Policy & regulatory framework for energy efficiency and potential for energy efficiency measures in Thailand s industrial sector

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1 Policy & regulatory framework for energy efficiency and potential for energy efficiency measures in Thailand s industrial sector Mr. Nutdhapun Ngernbumroong ENSOL Company Limited

2 1. Thailand s Energy Situation and Policies 2. Energy Efficiency Policy and Measures 3. Standard and Labeling Policy

3 Thailand s Energy Situation and Policies

Energy Expenses 47 billion USD (import 58%) Total Commercial Energy Use 1.

4 Energy Expenses 47 billion USD (import 58%) Total Commercial Energy Use million barrels (oil equivalent) per day Commercial Energy Consumption by fuel

5 Energy Elasticity = Growth (Energy) Growth (GDP)

7 Action Control monitoring and support policy Energy Steering Committee Cabinet Policy Ministry of Energy Energy Policy and Planning Office (EPPO) Energy conservation Fund Committee (ENCON FUND) Department of Natural Fuel Department of Energy Business Department of renewable energy and efficiency development PTT Co,ltd Bangchak Co,ltd EGAT, PEA and MEA task Explore and refine Oil and Coal Oil and Gas Electricity Energy efficiency and renewable energy

8 1. Enhance Energy Security 2. Alternative Energy as National Agenda Thailand s Energy Policies 3. Promote Energy Efficiency 4. Fair and Stable Energy Pricing 5. Environmental Protection

9 EE Policies and Measures

10 Energy Conservation Promotion Fund Objective and Source of Fund collect small levy ( baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene Annual Revenue around 2 5 billion baht Supervised by Energy Conservation Promotion Fund committee chaired by Deputy Prime Minister To be used for energy conservation promotion including research, study, development, demonstration, incentives (grants/soft loan), capacity building, and policy study

11 EE Conceptual Framework Conceptual Framework Demonstration & Dissemination High Tech. Tax Incentive ESCO Fund Process Improvement Revolving Fund Energy Management Training Data/Information Regulation Energy Management Practice Energy Conservation Promotion Fund

12 Final Energy Consumption ktoe Thailand 20-Year Energy Efficiency Development Plan Energy Conservation Target (as per the present government policy statement on August rd, A target to reduce energy intensity by 25% in 2030, compare with that in 2010 The reduction of final energy consumption 38,200 ktoe in 2030 ktoe 8,200 EI 1 ktoe/billion baht BAU Case 25% Reduction With EE Plan Annual Average Growth Rate GDP *NESDB, November th, 4.3% Population 0.3% EI 1. ktoe/billion baht *GDP 2030 at constant price 1988 =,650 billion baht *Office of the National Economic and Social Development Board

13 Thailand 20-Year Energy Efficiency Development Plan Energy Conservation Targets by Economic Sector in 2030 (Approved by The National Energy Police Committee, November 30 th, 2011) Economic Sector Technical Potential in 2030 Specified Target in 2030 Electricity (GWh) Heat (ktoe) Total (ktoe) Electricity (GWh) Heat (ktoe) Total (ktoe) Industry 42,146 13,758 17,349 39,112 12,767 16,100 Transportation - 22,528 22,528-16,800 16,800 Large commercial building 27, ,741 23, ,300 Small commercial building & residential 23,219 1,693 3,671 18,972 1,383 3,000 Total 104,182 38,548 47,426 81,116 31,288 38,200

14 Short term Thailand 20-Year Energy Efficiency Development Action Plan 4 Energy saving 1,157 ktoe year CO 2 reduction : 6.3 Million Tons/year Target groups Old buildings Residential Old factories Transportation focusing on transportation efficiency Public service Advertisement lighting/street light Project Work plan Determining energy prices to reflect the actual costs Promoting greater use of high energy efficiency vehicles e.g. eco-cars, electric motorcycles and electric cars Executing of a voluntary agreement to save energy between the public and economic sectors (e.g. Standard Offer Program) Promoting the experienced successful measures e.g. ESCO and DSM Bidding Promoting of producing and using the high energy-efficiency equipment/appliances by pricing and taxation measure Showcasing high energy-efficient new government buildings as an energy efficient exemplar for the private sector Supporting for the development of professionals in the field of energy efficiency, public awareness creation and behavioral change in energy consumption Strictly enforcing the legislation e.g. the ENCON Act on designated building and factories

15 Medium term Thailand 20-Year Energy Efficiency Development Plan Energy saving 11,517 ktoe/year CO 2 reduction: 44.3 Million Tons/year Target groups Transportation sector Industrial sector Commercial building sector focusing on new building Project Work plan Demonstrating the short term measures ( ) e.g. SOP and EERS Encouraging the deployment of MEP, HEP and labeling on automotive sector Supporting for traveling via mass transit systems Supporting goods transport via high energy-efficient logistics systems e.g. double-track railway system etc. Developing the SEC database by using energy footprint Supporting for the increasing of industrial process efficiency Supporting the extension of energy transportation by pipeline all over the country Promoting the new designated buildings as the Economic Buildings Promoting greater use of high energy efficiency vehicles e.g. eco-cars, electric motorcycles and electric cars Enforcing the new buildings to be the energy-saving and CO 2 reduction buildings

16 Long term Thailand 20-Year Energy Efficiency Development Plan Energy saving 38,200 ktoe/year CO 2 reduction : Million Tons/year Target groups Electricity generation sector Transportation sector focusing on technology Industrial sector structional level Project Work plan Extension the ENCON Act scope to the small factories and other high energy consumption businesses e.g. transportation service business etc. Promoting the exercising of Travel Demand Management e.g Road Pricing, prohibition of driving into inner city areas Promoting the enhancing of power plant efficiency and distributing system Promotion the creation of Smart Grid Promotion the new designated buildings as the Zero Energy Buildings Promotion of traveling via Non-motorized transports Developing transportation structure to high energy efficiency transport systems

17 Highlights of Energy Efficiency Development Plan

18 Highlights of Energy Efficiency Development Plan

19 Highlights of Energy Efficiency Development Plan

20 Standard and Labeling Policy

21 Labeling Electric Labelling Non-electric Labelling

23 Accreditation requirement according to laboratory type Type Laboratory Organization Accreditation Requirement 1 Government organization and government academy TIS or TISI R TL Private organization and private academy TIS

Development Guidelines Shifting development paradigm and driving Thailand

economy (2) Increase energy efficiency in transportation and logistics (3)

ecology aspects (4) Change consumption behavior to achieve low carbon society

24 Development Guidelines Shifting development paradigm and driving Thailand towards Low Carbon Society (1) Restructure production sectors towards low carbon economy (2) Increase energy efficiency in transportation and logistics (3) Develop environmental friendly cities by integrating the culture, society and ecology aspects (4) Change consumption behavior to achieve low carbon society (5) Utilize the measures of generating income from natural resource and biodiversity conservation.

Human Resources Development Target: To build and strengthen knowledge and skills in energy conservation to efficiently implement the ENCON program.

25 Human Resources Development Target: To build and strengthen knowledge and skills in energy conservation to efficiently implement the ENCON program. Measures: Human Resources Development Scholarship for graduate studies, both in Thailand and abroad Research grants for undergraduate and graduate students Development of Curriculum, Educational Media, Laboratory Facilities Skill Development for Energy-Related Personnel - Skill development - Network enhancement for energy-related personnel

26 Moving from Plan to Action Research and Development Capacity Building, technology transfer and success cases. Proper incentive and Investment Facilities- adder cost, tax incentive, BOI privilege, Soft Loan, ESCO Fund and CDM. Establish network (Technology providers, commercial Banks, service providers, Electric utilities, Regulators, etc

27 Budget Allocation

28 Budget Allocation

29 Reference Policy and Regulatory Frameworks: Thailand by Dr. Twarath Sutabutr, Deputy Director General, DEDE Energy Efficiency, Standard and Labelling Policies in Thailand by Asawin Asawutmangkul DEDE

Telephone +66 (0) 2943-9633 to 35 Fax : +66 (0) 2943-9636 Website

30 Thank You ENSOL COMPANY LIMITED The Pann Building, 7th Floor, 125 Khlong Lam Chiak Road, Nawamin, Bueng kum, Bangkok 10230, Thailand Telephone +66 (0) to 35 Fax : +66 (0) Website : ensol@ensol.co.th nutdhapunn@hotmail.com nutdhapun_n@ensol.com

Danai Egkamol. Director Bureau of Energy Regulation and Conservation Department of Alternative Energy Development and Efficiency (DEDE)

Danai Egkamol. Director Bureau of Energy Regulation and Conservation Department of Alternative Energy Development and Efficiency (DEDE) Development & Status of Energy Efficiency in Thailand Danai Egkamol Director Bureau of Energy Regulation and Conservation Department of Alternative Energy Development and Efficiency (DEDE) 11 November