Plenary Discussin Cmmitment t & Accelerate Develpment f RE & EE EBKTE CONVEX 2015 by MR. BEBEB AKN DJUNDJUNAN Deputy Chief f the Missin Indnesian Embassy in Bangkk f Thailand 19 August 2015
Ppulatin is 67,2 millin, GDP per capita (2013): USD 5,778. The secnd largest ecnmies in ASEAN after Indnesia. GDP in 2015 is predicted 2,9%. Thailand GDP Cmpsitin by Sectr Services 44,5% Industry 43,3% Agriculture 12,2% Labr frce 39,5 millin Services 48,2% Agriculture 38,2% Industry 13,6%
Renewable energy was first mentined in the 5 th NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT PLAN in 1982. It included prjects t develp bifuels and generate pwer frm wind, slar, hydr, tidal waves and gethermal prjects. THE 11 TH NATIONAL EONOMIC AND SOCIAL DEVELOPMENT PLAN (2012-2016) has further t address the challenges f energy surces that highly reliant n fssil fuels. The Plan prmtes transitin t a lw-carbn sciety that fsters green grwth. The bjective f the transitin is t sustain ecnmic grwth withut cmprmising the envirnment and natural resurces. The key plans t develp renewable energy cmprise ALTERNATIVE ENERGY DEVELOPMENT PLAN (AEDP 2012 2021) and the POWER DEVELOPENT PLAN (PDP 2010).
Strategic Appraches and Measures t Achieve the Targets Target Grups Target Prjects/Plans Shrt term 2011 2016 Old building/huses Old Industry Transprtatin (Efficiency) Public services (Rad lights/billbards) Reduce energy : 7,980 kte/yr Reduce CO2 : 27 Mtns/yr Maintain efficient measurements (ex. ESCO/DSM Bidding) Subsidizatin fr investment in the implementatin f energy cnservatin measures Mandatry energy efficiency labeling t prvide ptins fr cnsumers t buy r use highly energy-efficient equipment/appliances, vehicles and buildings. Executin f a vluntary agreement t save energy Prmtin f Technlgy Develpment and Innvatins, Human Resurces and Institutinal Capability Develpment Midterm 2017 2022 Transprtatin New cmmercial Buildings Industry Reduce energy : 21,058 kte/yr. Reduce CO2 : 72 Mtns/yr Implement MEPs, HEPs, labeling standards fr equipments/appliances Enfrce the specific energy cnsumptin (SEC) standards fr the prductin prcess Prmte EE and lw carbn emissin schemes in newly cnstructed buildings Prmte Energy Efficiency in manufacturing prcess Lng term 2023 2030 Electricity generatin Transprtatin (Technlgy) Industry (Structure) Reduce energy : 38,200 kte/yr Reuce CO2 :130 Mtns/yr Restructuring fr the balance f energy and ecnmics Transprtatin restructuring ex. High efficient tranprt system Increase efficiency f pwer plants and distributin system
Scheme t prmte EE Research & Develpment Knwledge & Knw-hw Financial Supprt ESCO Fund Tax Incentives Direct Subsidy Revlving Fund Energy Credit Knwledge Scial Law & Regulatin Public Relatin thrugh Media Creating Awareness Thailand Energy Awards Persnal Develpment EE Display Center EE Netwrking / Vluntary Agreement Energy Cnservatin in Prductin / Making Cntributin Energy Management fr Designated Buildings and Factries under ECP ACT Building Energy Cde Standard and Labelling fr equipments & material (MEPS & HEPS) 10
Incentive Mechanism Sft Lans Revlving Fund 7,000 mill.baht allcated frm Gv s ENCON FUND 2-Stepped Lan mix w/ Bank s Mney (apprx. 1:1) Max. Interest Fix at 4% (Bank pay 0.5% Int. t Encn Fund) Max. 7 yr. lan perid Max. 50 Mill.Baht / prject 11 majr banks are participating Funded by ENCON Fund Revlving Fund 7,000 MB 0.5% Mix by Bank 7,500 MB Cm. Banks 7,000 MB <4.0% Private Investrs 11
Incentive Mechanism 12 Tax Incentive 2 schemes are given; 1)Tax Incentive fr EE prducts Cperatin prgram with Revenue Dept. 25% tax credit frm purchasing f EE prducts 19 prducts are annunced fr tax incentive; Mstly label 5 prducts Terminated in Dec. 2010, Extending fr tw mre years till 31 Dec 2012 2)Tax Incentive fr EE Investment Cperatin prgram with Bard f Investment (BOI) Prmtin f Energy Cnservatin Related Activities Exemptin f crprate incme tax and imprt duties
Incentive Mechanism 13 Direct Subsidy 20:80 Fr EE measures Subsidy 20-30% f EE measures, maximum 3 millin baht T buy EE prducts Payback perid < 7 years High eff. mtr VSD LED Heat Pipe Heat Pump
T supprt the develpment f renewable energy as ptential substitute fr fssil fuels and imprted il accrding t AEDP and PDP, the Ministry f Energy develped mechanism: A SET OF STRATEGIES, and DRIVING MECHANISM. The abve mechanism were put in place by different agencies, namely: Bard f Investment Department f Alternative Energy Develpment and Efficiency Energy Plicy and Planning Office
On driving mechanism, given the uniqueness f each type f renewable energy, separate driving mechanism are necessary fr the prmtin f renewable energy. The key mechanism including : Renewable energy feed-in-tariff (FiT) scheme Revlving and Energy Service Cmpany funds Incentive measures t encurage investments in the renewable energy sectr. The expansin f renewable energy develpment is attributed t cntinue private sectr investment in renewable energy prjects.
Investment in RE is relatively expensive and the benefit return is relative small. The limited land availabe (fr slar) and resurces fr ther RE. Shrtage f skilled persnnel in RE develpment prjects and the prblem f skill mismatches. Inadequate infrastructure, e.g. transmissin lines frm/t remte areas.
Lessn-learnt frm RE & EE develpment in Thailand: Cnsistency & sustainability in RE & EE develpment plicy Gvernment supprt, i.e. fund scheme, plicy and regulatin. Prmte private investment with investment incentives Prmte cmmunity participatin, awareness and educatin Develp R& D with the invlvement f educatin institutins.