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Part
3: The Energy Conservation and Renewable Energy Programme
in Thailand
By Pongpisit Viseshakul*
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1.
Background of the programme
2. The results of the first phase of Energy Conservation
Programme (1994-1999)
3.
The implementation plans of the second phase of the
energy conservation programme (2000-2004)
4. Conclusion
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1.
Background of the programme
The Energy Conservation Promotion Act (the Act) was approved by
the Government of Thailand in March 1992 with mandates to promote
energy conservation and energy conservation investment in factories
and buildings. This Act is seen as innovative as it blends incentives
with mandatory regulations to facilitate the implementation of
mandated energy-efficiency measures.***
The Energy Conservation Promotion Fund was established, under
the Act, to provide financial support to government agencies,
state enterprises, non-government organizations, individuals,
and businesses that wish to implement measures to increase efficiency
in energy utilization.
The Energy Conservation Programme of Thailand is divided into
three sub-programmes as follows:
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Compulsory Programme
-
Voluntary
Programme
-
Complementary
Programme
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The Compulsory Programme is overseen by the Department of Energy
Development and Promotion (DEDP) while the Voluntary and Complementary
Programmes are monitored by the National Energy Policy Office
(NEPO).
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2.
The results of the first phase of Energy Conservation Programme
(1994-1999)
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The energy conservation programme has been running for 5 years
between 1994-1999. The results of each programme can be described
as follows:
2.1 Compulsory programme
This programme relates to mandatory energy conservation implementation
as specified by laws and regulations enforced under the Act, involving
designated factories and buildings, government buildings and other
buildings whose owners are interested in energy conservation.
"Designated factories" and "designated buildings" are factories
and buildings with an installed electrical capacity of more than
1 MW or 1,175 kilovolt-amperes (kVA) and greater.
The owner of such a factory or building must conserve energy,
audit and analyze energy utilization in his factory/building in
accordance with the standards, criteria and methods prescribed
in relevant Ministerial Regulations. In this connection, the owner
may request for a grant from the Fund to undertake the requisite
energy conservation measures.
As of May 1999, preliminary energy utilization audit and analysis
were implemented in 925 designated buildings and 311 designated
factories. Energy utilization improvement and installation of
high-efficiency electric equipment and appliances have already
been implemented in 415 government and state-enterprise buildings,
using energy at a level of 100 kW or greater.
Evaluation of energy conservation in 149 buildings has been completed,
showing that energy demand has been reduced by approximately 19.94
million kWh/year, accounting for a value of 39.9 million baht/year.
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2.2 Voluntary programme
This programme involves provision of financial assistance by the
Fund to support energy conservation efforts by the Government
and private agencies aiming at more efficient and economical use
of energy, promotion of utilization of renewable energy which
has less adverse effects on the environment, promotion of products
and services which contribute to energy conservation, as well
as promotion of research and development projects and development
of energy conservation related technology.
The Voluntary Programme consists of 3 sub-programmes: the Renewable
Energy and Rural Industry, the Industrial Liaison, and the Research
and Development sub-programmes.
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2.2.1
The renewable energy and rural industry sub-programme
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The renewable energy and rural industry sub-programme focuses
on opportunities to develop fuel substitution and on the introduction
and dissemination of renewable energy technology, i.e. technology
using renewable energy sources more efficiently, by providing
full operational cost for project owners and granting financial
support in the form of interest subsidies for project participants.
Some examples of funded projects which have proven to be successful
in efficient use of renewable energy are biogas projects and energy
conservation in the tobacco curing industry projects.
Biogas projects utilizing manure of livestock (pigs in particular)
have proven to be a great success. A volume of biogas system of
10,000 m3 has been developed in medium and large farms, and 6,000
m3 in small farms in northern and western Thailand. The biogas
produced is used as energy source for on-site electricity generation
and/or cooking in households instead of traditional fuel and LPG.
Besides, this project helps to reduce environmental problems of
effluent and polluted water from pig farms and produce good quality
fertilizers from by-product of animal wastes.
Since the results of biogas projects have been satisfactory, expansion
of implementation is being worked out aiming at creating a volume
of biogas system of 40,000 m3 in medium and large farms and 22,000
m3 in small farms by the year 2002.
As for energy conservation in the tobacco curing industry, the
Fund has provided financial assistance in the installation of
5 sets of the 'centrally-heated bulk curing system' in the north
of Thailand as a pilot phase. This has resulted in a reduction
of two-third of lignite utilization as fuel and hence a reduction
of sulphur dioxide emission. Currently, 30 per cent of all tobacco
leaves produced in Thailand are cured using this system. Installation
of additional 100 sets of the centrally-heated bulk curing system
is planned for Phase 2 (November 1997 - October 2000).
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2.2.2 The industrial liaison sub-programme
The industrial liaison sub-programme has funded many small-scale
and full-scale demonstration projects, including information dissemination,
of proven technology and promoted the results of research projects
on economic scale, with emphasis on the application of technology
to small industries. The programme also indirectly enhances the
capacity of the industrial sector to produce energy-efficient
equipment using renewable energy.
A project under this programme which has been very successful
is a demonstration project of solar cell installation on the rooftop
of ten houses in the Bangkok metropolitan area. The objectives
of the project are to demonstrate PV technology for electricity
generation, to develop public participation in generating electricity
for household use and selling excess capacity to the grid, and
to promote the solar cell industry in Thailand.
It is anticipated that the production cost of solar cells will
become competitive with other types of energy if the demand increases.
At present, there is a plan to expand rooftop solar cell installation
in major urban cities in all regions of the country.
Another project is the 'Energy Park', a collaboration between
the Government of Thailand and the private sector to develop a
centre for exhibition and demonstration, research and trade of
solar energy technology and equipment. The distinctive feature
of the park is that it will be a trade centre. Naresuan University
will act as matchmaker between buyers, manufacturers, and the
Fund. Emphasis is placed on demonstrating the actual operation
of renewable energy equipment and mobilizing supports, up to half
of the cost, from the Fund to purchase the products. The centre
will also carry out testing of solar-energy related equipment
against the standards in order to analyze and further develop
solar energy technology. Besides, training will be arranged to
educate people on the utilization and benefits of solar energy
so as to create better understanding and wider utilization of
such technology among the public.
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2.2.3
The research and development sub-programme
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The research and development sub-programme aims at developing
new or improving existing technology, with support to small-scale
demonstration projects as well as information dissemination. So
far, the Fund has supported more than 50 research and development
projects concerning energy-related technology development and
energy conservation undertaken by various government agencies
and academic institutions.
Examples of completed projects are: the designing programme for
energy conservation in buildings; information dissemination on
energy-related researches and environment in Thailand; and the
energy-saving brick kiln.
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2.3 Complementary programme
This programme consists of training and education, public relations,
and administration programmes.
2.3.1 The training programme
The training programme aims to develop human resources with the
right skills and knowledge for both the public and the private
sectors so as to eventually achieve effective implementation of
the Energy Conservation Programme as a whole.
At present, expertise in the energy-related field is short in
supply, whereas the demand is high and in the very near future
will increase, among other things due to the requirements of relevant
Ministerial Regulations which require designated facilities to
appoint energy managers to supervise energy conservation measures.
Human resources mobilization and development are, therefore, major
tasks under the Complementary Programme.
Currently, funding is being provided for curriculum development
in energy conservation for the Engineering Departments of local
universities, as well as for elementary and secondary schools.
The curriculum aims to educate 12 million students on the importance
of sustainable use of natural resources and energy conservation.
In this project, teaching materials are developed and produced
and comprehensive training courses are organized for teachers
with the main objectives that students will apply energy conservation
practices in their daily life and habits leading to sustainable
use of energy and natural resources.
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2.3.2 The Public relations programme
The public relations programme is being undertaken to change consumers'
behaviour with a view to achieving energy saving objectives. The
PR programme is implemented under the "Divide by Two" campaign,
popularly known as "Harn Song".
The campaign aims at motivating the general public to reduce wasteful
behaviour in energy consumption and to cut back the use of energy
and natural resources without reducing personal comfort or the
quality of life. A series of activities is being carried out under
the umbrella of the "Harn Song" campaign to increase public awareness.
Examples of activities includes: the production of series of television
commercials on energy conservation which have proven to be very
popular among the public, dissemination of energy conservation
issues through various types of media, energy camps for students,
plays and cultural shows based on energy conservation themes and
the establishment of energy information centre to disseminate
materials, posters, and other printed matters on all the related
energy conservation and renewable energy issues.
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3.
The implementation plans of the second phase of the energy
conservation programme (2000-2004)
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The
objectives of the phase 2 (2000-2004) are to increase the role
of the market mechanism and to reduce financial assistance from
the ENCON Fund. Emphasis will, therefore, be placed on the human
resources development, establishment of information centres, demonstration
projects, and acceleration of the establishment of energy-efficiency
standards and labeling. Activities to be implemented during the
second phase will be carried out according to the following plans:
3.1
Compulsory programme
During the next five years (2000-2004), major tasks will focus
on the on-going programme to provide financial support to owners
of 875 designated factories and 1,074 buildings that are currently
in use to increase energy efficiency, invest in energy conservation
equipment and retrofit their buildings. As for government buildings
with an installed capacity of more than 100 kW/year, supports
will be provided to individual parties who wish to invest in energy
conservation measures.
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3.2
Voluntary programme
During
the next five years (2000-2004), the Voluntary Programme will
add 2 new programmes to its operation: the Promotion of Small
Power Producers Using Renewable Energy and the Project on Non-Designated
Factories and Buildings. Transportation energy efficiency and
recycling will also be implemented in the next phase.
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3.2.1
Renewable energy and rural industry project
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Since there is a vast potential in Thailand to use agricultural
residues or wastes in power generation, the "Promotion of Small
Power Producers Using Renewable Energy", will be added to the
Voluntary Programme. The energy conservation fund will fund the
project in order to promote the use of renewable energy in power
generation.
At present, many small power producers (SPPs) have withdrawn from
the existing SPP Programme (of the Electricity Generating Authority
of Thailand) because there is no incentives from the Government
to encourage SPP participation in the power supply industry since
the purchasing price is at a rate of 1.25 baht/kWh. Under this
circumstance, it is a good opportunity for the energy conservation
fund to launch a trial project by providing financial support
to stimulate the market for electricity generated from renewable
energy, in particular, agricultural residues or wastes (biomass).
A Request for Proposals will be announced to solicit proposals
in a form of bidding from those who are interested in generating
power from biomass. Interested small power producers (SPPs) must
propose their power prices for the portion that is in excess of
the normal purchasing prices under the SPP Programme. The SPP
with the lowest offer, which is not over the specified rate, will
receive a financial subsidy from the energy conservation fund.
This project period is initially set for 5-7 years, with a target
of 300 MW of electricity to be connected to the grid. Then, an
evaluation will be made to determine appropriate implementation
criteria, types of biomass, and location of the plants.
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3.2.2 Industrial liaison project
The industrial liaison project will focus on additional establishment
of energy-efficiency technology demonstration centres. Expansion
of energy information network will be promoted. Other activities
that will be funded are, for instance, establishment of more energy-efficiency
testing laboratories for electrical equipment and appliances;
encouraging private manufacturers of electrical appliances to
improve efficiency of their products to meet, or to be higher
than, the minimum energy efficiency standards that will be enforced;
demonstration of energy conservation technologies in the transportation
sector; supporting the business on engine inspection and maintenance
services; promoting energy conservation in the agricultural sector;
demonstration of recycling with a view to energy conservation;
promotion of production and sale of high-efficiency cooking stoves;
demonstration of solar evaporators; demonstration of energy-efficiency
rubber smoking chamber; and demonstration of high-efficiency crematoriums.
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3.2.3 Research and development project
Financial support will be provided for studies, research and development
on various topics derived from meetings/seminars with academics
who wish to do research and development work. The following are
examples of main research and development fields and their specific
topics:
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(a) |
Research and development on appropriate high-efficiency
technology using biomass as fuel in power generation;
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(b) |
Research and development on technology producing biogas
from industrial wastewater;
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(c) |
Feasibility study and increase of photo voltaics efficiency
as well as photo voltaics production efficiency;
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(d) |
Feasibility study on utilization of a hybrid power system
in remote areas or areas beyond the grid system;
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(e) |
Study on the pricing systems of each mode of transportation
for future application;
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(f) |
Study
on guidelines, measures and appropriate implementation strategies
of reuse and recycling, including incentive measures to promote
reuse and recycling in the industrial sector, commercial and
services, and communities. A pilot project will be launched
to demonstrate to the public the advantages and methods used. |
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3.3 The complementary programme
3.3.1
The human resource development programme
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The next five years will see a more concerted effort to increase
training for Persons Responsible for Energy (PRE) and energy managers
in designated factories and buildings as well as in small and
medium-scale enterprises. Human resources development to prepare
staff to handle recycling and energy efficiency transportation
will also be highlighted. The number of scholarship grants, both
in Thailand and abroad, will be increased and staff from non-governmental
organizations will now be eligible to apply for the scholarship
from 1999 onwards.
The following directions will be undertaken to strengthen human
resource capacity in energy conservation in the next phase:
| ....... |
(i) |
"Roong-arun" project or development of curriculum on energy
conservation and teaching materials for primary and secondary
schools will continue according to its third year plans.
Emphasis will be placed on achieving the sustainability
of the project. Efforts will be made to increase greater
participation among all stakeholders in the project, including
school management, teachers, students, parents, community
leaders, and community members, in the planning, implementation,
monitoring and evaluation throughout all activities in the
project;
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(ii) |
Support to Engineering Departments in state and private
universities around the country is an on-going project with
the main objectives of developing curriculum on energy conservation
and strengthening teaching and learning activities in energy
related areas. Eight universities have been funded for this
project including: Kasetsart University, Konkaen University,
Thammasart University, Chiangmai University, Turakit Bundit
University, King Mongkut Institute of Technology at North
Bangkok, and King Mongkut University of Technology;
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(iii) |
Support to Architecture Departments in state and private
universities is a new project with 7 universities taking
part including: King Mongkut Institute of Technology at
Ladkrabang, Silpakorn University, Chiangmai University,
Chulalongkorn University, King Mongkut University of Technology,
Konkaen University and Kasetsart University;
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(iv) |
Support to Teachers' Colleges around Thailand to develop
curriculum related to energy conservation with the major
objective of educating teachers on energy conservation so
as to integrate this project with the Roong-arun project;
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(v) |
Development
of energy conservation curriculum for training in designated
factories and buildings;
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(vi) |
Development of energy conservation curriculum for technical
colleges;
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(vii)
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Support
the Demand Side Management Office, EGAT to set up another
60 'Green Learning Rooms';
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(viii) |
Training
for energy managers, persons responsible for energy, engineers,
architects, energy consultants, and technicians in 1,000 designated
factories and buildings with the target of 1,200 people;
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(ix) |
Human
resource development for staff at Children Hospital;
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(x) |
Training
and human resource development, awareness campaign and pilot
projects to encourage recycling in communities and industry;
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(xi) |
Training
and human resource development for energy efficient transportation
project;
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(xii) |
Support
for study tours abroad related to energy conservation and
renewable energy technology with the main objectives of disseminating
and adapting the knowledge acquired to improve energy conservation
and renewable energy efforts in Thailand;
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(xiii) |
45
Scholarships in Thailand and abroad (2000);
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(xiv) |
Grants
for students to carry out research and development with industry
for Thailand Research Fund Project and King Mongkut University
of Technology's project;
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(xv) |
Setting
up of laboratories in energy conservation and renewable energy
to support teaching and research and development at university
level;
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(xvi) |
Support
for exhibitions on energy conservation and renewable energy. |
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3.3.2 Public relations programme
During the next five years (1999-2003), the "Harn Song" campaign
under the PR Programme will be implemented in line with the Voluntary
and Complementary Programmes. There will be PR activities to publicize
the work and success of projects under the Voluntary and Complementary
Programmes, as well as the outcome of interesting research and
development projects in energy conservation and renewable energy.
For each year, a specific theme will be developed and activities
will revolve around that topic so that public relative initiatives
will be moving in more coherent path. The themes will includes
the following: construction design and home improvement, efficient
use of home electrical appliances, energy conservation in transportation,
recycling, and labeling for products with "green" life cycle.
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4.
Conclusion
4.1
Support measures for new and renewable energy
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In achieving sustainable development in the energy sector, first,
it is vital that energy pricing must reflect the true costs of
social and environmental services. And second, there must be equity
or fair distribution of benefits and costs between generations.
Energy policy has to ensure that the depleting natural resources
are sustained for the sake of future people's welfare.
In the case of Thailand, an appropriate regulatory framework and
financial incentives, through the Energy Conservation and Promotion
Fund, to rectify market imperfections are in place to promote
greater use of renewable energy and energy efficiency. It is hoped
that investment in energy conservation and renewable energy projects
supported by the Fund during the next five years will gradually
lead to a sustainable energy future for the country. ****
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* Director, Energy Conservation
and Renewable Energy Division, National Energy Policy Office,
Thailand
*** The
full text of the Energy Conservaton and Renewable Energy Promotion
Act of Thailand can be obtained from ESCAP website under http://www.unescap.org/enrd/energy/compend/cec.htm.
**** Readers interested in obtaining further
information on the Energy Conservation Promotion in Thailand
or on any of its compartments may contact the National Energy
Policy Office (NEPO) through its internet web site under http://www.nepo.go.th.
Interested readers may also request for a copy of following
NEPO publication "Energy conservation program and guidelines,
criteria, conditions and expenditure priorities of the energy
conservation promotion fund during the fiscal period 2000-2004".
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