Transcript Thailand’s Country Report in Energy Efficiency

Renewable Energy and Energy
Conservation Policy in Thailand
Department of Alternative Energy
Development and Efficiency
(DEDE)
Ministry of Energy
(MOEN)
October 2005
1
Presentation Outlines
 Introduction
to DEDE
 Energy Situation in Thailand
 Thailand Energy Policy and Strategies
 Highlighted Programs



Promotion on Renewable Energy
Tax incentive
Energy Efficiency in Residential
2
Department of Alternative Energy
Development and Efficiency
( DEDE )
Established in 1953 as a National Energy Office
 Transfer to Department of Energy Development
and Promotion (DEDP) under the Ministry of
Science Technology and Environment in 1992
 Transform to DEDE Under the Ministry of
Energy due to a Major Thai Government
Reform in 2002

3
Mission
“ Encouraging the Promoting Energy
Efficiency and Conservation as well as
Providing and Developing Sources of
Alternative Energy to Serve all Energy
Consuming Sectors with Competitive
Cost and Good Quality of Life ”
4
Organization Structure
DEDE
DEDE Secretariat
Bureau of Energy
Regulation and Conservation
Bureau of Energy
Research
Planning Division
Bureau of Energy
Efficiency Promotion
Bureau of Energy
Development
Training Division
Bureau of Energy
Technology Transfer
Bureau of Solar Energy
5
Energy Demand Profile 2004
Thailand consumes energy about 1.45 million barrel of
oil equivalent per day , 15% of GDP
Agriculture 6%
Hydro
Coal
2
15
Industrial
36%
Transportation
37%
48
35
Natural Gas
Oil
Res & Com 21%
Primary Energy
consumption
Consumption
by Sector*
*2003 Figures
6
Thailand Energy Strategies
for Economic Development and Regional Integration

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 Energy Security
Ensure sufficient and reliable energy supply for at least 30 yrs

Strategy for Thailand as a Regional Energy Center
Develop Strategic Energy Land Bridge and Energy Hub
Cabinet Resolution on September 2, 2003
7
Strategy for Renewable Energy Development
Commercial
พล ังงาน
Energy
เชงิ พาณิชย์
TE
16.5%
TE = Traditional Energy
83.0%
NRE
0.5%
2003
NRE = New & Renewable Energy
(265 ktoe)
TE
11%
52,939 KTOE
Commercial
Energy
NRE
8%
(6,540 KTOE)
81%
2554
2011
81,753 KTOE
81,763
kTOE
8
Strategy for Renewable Energy Development
Electricity
Target and
Strategy of RE
Electricity
Solar
6 MW
Wind
0.2 MW
Biomass 560 MW
Heat
~ 0.00 KTOE
RPS 437 MW
- Solar
- Wind
- MSW
- Biomass
- Hydro
INCENTIVE
RPS
Incentive
1,093 MW
RE
8%
RE
0.5%
R&D
Facilitator
2002
(Incentive)
3,700 KTOE
Bio Fuel (Incentive)
1,800 KTOE
Ethanol 3.0 M liters/D
Bio diesel 4.0 M liters/D
Bio fuel
~ 0.00 KTOE
Heat
2011
9
Biodiesel Strategic Plan
2004
2005
2006
Research
Demonstration
Community based
Biodiesel Pilot
Project
Development
2007
2008
2009
2010
2011
Incentive (Biodiesel Community base)
Biodiesel Mandate 10%
Blend
Phase I: Specified areas
Phase II: Whole country
Specification of
B100 & B5, B10
Prod. Cap.
4.0 mill.lt/d
Industrial based
Biodiesel Development
10
Biodiesel : Business Model
Blending Facilities
Farmers 60,000 Rai
Business
Feasibility
100,000 Liters/day
Will produce in
the 4th year and
last 21 years
Biodiesel Plant
Extraction Plant
Glycerin
Other
Oleochemical
Products
Vitamin A,E
Value-added
Power Plant
Biodiesel Complex
11
Biodiesel and Communities
Biodiesel Factory
Crushing Factory
Power Plant
Biodiesel Complex
Electricity as Biofuels byproduct
 Potential for rural offgrid electricification 
Distributed Generation
 Renewable energy
source for power
generation
Small-scale Biodiesel Project
 Biodiesel production for
using in community
12
Opening Ceremony for Community Based Biodiesel
Researching and Developing – Chiang Mai
First in Thailand and ASEAN13
Gasohol Strategic Plan
Ethanol
1.0 mill. lts /d
2004
2005
2006
Phase I
MTBE replacement
Formulated
policy on fade out
MTBE in ULG 95
and promote
Gasohol 91 in
some areas
Ethanol
3.0 mill. lts /d
2007
2008
2009
2010
2011
Formulate policy on
Phase II
utilizing High
Gasohol Mandate Performance Vehicles
- Spec. of Gasohol 95 & 91
- Emission test on using
Gasohol 95
-Defined gasohol use in
Spec. of new vehicle
procurement
- Requested governments’
vehicles to refill gasohol
for E10 and FFV
- Enforced government
fleets use Gasohol
- Gas stations in govern.
must sell Gasohol
14
National Ethanol Program
Promoting E-10
Gaining popularity and Already
replace 25% of ULG 95
Compulsory
Measures
Compulsory distribution of E-10
on an national scale on Jan 1st
2007
Increase Outlets
Good cooperation with oil
companies  Expanding
station to 4,000 by 2005
Pricing Policy
Price Diff. by 0.4 Euro 
Demand by 4 times
15
Ethanol – Gasohol
Target
December 2005
 Expanding gasohol station
from 2,171 * stations to 4,000
stations nationwide
 Gasohol 2.8 * to 4 million
litre/day ( * as of Sep. 05)
1 January 2007
 Gasohol 95 nationwide, remove
gasoline 95 from the market
2008
 Using gasohol 91 and 95
nationwide
Price Incentive - Gasohol is cheaper than the
premium gasoline by 1.50 baht
16
Gasohol Promotion
17
Ethanol plant
location
1st Phase
Molasses
Cassava
2nd Phase
Sugar cane juice & Molasses
Cassava
No direct relation between
sugar sector and distillery
Ethanol plants
1st Phase (1.09 Mill. lts / day)
 3 existing ethanol plants
total production cap.
0.375 Mill. lts / day
 3 plants under construction
total cap. 0.715 Mill. lts/day
2nd Phase (3.2 Mill. lts / day)
18 plants were approved:
 14 sugar mills &
 4 cassava mills
18
Solar Cell Strategic Plan
Remote Area (38 MW)
Stand alone System
Incentive (72 MW)
- Feed In Tariff
- Soft loan
- Tax Incentive
RPS
(140 MW)
250 MW
2004
2005
2006
2007
2008
2009
2010
2011
R&D
- Increase Local Content Percentage
Solar Cell Industry
- Reduce PV System Price
19
Status of PV Installation in Thailand: End of the Year 2003
As of 2003, approximately 6 MW of PV systems have been installed.
Water pumping
1.14 MW
Stand-alone systems 0.26 MW
Battery charging
2.17 MW
Telecommunication
1.50 MW
Schools
0.30 MW
Hospitals
0.02 MW
Ocean navigators
0.02 MW
Grid-connected systems
0.31 MW
Miscellaneous
0.13 MW
Source: Dusit Kruangam, et.al., Pre-Feasibility Study on Solar Cell Production in Thailand, Technical Digest of the
International PVSEC-14, Bangkok, Thailand, 2004.
EGAT, by April 2004, has been conducting the biggest Grid-Connected
system of 0.5 MW in Mae Hong Son.
Newly government-initiated project, Solar Home System for 200,000
unelectrified houses in Thailand, of 24 MW will be conducted between 2004
(150,000 sets 120 Wp each in the first phase) and 2005 (50,000 sets in the
second phase).
It is expected that the PV market after 2007 will grow at the rate of 50 MW
per year.
20
PV Market Trend in Thailand
Newly government-initiated project, Solar Home System
for 200,000 unelectrified houses in Thailand, of 24 MW
will be conducted between 2004 (150,000 sets 120 Wp each
in the first phase) and 2005 (50,000 sets in the second
phase).
Implementation of a Renewable Portfolio Standard (RPS)
would enforce IPPs (independent power producers) as
well as SPPs (small power producers) to generate
electricity from renewable energy sources.
Net metering with government incentives will also be
implemented.
It is expected that the PV market after 2007 will grow at
the rate of 50 MW per year.
21
Tool to Overcome Barriers

Need government strongly support and
encouragement to drive ethanol market





Clear policy and target
Market drive;
Incentive;
Specification.
Cooperation from all parties concerned




Car manufacturers;
Oil refineries and oil distributors;
Industries i.e. sugar mills, CPO mills, starch
mills
Farmers and cooperatives.
22
Renewable Energy Promotion Program
Former Projects
- Small Power Producers (SPP) Project (1st)
- SPP Project (2nd)
 Ongoing Project
- Very Small Power Producers (VSPP) Project
 Future Projects
- Renewable Portfolio Standard (RPS)
- Incentive i.e. Feed-in Tariff & Tax Holidays
- VSPP (Capacity Expansion)

23
Energy conservation Strategies
and Programs
 Energy
Intensity
 Target of Energy Efficiency
 Highlighted Programs




Compulsory Program
Cooperative Efforts
Revolving Fund
Tax Incentives
24
Energy Intensity
(Compare with Developed Countries)
Thailand
USA
UK
Germany
Japan
25
Energy Intensity
(Compare with Developing Countries)
26
Energy Efficiency Improvement Target
1
Strategy
Objective
Energy
Efficiency
Improvement
Indicators
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
27
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
28
1
Industrial
and
Building
sector
Programs
Strategy
Objective
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
with Ministry of
Industry to change industrial
structure to be less energy
intensive
 Support by energy
conservation promotion
programs
=
Energy
GDP

250

200
ทิศทางและมาตรการ
ยังไม่ชดั เจน
Basic
Metal



150
Chemical
100

Regulation
Incentives, subsidies
Soft loans for EE investment
Technical assistance
Research and development
Training, capacity development
 Tax
Fabricated Metal
(ปี 2524 = 100)
2
 Cooperate
2. Improve EE in Industrial
and building Sector
Improve enduse energy
efficiency
Food and Beverages
Non Metalic
Textiles
Paper
Incentives
Tax breaks for ESCOs
 Import duty exemption for high
energy efficient products,
machines
 Performance-based incentives

50
2524 2525 2526 2527 2528 2529 2530 2531 2532 2533 2534 2535 2536 2537 2538 2539 2540 2541 2542 2543 2544
29
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
30
Cooperative Efforts on Energy Management
 Objective: Sustainable energy management
through internal cooperative efforts
 Methodologies
o
o
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)
31
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
32
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
33
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
34
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 35
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
36
Holistic Approach
ปรับกระบวนทัศน์
เปลีย่ นโครงสร้ าง
เพิม่ มูลค่ า
Paradigm Shift
Enforcer / Regulator
Facilitator / Supporter
37
EE in Residential Sector

Promotion on energy efficient houses
Provide 3 different models of energy efficient houses
with a focus on
• Housing design ( Site allocation / Shape )
• Roof design
• Walls
• Floor
• Ceiling
• Openings ( Door and Windows )
• Sunshade Equipment
• Ventilation
• Natural light utilization
38
39
40
41
Energy saving estimation
Model
1. Model A
• One-storey
• 84 sq.m.
• 17,000 USD
2. Model B
• Two-storey
• 135 sq.m.
• 33,600 USD
3. Model C
• Two-storey
• 183 sq.m.
• 40,800 USD
Conventional
design
New
design
Conventional
design
New
design
Electricity Cost
Total
(kwh/year)
A/C system
(kwh/year)
Lighting
(kwh/year)
6,499
1,125
7,624
4,420
1,125
5,545
10,293
2,422
12,751
Estimated
Saving
(kwh/year)
27.3 %
19.9 %
7,350
2,422
9,772
Conventional
design
13,353
3,386
6,739
New
design
10,126
3,386
13,512
29.5 %
42
On going projects for Residential
 Promoting
Energy Efficiency Housing
 Single Family Houses
 Townhouses
 The Study of Building Codes for Energy
Efficiency House and Buildings with the
Promotional Scheme
43
More Information
Visit
www.dede.go.th
Thank you
44