Presentation on theme: "Overview Thailand’s Energy and Energy Conservation"— Presentation transcript:
1 Overview Thailand’s Energy and Energy Conservation by ESCO01/04/60Mr. Chen NamchaisiriVice Chairman Executive Committee The Institute of Industrial EnergyThe Federation of Thai IndustriesNovember 21, 2007
2 Topic Overview Thailand’s Energy Activities of ESCO Information Center 01/04/60TopicOverview Thailand’s EnergyActivities of ESCO InformationCenter
4 Energy Consumption Outlook 01/04/60Energy Consumption OutlookEnergy consumption expected to increase 6% CAGR during the next two decades years with oil and gas contributing on average 80%KBD (Oil Equivalent)ActualProjection4,7931%18%HydroCAGR (’04-’23) 6%Lignite/Coal30%Natural Gas/LNG5%CAGR (’85-’03) 9%1,5692%10%20%13%50%Oil65%32%32853%Source : EPPO Note : Including Petchem Feedstocks
5 Energy Strategies for Thailand’s competition 01/04/60Thailand Energy Strategies for Economic Development and Regional IntegrationStrategy for Efficient Use of EnergyReduce Energy Elasticity from 1.4:1 to 1:1Strategy for Renewable Energy DevelopmentIncrease share of RE from 0.5% to 8% of total final energy by 2011Strategy for Energy SecurityEnsure sufficient and reliable energy supply for at least 30 yrsStrategy for Thailand as a Regional Energy CenterDevelop Strategic Energy Land Bridge and Energy HubCabinet Resolution on September 2, 2003Energy Strategies for Thailand’s competitionStrategy 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 ProjectStrategy 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 01/04/60CommercialEnergyTE = Traditional EnergyNRE = New & Renewable Energy(265 ktoe)2003TE52,939 KTOE11%CommercialEnergyNational AgendaNRERenewable Energy PolicyPresent 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 Resolutionon June 8, 2004201181,763 kTOE255481,753 KTOE
7 Target and Strategy of RE Strategy for Renewable Energy Development01/04/60ElectricityTarget and Strategy of RERPS 437 MW- Solar- Wind- MSW- Biomass- HydroINCENTIVEElectricitySolar MWWind MWBiomass MWRPSIncentive1,093 MWRE8%Heat(Incentive)3,700 KTOEHeat~ 0.00 KTOERE0.5%Target and strategy of REIn order to achieve the target of RE strategic plan several measures have been introduced. There areRPS 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 KTOEEthanol M liters/DBio diesel 4.0 M liters/DBio fuel~ 0.00 KTOER & DFacilitator20022011
8 Energy Intensity Thailand USA UK Japan Germany (Compare with Developed Countries)ThailandUSAUKGermanyJapan
9 Energy Intensity(Compare with Developing Countries)
10 Energy Efficiency Improvement Target StrategyIndicatorsEnergy Efficiency Improvement1. Improve EE in TransportationEnergy Elasticity= 1:1 in 5 years2. Improve EE in Industry3. Awareness raising campaignEnergy Elasticity = ∆t Energy Consumption/ ∆t GDPAve. Energy Elasticity1.4 : 1.0Ratio 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 taxAccess to Revolving FundEligible to borrow the low-interest loan from RF program on project-by-project basisESCO promotion activitiesWebsiteSeminars, workshopPublicationsLists of ESCOs and successful cases
12 Incentive through Board of Investment ( BOI )Import duties and Cooperate tax exemption on new investment inEnergy conservation businessHigh efficiency machine or equipment and renewable energy equipment manufacturingSolar PV manufacturingEnergy Service Company – ESCORenewable energy production businessAlcohol or fuels from agricultural productsElectricity or steam generationIncentive 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.
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 serviceAnother
19 Thailand ESCO Fair 2007The 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