Thailand

TH-4:Energy Efficiency Resource Standards (EERS)

Policy Description

The Energy Efficiency Resource Standards (EERS) are to help support achievement of the energy reduction target in the EEDP (see TH-3). They require large energy corporations such as electricity generators to help consumers achieve a certain minimum level of energy savings.   

Description

The Energy Efficiency Resource Standards (EERS) are to help support achievement of the energy reduction target in the EEDP (see TH-3). They require large energy corporations such as electricity generators to help consumers achieve a certain minimum level of energy savings.   

As stated in the EEDP, large-scale energy businesses (e.g. the electricity, oil and natural gas industry) are required to implement energy conservation promotion measures starting from 2011, in order to encourage their customers to reduce energy use by a specified minimum standard– expressed as a proportion of their generation capacity or sales.

A working group comprising representatives from energy-related government agencies and the private sector and qualified experts determine the criteria of EERS application to state-owned electricity enterprises. The working group jointly determines the energy savings to be achieved (e.g. as a percentage of the average of the total generation or sales during the previous 3-year period), as well as the approach for energy saving verification, the penalties for failure to meet the specified EERS and the incentive rate for achievements beyond the specified EERS.

The EERS is expected to be an important mechanism to provide both technical and financial assistance to small and medium enterprises (SMEs).

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Standards

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

End Date: 2030

Policy Linkages

Supports Energy Conservation Promotion (ENCON) Act Effort Defining
Supports Energy Conservation (ENCON) Program Effort Defining
Supports Thailand 20-Year Energy Efficiency Development Plan (2011 - 2030) (EEDP) Effort Defining

Agencies Responsible

Ministry of Energy: Department of Alternative Energy Development and Efficiency (DEDE)
Energy Regulatory Commission

Primary Objective: Energy

Objective

­Mandate the operators of large-scale public electricity, oil and gas industries to help energy consumers realize energy savings at no less than the minimum amount specified by the government.

Target Group

Electricity supply industry, natural gas and oil industry

Driver of energy consumption or emissions affected by policy: Energy use

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

The electricity, oil and gas supply industry needs to ensure that savings are achieved with their customers.

Quantitative Target? yes

Target:  Target be the minimum energy saving from the electricity, oil and gas industry  The target setting is ongoing - The working group jointly determines the energy savings to be achieved (e.g. as a percentage of the average of the total generation or sales during the previous 3-year period (*1) )

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: There are penalties for those suppliers who do not meet the specified standards and rewards for those who go beyond the annually specified standards. The rule and level of penalty (in terms of the fine) is under development.

Requirements on the Target Group

Large-scale energy businesses, e.g. those in the electricity, oil and natural gas industry, will be required to implement energy conservation promotion measures to encourage their customers to reduce energy use.

Support by Government

  • Appoint a working group, comprising representatives from energy-related government agencies and the private sector (power, oil and gas industry) and qualified experts, to determine the criteria of EERS application to the state-owned electricity enterprises, and to jointly determine the minimum energy saving to be achieved
  • Financial incentive for achieving greater energy saving performance than the minimum standard (under development)

Implementation Toolbox

N.A. (*2)

Complexity of Implementation

Government

Obligations for promoting energy saving measures in energy consuming sectors are devolved to energy suppliers rather than government bodies.

Target Group

Energy suppliers have responsibility for engaging their consumers in energy saving actions

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions No information available
Estimated costs/benefits for industry No information available
Estimated cost for government No information available

References & Footnotes

References

[1] Thailand 20-Year Energy Efficiency Development Plan (2011-2030). http://www.eppo.go.th/encon/ee-20yrs/EEDP_Eng.pdf

Footnotes

(*1) Page 54, EERS Working Plan, EEDP.

(*2) Not mentioned in the EEDP