Assessing the way forward and framing the roadmap for … FA (24-05-2016) RE2... · the roadmap for...
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ABLE CONSULTANT CO,. LTD.
24 May 2016
Assessing the way forward and framing
the roadmap for ESCO Facilitation Approach in Thailand
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I. The Assignment: Objectives, Scope of Work & methodology
II. ESCO Facilitation Approach (ESCO FA)
III. International & Thai Experiences on FA & the Lessons Learned
IV. Assessment of ESCO FA development in Thailand
V. Draft Thailand ESCO FA Roadmap
Contents
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I. The Assignment
Objectives
To assess and review ESCO facilitation approach establishment from international and Thailand experiences.
To analyze and identify the possible and suitable options of further development of ESCO facilitation approach in Thailand.
To develop the roadmap framed as a guideline for policy makers and relevant government agencies/stakeholders.
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I. The Assignment
Scope of Works
Task 1 Prepare detailed work plan and methodology
Task 2 Review papers and collect information from current situation
Task 3 Analyze and verify the findings
Task 4 Prepare framework of the roadmap for ESCO FA Development
in Thailand
Task 5 Support and contribute to a one-day workshop
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I. The Assignment
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Methodology
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Analysis structure
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II. ESCO Facilitation Approach (ESCO FA)
What and Why ESCO FA?
ESCO projects are complex in many aspects, therefore, the ESCO EPC facilitator can provide necessary know-how and experience to support the client in all the necessary steps to develop and implement an EPC project successfully. Founding idea of facilitator is;
To create a demand-pull for EE projects by scaling-up and streamlining project development activities. To stimulate client and investor confidence To act as a catalyzer for project implementation and funding decisions. For Thai ESCO market,ESCO FA can possibly stimulate shared saving
contract.Two levels of facilitation:
Market facilitation: Project facilitation:
(This assignment only concerns project facilitation.)
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II. ESCO Facilitation Approach (ESCO FA)Roles of ESCO FA and qualification
The typical facilitation activities;1. Financial and technical preliminary analysis 2. Supporting the client in his make or buy decisions 3. Workshops with clients and their stakeholders 4. Project pre-structuring and selection of ESCO business model5. Financial pre-structuring 6. Feasibility studies that lead to the decision on continuation of an
ESCO project.Investor and client confidence is the key
Probably, most important function of a facilitator is to create mutual understanding and trust between all involved persons and contractual parties
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II. ESCO Facilitation Approach (ESCO FA)ESCO FA QualificationThe facilitator and the team must have expertise in several areas, such as
Technical know-how (buildings, energy systems, energy efficiency) Economic know-how (calculation of savings potential, net present
value of future savings, opportunity costs calculations) Financing know-how (financing models, equity, third-party financing,
subsidies) Legal know-how (ESCO contract design and finalization)
Even if it is not expected that the facilitator combines all these qualifications in one person, he should have a good level of understanding of all the tasks mentioned.
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II. ESCO Facilitation Approach (ESCO FA)
Partial Facilitation ModelScope of work for ESCO facilitator in partial facilitation model;
The facilitator collects data and prepares the project baseline. These data are provided to ESCOs together with a request for
expressions of interest (EoI). A small number (usually three) ESCOs are pre-selected based on their EoIs.
They undertake preliminary assessments, propose energy saving measures (ESM) and present them to the client and the facilitator.
The client and the facilitator evaluate the preliminary assessments and select one ESCO.
The client signs an agreement to undertake an investment grade audit (IGA), which will be paid by the client.
Based on the results of the IGA, the client, supported by the facilitator, can decide whether to sign an EPC with the selected ESCO.
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II. ESCO Facilitation Approach (ESCO FA)
Customer
ESCO Energy Saving Project =
Walk-through Audit Proposal IGA
Investment decision
EPC contract
EPC contract
IGAProposal Presentation
Investment decision
Walk-through Audit
CURRENT
OPTION 1
Customer
Facilitator
Option + Facilitator
ESCOESCO ESCO
Partial Facilitation Model
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II. ESCO Facilitation Approach (ESCO FA)
Full Facilitation Model
Scopes of work for ESCO Facilitator in full facilitation are as follows;
Prepare preliminary energy audit (including baseline energy cost calculation) Define the qualification and criteria for choosing ESCO Prepare tender documents and cost estimation Consider the bidding result and provide suggestion for choosing ESCO Prepare Energy Performance Contract (EPC) Supervise the installation work Supervise Measurement and Verification (M&V)
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II. ESCO Facilitation Approach (ESCO FA)
ESCO Energy Saving Project =
Walk-through Audit Proposal IGA
Investment decision
Procurement Process
EPC
EPCBaselines
Verification or IGA
Preliminary Technical and
Economic Assessment
CURRENT
OPTION 3
Customer
Option + Facilitator
ESCO
ESCO
ESCO
Full Facilitation Model
Customer
Facilitator
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III. International & Thai Experiences on FA & the Lessons Learned
Country Key activities on ESCO FA
Successful cases
USA (and Canada)
In 2007, passing legislation to promote EPC in federal agency buildings.
FEMP streamlined the Super ESCO model using IDIQ contract (Indefinite Delivery, Indefinite Quantity) with pre-selected ESCOs.
FEMP requires the use of a project facilitator in all project awarded under IDIQ ESPCs (EPCs).
Canadas Federal Buildings Initiative (FBI) has used a model contract and maintains a list of prequalified ESCOs and also identifies and provides project facilitators.
In 2009, BOMA and CCI (The U.S. Building owners and managers association: BOMA and the Clinton Climate Initiative: CCI) released an EPC toolkit that included a model project development standard. The model successfully unlocked the EPC projects in building sector.
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Country Key activities on ESCO FA
Successful cases
The Czech Republic
In 1995, the Act on tenders has been passed, presented the possibility to include evaluation criteria and other requirements into tender documentation
In 1999, there were promotion of EPC projects in form of subsidies and grants.
In 2010, the association of energy service providers (APES) established. Remaining barriers were complexity of tender process and budgetary restriction.
EPC project facilitators took their roles to guide them through the three phases: the preparatory phase, the pre-tender phase, and the selection phase.
Ministry of Industry and Trade financially supports the preparation of tender documentation for public sector organizations by supporting 80% of the costs up to a total of 4,000 EUR.
APES with Ministrys support, developed numbers of documents assisting EPC procedures: EPC model contract, EPC tender procedure guidelines, ESCO ethical codex.
Since 2010 / 2011 there have been significant increases in EPC projects and role of facilitator is growing and increases the trust in EPC projects among public organizations.
III. International & Thai Experiences on FA & the Lessons Learned
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Country Key activities on ESCO FA
Successful cases
Germany
BEA In 1996, the Energy Savings Partnerships (ESP) for
improving EE in public buildings was established by Federal State of Berlin and BEA.
BEA acts as project marketer, aggregator and facilitator, as well as financial advisor for the federal and local authorities.
1,400 buildings have been upgraded or retrofitted, delivering CO2 reductions of more than 70,000 tons per year.
The program is based on EPC with guaranteed savings. Property owners paid ESCO for the investment cost by this guaranteed savings with no additional cost.
III. International & Thai Experiences on FA & the Lessons Learned
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Country Key activities on ESCO FA
Successful cases
Germany
KEAIn 1998, KEA adopted the Berlin EPC business model for Baden-Wrttemberg (1110 municipal administrations, 36,000 km).KEA conducted more than 150 presentations for mayors, civil engineers, energy managers, facility managers, municipal councils and public bodies associations and collected their thoughts and recommendations KEA advanced and reshaped the Berlin EPC business model in several ways- Integration of renewables in EPC projects because many municipalities own forest, produce woodchips of waste wood.- Strong emphasis on the measures by emphasizing lists of measure in procurement- Integration of non-energy benefits.In the following years, KEA acted as a facilitator, supporting the public bodies in all stages of an EPC project.During the past 12 years KEA has initiated more than 30 energy supply contracting projects and 20 EPC projects.
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Country Key activities on ESCO FA
Moderate to Beginner Cases
Austria
There are probably about less than 10 project facilitators in Austria
There are competent in-house Facilitators in public institutions on the national, regional and local level.
Numerous barriers : - Split incentive still exists for rental residential buildings. - For community owner buildings, majority approval (50%) is
needed that requires long period of communication to convince the community members.
- A large share of the public buildings was largely off the market because of other Federal campaign.
Despite of the limitations/barriers, there is still a market for facilitators especially in regional public bodies, municipalities, communities, industry and medium-sized enterprises.
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Country Key activities on ESCO FA
Moderate to Beginner Cases
Belgium
Belgian EPC market was initiated in 2009. In Dec 2013-Jan 2014, several Belgian provinces and
communities started EPC-initiatives in public buildings. As a consequence of financial crisis, Belgian local
governments were required to decrease expenditures which adversely affected demand for EPC facilitators.
EPC facilitation has a disadvantage because it can be easily perceived as a consultancy services with vague and unclear advantage.
Local authorities believe that their staff can do the job. With budget restriction, local authorities have to reduce
external costs, i.e. EPC facilitation costs. In 2012, the ESCoNetwerk as a Market Facilitator was
grounded to overcome barriers and unfamiliarity. The structure is little related to the ESCO.
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Country Key activities on ESCO FA
Moderate to Beginner Cases
The Netherlands
The role of the Project Facilitator is indistinguishable in the Netherlands.
There is strong need for more structure in the role of the Market Facilitator and more independent Project Facilitators.
Sweden There is a need of stimulation action and support for Swedish market.
Today, only 2-3 consultants are performing part-time work for EPC project facilitation activities.
The Swedish Energy Agency has also granted funding to analyze the possibilities and create a plan to form an ESCO association.
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Country Key activities on ESCO FA
Moderate to Beginner Cases
Switzerland
The Swiss EPC market is still in its infancy stage. Switzerland has several years of experiences in ESC but only
a few companies offer ESCO-Services with EPC and around a dozen EPC projects are running.
Facilitator in the classical meaning of ESCO business was not known in the underdeveloped EPC market.
EPC market is not further developed in Switzerland because of lack of knowledge to handle procurement process (public tender) of the public sector and lack of facilitators who could ease this work.
III. International & Thai Experiences on FA & the Lessons Learned
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Country Key activities on ESCO FA
Moderate to Beginner Cases
India
In 2011, India was defined by International Finance Corporation (IFC) as emerging ESCO market with best established, even though deficient in many aspects.
Barriers: The absence of efficient big players, the limited financial ability and
inadequate past experience cause ESCOs to seem untrustworthy to energy end-users as well as banks.
Lack of information and attention in public and private sector Lack of standard M&V protocol Policy recommendation for EPC market in India (by IBPE) Establish a Policy Framework for EPCs and a Standard Design Build
Procurement Process. Energy Efficiency Services limited (EESL) was served as a capacity-building resource center for EPCs and has taken the role of facilitators or consultant
Provide Training and Assistance to Agencies/Building Owners Stimulate Third-Party Financing
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Country Key activities on ESCO FA
Moderate to Beginner Cases
Korea
In 1992, Korea started first ESCO project. From 1992 up to now, numerous supports to ESCO business
by government have been launched. E.g. large loan amounts to public sector, soft loans to private sector, tax benefits.
Energy Use Rationalization Act (EURA) has been enacted as specific legislation for Koreas ESCO policy which aims at supporting ESCO.
Numbers of registered ESCOs in Korea have grown significantly from 4 in 1992 to 227 by the end of 2012.
KEMCO has been acted as Market Facilitators. ESCO themselves are acting as project facilitators that
facilitate as mediator between ESCO and client from project development phase through construction phase.
Mostly, ESCO market depends on loans from government.
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Country Key activities on ESCO FA
Moderate to Beginner Cases
South Africa
Large share of ESCOs rather operated as energy auditors as a result of an IDM funding programs from the countrys state-owned electricity provider ESKOM. The programs targeted at the replacement of light bulbs with energy efficient lighting to reduce South Africas peak demand.
As a result of 30% electricity tariff increase and IDM programs put on hold, this provided opportunity to ESCO EPC and ESC projects.
In 2012, GIZ decided to set up an ESCO Facilitator at one of its cooperation partners, the South African Energy Development Institute (SANEDI)
As South Africas interest in cogeneration increased significantly, GIZ opted to combine both COGEN and ESCO into an ESCO/Cogen FA for SANEDI.
The ESCO/Cogen Facilitator started its work at SANEDI in October 2013 and organized a number of workshops, supported feasibility studies and assisted in the promotion of cogeneration for various associations.
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Lessons learned from international experiences
Items International Practices
1. FA in public sector plays a significant role in
promotion of EE & EPC facilitator project.
This has shown in all success cases of ESCO FA
development, USA, Germany, and The Czech Republic.
2. FA is still necessary, although there are
policy and regulation supports because of the
lack of knowledge and complexity of budget&
procurement rules.
In the Czech Republic where the Act on tenders
(procurement) has been effective since 1995 and there
were state promotions and supports in form of subsidies,
yet the complexity of tender process and budgetary
restriction impeded the diffusion of EPC. At that time,
EPC project facilitators played their roles in guiding them
through the three phases: the preparatory phase, the
pre-tender phase, and the selection phase.
3. Quasi-govt agency to be assigned for
facilitation development tasks.
YES. All success cases of EPC facilitator have been driven
by quasi-govt agency e.g. BEA and KEA in Germany,
FEMP in the US.
4. Govt subsidy is necessary at least at initial
period because added value from FA in view of
customers is unclear.
In Germany (BEA example), there were 50% financial
support by government for cost of facilitator.
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Lessons learned from international experiences
Items International Practices
5. Govt responses to FA accompanied by
professional associations actions on FA
development.
In some countries (USA, The Czech Republic), not only
government support but also actions taken by ESCO
association in developing standard documents and related
guidelines have leverage FA business.
6. Implementing strategies that are
replicable.
Pooling or bundling public buildings which using energy in
similar pattern before issuing tender documents as
successfully practiced in BEA case.
Shared saving model of ESCO EPC project with minimum
guarantee of energy saving along project period is proven
in BEA case that property owner could reimburse that
saving to pay ESCO fee with no additional cost.
Comprehensive guideline document on EPC procurement
process prepared by professional ESCO association is useful
for both ESCO and ESCO FA.
7. Intensive seminars and training
workshops to key stakeholders.
As KEAs effort in organizing and presenting 150 seminars
and workshops for local authorities to disseminate
background knowledge in EPC and EPC FA.
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Lessons learned from international experiences
Items International Practices
8. Uniform protocols of EPC processes,
standardization of contractual documents, guidelines
or toolkits are strongly required.
YES.
9. Modification of FA model is required to fit the
local contexts.
In Germany, success case of facilitation by BEA did
not succeed in case of KEA in Baden. KEA,
therefore took greater effort and include
renewable and non-energy benefits as an
advance facilitator role
In South Africa, SANEDI also modifies its role to be
ESCO/COGEN facilitator.
10. Data on cost of ESCO FA. There is a rough study that typical facilitator cost is
on average at 3 % of EE project investment cost.
Cost for controlling of invoices, M&V or baseline
adjustments during operation phase are agreed on
demand in separate contracts.
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ESCO FA Pilot Projects in Thailand Under a support from GIZ, TGP-EEDP program, currently there are 3 on-going ESCO projects with pilot facilitation. Updated information is summarized as follows;
Customers ESCO facilitator
Potential savings Estimated
project
investment
cost (Baht)
Current StatuskWh/yr. Baht/yr.
1. Team Precision PCL. Bright
Management
Consultant (BMC)
(full facilitation)
443,160 2,148,330 7,539,810
MOU will be signed soon
and follow with EPC
contract
2. PEA (SCADA
Building)
PEA
(full facilitation)
152,740 610,960 5,000,000Energy audit report will be
submitted on 23 May
3. Nursing college in
NonthaburiPEA
(full facilitation)
52,400 209,600 838,400 Energy audit starts on May
11, 2016
4. S&P Syndicate
KMUTT
(partial
facilitation)
NA NA NA NA
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1. Generally, ESCOs mostly prefer to propose guaranteed saving than shared saving projects.
2. Most ESCOs usually conduct preliminary assessment by themselves.
3. The client in pilot project has expressed its concern over the standard EPC contract prepared by Thai ESCO Association (TEA) on the following issues; Ownership of the equipment under shared saving EPC Benefits sharing when actual savings exceed the amount declared in contract Shared saving standard contract by TEA not fully accepted by the client.
4. Most Thai ESCOs have no expertise in energy conservation measures (ECM) for production process.
Key Lessons Learned from ESCO FA Pilot Projects
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IV. Assessment of ESCO FA development in Thailand
1.International experiences ( previously described)
2.ESCO FA Pilot Projects ( previously described)
3.Results from Key stakeholder interviews
Around 15 persons as representatives players of the five groups in the Thai ESCO business and have participated in ESCO FA activities. These selected key stakeholders were interviewed with guiding questions focused on their opinions concerning ESCO FA development in Thailand.
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Input to the Assessment
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IV. Assessment of ESCO FA development in ThailandKey results from the interviews can be summarized as follows
No. Key Factors Issues Resulted from the Interviews
1.Responsible agency (Who) Most of interviewees support public sector to play lead by
example role by implementing ESCO and ESCO FA projects.
2.
Institutional setting up
including networking and
facilitator standard and/or
quality of work (Who)
Majority agreement from the interviewees on the need of a
central institution establishment.
3.
Policy direction or vision
(Which)
One interviewee considers government subsidy programs as
impediment of EE market to continue its business as usual as
many consumers delay implementing their EE projects until
Govt launches new campaigns. (Free-ridership problem)
4.
Law and regulation
framework (What)
Many administration rules in public sector are main barriers for
ESCO business to penetrate this market.
One utility suggests that difficulty and time-consuming in
principal approval process can be reduced by regularly
allocating annual budget for engineering business which can
be used for ESCO and ESCO FA business.
Another utility is a pioneer in adding LCCA into bid evaluation
criteria.
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IV. Assessment of ESCO FA development in Thailand
Key results from the interviews can be summarized as follows
No. Key Factors Issues Resulted from the Interviews
5.
Strategy or designed
process for
promotion of ESCO
FA (How)
Almost all of the respondents agreed with developing standard
qualification of ESCO facilitators to be an important driver for ESCO
market in Thailand.
6.
Costs and project
financing (How
much)
Majority of respondents accept facilitation fee that ranges from 3-10%
of EE project investment cost.
7.
Level of
understanding/knowl
edge (How much)
Selection of facilitator model, whether full or partial, will be mainly
based on the potential clients need and understanding.
A concern by ESCO firm that facilitation approach is adding more
complexity to ESCO business rather than easing the process
Independent and neutral role of facilitator is questionable.
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IV. Assessment of ESCO FA development in Thailand
Key results from the interviews can be summarized as follows
No. Key Factors Issues Resulted from the Interviews
8.
Human resource and
competency (How many)
There is a comment that ESCO facilitator is highly qualified with
several areas of expertise which is scarcely found in one person.
9.
Business sector/segment
e.g. industry,
commercial or public
buildings. (Where)
Most Thai ESCOs are lack of expertise in energy efficiency for
industrial process.
Many vendor ESCOs dominate Thai ESCO market and focusing on
sales of a single technology rather than a suite of energy saving
measures.
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SWOT/PEST Analysis FA in Thai ESCO market
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Strengths Weaknesses
Opportunities Threats
Controllable
Uncontrollable
Harmful(Unfavorable)
Helpful(Favorable)
Internal Factors
External Factors
SWOT Analysis:A Useful business technique that can be conducted for products, services, markets when deciding on the best way to achieve future growth. ;
Understand strengths and weaknesses Identify the opportunities open to you and threats you face
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SWOT/PEST Analysis FA in Thai ESCO market
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SWOT/PEST Analysis
FA in Thai ESCO marketStrength Weakness Opportunities Threats
Policy, Legislations &
Institutions
ESCO FA could add net
valuable benefits to clients
and consequently drive ESCO
business as a whole.
FA introduces a credible and
independent third party (a
facilitator) to act as an
intermediary and work
according to transparent
guidelines and quality
standards which will enhance
EE business in Thailand.
The FA has been proven to be
successful in many countries
e.g. German, USA, and The
Czech republic.
MEA has developed
procurement analysis tool on
Life Cycle Cost Analysis to
be used in bidding evaluation
process which usually using
lowest price decision criteria.
This development could
possibly enhance ESCO
business and ESCO FAs roles.
Policy makers acceptance on
ESCO FA initiative is unclear.
Networking and/or
institutionalization of ESCO FA
is not yet well accepted by high
ranking decision makers in
public agency.
There is no ambitious action to
standardize protocol,
associated documents,
guidelines, fee, and facilitator
qualifications.
Large potential of EPC projects in
public bldgs. & facilities are key
enabling factor to stimulate ESCO
mkt and project facilitator
development.
Govt procurement and budgeting
rules are under amendment
process to enhance EPC projects in
public sector.
It is possible to utilize ENCON Fund
availability to support FA initiative.
New phase of EERF and ESCO Fund
in operation.
FTI currently acts as market
facilitator, could possibly enhance
EPC facilitators roles.
DEDE could be a key player for FA
development in both public &
private sector.
A public utility is forming its FA
business for local authorities. This
forming can be useful model for
others to follow.
Large and well-known private
companies e.g. SCG, PTT, Tesco
Lotus could initiate their in-house
facilitators and possibly be able to
start new business.
Pilot FA project under GIZ support
on government facilities (i.e. one
nursing college in Nonthaburi)
would be a good start (or show
case) of public building project.
New phase of EERF &
ESCO fund is also a threat
for FA development since
it doesnt include any
preference for FA.
No specific regulations
and programs to drive or
promote EPC and FA in
public sector.
There will be questions on
neutral or independent
position of ESCO project
facilitators.
ESCO EPC market is
delayed to be business as
usual due to the players
suspending projects until
new subsidy program
from government is
launched.
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SWOT/PEST Analysis
FA in Thai ESCO marketStrength Weakness Opportunities Threats
Economic Conditions
FA can raise interest
of financial
institutions because
facilitator may assist
in technical part of
the project.
Facilitator acts as mediator among all involved parties, especially between client and ESCO to decrease ESCOs cost & time.
Currently, there is a
question on the
availability of competent
experts for ESCO FA.
When employing facilitator service, higher cost is a threat for FA business as viewed by a client.
Higher transaction costs due to hiring facilitator pose a burden for smaller EPC projects.
Thai ESCO market has been
better developed
compared with other
ASEAN countries.
GIZ initiative on ESCO
NAMA will provide support
and continue momentum
for FA business
development.
ESCO FA is another
business in ESCO supply
chain that could add value
to engineering consulting
services and create more
employments.
Increasing of EE lending
products by commercial
banks is driving EE market
and independent
facilitators would be the
missing link between
clients, ESCOs and banks.
Kasikorn Bank supports the idea of ESCO-NAMA proposal which will overcome barriers on access to loan guarantee by ESCOs and their clients. This effort will hopefully, stimulate SME EPC market.
Economic turmoil effect for customer to delay decision to go on project with medium to high investment cost measures.
It is difficult to penetrate ESCO market with new idea on FA when economy is in stagnant period.
The customer/ESCO with limited budget/financing, usually reserve it for core business activities.
Limited access to loan guarantees for ESCOs and their clients is one of the main barriers to ESCO business and also FA development.
Relatively low electricity tariff (average 4 baht/kWh vs. 6-9 Baht/kWh of FIT) is a disadvantage to ESCO business and ESCO FA.
SWOT/PEST Analysis FA in Thai ESCO market
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SWOT/PEST Analysis
FA in Thai ESCO market Strength Weakness Opportunities Threats
Social & Environments
Accolades or awards to
success case(s) of facilitator
project could be a plus factor
to drive EPC facilitator
service.
Thais norm in
networking and
business connection
could possibly be a
barrier to FA
development e.g.
independent position
of facilitator in
procurement of ESCO
might be jeopardized
by high level decision
making.
Technology
ESCO facilitator requires
considerable fields of
expertise with equal
importance in order to
deal with load and
complication of task.
Otherwise, any FA may not
efficiently handle the job.
ESCOs and FA for specific
sector could play important
roles in industrial sector e.g.
currently, ISIT has developed
6 main processes in the steel
production sector which
could be a ground for further
benefits on ESCO and FA
business .
There is a good opportunity to exchange/ transfer know how from various area of expertise through training programs.
There is also opportunity for existing engineering consulting firms to enter into newly created business of ESCO FA.
Lack of ESCO technical know-how on production process results in ESCOs focus on EE measures for utility areas only.
Many vendor ESCOs dominate the ESCO Thai market which focus on sales of a single technology rather than a suite of energy conservation measures.
SWOT/PEST Analysis FA in Thai ESCO market
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ItemsInternational Practices
(success cases)Thailand Initiation
1. FA in public sector plays a significant
role in promotion of EE & EPC facilitator
project.
YES NO EXISTENCE (NE)
2. FA is still necessary, although there are
policy and regulation supports because of
the lack of knowledge and complexity of
budget& procurement rules.
YES
YES to lack of knowledge and
complexity of admin rules but
FA recognition by public
authority is not confirmed.
3. Quasi-govt agency to be assigned for
facilitation tasks.
YES. All success cases of EPC
facilitator have been driven by
quasi-govt agency.
NE.
4. Govt subsidy is necessary at least at
initial period.YES
It is possible to use ENCON
FUND for subsidy to FA.
5. Govt responses to FA accompanied by
professional associations actions on FA
development.
YES Not accomplished yet
Comparison of Lessons Learned from International Practices and Thailand Initiation
38 ABLE CONSULTANT CO,. LTD.
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ItemsInternational Practices
(success cases)Thailand Initiation
6. Implementing strategies that are
replicable.YES NE
7. Intensive seminars and training
workshops to key stakeholders. YES
YES, at certain degree,
mostly in recent years by
GIZ.
8. Uniform protocols of EPC processes,
standardization of contractual documents,
guidelines or toolkits are strongly
required.
YES
YES, at least, there is an
effort on developing
standard contract by TEA,
FTI, and DEDE.
9. Modification of FA model is required to
fit the local contexts e.g. to include RE and
COGEN as in KEA and SA case.
YES. Probably YES.
10. Data on cost of ESCO FA. YES.
There is a rough study as concluded in
chapter 2, (2.3.5). Typical facilitator
cost is on average at 3 % of EE project
investment cost.
Cost for controlling of invoices, M&V
or baseline adjustments during
operation phase are agreed on
demand in separate contracts.
NE.
Majority of
interviewees agreed
with facilitators fee at
3% of project
investment cost.
Comparison of Lessons Learned from International Practices and Thailand Initiation
39 ABLE CONSULTANT CO, . LTD .
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Draft Roadmap for Thai FA Development
Yr.1 Yr.2 Yr.3 Yr.4 Yr.5 Yr.6 Yr.7IssuesActivities
GIZ/EP DEDE & Established responsible agency
DEDE
DEDE/MOF
RA/ENCON Fund +ESCO NAMA
RA
RA
RA/FA
1. Capacity Buildings/Source of Fund Assessment Publiticity
2.Responsible Agency Establishment
3.Change of associated public administration rules
4.Pilot Project Initiation
* Proposal /source of fund
* Select FA
* Proposal /source of fund
* Operation
* Select Projects
* Monitoring
5.Final Assessment/ Proposed Market Mechanism
6.Promotion Campaigns for Deployment
-
Expected outcome from group work
Comments and suggestion for further analysis on risk assessment/identification of key stakeholders.
41 ABLE CONSULTANT CO,. LTD.