: EGAT s Experiences and Lessons Learned

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1 Power Utility s Demand Side Management Programme : EGAT s Experiences and Lessons Learned Seminar on Energy Efficiency Resource Standards (EERS) Thursday 27th March 2014 Mr. Pitarn Chaichinda Director, Demand- Side Management & Planning Division Electricity Generating Authority of Thailand

2 Key Words All rights reserved EGAT

3 Outline 3 1. Background 2. EGAT s Demand Side Management Programs: Labeling Program Lighting Program Demand Response Strategic Load Growth Thermal Energy Storage Attitude Creation Program A/C Cleaning Program 3. Measurement, Verification and Evaluation 4. Key Lessons Learned

4 4 Background (1) Daily load curves on daily max. demand: MW MW VS TIME

5 5 Background (2) Reasons for EGAT to undertake DSM Programs DSM = the implementation of programs or measures designed to encourage electricity consumers to modify their patterns of electricity usage, including timing and quantity of electricity demand. Utility Load Shape Objectives As load management activity

6 6 Background (3) Reasons for EGAT to undertake DSM Programs As measures to cope with rapidly growing demand during 1990 s. Assigned by cabinet resolution since As one solution to mitigate environmental problems. The GHG emission to be avoided if DSM is adopted instead of a generation resource. As cost - effective alternatives compared to supply - side s options. EGAT s avoided costs > DSM program costs To enhance public image of EGAT.

7 7 Background (4) Structure of Energy Efficiency Implementation in Thailand

8 8 Background (5) Thailand 20-Year Energy Efficiency Development Plan ( ) lites.asia Sharing Standards and Experiences Jakarta, 24 April 2013

9 Funding of Energy Efficiency Activities 9 Soft loan program Established in 1992 under Energy Conservation Act Collecting a small levy (~1 US cent/litre) from the sell of gasoline, diesel, fuel oil and kerosene Supporting EE/RE promotion activities Co-investment program Demand Side Management programs in residential, commercial and industrial sector Focusing Standard & Labeling for electrical equipments Increasing activities in energy efficiency

10 Sources of fund to support EGAT s DSM Programs A grant of US $ 15.5 million from GEF A concessional loan of US $ 25 million from JEBIC reimbursed from the F t under approval of DSM Subcommittee EGAT s budget (based tariff) around 10 Mil US$ annually Financial support from Energy Conservation Fund in some programs

11 DSM Strategies implemented by EGAT 11 Market Transformation - Thin Tube Program, - Appliance Efficiency Labeling Program Customer-Oriented Program Design - Flexibility to Accommodate Customer Needs - The Green Building Program Public-Private Sector Partnership - Energy Services Company (Pilot ESCO) Attitude Creation - Green Learning Rooms & PR Campaign

12 Labeling Program 12 Activities Procedure Impact Constraint Lesson Learned Trend Labeling 14 appliances with Label NO. 5 - Performance testing - Labeling - Compliance Testing 2,617 MW 15,696 GWh 160 million labels Product cost difference Fluctuation Impact depends on market condition Saving growth rate lower than the past (Saturated Potential) Rating Scale 1= low, 2=fair, 3=medium, 4=good, 5=very good Efficiency level of this appliance Appliance type Electricity cost Efficiency Electricity use per year Appliance details Logo of EGAT and Ministry of Energy

13 Energy Labeling by EGAT Refrigerator (1994) 2. Air conditioner (1995) 3. Compact Fluorescent Lamp (1996) 4. Electromagnetic Ballast (1998) 5. Electric Fan (2001) 6. Automatic Rice Cooker (2003) 7. Lighting Luminare (2003) 8. T5 (2009) 9. Electronic Ballast (2009) 10. Double-oscillating Fan (2009) Standby 1 Watt- TV & Monitor (2010) 13. T5 Luminare (2010) 14. Electric Thermal Pot (2011) 15. Ventilation Fan (2012) 16. Water Heater (2012) 17. Electric Iron (2012) 18. Washing Machine (2012) 19. T5 Retrofit Set (2013) 20. LED MR 16 (2013)

14 Lighting Program 14 Activities Procedure Impact Constraint Lesson Learned Trend CFL - Phase out Incandescent - Low Cost CFL EGAT Package Retrofit in most of long application area - Price, Quality LED technology - Technology change - Long period test Depend on price & quality trend of LED T5 Pilot demonstration program government buildings 2 years payback, 4.5 million sets installed - Retrofit Installation Procedure Take time to Retrofit, not convenient for continuous working area LED Demonstration for road lighting in EGAT s dams - Standard - Parts quality - High investment Life span of most products lower than declared value

15 Demand Response 15 Activities Procedure Results Constraint Lesson Learned Trend Demand response Potential Study - On-site study the potential of applying DR in 60 sites of business buildings 60 sites of industrial factories 10 sites for demonstration Analyze DR Potential in commercial and industrial sectors Design the appropriate incentives and communicatio n & control system -Support tariff (Residential sector has low priority) -Standby generator should be synchronized - Able to generate only 30% of capacity Should be incorporated with smart grid plan Waste Water Treatment System of EGAT Pilot projects and demonstration (1) Set a pilot project that use one of standby generators in EGAT main office to be synchronized to the main grid and controlled via internet. (2) Study the impacts of DR measures; i.e. increase A/C temperature, lighting control in buildings Information for further planning - Cooperation among related parties - Necessary critical peak pricing and/or incentive structure required (April 2013, 2014 demonstration)

16 Strategic Load Growth 16 Activities Procedure Impact Constraint - Electric Vehicle (EV) - Potential Study & Pilot program Labeling - Information for further planning EV have limited potential depends on charging station that connected to smart grid - Cooking Appliances - Labeling Downtown gas pipeline installation - Heat pump water heater - Potential Study & Pilot program Labeling - DEDE Incentives Downtown gas pipeline installation

17 Thermal Energy Storage 17 Activities Procedure Impact Constraint Lesson Learned Trend Thermal Energy Storage Pilot demonstration at EGAT Head Quarter - Chilled Water Storage N/A - High investment - No supporting tariff - Low amount of cost saving - Consume more energy Waiting for technology trend and supporting tariff - ICE Storage - Slurry Storage - Lack of operator awareness EGAT s Health Care Center Ice Storage Underground Chilled Water Storage

18 Thermal Storage System at EGAT Head Offlce (T102) 18 (Clathrate Hydrate Slurry : CHS)

19 19 Activities Procedure Impact Constraint Lesson Learned Green Learning Room Set up EE learning room and campaign program Energy knowledge & awareness Budget & maintenance team Nonsustainable program without curriculum Trend Strategic review Green School Energy & Environment Contest 74 sites in 3 years ( ) Many items & Procedure to certify Not sustain without curriculum

20 A/C Cleaning Program 20 Activities Procedure Impact Constraint Lesson Learned Trend - A/C cleaning in summer for government buildings and residential Campaign, rebate and free services Alliance: - Green Shop - Psychological stimulation -Energy saving approximately = 1 kwh/set/day Customer focus on holiday action Difficult to evaluate the reliable impact Every year in summer - Vocational school

21 Other related programs by government agencies: Programs of Department of Alternative Energy Development and Efficiency (DEDE) 21 Activities Procedure Impact Constraint Lesson Learned Trend - HEPs & MEPs - Non electric appliances labeling - Energy management system - Rebate Variation of campaign mode Energy saved according to DEDE reports - Long Payback - Low Priority Investment for Energy Eff. SME focus on short term Benefit more than LCA Continuous Implement in 20-Year Master plan - Tax incentives - ESCO - Building code - LED Ministry of Industry - TISI Program Activities Procedure Impact Constraint Lesson Learned Trend ISO Set up the system for certification - High Expenses for certification and maintenance Confuse with DEDE Energy Management System MOI Policy

22 Measurement, Verification and Evaluation (1) 22 Verification Process: Randomly Spot checking Randomly spot-purchase the NO.5 appliances at the electric appliances shop and department stores countrywide Send those models to test for standard compliance at the accredited laboratory (Electrical and Electronics Institute: EEI) Control measures: call back all distributed labels of the unqualified models and forbid those models to participation in Label NO.5 program for at least 1 year Random testing of electrical appliances Result by year no. of models Failed models Passed models Averagely, around 81% of all the random purchase models has passed criteria testing All rights reserved EGAT.2013

23 Measurement, Verification and Evaluation (2) Program s Impact Evaluation Methods 23 Energy Savings per Year Program Data No. of Units attributable to DSM Program Wattage Reduction Annual Hours of Use Data & Information from Manufacturers Surveys End-use metering Study Customer Surveys System Planning Adjustment Factors Coincidence Peak Factor Transmission & Distribution Loss Hours of Use Spot Wattage Persistence Rate Snapback/Takeback Rate Free Rider & Free Driver Rates Analytical Step Evaluated Energy Savings All rights reserved EGAT.2013

24 Measurement, Verification and Evaluation (3) 24 Planning & Evaluation Surveys and Research Planning : Load research, Feasibility study, Energy saving potential estimation of DSM measures, including detailed strategies and implementation plan Evaluation : Process, Impact and Market Effects Evaluation Data for Load Research Data for Feasibility Study Data for Saving Estimation End use Metering Interviews and questionnaire Market Survey Customer Survey Manufacturer interviews Market Survey Customer Survey Documentation reviews Process Evaluation Impact Evaluation Market Effects Evaluation Discussions & Interviews Inspections &Site Visits Document Review End use Metering Engineering Calculation Calibrated Engineering Estimates Interviews Surveys Inspections

25 25 Results of Program Implementation Achieved to date (as of Feb 2014) Program MW GWh CO 2 (Ton) Lighting 1, , ,592,954 - Fluorescent Tube (T8) , ,446,682 - Fluorescent T5 Program ,096 - FTL (T5) ,986 - ElecTronic Ballast T ,110 - CFL(before labeling) ,295 - CFL(labeling 2008) , ,608,385 - Low-Loss Ballast ,230 - HPSV Street Light ,723 - LED Street lighting (EGAT) Refrigerator , ,623,844-1 door , ,010,950-2 doors , ,894 Air Conditioner 1, , ,988,838 Fan ,952 Double oscillating fan ,427 Rice cooker ,001 Motor Comercial ,583 Standby - TV ,764 - Computer screen ,241 Eleltric kettle ,490 Water heater ,266 Total 3, , ,566,269 Peak Demand Reduction by Program Electric Fan 2% Air Conditioner 43% Rice Cooker 0.8% Commercial Buildings and Others 0.2% Lighting 33% Refrigerator 21% Cost effectiveness of DSM program (as of Feb 2014) - Estimated total DSM expenditures to date - Cost of peak demand saving - Cost of energy saving 4,694.7 Million Baht 1,433.9 Baht/kW 0.24 Baht/kWh

26 Key Lessons Learned (1) Funding Mechanism: Financial resources and mechanism are critical to the scale of energy efficiency program delivery and its sustainability. Policies and regulations to encourage utility to promote energy efficiency programs could be developed such as mechanism with comparable level of earnings for energy efficiency investments as well as earnings from energy sales. In addition, performance - based regulations, the Return on Invested Capital (ROIC) is strict for electric utilities at around 5-8%. This does not encourage utilities to seek lower - cost resources. Instead, they would prefer investing to sell more power. All rights reserved EGAT.2013

27 Key Lessons Learned (2) Generation vs. Distribution Utility DSM: In case of Thailand, EGAT as a government owned generation utility and a pioneer in implementing EE programs has gained public trusts. However, considering customer information and relation, distribution utility may be more appropriate for EE program implementers. 3. Voluntary Program vs. Mandatory Approach: Voluntary labeling on electricity efficiency of appliances is the first step to educate consumers and raise energy saving awareness. Long term sustainability needs compulsory mechanism such as laws and regulations. All rights reserved EGAT.2013

28 Key Lessons Learned (3) Program Monitoring and & Evaluation: Intensive focusing on program monitoring and evaluation in Thailand are necessary. Standard practices, model approaches, or evaluation guidelines for various type of EE programs should be developed and endorsed by responsible authority. These practices or guidelines will assist concerning agencies in documenting, comparing, continuing and expansion of EE programs. 5. Government or policy bodies as demonstrators: Demonstration the use of high efficiency products should be widely implemented by government agencies, in order to show the best practices or can be used as models for customers to adopt. 6. Check & Balance function: The role separation of policy bodies, regulate bodies and implementation agencies is necessary for check-and-balance. All rights reserved EGAT.2013

29 Save Your Money Save Our Energy Save The Environment Demand Side Management and Planning Division Demand Side Management Implementation Division Electricity Generating Authority of Thailand All rights reserved EGAT.2013 Website: Tel , 200 Fax

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