Government Policy and Supports for Energy Efficiency in Industry Sector Krairit Nilukuha Director General Department of Alternative Energy Development and Efficiency Ministry of Energy, Thailand 16 September 2009

Primary Energy Supply 2008 Source: Statistic Division, DEDE Total Primary Energy Supplpy 110,074 ktoe Oil 36.8% NG 29.6% Coal 13.6% Renewables 20.1% (including hydro)

Energy Consumption in 2008 transport 35.1% Commercial 7.1% residential 15.1% agricultural 5.3% mining 0.2 % construction 0.2 % Source: Statistic Division, DEDE Industry37.0% Food&Bev 27.6% textile 3.4% Wood & Furniture 0.8% paper 2.3% chemical 15.7% Non Metal 31.3% Basic metal 4.7% Metal Frab 6.9% other 7.2% Energy Consumption in Industry and Business 29,222 ktoe ( about 16.7 billion USD) Total Final Energy Consumption 66,284 ktoe

Thailand’s Energy Situations Energy is basic factor of economic development In 2008, energy costs accounted to about 14% of GDP Oil imports accounted to 10% of total import values 44% of commercial energy was imported or about 800 billion baht Still rooms for energy efficiency improvement Transport 37% Industry 36% Resident & Commercial 21% Agriculture 5%

Target Business as Usual Actual Energy Conservation Target (industry and commercial sector only) Consumption in ,614 ktoe Ktoe Target Business as Usual Actual Consumption in ,614 ktoe 25% savings by 2022 (17,862 ktoe)

EE Conceptual Framework Energy Management Practice Training High Tech. Process Improvement Energy Management Revolving Fund Tax Incentive Regulation Data/Information Conceptual Framework Demonstration & Dissemination ESCO Fund Energy Conservation Promotion Fund

–collect small levy (0.04 – 0.25 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 Objective and Source of Fund Energy Conservation Promotion Fund

Measure/Program - Results and Plan Main components Results 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 84% 1,964 Designated Buildings - PRE appointed 93% - EC Report 92% - T&P submitted 82% 3,313 Designated Factories - PRE appointed 86% - EC Report 83% - T&P submitted 69% 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 Energy Saving Potential 261 ktoe/year

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) 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 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 Participating Banks Results Measure/Program - Results and Plan

Description Future Plan ESCO Fund Program 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 2009 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 Results 2008 Measure/Program - Results and Plan Approved 5 projects for the total investment of 25 million USD (co-invest by ESCO Fund for 4 million USD)

Curriculum Results 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 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 Measure/Program - Results and Plan

Main Components Results 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 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) 2009 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

Various ways to provide information and consultation Results 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 20,000 people have used the services 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

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

15 “ มุ่งมั่น ตั้งใจ เพื่อไทยทุกคน ” Committed for All