Day1 4 Pattana Rakkwamsuk Thailand’s 20-Year Energy ......Maximum support of 3 MBaht per project...

School of Energy, Environment and Materials

King Mongkut’s University of Technology Thonburi

Determined to be at the Forefront of Technology and Research

Committed to Searching for Knowledge

Maintaining the Development of Morally Correct and Proficient Graduates

13th Climate Technology Initiative Workshop

Innovations for Climate Friendly Building Sector

Neue Malzerei, Berlin

4 – 5 October 2012

Thailand’s 20-Year Energy Efficiency Development Plan

Dr. Pattana Rakkwamsuk

School of Energy, Environment and Materials (SEEM)

Dr. Boonrod Sajjakulnukit

The Joint Graduate School of Energy and Environment (JGSEE)







� A quick tour of activities towards energy efficiency

in Thailand

� Baseline data of the energy efficiency potential

assessment in the EEDP

� EEDP Targets & Key Proposed Programs

� Challenges of implementation and monitoring

� Potential for measurement, reporting and verification

� Concluding remarks






New Building Energy Code

New and

Retrofitting

Buildings only

System

Performance

Requirements

Differentiation

of Building

Types based on

time of use

Envelope

Lighting

Air-

conditioning

Office &

Academic

Institution

Super

store

Hotel &

Hospital

Promote the

use of

Renewable

Energy

Daylighting

Photovoltaic

Whole

Building

Energy

Compliance

� New set of Min Requirements

� New OTTV formula and calculation procedure






Various Labeling Programs in Thailand

Building Labeling

Energy Labeling






� Awarding programs - Thailand Energy Awards- Building Energy Awards of Thailand (BEAT 2010)- The EE Housing Competition

� Buildings Labeling (Non Residential and Residential)� HEPS (High Energy Performance Standard)

-Labeling for home appliance/equipment, constructionalmaterial






FISCAL INSTRUMENTS

� Tax incentive

� Direct subsidy

� ESCO fund

� Revolving fund






Tax Incentive Measure

� To stimulate (GREEN) economy.

Privilege

� Upon cabinet approval on March 4th, 2008. Additional 25% tax exemption on net income if certified EE equipment purchased.






Direct Sunsidy

� Promote the use of energy efficient equipment.

Privilege

� 20% subsidy� Maximum support of 3 MBaht per project � Min 50,000 Baht per porject

Eligible projects

� Promising energy saving with payback period less than 7 years.� Environmentally friendly.

In 2010:

• 68 applicants, 86

measures

• Give away 37.53 MBaht

with external investment

of 264.13 Mbaht

• Average payback = 2.79

years

• Saving 4 ktoe/year

equivalent to 94.81 Mbaht

• GHG reduction = 21 kTon






ESCO Fund

� Promote and provide financial support for ESCO business.

� Energy Conservation Fund is a source of money. 500 Mbhat for the first phase in 2009

and 3,000 Mbaht in 3 years between 2010 – 2012.

� Fund is managed by Energy for Environment Foundation and Thailand Energy

Conservation Foundation.

� Funding strategies:

� Invest in equity fund in a period from 3 to 7 years and then return the share to an

investor.

� Invest in ESCO venture capital (not more than 30% of total capital)

� Equipment leasing

� Credit guarantee facility






Objectives

� Stimulate, promote and push renewable energy and

energy efficiency

� Create confidence and acquaintance for financial

institutions in financing renewable and energy efficiency

projects

Loan criteria

� Loan channel: Through 9 financial institutions

� Loan capital: Max 50M Baht per project

� Loan period: Max 7 years with 1 year grace period

� Interest: 0 – 4% per year

� Only renewable and energy efficiency project

Revolving Fund Project for Energy Conservation

(Low interest loan)






9 Financial Institutions






� Number of projects granted 292 projects

� Investment

� From revolving fund 7,162 MBaht

� From financial institution 8,540 MBaht

� Total 15,702 MBaht

� Energy saving

� Electricity 1,164 MkWh/year

� Fuel 239 MLitre/year

� Expenditure 5,488 MBaht/year

� Environmental impact

� Reduction of imported oil 325 ktoe/year

� Reduction of CO2 emission 1 Mton/year

Output from Phase 1 - 5






15

*Final electricity consumption is converted to Primary energy by using power plant efficiency, 33%

Thailand’s Energy Demand in 2010






• Industry

• Building

– Large commercial building

– Small commercial and residential building

• Transportation

Major Economic Sectors

16

95% FEC






Approaches of Energy Efficiency Potential Assessments

• Project future energy demand in each

economic sector/subsector till 2030 (BAU

case) using regression model

• Assess energy saving potentials of each

sector/subsector by using a combination of bottom-up and top-down approaches

17






Sector Approach Key Data

Industry Improving SEC (Specific energy

consumption) (Energy use per unit of

production) of each sub-sector

Energy consumption of designated

factories in the Energy

Management Report submitted to

DEDE

Large

Commercial

Building

Raising BEC (Building energy code for

minimum performance: envelope, air-con,

lighting)

Data from the energy audit

reports, electricity supply by PEA

and MEA

Small Commercial

and Residential

Building

Raising MEPS(Minimum energy performance

standard) and promoting use of HEPS (High

energy performance standard)

equipment/appliances

Previous surveyed data and

appliance stock model

Transport Improving fuel economy standard of

vehicles, eco-driving promotion and mode

shift to high efficiency transport

Previous surveyed data and

vehicle stock model

Approaches & Key Data for Potential Assessments by Sector

18






Sub sector %

Non-Metallic 33%

Food and Beverage 30%

Chemical 8%

Basic Metal 4%

Total 75%

Final Energy Consumption in Industrial Sector in 2008

19






Approaches: Industrial Sector

Key data: specific energy consumption (SEC: energy

consumption per ton of product) surveyed for each type of industrial products

Weight averaged SEC in Thailand

World or Thai best practice SEC

Projected Production up to 2030

Gap for Energy Efficiency Improvement

Energy Efficiency Potential up to 2030

20






Example: Glass Industry

Glass TypeSEC

Benchmark (GJ/ton)

SEC Thailand(GJ/ton)

Production (ton)

Saving Potential

(ktoe)

2030 2030

Flat Glass 5.0 11.5 633,961 96.8

Container 4.0 7.4 2,674,445 217.7

Press & blown Glass

11.5 20.6 2,442,783 106.9

Fiber Glass 15.14 22.2 644,208 529.6

Total Saving Potential (ktoe) 951

21






Approaches: Commercial Sector

Key data: surveyed specific energy consumption per floor area of different class and type of commercial buildings (REF)

Current Efficiency of Buildings

Introducing BEC* and beyond or HEPS**

Projected Electricity Demand in 2030


Energy Efficiency Potential in 2030

*BEC: building energy code for minimum performance (building envelope, air-con, lighting) **HEPS: Higher energy performance standards 22






Office building

7,139 GWh

(38%)

Department store

2,351 GWh

(12%)

Retail &

wholesale

business facility

2,351 GWh

(12%)

Hotel

2,339 GWh

(12%)

Condominium

1,303 GWh

(7%)

Medical center

1,172 GWh

(6%)

Educational

institution

1,102 GWh

(6%)

Other general

buildings

1,365 GWh

(7%)

Classification of commercial building types

� Office

� Department store

� Hypermart

� Hotel

� Condominium

� Hospital

� Education

� Miscellaneous

Electricity Consumption in 2007 in the Large Commercial Building Group

by Building Type

23






� Assessing energy consumption for each commercial building type with different levels of efficiency by using end-use models

BEC

HEPS

Econ

REF

ZEB

Building Energy Performance Targets

• REF = Reference building• BEC = Building Energy Code• HEPS = Higher Energy Performance Standard• Econ = Economic building• ZEB = Zero Energy Building

Envelop Reference BEC HEPS ECON ZEB

OTTV (W.m-2) 61.4 50 30 20 15

RTTV (W.m-2) 29.05 15 15 12 12LCC of Wall (B/m2floor/Y) 288 273.6 252 230.4

Air-conditioningChiller, COP 5.02 5.67 6.11 7.00 10.00

Other part, COP - 7.00 8.98 12.00 12.00 System, COP 2.21 3.13 3.64 4.42 5.45

LCC od A/C (B/m2 floor/Y) 321.00 304.00 291.00 296.00 Lighting

Lighting power density fin A/C area, LPDo (W.m-2) 20.00 16.00 9.00 6.00 1.00Diversity factor for A/C area lighting, Dflo 0.95 0.95 0.95 0.95 0.95

LCC (B.m-2.Y-1) 160.00 140.00 80.00 58.00

Lighting in un-conditioned space, LPDu (Wm-2) 10.00 8.00 4.50 3.00 1.00Equipment

Equipment power density for A/C area, EQDo (W.m-2) 45.00 45.00 45.00 25.00 20.00Diversity factor for equipment in A/C space, Dfeo 0.75 0.75 0.75 0.75 0.75

Equipment power density for un-cond area, EQDo (W.m-2) 10.00 10.00 10.00 5.00 4.00Occupancy

Occupant-A/C space (W.m-2) 10 10 10 10 10Diversity of occupants in A/C area, Dfoc 0.85 0.85 0.85 0.85 0.85

Ventilation (l.m-2.s-1) 0.75 0.75 0.50 0.50 0.50

Ann En/Used area 219.19 174.69 140.55 81.68 57.27

Whole Building Energy consumption

Example: a commercial building type

24






Approaches: Residential Sector

Key data: surveyed number of appliances and assumed penetration of high energy efficiency appliances

Current Efficiency of Appliances

Replacing with High Energy Performance Appliances



Expected Number of Appliances in 2030

25






Example: Energy Efficiency in Residential Sector

26

• Replacing Fluorescent Lamps 36 watt by more efficient types; Fluorescent Lamps 30 watt (33% saving), or LED

• Replacing Incandescent Lamps by Compact Fluorescent Lamps (CFL) (80% saving)

• Replacing Electric Water Heater by Heat Pump Water Heater (100% saving)

• Introducing more efficient LPG cooking stove (16% saving)






Approaches: Transport Sector

Key data: Vehicle stock model (average fuel economy, VKT) and penetration of high energy efficiency vehicles

Current Fuel Economy of Vehicles

Improving 20% of Fuel Economy

Expected Number of Vehicles in 2030



27






Proposed Target of fuel economy of vehicles

• Improving 20% of current average fuel economy of new

vehicles by 2030

• Type of vehicle

• Passenger Car

• Pick Up Truck

• Heavy-duty truck

• Bus

2010 203020202015 2025

% o

f fu

el

eco

no

my

(k

m/l

ite

r)

100

105

110

115

120

year

28






Result of Energy Efficiency Improvement of

New Vehicles

29

(Source: EEDP, 2011)






EE Potentials & Targets in 2030

Economic sectorEstimated Saving

Potential(ktoe)*

Saving Target in 2030 compared to

BAU (ktoe)*%

Industry 17,349 16,100 42

Transport 16,294 15,100 40

Commercial & Residential- Large building- Small building & residential 3,877

3,671 3,600 3,400

99

Total 41,192 38,200 100

93% of maximum potential

* Final energy

30






Target of Thailand 20-Year Energy Efficiency

Development Plan

31

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

20

10

20

30

Fin

al E

ne

rgy

Co

nsu

mp

tio

n (k

toe

)

ktoe 162,715

*GDP2030 at constant price 1988 = 10,650 billion baht

EI (2030)

11.7ktoe/billion

baht

BAU

EEDP

124,515

38,200(23% of BAU)

EI (2010)

15.6ktoe/billion

baht

Reduce 25%






Thailand 20-Year Energy Efficiency

Development Plan

General Strategies to Achieve the Targets:

Strategy 1: Apply a combination of mandatory and incentive measures

Strategy 2: Introduce measures that will bring about a wide impact in terms of

awareness creation and behavior change

Strategy 3: Recognize the important role of private sector in the promotion and

implementation energy efficiency measures.

Strategy 4: Decentralize energy efficiency promotion and implementation task to

a wide spectrum of public, private and regional

agencies/organizations

Strategy 5: Maximize the use of EE professionals and Energy Services Companies

(ESCO)

Strategy 6: Increase reliance on indigenous technical know-how and innovation

32






Thailand 20-Year Energy Efficiency

Development PlanStrategic Approaches:

33

Mandatory Requirements via Rules, Regulations and

Standards

Energy Conservation

Promotion and Support

Human Resources and Institutional Capability

Development

Public Awareness Creation

and Behavioral Change

Promotion of Technology Research, Development

and Innovations






EEDP Key Measures (1/5)

34

Mandatory Requirements via Rules, Regulations

and Standards :– Enforcement of the Energy Conservation

Promotion Act

– Mandatory energy efficiency labeling to

equipment/appliances, vehicles and buildings

– Enforcement of Minimum Energy Performance

Standards (MEPS) for equipment/appliances,

buildings and vehicles

– Introduction of Energy Efficiency Resource

Standards (EERS) for large energy businesses to

implement energy efficiency measures for their

customers







Energy Conservation Promotion and Support :– Execution of a “voluntary agreement”

– Support and incentive provision to encourage

voluntary energy-efficiency labeling for highly

energy-efficient equipment/appliances,

buildings and vehicles

– Promoting traveling by mass transit systems and

freight transport via highly energy-efficient logistics

systems

– Subsidies for investment in implementing energy

efficiency measures by

• DSM Bidding scheme for large businesses, and

• Standard Offer Program (SOP) scheme for SMEs

– Support for ESCO operations 35







Public Awareness (PA) and Behavioral

Change:– Step up public relations and educate the

general public

– Putting forth the concept and promoting

activities related to development of low

carbon society and low carbon economy

– Setting energy prices that reflect actual costs

and applying fuel or emission tax measures

with a view to fostering public awareness

and changing energy consumption behavior36







Promotion of Technology Development

and Innovation:– Promote R&D to improve energy efficiency

and reduce costs, particularly those relating

to equipment/appliances with large markets

and manufacturing bases in Thailand

– Support demonstration of proven energy-

efficient technologies that have not been

commercialized in the domestic market

37







Human Resources and Institutional

Capability Development:– Support development of EE professionals

for energy management and planning,

verification and monitoring, technical

consultancy, and engineering services

provision, etc.

38






Challenges of implementation and

monitoring (1/3)• Management systems and management tools,

requires, e.g.

– Energy consumption database and reporting, verification

and assessment systems;

– A dedicated independent body with flexibility to

implement EE promotion measures; and

– A mechanism, at the policy level, to enhance cross-

ministerial EE promotion and monitoring.

• Funding

– Adequate and continuous budget allocation to support

work plans and activities, e.g. a rolling plan every 3-5 years39







monitoring (2/3)

• Human resources and institutional capacity

– Human resources and institutional capacity of

concerned agencies need continuous upgrading to

become more professional, and understand

private sector business practices.

• Lead by example by public sector

– Government agencies should set good example in

EE, e.g. green procurement, deployment of ESCO

services, implementing EE measures in

government buildings. 40






• Energy pricing policy

– Certain fuels and electricity still continue to be subsidized.

Great courage needed to remove such subsidies, and

measures that penalize excessive energy consumers must

be in place, e.g. Fuel or emission tax

• Structural adjustment to become less energy

intensive

– In the long term, policies needed to affect structural

change in favor of less energy-intensive industries, and of

more efficient transport systems: rail and mass transit

systems. 41


monitoring (3/3)






End of presentation……

Thank you for your attention……

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