60,000
Agriculture 6%
50,000
40,000
Resident & Commercial 21%
30,000
Industry 36%
20,000
Transport 37%
10,000
0
2535
2536
2537
2538
2539
2540
2541
2542
2543
2544
2545
1
Energy Efficiency Improvement
Target
Strategy
Indicators
Objective
Energy
Efficiency
Improvement
1. Improve EE in Transportation
Energy Elasticity
= 1:1 in 5 years
2. Improve EE in Industry
2
4
ประเทศไทย
เป็ นศูนย์กลาง
พลังงานใน
ภูมภ
ิ าค
ta l F in a l E n e rg y C o n su m p tio n & G D P
3. Awareness raisingT ocampaign
4.80
4.70
lo 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
ึ้
Energy Elasticity = ∆t Energy Consumption/ ∆t GDP
4.60 Ave. Energy Elasticity
1.4 : 1.0
4.50
Ratio of energy growth
rate to GDP growth
rate = 1.0 by 2008
4.40
4.30
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
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
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
o Educate on concept & method + evaluation
o Help create and implement EC measures
 Achievement
 Implemented 500 facilities
 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
 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
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 or steam generation
Incentive last for the max period of 8 years
Promotion 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 Approach
ปรับกระบวนทัศน์
เปลีย่ นโครงสร้ าง
เพิม่ มูลค่ า
Paradigm Shift
Enforcer / Regulator
Facilitator / Supporter