Overview Thailand’s Energy and Energy Conservation
by ESCO
Vice Chairman Executive Committee The Institute of Industrial
Energy
The Federation of Thai
Industries
November 21, 2007
Mr. Chen NamchaisiriMr. Chen Namchaisiri
22
• Overview Thailand’s Energy• Activities of ESCO Information Center
Topic
Consumption Consumption by Sectorby Sector
Consumption Consumption by Sectorby Sector
Primary Energy Primary Energy consumptionconsumption
Primary Energy Primary Energy consumptionconsumption
Overview Thailand’s Energy
ภาคขนส่�ง36.0%
ภาคเกษตร 5.3%ภาคอุ�ตส่าหกรรม
38.2%
ภาคบ้�านอุยู่��อุาศั�ยู่และธุ�รก�จการค�า 2 0.5%น� าม�น (ดิ�บ้และส่�าเร"จร�ป) 39%
ก$าซธุรรมชาต� 31%
พล�งงานหม�นเวี)ยู่น&อุ*+นๆ16 %
ถ่�านห�น 12%
ไฟฟ0า 2%
0
1,000
2,000
3,000
4,000
5,000
1985 1989 1993 1997 2001 2005 2009 2013 2017 2021
KBD (Oil Equivalent)
Oil
Natural Gas/LNG
Lignite/Coal
Hydro
Energy Consump tion Outlook
Energy Consump tion Outlook
65%
20% 50%
1 %
30%
18
%
5%
10%
Source : EPPO Note : Including Petchem Feedstocks
Source : EPPO Note : Including Petchem Feedstocks
4,793
53%
32%
2 %
13%
328
1,569
CAGR (’85-’0
3) 9%
CAGR (’04-’2
3) 6%
Actual Projection
Energy consumption expected to incr Energy consumption expected to incr ease ease 6%6% CAGR during the next CAGR during the next two two
decadesdecades years with oil and gas contrib years with oil and gas contrib uting on average uting on average 8080%%
Energy consumption expected to incr Energy consumption expected to incr ease ease 6%6% CAGR during the next CAGR during the next two two
decadesdecades years with oil and gas contrib years with oil and gas contrib uting on average uting on average 8080%%
55
Thailand Energy Strategies Thailand Energy Strategies for Economic Development and Regional for Economic Development and Regional
IntegrationIntegration
Strategy for Efficient Use of EnergyStrategy for Efficient Use of Energy Reduce Energy Elasticity from 1.4:1 to 1:1Reduce Energy Elasticity from 1.4:1 to 1:1 Strategy for Renewable Energy Development Strategy for Renewable Energy Development Increase share of RE from 0.5% to 8% of total final energy by Increase share of RE from 0.5% to 8% of total final energy by
20112011 Strategy for Energy SecurityStrategy for Energy Security Ensure sufficient and reliable energy supply for at least 30 yrsEnsure sufficient and reliable energy supply for at least 30 yrs Strategy for Thailand as a Regional Energy Strategy for Thailand as a Regional Energy
CenterCenter Develop Strategic Energy Land Bridge and Energy HubDevelop Strategic Energy Land Bridge and Energy Hub
Cabinet Resolution on September 2, 2003Cabinet Resolution on September 2, 2003
66
NRE0.5%
TE16.5%
พล�งงานเช�งพาณิ�ช ยู่2
83.0% TE = Traditional Energy
NRE = New & Renewable Energy
2554255481,753 KTOE81,753 KTOE
TE 11%
NRE8%(6,540 KTOE)
CommercialEnergy
81%
52,939 KTOE
2003 (265 ktoe)
CommercialEnergy
201181,763 kTOE
National Agenda
National Agenda
Cabinet Resolution
on June 8, 2004
Strategy for Renewable Energy Strategy for Renewable Energy DevelopmentDevelopment
77
Target and Target and Strategy of Strategy of
RERE
RE8%
RE0.5%
Heat(Incentive)
3,700 KTOE
Bio Fuel (Incentive) 1,800 KTOEEthanol 3.0 M liters/DBio diesel 4.0 M liters/D
Heat~ 0.00 KTOE
Bio fuel~ 0.00 KTOE
2002 2011
R & D
RPS
INCENTIVE
Electricity
Facilitator
RPS 437 MW- Solar- Wind- MSW- Biomass- Hydro Incentive 1,093 MW
ElectricitySolar 6 MWWind 0.2 MWBiomass 560 MW
Strategy for Renewable Energy Strategy for Renewable Energy DevelopmentDevelopment
88
Energy IntensityEnergy Intensity
6h t t p : / / w w w .e ia .d o e .g o v / p u b / in t e r n a t io n a l / ie a l f / t a b le e 1 g .x ls
E n e r g y I n t e n s i t y [ T o t a l P r im a r y E n e r g y C o n s u m p t io n P e r D o l la r o f G r o s s D o m e s t i c P r o d u c t ]
02,0004,0006,0008,000
10,00012,00014,00016,00018,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Btu
per 1
995
US D
ollar
s Us
ing M
arke
t Exc
hang
es R
ates
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
ThailandUSAUK
GermanyJapan
(Compare with Developed Countries)
99
Energy IntensityEnergy Intensity
6h ttp : / / w w w .e ia .d o e .g o v / p u b / in te rn a tio n a l/ ie a lf / ta b le e 1 g .x lsE n e rg y I n te n s ity [ T o ta l P r im a ry E n e rg y C o n su m p tio n P e r D o lla r o f G ro ss D o m e stic P r o d u c t]
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Btu pe
r 199
5 US
Doll
ars U
sing Ma
rket E
xcha
nges
Rate
s
Malaysia
China
India
Thailand
Vietnam
World Primary Energy Consumption Per Dollar of Gross Domestic Product, 1991-2002
(Compare with Developing Countries)
1010
Strategy
Energy Efficiency Improvement TargetEnergy Efficiency Improvement Target
2. Improve EE in Industry
Energy Efficiency
Improvement
1. Improve EE in Transportation
Energy Elasticity= 1:1 in 5 years
Indicators
Energy Elasticity = Energy Elasticity = ∆∆tt Energy Consumption/ Energy Consumption/ ∆∆tt GDPGDP
Ave. Energy Elasticity1.4 : 1.0
Ratio of energy growth rate to GDP growth
rate = 1.0
3. Awareness raising
campaign
1111
Promotion of ESCOsPromotion of ESCOs
BOI – Tax IncentiveBOI – Tax Incentive Maximum 8 years tax exemption for ESCO projects – Maximum 8 years tax exemption for ESCO projects –
Cooperate Income taxCooperate Income tax Access to Revolving FundAccess to Revolving Fund
Eligible to borrow the low-interest loan from RF Eligible to borrow the low-interest loan from RF program on project-by-project basisprogram on project-by-project basis
ESCO promotion activitiesESCO promotion activities WebsiteWebsite Seminars, workshopSeminars, workshop PublicationsPublications Lists of ESCOs and successful casesLists of ESCOs and successful cases
1212
Incentive through Board of Investment ( BOI )
Import duties and Cooperate tax exemption on new Import duties and Cooperate tax exemption on new investment ininvestment in
• Energy conservation business Energy conservation business
• High efficiency machine or equipment and renewable energy High efficiency machine or equipment and renewable energy equipment manufacturingequipment manufacturing
• Solar PV manufacturingSolar PV manufacturing
• Energy Service Company – ESCO Energy Service Company – ESCO
Renewable energy production businessRenewable energy production business
• Alcohol or fuels from agricultural productsAlcohol or fuels from agricultural products
• Electricity or steam generation Electricity or steam generation
Incentive last for the max period of 8 years Incentive last for the max period of 8 years
1313
Promotion of ESCO Business and Promotion of ESCO Business and Cluster Development ProjectCluster Development Project
Drawing from a store of experiences and Drawing from a store of experiences and expertise in analyzing energy usage expertise in analyzing energy usage capabilities, the Energy Service Company capabilities, the Energy Service Company (ESCO) can help to reduce energy (ESCO) can help to reduce energy consumption by adapting equipment and consumption by adapting equipment and machinery in line with measures that have machinery in line with measures that have been selected to suit each factory. been selected to suit each factory.
1414
Energy Conservation by ESCO
1515
The definition of an The definition of an Energy Services Energy Services
company company ESCO are most often private ESCO are most often private
company that provide company that provide comprehensive energy efficiency or comprehensive energy efficiency or
load reduction services to customers load reduction services to customers that own or operate facilities such as that own or operate facilities such as factories and buildings to improved factories and buildings to improved
efficiency, functionality and efficiency, functionality and productivity of client’s facility, ESCO productivity of client’s facility, ESCO
generally act as developers for a generally act as developers for a wide of tasks and assume the wide of tasks and assume the
technical and performance risk technical and performance risk associated with the project.associated with the project.
1616
ESCO typically offer the ESCO typically offer the following service:following service:
Find out the target (building or industrial factory) for implementation.
Conduct a preliminary investigation and analyze the present energy consumption in details.
Propose the turn key systems that suit to user’s requirements and occupancy patterns.
Source out the financial support. Project management. Install and maintain the energy efficient equipment
involved. Measure, monitor, and verify the project’s energy savings. Commissioned to optimize performance guaranteed
service. Conduct staff training and provide the related services.
1717
The working term of ESCO The working term of ESCO & Pattern of investment & Pattern of investment
The working term of ESCOThe working term of ESCO ESCO operate on Energy Performance ESCO operate on Energy Performance
Contract; the term EPC is an abbreviation for energy Contract; the term EPC is an abbreviation for energy performance contracting, meaning that the contract performance contracting, meaning that the contract
and the finance are related to the performance of the and the finance are related to the performance of the project. So that the payments to the performance project. So that the payments to the performance
contractor are contingent on the actual level of contractor are contingent on the actual level of savings achieved, it is in the contractor’s interest to savings achieved, it is in the contractor’s interest to maximize the energy savings. This translates into maximize the energy savings. This translates into
increased money savings for the client.increased money savings for the client.
1818
Pattern of investmentPattern of investment
1.1. Guaranteed SavingGuaranteed Saving - Client invest themselves - Client invest themselves
2.2. Shared Saving -Shared Saving - ESCO provide financial loan ESCO provide financial loan serviceservice
3.3. AnotherAnother
1919
Thailand ESCO Fair 2007Thailand ESCO Fair 2007
The exhibition and seminar on conservation of energy The exhibition and seminar on conservation of energy in order to decrease the manufacturing cost and save in order to decrease the manufacturing cost and save the energy in the industrythe energy in the industry
ObjectivesObjectives:: - - To support and publicize the knowledge of Energy To support and publicize the knowledge of Energy Service Company Service Company ((ESCOESCO) ) businessbusiness. .
Activities:Activities: ESCO exhibitionESCO exhibition,Seminar on the topic of ESCO ,,Seminar on the topic of ESCO , Ene Energy Clinic rgy Clinic and and ESCO Information CenterESCO Information Center
2020
ESCO-Bank networkingESCO-Bank networking
2121
ESCO-Bank networkingESCO-Bank networking
www.iie.or.thwww.iie.or.th www.fti.or.thwww.fti.or.th
Tel. 02-3451250-56 FAX. 02-3451258-9
Thank youThank you
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