1. Overview Thailand’s Energy and Energy Conservation
by ESCO
01/04/60
Mr. Chen Namchaisiri
Vice Chairman Executive Committee The Institute of Industrial Energy
The Federation of Thai Industries
November 21, 2007

2. Topic Overview Thailand’s Energy Activities of ESCO Information Center
01/04/60
Topic
Overview Thailand’s Energy
Activities of ESCO Information
Center

3. พลังงานหมุนเวียน&อื่นๆ
01/04/60
Overview Thailand’s Energy
ภาคขนส่ง
36.0%
ภาคเกษตร 5.3%
ภาคอุตสาหกรรม
38.2%
ภาคบ้านอยู่อาศัยและธุรกิจการค้า 20.5%
พลังงานหมุนเวียน&อื่นๆ
16 %
ถ่านหิน
12%
ไฟฟ้า 2%
ก๊าซธรรมชาติ
31%
น้ำมัน
(ดิบและสำเร็จรูป) 39%
Consumption
by Sector
Primary Energy
consumption

4. Energy Consumption Outlook
01/04/60
Energy Consumption Outlook
Energy consumption expected to increase 6% CAGR during the next two decades years with oil and gas contributing on average 80%
KBD (Oil Equivalent)
Actual
Projection
4,793 1%
18%
Hydro
CAGR (’04-’23) 6%
Lignite/Coal
30%
Natural Gas/LNG 5%
CAGR (’85-’03) 9%
1,569 2%
10%
20%
13%
50%
Oil
65%
32%
328
53%
Source : EPPO Note : Including Petchem Feedstocks

5. Energy Strategies for Thailand’s competition
01/04/60
Thailand Energy Strategies for Economic Development and Regional Integration
Strategy for Efficient Use of Energy
Reduce Energy Elasticity from 1.4:1 to 1:1
Strategy for Renewable Energy Development
Increase share of RE from 0.5% to 8% of total final energy by 2011
Strategy for Energy Security
Ensure sufficient and reliable energy supply for at least 30 yrs
Strategy for Thailand as a Regional Energy Center
Develop Strategic Energy Land Bridge and Energy Hub
Cabinet Resolution on September 2, 2003
Energy Strategies for Thailand’s competition
Strategy for Efficient Use of Energy In order to strengthen national competitiveness potential, Thailand has set the goal to reduce Energy Elasticity or the growth rate of energy consumption per GDP from 1.4:1 to 1:1 by AS a result, the country can save energy expenditure for up to 3.1 billion Baht within 10 years.
Strategy for Energy Security To ensure that Thailand has energy supplies sufficiently and reliable for at least 30 years and identify the goal to increase reliability of energy supplies, esp. natural gas for the next 50 years.
Strategy for Thailand as a Regional Energy Center To improve tax structures in order to eliminate duplication of tax leverage and to develop a linkage of oil production and transportation from Middle East to the Southeast Asia and East Asia though Energy Land Bridge Project
Strategy for Renewable Energy Development Ministry of Energy identifies the goal to increase the share of renewable energy from 0.5% to 8% of total final energy demand in the next 10 years.

6. Strategy for Renewable Energy Development
01/04/60
Commercial
Energy
TE = Traditional Energy
NRE = New & Renewable Energy
(265 ktoe)
2003 TE
52,939 KTOE
11%
Commercial
Energy
National Agenda
NRE
Renewable Energy Policy
Present final energy consumption in 2003 consist of conventional energy about 83% of total consumption, the rest about 16.5% was traditional fuel such as fuel wood, char coal and paddy husk. And 0.5% was transformed into commercial energy like electricity. It is expected that the amount of traditional energy will remain the same portion but the total future demand will still increase. Thus the share of tradition fuel will reduce to be 11% by the year The use of renewable energy with new technologies will forecast to increase and penetrate into the total energy production in Thailand. Therefore the strategy of renewable energy development will aim to rise the utilization from 0.5% to 8% by the year 2011. 8%
(6,540 KTOE)
81%
Cabinet Resolution
on June 8, 2004
2011
81,763 kTOE
2554
81,753 KTOE

7. Target and Strategy of RE
Strategy for Renewable Energy Development
01/04/60
Electricity
Target and Strategy of RE
RPS 437 MW
- Solar
- Wind
- MSW
- Biomass
- Hydro
INCENTIVE
Electricity
Solar MW
Wind MW
Biomass MW
RPS
Incentive
1,093 MW RE 8%
Heat
(Incentive)
3,700 KTOE
Heat
~ 0.00 KTOE RE
0.5%
Target and strategy of RE
In order to achieve the target of RE strategic plan several measures have been introduced. There are
RPS or Renewable Portfolio Standard: the new fossil fuel fired power plants that plan to construction must invest on RE power plant at 4-5% of their plant capacity.
Incentive: the government will provide financial support such as feed-in tariff to supplement the price of selling electricity.
R&D: this will narrow the gap of production cost from uneconomic RE technologies, increase the local part of the RE production system and ect..
Facilitator: Most of this part will deal wilt the cooperation and facilitation works among the public and private sectors and investors.
Bio Fuel (Incentive)
1,800 KTOE
Ethanol M liters/D
Bio diesel 4.0 M liters/D
Bio fuel
~ 0.00 KTOE
R & D
Facilitator
2002
2011

8. Energy Intensity Thailand USA UK Japan Germany
(Compare with Developed Countries)
Thailand
USA UK
Germany
Japan

9. Energy Intensity
(Compare with Developing Countries)

10. Energy Efficiency Improvement Target
Strategy
Indicators
Energy Efficiency Improvement
1. Improve EE in Transportation
Energy Elasticity
= 1:1 in 5 years
2. Improve EE in Industry
3. Awareness raising campaign
Energy Elasticity = ∆t Energy Consumption/ ∆t GDP
Ave. Energy Elasticity
1.4 : 1.0
Ratio of energy growth rate to GDP growth rate = 1.0

11. Promotion of ESCOs BOI – Tax Incentive Access to Revolving Fund
Maximum 8 years tax exemption for ESCO projects – Cooperate Income tax
Access to Revolving Fund
Eligible to borrow the low-interest loan from RF program on project-by-project basis
ESCO promotion activities
Website
Seminars, workshop
Publications
Lists of ESCOs and successful cases

12. Incentive through Board of Investment
( BOI )
Import duties and Cooperate tax exemption on new investment in
Energy conservation business
High efficiency machine or equipment and renewable energy equipment manufacturing
Solar PV manufacturing
Energy Service Company – ESCO
Renewable energy production business
Alcohol or fuels from agricultural products
Electricity or steam generation
Incentive last for the max period of 8 years

13. Promotion of ESCO Business and Cluster Development Project
Drawing from a store of experiences and expertise in analyzing energy usage capabilities, the Energy Service Company (ESCO) can help to reduce energy consumption by adapting equipment and machinery in line with measures that have been selected to suit each factory.

14. Energy Conservation by ESCO

15. The definition of an Energy Services company
ESCO are most often private company that provide comprehensive energy efficiency or load reduction services to customers that own or operate facilities such as factories and buildings to improved efficiency, functionality and productivity of client’s facility, ESCO generally act as developers for a wide of tasks and assume the technical and performance risk associated with the project.

16. ESCO typically offer the 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.

17. The working term of ESCO & Pattern of investment
ESCO operate on Energy Performance Contract; the term EPC is an abbreviation for energy performance contracting, meaning that the contract and the finance are related to the performance of the project. So that the payments to the performance contractor are contingent on the actual level of savings achieved, it is in the contractor’s interest to maximize the energy savings. This translates into increased money savings for the client.

18. Pattern of investment Guaranteed Saving - Client invest themselves
Shared Saving - ESCO provide financial loan service
Another

19. Thailand ESCO Fair 2007
The exhibition and seminar on conservation of energy in order to decrease the manufacturing cost and save the energy in the industry Objectives: - To support and publicize the knowledge of Energy Service Company (ESCO) business. Activities: ESCO exhibition,Seminar on the topic of ESCO , Energy Clinic and ESCO Information Center

20. ESCO-Bank networking

21. ESCO-Bank networking

22. www.iie.or.th www.fti.or.th
01/04/60
Thank you
Thank you very much for your attention.
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