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

2. Energy Consumption in Thailand 2006 Transport 36.0% Agriculture 5.3% Industry 38.2% Residential and Commercial 20.5% Source: Statistic Division, DEDE Total Final Energy Use 63,180 ktoe ( value 1,374,648 million baht)*

3. Energy Situation 2006 transport 36.0% business 6.2% residential 14.3% agricultural 5.3% miniing 0.2 % construction 0.2 % Source: Statistic Division, DEDE Industry 37.8% Food&Bev 28.2% textile 4.5% Wood & Furniture 0.9% paper 3.6% chemical 12% Non Metal 33.8% Basic metal 4.4% Metal Frab 6.5% other 6.1% Energy Consumption in Industry and Business 27,768 ktoe (15,100 mill USD)

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 Transport 37% Industry 36% Resident & Commercial 21% Agriculture 6%

5. Industry Energy Consumption 1998-2005

6. GDP in Industries 1998 - 2005

7. Energy Elasticity 1998 - 2005 AVG Energy Elasticity 1.05:1

8. Energy Intensity 1998 - 2005 923.60 1,033.43 1,096.171,111.46 1,190.81 1,318.28 1,426.09 1,500.10 13,754 15,488 16,208 16,922 18,679 19,988 21,961 22,643 15.09 15.40 15.16 15.69 15.23 14.79 14.99 14.89 0 5,000 10,000 15,000 20,000 25,000 30,000 25412542254325442545254625472548 0 2 4 6 8 10 12 14 16 (ktoe), Billion Baht Energy Intensity Toe/Million baht Energy Consumption (ktoe)GDP (billion baht)EI (toe/million baht)

9. EE Conceptual Framework and Target Energy Management Practice Energy Elasticity = Growth (Energy) Growth (GDP) Original Target 1.2 : 1 1 : 1 New Challenge 0.85 : 1 EE 0.9 : 1 EE 0.85 : 1 800 mill USD/y 2,000 mill USD/y ktoe Training High Tech. Process Improvement Energy Management Revolving Fund Tax Incentive Regulation Accumulative Savings 2004–2011 worth over 7 billion USD Accumulative Savings 2004–2008 worth over 1.5 billion USD Data/Information Conceptual Framework Demonstration & Dissemination 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2005200620072008200920102011

10. –collect small levy (0.07 baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene –Annual Revenue around 2 – 2.5 billion 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 Energy Conservation Promotion Fund Objective and Source of Fund

11. Measure/Program - Results and Plan Main components Results 2003 - April 2007 Plan in Progress 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 Report 1,743 - T&P submitted 1,384 - EE Potential 593 million baht 3,160 Designated Factories - PRE appointed 2,253 - EC Report 2,587 - T&P submitted 1,598 - EE Potential 3,640 million baht 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) Law and Regulation

12. Main Components Results 2002-2006 Future plan Cooperative Efforts for Energy Conservation 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 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) 2007 Implement in over 600 buildings 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 Measure/Program - Results and Plan

13. Curriculum Results 2002-2006 Future Plan EE Training and Capacity Building 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 Trained 6,000 PREs Trained 250 Senior PREs Trained 6,750 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 Measure/Program - Results and Plan

14. Various ways to provide information and consultation Results 2002 - 2006 Future Plan Information and Knowledge Dissemination 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 Over 13,300 people have used the services 90% Completion of EE Display Center Develop Thailand EE/RE Knowledge Network Measure/Program - Results and Plan EE Cliniques EE One Stop Service EE Consulting Centers and Branches

15. Description Results 2002-2006 Plan Tax Incentives 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 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 Measure/Program - Results and Plan

16. Description Future Plan Revolving Fund Program 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) 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. 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 Participating Banks Results 2002-2006 Measure/Program - Results and Plan

17. Description Plan Demonstration of High and Advanced EE Technology 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 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 Results 2002 - 2006 Various industry groups have been studied - Food & Beverage - Textile - Plastic - Steel - Electronics - Petrochemical - Non-metallic - Paper - Hotel - Hospital Measure/Program - Results and Plan

18. Description Future Plan Standards and Labelling Study Potentials, Impacts, Market Feasibility Determine MEPS, HEPS Determine Testing Procedures Promote Supply and Demand 2007 Plan 2007 - 2011 Develop Ministerial Orders for 35 appliances Set up MEP for 21 appliances Estimated energy savings of 351.7 kTOE Develop Ministerial Orders for 26 Appliances such as Refrigerator, AC, Ballast, Electric fans, Rice cookers, motors, lighting and cars Label 10 appliances such as Refrig., AC, Ballast, electric fan, Set up MEP for 19 appliances such as AC, Refrig, electric fan Measure/Program - Results and Plan

19. Description Future Plan Public Private Partnership 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 Results 2002-2006 Extend the cooperation to SMEs Extend the services through provincial portals/branches Measure/Program - Results and Plan

20. Cooperation and Integration Minstry of Energy Education Industry Finance Science&Tech Agriculture Transport Environment Private Sector Foreign Affairs

21. Holistic Approach Organizational Restructure Paradigm Shift Enforcer / RegulatorFacilitator / Supporter Mission Adjustment Value Creation www.dede.go.th