Energy Efficiency, Standard and Labelling Policies in Thailand
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1 Energy Efficiency, Standard and Labelling Policies in Thailand Asawin Asawutmangkul Senior Engineer Bureau of Energy Efficiency Promotion Department of Alternative Energy Development and Efficiency Ministry of Energy, Thailand May 6 th
2 Outline 1. Thailand s Energy Situation and Policies 2. Energy Efficiency Policy and Measures 3. Standard and Labelling Policy 2
3 Thailand s Energy Situation and Policies 3
4 Energy Consumption in 2009 In 2009, Energy Expenses 47 billion USD (import 58%) Total Commercial Energy Use million barrels (oil equivalent) per day Commercial Energy Consumption by fuel Energy Use by sector 4
5 Thailand s Energy Policies 2. Alternative Energy as National Agenda 1. Enhance Energy Security Thailand s Energy Policies 3. Promote Energy Efficiency 4. Fair and Stable Energy Pricing 5. Environmental Protection 5
6 EE Policies and Measures 6
7 EE Conceptual Framework Conceptual Framework Demonstration & Dissemination High Tech. Tax Incentive ESCO Fund Process Improvement Revolving Fund Energy Management Training Data/Information Regulation Energy Management Practice Energy Conservation Promotion Fund
8 Energy Consumption (KTOE/yr) EE Plans and Targets Industrial and Commercial Sectors Reduced EI ~ 25% = 17,530 ktoe/yr Reduced EI ~ 15% = 7,630 ktoe/yr Reduced EI ~ 8% = 4,188 ktoe/yr BAU Actual : Used Consumption in ,614 ktoe 8 Target : Reduced EI (Base Year 2005) -8% in % in 2020 Reduced EI -25% in 2030 Around 1.5% annually 8
9 Energy Conservation Promotion (ECP) Act ECP Act was enacted in ECP Act B.E (2007) (Issue NO.2) is effective in June 2008.
10 Energy Conservation Promotion Fund Objective and Source of Fund collect small levy ( baht per liter) from the sell of gasoline, diesel, fuel oil, and kerosene Annual Revenue around 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
11 Revolving Fund for EC Projects Work Process DEDE allocate budget for banks Banks lend to Client for EE Project Banks payback to DEDE Clients Return Payment EE Project Implemented
12 Terms and Conditions Size of Revolving Fund Loan Period Eligible Borrowers Eligible Projects 62.5 / 62.5 / 125 million USD (2 billion Baht for phase 1&2, 4 billion Baht for phase 3 ) 7 years maximum 1 USD = 32 Baht Facilities Owners, ESCOs and Project Developers EE improvement or RE development and Utilization Loan Size from RF Up to 1.56 million USD / project ( 50 million Baht / project) Interests charge to customers Not more than 4% (negotiable) Interests charge from banks 0 % / 0.5% / 0.5%
13 11 Participating Banks 1. Bangkok Bank (BBL) 2. Bank of Ayudhya (BAY) 3. Bank Thai (BT) 4. Thai Military Bank (TMB) 5. Siam City Bank (SCIB) 6. Siam Commercial Bank (SCB) 7. Thai Farmers Bank (TFB) 8. Exim Bank (Exim) 9. Krung Thai Bank (KTB) 10. SME Bank (SME) 11. UOB 6 Banks participating in the 1 st Phrase 11 Banks participating in 2 nd 3 rd Phrase
14 Measure/Program - Results and Plan Revolving Fund Program Description 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) Results Support over 240 EE/RE projects Total investment around 500 million USD of 150 million USD of Government s Revolving Fund Energy savings of 120 million USD per year. Future Plan Secured additonal 60 million USD of budget 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
15 Measure/Program - Results and Plan ESCO Fund Program Description Results 2008 Future Plan Co-investment fund with private sector/investors Equity Investment Venture Capital Equipment Leasing Carbon Credit Trading Technical Assistance Credit Guarantee Facility Set up the Fund (initial budget of 15 million USD Selected 2 Fund Managers - Energy Conservation of Thailand Foundation - Energy for Environment Foundation Approved 17 projects for the total investment of 125 million USD. The investment from ESCO Fund is around 8.8 million USD with generating energy saving around 14 million USD /year Promoting and Marketing the Fund Support at least 20 projects Leverage minimum of 50 million USD Energy Savings of 10 million USD Long term Plan Increase the Fund to 100 to 200 million USD Corporatise the program to be Investment Company Open for private investors
16 EE Training and Capacity Building Measure/Program - Results and Plan Curriculum Results Future Plan 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 over 4,000 PREs Trained 250 Senior PREs Trained over 15,000 people in other courses Added 4 EE courses in vocational study Train 40 college teachers to deliver EE course Train over 12,000 engineers and building operators Over 10,000 students attend EE courses every year 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
17 Measure/Program - Results and Plan Cooperative Efforts for Energy Conservation Main Components Results Future plan 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 over 3,000 facilities including 1250 Designated factories (Metallic, Food, Chemical, Textile) 600 Designated buildings (hospitals, hotels) over 1200 SMEs energy savings 80 million USD/ y (Housekeeping, Low cost measures) 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
18 Measure/Program - Results and Plan Information and Knowledge Dissemination Various ways to provide information and consultation 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 EE Cliniques EE One Stop Service EE Consulting Centers and Branches Results Over 20,000 people have used the services Completion of EE Display Center Future Plan Develop Thailand EE/RE Knowledge Network
19 Standard and Labelling Policy 3.1 Legislative Measures for Energy Efficiency Products 3.2 The Testing Laboratory Network 21
20 3.1 Legislative Measures for Energy Efficiency Products
21 ECP Act, Section 23 In order to conserve energy in machinery or equipment, and to promote the use of energy efficient materials, the Cabinet, under the recommendation of the National Energy Policy Council, shall have the power to issue the Material Regulations as follows: (1) To designate machinery or equipment as having high efficiency, according to the types and sizes of the machinery and equipment, the quantities of energy consumption, the rate of energy loss, and the efficiency in energy consumption. (2) To determine which materials, by types, qualities, and standards, are materials used for energy conservation. Producers and distributors of high-efficiency machinery or equipment, or materials to be used for energy conservation under Clause one hereof, shall have the right to ask for support and assistance under Section 40. (ECP Act B.E. 2535)
22 ECP Act, Section 40 The producer or distributor of high efficiency machinery or equipment, or materials to be used in the energy conservation programmes shall have the right to request for promotion and assistance as follows: (1) exemption from paying surcharges under this Act; (2) grant or subsidy from the Fund under Section 25. Owners of factories, buildings, or government agencies and state enterprises which are not required to have energy conservation programmes under Clause one hereof, but desire to make provisions for energy conservation purpose, shall have the right to request for promotion and assistance under Clause one hereof. (ECP Act B.E. 2535)
23 Difference between MEPS & HEPS MEPS (Minimum Energy Performance Standard) : Mandatory Standard HEPS (High Energy Performance Standard) : Voluntary Standard
24 S&L Objective Raise the Average Energy Efficiency of the Products in the Market Market Transformation
25 Market Transformation Market penetration High Minimum Standard Push Labeling, Information, Co-operative procurement Lift Incentive Schemes, R&D, Technology Procurement Pull Low Bad Energy Efficiency Good
26 Strategy for establishing MEPS & HEPS DEDE signed Memorandum of Understanding (MOU) with Thai Industrial Standards Institute (TISI) in The agreement is that DEDE has responsibility to determine at least 35 products of Minimum Energy Performance Standards (MEPS) in The new strategy: MEPS is targeted to cover 50 products and Ministerial Regulations are targeted to establish 54 products between 2007 and 2011.
27 Electric Labelling Energy Consumption (kwh/year) Efficiency
28 Non-electric Labelling Number 5 is shown the highest efficiency mark Authority Name of Product Energy Saving High Efficiency Percentage of Efficiency Value DEDE : Department of Alternative Energy Development and
29 The product certification schemes of TISI consist of 2 types with different certification marks. Thai Industrial Standards Institute (TISI)
30 3.2 The Testing Laboratory Network
31 Accreditation requirement according to laboratory type Type Laboratory Organization Accreditation Requirement 1 Government organization and government academy 2 Private organization and private academy TIS or TISI R TL - 01 TIS
32 /th/home/index.php
33 Thank you
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