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Page 1 „Development of energy saving obligations for utilities – Energy Efficiency Resource Standards – in Thailand“ Dr Milou Beerepoot Director GIZ Energy.

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Presentation on theme: "Page 1 „Development of energy saving obligations for utilities – Energy Efficiency Resource Standards – in Thailand“ Dr Milou Beerepoot Director GIZ Energy."— Presentation transcript:

1 Page 1 „Development of energy saving obligations for utilities – Energy Efficiency Resource Standards – in Thailand“ Dr Milou Beerepoot Director GIZ Energy Efficiency Programme Thailand

2 Page 2 Thailand faces highest energy security vulnerability in ASEAN region: Thai Ministry of Energy developed strong Renewable Energy and Energy Efficiency strategies: Energy Efficiency Development Plan 2015 – 2036 (incl. EERS) Net oil and gas import dependency in selected ASEAN countries (IEA, 2013) Energy efficiency: energy security

3 Page 3 Energy Policy and Planning Office (EPPO, Min. of Energy) and GIZ (German International Cooperation) cooperate in implementation of the Thai Energy Efficiency Development Plan (EEDP): 1 1 7 7 4 4 5 5 6 6 EERS: Energy Saving Obligations for utilities 2 2 3 3 Thai-German energy efficiency cooperation

4 Page 4 What is EERS? Energy Efficiency Resource Standards (EERS): A quantitative mandatory saving target for utilities (electricity and/or natural gas, oil) … … that needs to be achieved through end-user energy saving programs EERS is also called Energy Saving Obligations or White Certificate Scheme or Utility Energy Efficiency Obligation

5 Page 5 Why EERS? Achievement of the energy savings target is relatively certain (and can be measured with monitoring and verification scheme) Relatively low burden on public budgets  may lead to higher stability than other EE policies An EERS scheme can stimulate the development of ESCO markets or other EE service industry EERS schemes are particularly well suited for standardised EE measures in the residential sector or for SMEs In developing/emerging economies: reducing need for additional power plant development

6 Page 6 Why utilities? Utilities are well suited for implementing EE programs due to: existing customer relations availability of energy consumption data advice infrastructure & expertise in energy efficiency Advantages for utilities (distributors): Avoided or postponed distribution network upgrades due to peak load reductions Strengthened customer relationships, improved reputation Development of new markets in the field of energy services

7 Page 7 EERS worldwide

8 Page 8 Why would utilities save energy? Who is going to pay?. What is EERS?. Do we need ESCO’s?. Where should savings come from? Baseline situation Thailand and EERS

9 Page 9 Baseline situation Thailand and EERS EERS is new in the region and new to Thailand Centralised energy system model, with limited number of utilities, can have pros and cons in developing EERS Development of EERS is in need of process that creates support and commitment of key stakeholders EERS experience worldwide are useful but needs adjustment to local conditions … EERS development in Thailand therefore started with a process of developing EERS design options as a basis for stakeholder discussions

10 Page 10 Responsible Agency: Defines saving target Defines eligible measures and calculation methods Certifies achieved energy savings Monitors and evaluates the EERS Utility 1Utility 2 Bilateral trading of certificates? ESCO X, Y, Z or other EE services Certified energy savings EERS design decisions to be taken in Thailand : 1.Obligated parties 2.Basis for setting target 3.Financing the EERS pilot 4.Level of savings target 5.Options for achieving target 6.Implementation & Oversight 7.Measuring energy savings 8.Cost recovery EERS development in Thailand: design decisions End-users Implementa- tion of mea- sures Implementa- tion of mea- sures Promotion Campaigns Financial incentives Energy Consumption Feedback / Energy Audits

11 Page 11 EERS design: Obligated parties AdvantagesDisadvantages Obligated parties Option 1: MEA and PEA (distributio n and retail) Enables spatially differentiated saving targets Existing relationships with end-users and availability of data can facilitate implementation of energy efficiency measures Less capacity to implement energy efficiency measures at large scale Option 2: EGAT (generation & transmissi on) Good overview regarding the spatial and temporal distribution of capacity bottlenecks and corresponding peak load reduction potentials. Long experience in DSM and sufficient personnel and financial resources No or limited direct link to the end-users Option 3: EGAT and PEA&MEA Individual competences may lead to a larger portfolio of measures Higher competition may increase cost- effectiveness Increased coordination requirements between obligated parties Difficulty in setting individual saving targets and cost recovery rates due to different functions in the energy market

12 Page 12 EERS design: discussion framework for all options

13 Page 13 EERS development: (interim) lessons learned Centralized energy system model can have pro’s and cons for EERS development Commitment of high levels in Ministry of Energy is essential Utilities support for EERS is pre-condition and can take time: using discussion framework as part of process Starting with a pilot to build trust and stakeholder support Long term vision and changing utility futures can help to create support for EERS

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