20-Year Energy Efficiency Action Plan (2011 - 2030) · 20-Year Energy Efficiency Action Plan (2011...
Transcript of 20-Year Energy Efficiency Action Plan (2011 - 2030) · 20-Year Energy Efficiency Action Plan (2011...
20-Year Energy Efficiency
Action Plan (2011 - 2030)
Mr. Tipakorn Poolsawad
Bureau of Energy Conservation and Renewable Energy Policy
June 18th, 2013
Promotion of Energy Conservation in Thailand
2
Energy Conservation
Promotion Fund (ENCON Fund)
Energy Conservation
Promotion Act
• Established under the Energy
Conservation Promotion Act
• The government tool to promote
energy conservation, energy
efficiency and renewable energy
development
• Established in 1992
• Royal decrees for designated
factories and buildings
• Ministerial regulations for
designates factories and
buildings to implement energy
conservation measures
Push
Pull
Thailand’s Policy on Energy Efficiency
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From the Policy Statement delivered by PM Yingluck Shinawatra
to the National Assembly on 23 August 2011
Promote and Drive Energy Conservation
through reduction of energy intensity by 25% within the next
20 years as well as comprehensive development and
improvement. The use of high energy-efficiency equipment and
buildings will be promoted, while Clean Development Mechanism
(CDM) will be used to reduce greenhouse gas emissions and to
tackle global warming. Consumer awareness of economical and
efficient use of energy will be raised systematically and
continuously in order to save energy in the manufacturing,
transport and household sectors.
Thailand 20-Year Energy Efficiency
Development Plan 4
Fin
al Energ
y C
onsu
mption
(kto
e)
Energy Conservation Target (as per the present government policy statement on August 23rd, 2011)
BAU Case
With EE Plan
A target to reduce energy
intensity by 25% in 2030, compare with that in 2010
EI (2030)
11.7 ktoe/billion baht
EI (2010)
15.6 ktoe/billion baht
Annual Average Growth Rate (2010-2030)
GDP (*NESDB, November 29th, 2011) 4.3%
Population 0.3%
*GDP2030 at constant price 1988 = 355 billion Dollars (Exchange rate at 30 Baht/1 U.S. Dollar)
ktoe
162,715
124,515
38,200
The reduction of
final energy
consumption 38,200 ktoe in 2030
*Office of the National Economic and Social Development Board
25% Reduction
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Comments of 20-Year EEAP Sub-Steering Committee
Public Hearing Stakeholder Meeting
4A’s Policy Balanced Score Card
PMQA SWOT & TOWS
67 Major Projects
Process of 20-Year EE Action Plan Formulating
34 Measures
Master Roadmap Phase
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6-Year Short term (2011-2016) Emphasizing on existing proven projects as well as new projects with quick achievement
potential, law & regulation amendment and the study on raising funds for investment in
industry restructure for medium & long terms through public-private participation approach.
6-Year Medium term (2017-2022) The continuity of the successful projects in the short term phase as well as promoting of
using high energy efficiency equipment and increasing in industrial process efficiency,
together with prevention of low energy efficiency equipment importing and using.
8-Year Long term (2023-2030) Covering programmes and projects which will produce significant outcomes to achieve
the government’s goal in energy conservation in line with the 11th National Economic
and Social Development Plan on moving towards low carbon society.
Strategic Issues of the 20-Year EE Plan
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1 • Employ integrated compulsory measures through laws, regulations and
standards, together with promotion through various incentives.
2 • Employ energy measures which create widespread effects on awareness,
behavior change, decision-making of entrepreneurs & market transformation
3 • Promote public-private partnership for supporting and implementing
energy conservation measures
4 • Distribute promotion activities to various public and private organizations
which possess resources and experiences readiness
5 • Employ professionals and ESCO, as vital mechanisms, in terms of
consultation & implementation of EE projects requiring high technology
6 • Increase self-reliance on energy technology to foster technology accessibility,
together with promoting high EE products, manufacturers & businesses
5 Strategic Approaches
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34 EE Measures
Enforcement of laws,
regulations & standards
Promotion of energy
efficiency activities
Creation of public
awareness & behavioral
change
Promotion of R&D in
technology and
innovation
Strengthening human
resources & institutional
capacity
Strategic Approach 1; Enforcement of laws, regulations & standards
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Sector Measure/Programme
Cross cutting
1. Intensify enforcement of Energy Conservation Act 2. Mandatory labeling 3. Minimum Energy Performance Standard: MEPS 4. Energy Efficiency Resource Standard (EERS) for large energy businesses
Industry 5. Specific Energy Consumption benchmarking (SEC) Large Commercial
Building 6. Energy performance standards 7. Mandatory energy performance labeling
Transportation 8. Mandatory energy performance labeling 9. Minimum energy performance standards (MEPS) for vehicles 10. Fiscal measures to enhance market transformation
Strategic Approach 2; Promotion of energy efficiency activities
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Sector Measure/Programme
Cross cutting
1. Voluntary Agreement (VA) 2. Promotion of voluntary labeling 3. Financial support for energy performance achievement 4. Support ESCO Implementation
Industry 5. Support R&D in process improvement Large Commercial
Building 6. (1) Support and promote energy labeling for large commercial building
Small Commercial & Residential Building
6. (2) Support and promote energy labeling for residential building
7. Financing and fiscal measures to drive energy efficiency performance 8. Support high energy efficiency equipment and appliances
Transportation 9. Support energy labeling on vehicle parts 10. Support mass transport system and energy efficient logistics
Strategic Approach 3; Creation of public awareness & behavioral change 12
Sector Measure/Programme
Cross cutting
1. Publicity & dissemination of knowledge/information on energy efficiency 2. Push concept/practices in low-carbon economy & society development 3. Fiscal and financial measures to enhance behavior change and awareness in energy conservation and abating greenhouse effect.
Transportation 4. Publicity and dissemination of knowledge on eco-driving 5. Push concept and support on sustainable transport systems and improve air quality in urban areas
Strategic Approach 4; Promotion of R&D in technology and innovation
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Sector Measure/Programme
Cross cutting 1. R&D promotion 2. Promotion on high energy performance technology demonstration
Large Commercial Building
3. Promotion on development of high performance building prototype
Small Commercial & Residential Building
4. Promotion on development of high performance residential building prototype
Transportation 5. R&D Promotion 6. Promotion on high efficiency equipment demonstration
Strategic Approach 5; Strengthening human resources & institutional capacity
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Sector Measure/Programme
Cross cutting 1. Professional development promotion 2. Strengthen government and private personnel capability
Large Commercial Building
3. Promotion of Energy Efficiency Professional in building
Estimated Saving by Strategic Approach
under 20-Year EE Plan 15
Strategic Approach Project Saving
(ktoe)
Budget (million Baht)
Intensity enforcement through regulations
and standards (10 measures) 14 12,138 4,206
Support and promotion of energy efficiency
activities (10 measures) 24 26,561 97,690
Building awareness and enhancement of
behavioral change (5 measures) 16 146 10,749
Promotion of technology development and
Innovation (6 measures) 8 - 14,367
Human and institutional development and
Strengthening (3 measures) 5 - 1,728
Total 34 measures 67 38,845 128,740
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Estimated Saving by Economic Sector
under 20-Year EE Plan
Economic Sector Specified
Target
(ktoe)
Saving
(ktoe) Budget
(million Baht)
Transportation 15,100 15,323 13,010* Industrial 16,100 16,257 69,066 Large commercial building 3,600 3,630 19,640 Small commercial &
residential building 3,400 3,635 27,024
Total 38,200 38,845 128,740
* Exclude investment in the infrastructure construction of transportation sector such as
mass transit, double track railway
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Final energy consumption saving 38,845 ktoe
in year 2013
Reducing of CO2 emission 140 million tons/annum
Total energy expenditures saving 1.11 trillion Baht
Environmental quality improvement
Positive impact on the macroeconomics
Expected Benefits
Strategic Approach 2; Promotion of energy efficiency activities
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Sector Measure/Programme
Cross cutting
1. Voluntary Agreement (VA) 2. Promotion of voluntary labeling 3. Financial support for energy performance achievement 4. Support ESCO Implementation
Industry 5. Support R&D in process improvement Large Commercial
Building 6. (1) Support and promote energy labeling for large commercial building
Small Commercial & Residential Building
6. (2) Support and promote energy labeling for residential building
7. Financing and fiscal measures to drive energy efficiency performance 8. Support high energy efficiency equipment and appliances
Transportation 9. Support energy labeling on vehicle parts 10. Support mass transport system and energy efficient logistics
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Measure: Financial support for energy performance achievement
Incentives to motivate implementing energy efficiency comprise of
Financial incentives;
Subsidy, soft loan, partial guarantee, ESCO Fund from the Energy
Conservation Fund, and Public-Private Participation raising Energy Trust
Fund DSM Bidding for large business, Standard Offer Program (SOP) for
small Business.
Tax incentives;
Tax reduction, based on energy saving performance, for building,
industrial, estate developer and investment incentives for equipment
and appliance manufactures.
EE Measure; Financial support for energy performance achievement
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(continued)
Measure 7 Project
Financial support for
energy performance
achievement
1. Financial support for achieved and verified energy-saving as per the project proposals approved under the DSM Bidding scheme 2. Financial support for achieved and verified energy-saving or reduced peak load for SMEs as per the project proposals approved under non-bidding scheme; Standard Offer Programme (SOP) 3. Tax Intensive for the investment in energy efficiency projects 4. Provide soft loan through revolving fun for the investment in energy efficiency projects 5. Provide tax incentive to push customers towards behavioral change, create awareness on energy conservation and Green House Gas reduction
EE Measure; Financial support for energy performance achievement
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Recent Implementation
for Financial Incentive Project
Major Achievement of EE Improvement Activity
in the Industrial and Commercial Sector
Under EPPO Management
“Demand Site Management
by Bidding Mechanism
(DSM Bidding)”
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DSM Bidding
Provide financial support to encourage business operators to invest in higher energy efficiency machines/equipment.
Subsidy is based on actual units of energy saving achieved in a year. [subsidy = annual energy saving x subsidy rate (as bid by each company)]
Max. subsidy rate for each energy type is shown in the table:
Energy Type Maximum Subsidy Rate
Electricity 1 Baht/kWh
Heat
From Liquid and Gas Fuels
75 Baht/MMBtu
From Solid Fuels
15 Baht/MMBtu
MMBtu = Million British Thermal Unit = 1,055 MJ
Saving Target
75.00 GWh/year
1.70 MMBtu/year
74.40 ktoe/year
Company requesting lower weighted subsidy rate will be subsidized first,
i.e. bidding mechanism.
Therefore, this program will result in higher energy saving to subsidy ratio.
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Status of DSM Bidding
2008 2009 2010 2011 2012
Request for Proposals
Rounds 4-6 Rounds 7-8
Approved/completed proposals 216 proposals 132 Companies
Company investment 2,241.42 Mil Baht ENCON Fund support 307.46 Mil Baht 30% of the budget
Change of equipment, verification
& measurement of actual saving
to be undertaken. Completed: 216 proposals Actual saving: 162.76% of the
amount proposed
Saving Achieved Compared with Target Heat energy saving 3.99 Mil MMBTU/yr 234.92% Electricity saving 250.77 GWh/yr 66.87% Total energy saving 121.09 ktoe/yr 162.76%
Rounds 1-3
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Measure 7 Project
Financial support for
energy performance
achievement
1. Financial support for achieved and verified energy-saving as per the project proposals approved under the DSM Bidding scheme 2. Financial support for achieved and verified energy-saving or reduced peak load for SMEs as per the project proposals approved under non-bidding scheme; Standard Offer Programme (SOP) 3. Tax Intensive for the investment in energy efficiency projects 4. Provide soft loan through revolving fun for the investment in energy efficiency projects 5. Provide tax incentive to push customers towards behavioral change, create awareness on energy conservation and Green House Gas reduction
EE Measure
on Standard Offer Programme (SOP)
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Why SOP?
Lots of SMEs and end-users in Thailand, but no
financial support for energy performance
achievement
Limited investment and potential human resource
Verified energy-saving as per the project proposals
approved under non-bidding scheme Quick operating
Transparent subsidizing
Motivating high potential SMEs for energy
efficiency implementation
Energy saving ~ 5,800 ktoe
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Issues Option Examples
1. Project Owner 1) Utility
2) Government Agency
USA
South Africa
2. Source of fund 1) Utility
2) Energy fund
USA
South Africa
3. Motive 1) To comply with utility law
2) Energy policy
USA
South Africa
4. Structure 1) Use agency / ESCO
2) Direct to customer
USA, South Africa
Canada
5. Target groups
1) Commercial & Industrial
2) Residential
3) Hard to reach
4) Renewable Energy
USA
USA
USA
Canada, South Africa
6. Consider saving
1) Electricity only
2) Fuels only
3) Peak demand only
4) More than one type
USA
South Africa
USA
7. Purchasing period 1) Summer / System peak
2) Whole year
USA, South Africa
Canada
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Issues Option Examples
8. M&V
1) Deemed saving
2) Simple M&V
3) Full M&V
USA, South Africa,
Canada
9. Compensation rate
depend on
1) Type of energy
2) Type of technology
3) Customer group
USA, South Africa,
Canada
10. Payment
1) Single payment
2) Multiple payment;
- Installation payment
- Performance payment
USA
South Africa
11. Technology
1) Air conditioning & ventilation
2) Lighting equipment
3) Building envelop
4) Hot water heater & heat pump
5) Household equipment
6) Process equipment
7) Renewable energy
USA, South Africa,
Canada
South Africa, Canada