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THAI EXPERENCES - RENEWABLE ENERGY AND ENERGY EFFICIENCY POLICY

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									THAI EXPERENCES: RENEWABLE ENERGY AND ENERGY EFFICIENCY POLICY
Chavalit Pichalai
Director, Energy System Analysis Bureau Energy Policy and Planning Office (EPPO) Ministry of Energy, Thailand
Presented at the Meeting for Workshop on renewable energy and energy efficiency with internationel experiencres August 28, 2006

Contents
1. Background and Rationale 2. Implementation of Energy Conservation Measures in Thailand 3. Energy Conservation Measures: Private Sector 4. The Role of NRE in the Country’s Energy Conservation Program 5. Conclusion

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1. Background and Rationale

(1)

- Energy is an important factor to the economic and social development of the country. - High volatility of world oil prices & unpredictable political tension in major oil exporting countries affects the national energy security. - To strength energy security, the Ministry of Energy has initiated strategies and measures to reduce dependency on oil imports while enhancing utilization of domestic energy resources.
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6. Results/Output of the Country’s 2. Implementation of Energy Energy Conservation Measures (4) Conservation Measures in Thailand (2)
2.1 Acceleration of ENCON Measures to Respond to the Oil Price Hikes (cont.)
The implementation can be divided into the following economic sectors: 1) Transport: to reduce oil consumption by 25% by 2009 2) Industrial: to reduce oil consumption by 20% by 2008 3) Household: to reduce energy consumption by 10%, with the Kick-Off of energy saving campaigns on 1Jun05 4) Government: to reduce energy consumption by 10-15%, with immediate effect.
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3. Energy Conservation Measures: Private Sector (1)
Focus on 3 key economic sectors: transportation, industrial and residential, which account for a share of 37%, 36% and 21% of the total energy consumption respectively. 3.1 Transportation Sector Target: to reduce 25% of oil consumption by 2009 Measures:  Promotion of new/alternative transport fuels – to reduce oil demand by 15% by 2008.
- Gasohol: 8 M litres/day in 2006; replace gasoline 95 as from 1Jan2007 - Biodiesel: 5.2 M litres/day in 2006; 8.5 M litres/day by 2012 - NGV: 180 NGV stations in 2006 and to replace 10% of oil by Dec2008; 500,000 NGV-fueled vehicles by 2010, with 740 NGV stations.
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3. Energy Conservation Measures: Private Sector (2)
3.1 Transportation Sector (cont.)  Improvement of Transport System Efficiency – to reduce oil demand by 10%, via: - Promotion of rail and waterway transport modes - Promotion of public transport systems - Improvement of the traffic management system - Promotion of oil transportation via pipelines - The use of town planning to enhance transportation system efficiency - Promotion of energy saving vehicles - Application of tax measures
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3. Energy Conservation Measures: Private Sector (3)
3.2 Industrial Sector Target: to reduce 20% of energy consumption by 2008 Measures:  Promotion of the use of NG -- to replace 5% of fuel oil consumption in large industrial factories - Promotion of CHP system (Cogen) and the Gas District Cooling (e.g. at Suvannabhumi Airport) - Promotion of power and cool-water generation using DistributedGeneration (DG) system in large department stores  Energy efficiency improvement – to save 15% of energy - Speed up EE improvement in SMEs – revolving funds/tax incentives/investment promotion measures via BOI - Promotion of Energy Services Company (ESCO) business - Restructuring of the industrial sector non-energy intensive 7

3. Energy Conservation Measures: Private Sector (4)
3.3 Household Sector
Target: to reduce 10% of energy consumption Measures:  Promotion of high-efficiency equipment, via: - Minimum Energy Performance Standards (MEPS): airconditioners, refrigerators, ballast, fluorescent lamps and compact fluorescent lamps - Energy efficiency labeling - Establishment of the standards of LPG-fired cookers - Promotion of high-efficiency cooking stoves - Establishment of building code & building material standards  Public awareness campaigns
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4. The Role of NRE in the Country’s Energy Conservation Program (1)
Renewable Energy Development Program is one major sub-program of the ENCON Program, focusing on 5 areas: 1. Promotion of the use of biofuels – gasohol/biodiesel 2. Promotion of RE utilization for power generation 3. Promotion of RE utilization for heat generation in industrial factories 4. Policy study and R&D on RE – solar, micro-hydropower and biomass energy 5. Human resources development and public awareness campaigns 9

4. The Role of NRE in the Country’s Energy Conservation Program (2)
4.1 Promotion of Biofuels/Alternative Transport Fuels  Gasohol
Target
1 January 2007 • Replacing premium gasoline (gasoline octane 95) with Gasohol 95 (“E-10” – a mixture of ethanol and gasoline octane 91 at a ratio 1:9) nationwide 2008 onwards • Replacing gasoline octane 91 with Gasohol 91

Government Measures to Promote Gasohol Price measure  Keeping the price of gasohol cheaper than the premium gasoline at 1.50 Baht (~3.75 US cents)/litre Government support:  BOI investment promotion for fuelethanol production plants  Reduction of import & excise taxes for flexible-fuel vehicles (FFV)  Soft-loans for domestic FFV 10 manufacturing

4. The Role of NRE in the Country’s Energy Conservation Program (3)
 Biodiesel
Target Blending Ratio (to replace diesel consumption) Distribution Area certain areas certain areas (e.g. in the South, BKK) nationwide

2005-2006
(trial)

2% 5%

2007-2011

(commercial)

Government Measures to Promote Biodiesel  Increase palm oil plantation by 5 million rais by 2009  Promote small-scale projects (community level) - now 11 pilot communities
and will expand to 60 in various provinces within 2006

2012 onwards

10%

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4. The Role of NRE in the Country’s Energy Conservation Program (4)
Target 500,000 NGV-fueled vehicles by 2010 • Focus on public transport fleets, taxis and government car fleets • Increase NGV stations from now 60 to 200 stations in 2006 and to 740 stations by 2010

 NGV

Government Measures to Promote NGV Price measure  NGV retail price at 50% of diesel retail price and may be adjusted to 55% and 60% of gasoline 91 in 2007 and 2008 respectively Government support:  Soft loans for NGV conversion kit installation  Establish standards of NGV equipment & reduce import taxes  Tax incentives for NGV vehicle manufacturing
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4. The Role of NRE in the Country’s Energy Conservation Program (5)
4.2 The Use of NRE in the Industrial Sector
The use of RE, especially biomass, is being promoted for heat generation via: - the establishment of minimum efficiency of the Combined Heat and Power (CHP) system; - measures on biomass management in industrial factories; - tax incentives for industries using biomass fuel; and - legislative measures on wastewater treatment and waste disposal.  Natural Gas will be promoted to replace the use of oil.  Expansion of the Gas District Cooling & Cogeneration.


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4. The Role of NRE in the Country’s Energy Conservation Program (8)


Greater use of RE for power generation will also be promoted. Focus is made on 4 domestic RE sources, of which the potential is high, i.e. solar, wind, biomass/biogas and mini or microhydro. Also, Thailand is seeking cooperation on hydropower development with neighboring countries, e.g. Laos, Myanmar, China and Cambodia.





4. The Role of NRE in the Country’s Energy Conservation Program (9)
Supportive Measures to Encourage RE Utilization in Power Generation  Renewable Portfolio Standard (RPS) measure – 140 MW generated by RE is expected by 2011;  Improvement of the power purchase regulations and the introduction of “Feed-in Tariff” e.g. ROIC ≥11%;  Fiscal and financial incentives, e.g. tax privileges, soft loans, investment promotion through BOI, measures on externality costs and on carbon tax.

5. Conclusion (1)
 The private sector has realized the benefits from

EE improvement and the use of NRE.  To facilitate EE improvement, the Thai government has promoted ESCO services, especially in large factories and buildings.  Financial measures have been devised to boost investment in EE improvement: soft loans, tax incentives, promotion measures via BOI.  For NRE, the private sector has taken part in the implementation of a number of projects, e.g. biogas for power generation in livestock farms and for waste water treatment in agro-industry factories
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5. Conclusion (2)
 Academics and industries have taken part in terms of

R&D of NRE technologies, e.g. solar cells for tropical climate, fuel cell development and wind resource assessment.
 Government policy & energy conservation strategies and measures

 National energy security

+ Private sector cooperation + energy saving consciousness of the public

will be strengthened  Sustainable development + Well-being of the people
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Thank you


								
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