Results and Plan Energy Efficiency Promotion Activities in Thailand

1. Results and PlanEnergy Efficiency Promotion Activitiesin Thailand Prasert Sinsukprasert, Ph.D. Department of Alternative Energy Development and Efficiency 11th ASEAN EE&C SSN Annual Meeting Singapore, 6 June 2007

2. Agriculture 5.3% Transport 36.0% Industry 38.2% Residential and Commercial 20.5% Energy Consumption in Thailand 2006 Total Final Energy Use63,180 ktoe (value 1,374,648million baht)* Source: Statistic Division, DEDE

3. Energy Situation 2006 Basic metal 4.4% Metal Frab 6.5% miniing 0.2 % other 6.1% agricultural 5.3% transport 36.0% Food&Bev 28.2% Industry 37.8% textile 4.5% business 6.2% residential 14.3% construction 0.2 % chemical 12% Non Metal 33.8% paper 3.6% Wood & Furniture 0.9% Energy Consumption in Industry and Business27,768 ktoe (15,100mill USD) Source: Statistic Division, DEDE

4. Thailand’s Energy Situations • 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 Agriculture 6% Resident & Commercial 21% Industry 36% Transport 37%

5. Ktoe (%) 30,000 200 165 160 25,000 145 136 150 123 20,000 118 113 100 15,000 100 10,000 50 5,000 0 0 1998 1999 2000 2001 2002 2003 2004 2005 Food & Beverage Textile Wood and Furniture Paper Chemical Non-Metalic Basic Metal Fabricated Metal Others change % [ 1998 = 100 ) Industry Energy Consumption1998-2005

6. Million baht (%) 2,000,000 200 162 1,750,000 175 154 143 1,500,000 150 129 120 119 1,250,000 125 112 100 1,000,000 100 750,000 75 500,000 50 250,000 25 0 0 1998 1999 2000 2001 2002 2003 2004 2005 Food & Beverage Textile Wood & Furniture Paper Chemical Non-Metalic Basic Metal Basic Metal Others Change % ( 1998 = 100 ) GDP in Industries 1998 - 2005

7. Energy Elasticity1998 - 2005 AVG Energy Elasticity 1.05:1

8. Energy Intensity1998 - 2005 Energy Intensity ( ktoe ) , Billion Baht Toe/Million baht 30,000 16 15 . 69 15 . 40 15 . 09 15 . 16 15 . 23 14 . 99 14 14 . 89 14 . 79 25,000 22,643 21,961 12 19,988 20,000 18,679 10 16,922 16,208 15,488 15,000 8 13,754 6 10,000 4 5,000 2 1,500.10 1,426.09 1,318.28 1,190.81 1,096.17 1,111.46 1,033.43 923.60 0 0 2541 2542 2543 2544 2545 2546 2547 2548 Energy Consumption (ktoe) GDP (billion baht) EI (toe/million baht)

9. 45,000 40,000 35,000 30,000 EE 0.9 : 1 EE 0.85 : 1 25,000 20,000 15,000 2005 2006 2007 2008 2009 2010 2011 Energy Elasticity = Growth (Energy) Growth (GDP) EE Conceptual Framework and Target ktoe 2,000 mill USD/y 800 mill USD/y Original Target 1.2 : 1 1 : 1 New Challenge  0.85 : 1 Accumulative Savings 2004–2008 worth over 1.5 billion USD Accumulative Savings 2004–2011 worth over 7 billion USD Conceptual Framework Demonstration & Dissemination High Tech. Tax Incentive Revolving Fund Process Improvement Regulation Training Energy Management Energy Management Practice Data/Information

10. Energy Conservation Promotion Fund Objective and Source of Fund • collect small levy (0.07 baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene • Annual Revenue around2 – 2.5billion 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. Measure/Program - Results and Plan Law and Regulation Results 2003 - April 2007 Main components Plan in Progress • Appointment of Energy manager (PRE) • Reporting energy consumption and EE project implementation • Development of Target and Plan • Enforce only large energy consuming buildings and factories (over 1 MW peak) • Modify the law • - Use different measures/criteria for public / private buildings • - Issue Energy Management Standards • - Issues new building codes for each type of buildings (Hotel, Office, Hospital, Department store) • Overall compliance rate of 87% • 1,917 Designated Buildings • - PRE appointed 1,598 • - EC Report1,743 • - T&P submitted 1,384 • - EE Potential593 million baht • 3,160 Designated Factories • - PRE appointed 2,253 • - EC Report2,587 • - T&P submitted 1,598 • - EE Potential3,640 million baht

12. Measure/Program - Results and Plan Cooperative Efforts for Energy Conservation Main Components Results 2002-2006 Future plan • 2007 • Implement in over 600buildings and factories • saving 450 million baht per year • Long term plan • Cost Sharing between government and private sector • Develop Energy Management Standards as Ministerial Orders • implemented in 2,027 facilities including • 854 Designated factories (Metallic, Food, Chemical, Textile) • 479 Designated buildings (hospitals, hotels) • energy savings 2,071 million baht per year • (Housekeeping, Low cost measures) • On-siteTechnical Assistance to embed Sustainableenergy management system in facilities • Establish EC Team and assess energy situation • Identify EE opportunities • Implement EE Projects • M&E

13. Measure/Program - Results and Plan EE Training and Capacity Building Curriculum • General courses • PRE • Senior PRE • Specialized Courses - Energy Management - Energy Audit - Energy Efficiency in Major Systems such as airconditioning, lighting, heating, etc - Energy Efficiency in Specific groups of industries (e.g. Textile, paper, Cement, etc.0 • Cooperate with Vocational Study Department to add EE study in regular curriculum Results 2002-2006 Future Plan • Trained 6,000PREs • Trained 250 Senior PREs • Trained6,750 people in other courses • Added 4 EE courses in vocational study • Train 40 college teachers to deliver EE course • 2007 • Train over 2,000 engineers and building operators • Over 5,000 students attend EE courses • Next Step • DEDE develop Curriculums and allow private sectors to deliver the courses and charge trainees • Train 500 vocational school teachers all over the country

14. Measure/Program - Results and Plan Information and Knowledge Dissemination Various ways to provide information and consultation Future Plan • Develop Thailand EE/RE Knowledge Network • EE Display Center • display over 54 EE technologies for building industry and residential sector • EE Demonstration houses • Energy Conservation building • EE and RE Knowledge center : • Center of Data and Information concerning EE and RE development • Compile EE/RE data for planning and evaluation • Disseminate information through internet web-based • EE Cliniques • EE One Stop Service • EE Consulting Centers and Branches Results 2002 - 2006 • Over 13,300 people have used the services • 90% Completion of EE Display Center

15. Measure/Program - Results and Plan Tax Incentives Results 2002-2006 Description Plan Cost-Based - support 94 projects - energy savings of 10 million USD/y - leverage EE investment of 17 million USD - Tax reduction of 3.2 million USD Performance-Based - support 76 projects - energy saved 11.6 million USD/y - leverage EE investment 16.6 million USD - Tax reduction of 1.3 million USD – in a form of susidy BOI - support 14 projects - energy savings of 2.8 million USD • 2007 • Continue the supports • Estimated energy savings of additional 10 million USD/y • Next Steps • Increase the incentives to a deduction of 200% of EE Investment cost • Install performance based incentives into the TAX system • Cost-based :Deduct Taxable Income 125% of EE investment costs • Performance-based :Reduce Taxable Income with Actual Energy Savings • BOI :exemption of cooperate income tax and import duties for EE equipment manufacturers/ESCOs

16. Measure/Program - Results and Plan Revolving Fund Program Description Results 2002-2006 Future Plan • Low interest loan for Energy Efficiency via financial institutes • Less than 4% interest • Loan period of 7 years with one year grace period • Up to 50 million baht (1.3 milion USD) • 2007 • Secured additonal 57 million USD of budget for the phase 3 • Long term Plan • Reduce DEDE roles on Funding Sources – providing more technical assistance • More co-financing from the banks • Training banking officers on EE technical knowledge • phase 1 - pilot:(2002-2005) • Support 80 EE/RE projects • Total investment around 100 million USD – of 54 million USD of Revolving Fund • Energy savings of 42.7 million USD per year. • phase 2: (2006) • Support 75 EE/RE projects • Total investment around 78.5 million USD – of 41.2 million USD of Revolving Fund • Energy savings of 36 million USD per year. Participating Banks

17. Measure/Program - Results and Plan Demonstration of High and Advanced EE Technology Description Results 2002 - 2006 Plan • select industrial groups with high energy intensity and economy significance • study energy consumption patterns/ behaviors, production process and identify new-advanced technologies that have great potentials • cooperate with industries to demonstrate the application of technologies(20% subsidy) • disseminate results Various industry groups have been studied - Food & Beverage - Textile - Plastic - Steel - Electronics - Petrochemical - Non-metallic - Paper - Hotel - Hospital • 2007 • Demonstration of 10 Advanced EE Technologies such as • Hybrid heating • Slag foaming technology • Innovative heat storage • Coal water mixer • Energy savings worth 5 million USD per year

18. Measure/Program - Results and Plan Public Private Partnership Description Results 2002-2006 Future Plan • Extend the cooperation to SMEs • Extend the services through provincial portals/branches • cooperate with Thai Chamber of Commerce, Federation of Thai Industry, and Industrial Estates to provide information and technical assistance to private sector • cooperate with major industrial groups in Thailand, to raise EE awareness, provide technical assistance and training

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