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„Development of energy saving obligations for utilities – Energy
Efficiency Resource Standards – in Thailand“
Dr Milou BeerepootDirector GIZ Energy Efficiency
Programme Thailand
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• Thailand faces highest energy security vulnerability in ASEAN region: Thai Ministry of Energy developed strong Renewable Energy and Energy Efficiency strategies: Energy Efficiency Development Plan 2015 – 2036 (incl. EERS)
Net oil and gas import dependency in selected ASEAN countries (IEA, 2013)
Energy efficiency: energy security
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• Energy Policy and Planning Office (EPPO, Min. of Energy)
and GIZ (German International Cooperation) cooperate in
implementation of the Thai Energy Efficiency Development
Plan (EEDP):
1
7
456
EERS: Energy Saving Obligations for utilities
23
Thai-German energy efficiency cooperation
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What is EERS?
Energy Efficiency Resource Standards (EERS):
• A quantitative mandatory saving target for utilities
(electricity and/or natural gas, oil) …
• … that needs to be achieved through end-user
energy saving programs
EERS is also called Energy Saving Obligations or
White Certificate Scheme or Utility Energy Efficiency
Obligation
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Why EERS?
• Achievement of the energy savings target is relatively
certain (and can be measured with monitoring and
verification scheme)
• Relatively low burden on public budgets may lead to higher stability than other EE policies
• An EERS scheme can stimulate the development of ESCO
markets or other EE service industry
• EERS schemes are particularly well suited for standardised
EE measures in the residential sector or for SMEs
• In developing/emerging economies: reducing need for
additional power plant development
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Why utilities?
Utilities are well suited for implementing EE programs due to:
• existing customer relations
• availability of energy consumption data
• advice infrastructure & expertise in energy efficiency
Advantages for utilities (distributors):
• Avoided or postponed distribution network upgrades due to
peak load reductions
• Strengthened customer relationships, improved reputation
• Development of new markets in the field of energy services
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Why would utilities save energy?
Who is going to pay?.
What is EERS?.
Do we need ESCO’s?.
Where should savings come from?
Baseline situation Thailand and EERS
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Baseline situation Thailand and EERS
• EERS is new in the region and new to Thailand
• Centralised energy system model, with limited number of
utilities, can have pros and cons in developing EERS
• Development of EERS is in need of process that creates
support and commitment of key stakeholders
• EERS experience worldwide are useful but needs
adjustment to local conditions
• … EERS development in Thailand therefore started with
a process of developing EERS design options as a basis
for stakeholder discussions
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Responsible Agency:• Defines saving target • Defines eligible measures and calculation methods• Certifies achieved energy savings• Monitors and evaluates the EERS
Utility 1 Utility 2Bilateral
trading of certificates?
ESCO X, Y, Z or other EE services
Certified energy savings
Certified energy savings
Certified energy savings
EERS design decisions to be taken in Thailand :1. Obligated parties
2. Basis for setting target
3. Financing the EERS pilot
4. Level of savings target
5. Options for achieving target
6. Implementation & Oversight
7. Measuring energy savings
8. Cost recovery
EERS development in Thailand: design decisions
End-users
Implementa-tion of mea-
sures
Implementa-tion of mea-
sures
Promotion CampaignsFinancial incentivesEnergy Consumption Feedback / Energy Audits
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EERS design: Obligated parties Advantages DisadvantagesObligated parties
Option 1:MEA and PEA (distribution and retail)
• Enables spatially differentiated saving targets
• Existing relationships with end-users and availability of data can facilitate implementation of energy efficiency measures
• Less capacity to implement energy efficiency measures at large scale
Option 2:EGAT(generation & transmission)
• Good overview regarding the spatial and temporal distribution of capacity bottlenecks and corresponding peak load reduction potentials.
• Long experience in DSM and sufficient personnel and financial resources
• No or limited direct link to the end-users
Option 3:EGAT and PEA&MEA
• Individual competences may lead to a larger portfolio of measures
• Higher competition may increase cost-effectiveness
• Increased coordination requirements between obligated parties
• Difficulty in setting individual saving targets and cost recovery rates due to different functions in the energy market
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EERS development: (interim) lessons learned
• Centralized energy system model can have pro’s and cons
for EERS development
• Commitment of high levels in Ministry of Energy is essential
• Utilities support for EERS is pre-condition and can take
time: using discussion framework as part of process
• Starting with a pilot to build trust and stakeholder support
• Long term vision and changing utility futures can help to
create support for EERS
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