Thailand

TH-3:Thailand 20-Year Energy Efficiency Development Plan (2011 - 2030) (EEDP)

Policy Description

Thailand’s government developed the new national long-term Energy Efficiency Development Plan (EEDP) in 2011. Two main objectives of the EEDP are

- to set the short-term (2011-2015) and long-term (2011-2030) energy conservation targets both at the national level and for the specific energy consuming sectors, including industry, transportation, commercial and residential sectors,

- to lay down strategies and guidelines for energy conservation, to establish the planning framework and the work plan and to allocate the tasks to related government agencies.

Description

Thailand’s government developed the new national long-term Energy Efficiency Development Plan (EEDP) in 2011. Two main objective of the EEDP are:

  • To set the short-term (2011-2015) and long-term (2011-2030) energy conservation targets both at the national level and for the specific energy consuming sectors, including industry, transportation, commercial and residential sectors.
  • To lay down strategies and guidelines for energy conservation, to establish the planning framework and the work plan and to allocate the tasks to related government agencies.

Targets

Under the EEDP Thailand’s energy conservation targets include:

  • For all economic sectors, to reduce energy intensity (energy use per unit of GDP) by 25% (*1) in 2030, compared to 2005 levels;
  • To reduce overall energy consumption by 20% (*2) (about a 30 million tonnes of oil equivalent (toe) reduction) in comparison to projected BAU levels in 2030; overall CO2 emissions by 49 million tons and industrial sector energy consumption by about 11 million toe.
  • for the short-term period of 2011 to 2015, total energy conservation of the whole economic sectors to be  5.0 million toe by 2015, compared to BAU; for the industry sector, total energy conservation to be  1.9 million toe by 2015, compared to BAU

Main Working Focus

EEDP will maintain the implementation of the existing programs and measures (eg ENCON Act and ENCON Program), and it will further develop new measures with key stakeholders from business, the general public, academic and government sectors.  There are 5 strategic approaches outlined in the EEDP:

  • Mandatory Requirements via Rules, Regulations and Standards
  • Energy Conservation Promotion and Support
  • Public Awareness (PA) Creation and Behavioural Change
  • Promotion of Technology Development and Innovation
  • Human Resources and Institutional Capability Development

Regarding the industry sector energy efficiency measures, EEDP identified several prioritized activities in the first five years (2011-2015):

  • Enforcement of the ENCON Act (see TH-1)
  • Enforcement of the Energy Efficiency Resource Standards (EERS) (see TH-6) for large energy producing business, including the EERS for the electricity supply industry
  • Allocation of subsidies for energy savings and/or peak load reduction that can be verified for retail consumers and small business/industries
  • Benchmarking energy intensity (energy consumption per unit production) in the industry sector
  • Strengthening energy service companies (ESCOs) and supporting the expansion of the ESCO business
  • Publishing and providing information on energy conservation and energy efficiency measures and technology
  • Providing training courses for professionals in the field of energy efficiency, e.g. energy inspectors, auditors, energy efficiency consultants
  • Developing expertise to serve consultancy agencies/companies and ESCOs

Financial Arrangements

EEDP has planned the implementation budget for the years 2011-2015. It will receive funding from the ENCON Fund with total 29.5 billion THB, averaging 5.9 billion THB per year. The spending is divided into 5 types:

  • Direct funding for achieved energy savings
  • Management and public relations activities
  • Development of the mandatory measures on standards, labelling
  • Funding for research and demonstration work
  • Human resource development and institutional development

In terms of the budget distribution to different sectors, industry sector shares about 37% of the total budget.

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, Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

End Date: 2030

Policy Linkages

Complements Energy Conservation Promotion (ENCON) Act Effort Defining
Complements Energy Conservation (ENCON) Program Effort Defining
Complements Energy Conservation Promotion Fund (ENCON Fund) Supporting Measure
Supported By Energy Efficiency Resource Standards (EERS) Effort Defining
Supported By Tax incentives Supporting Measure
Supported By ESCO Fund Supporting Measure
Supported By Energy Efficiency Revolving Fund (EERF) Supporting Measure

Agencies Responsible

Steering Committee for the 20-Year Energy Efficiency Plan Development
Energy Regulatory Commission, Ministry of Energy, Ministry of Industry, Ministry of Industry, Ministry of Science and Technology
Industrial Associations/clusters, Federation of Thai Industries

Primary Objective: Energy

Objective

- ­Targets for 2030: -- in comparison to 2005 levels, to reduce energy intensity (energy use per unit of GDP) for all economic sectors by 25% (*1) in 2030; -- in comparison to projected BAU levels in 2030, to reduce overall energy consumption by 20% (*2) (about a 30 million tonnes of oil equivalent (toe) reduction); overall CO2 emissions by 49 million tons and industrial sector energy consumption by about 11 million toe. ­- To set energy conservation targets in the short term (five years) and in the long term (20 years), both at the national level and by energy-intensive sector, i.e. transportation, industry, commercial and residential sectors; ­- To lay down strategies and guidelines promoting energy conservation to achieve the targets specified above, ­- To lay down the frameworks of the measures and work plans for concerned agencies in formulating their respective energy conservation promotion action plans

Target Group

Industry, transportation, commercial and residential buildings

Driver of energy consumption or emissions affected by policy: Total energy use / Total emissions / Carbon Intensity / Relative efficiency / Fuel mix / Institutional capacity

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

Coverage

Cross-sector (industry, commercial and residential building and transport)

Quantitative Target? yes

Target: Targets for 2030: ­ - in comparison to 2005 levels, to reduce energy intensity (energy use per unit of GDP) for all economic sectors by 25% (*1) in 2030; ­ - in comparison to projected BAU levels in 2030, to reduce overall energy consumption by 20% (*2) (about a 30 million tonnes of oil equivalent (toe) reduction); overall CO2 emissions by 49 million tons and industrial sector energy consumption by about 11 million toe For the period of 2011 to 2015 ­ - for the whole economic sectors, total energy conservation to be 5.0 million toe by 2015, compared to BAU ­ - for the industry sector, total energy conservation to be 1.9 million toe by 2015, compared to BAU

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: none

Requirements on the Target Group

  • Appointed personnel within the industrial companies for managing, monitoring, reporting the energy efficiency of their business
  • Meeting the first-5 year energy conservation targets

Support by Government

Specifically for the industry sector, the Government plans to provide following support to implement the EEDP

  • Development of a database and benchmarks for industrial clusters
  • Financial support to all industry energy efficiency activities listed in the EEDP
  • Promotion of R&D to improve energy efficiency of the production process, and to support high energy-efficiency equipment/appliances that have manufacturing bases in Thailand with the aim to reduce technological costs while increasing the opportunity for technology access
  • Provide training courses for professionals in the field of energy efficiency, e.g. energy inspectors, auditors, energy efficiency consultants
  • Create cooperation between the public and private sectors, including educational/research institutions
  • Double the credit line of the ESCO Fund
  • Increase educational funding for relevant energy efficiency courses, in the form of both scholarships and research funds for thesis development
  • Organize training courses and knowledge testing for responsible government agency personnel who are involved in the EEDP, on a regular and continuous basis
  • Organize study visits for decision-making authorities to learn about successful energy efficiency policies in foreign countries

Implementation Toolbox

  • Courses, tests, networks and study tours e.g. to provide training courses for professionals in the field of energy efficiency; to organize knowledge tests of energy managers and rewards for those who successfully complete the training courses;
  • Organization of study visits for decision-making  authorities to learn about successful energy efficiency policies in other countries.
  • Campaigns via various media channels so that consumers and energy users increase their awareness of energy conservation
  • Organize contests and confer awards (energy management, innovative campaign slogans, etc.)

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 ­Expected benefits from the EEDP implementation by industry sector: - Annual average energy savings: 1120 ktoe in 5 years, and 5500 ktoe in 20 years; - Annual average avoided CO2 emission (million tons): 4 million tons in 5 years, and 17 million tons in 20 years; - Annual average value of energy savings: 17,900 million THB in 5 years, and 87,000 million THB in 20 years
Estimated costs/benefits for industry No information available
Estimated cost for government ­In the first five years, the EEDP will receive funding from the government, especially from the ENCON Fund, totalling 29.5 billion THB, averaging 5.9 billion THB per year. ­For five strategies: the 5 year budget allocations are as follows: - Funding for energy savings achieved: 20,000 million THB, 68% of the total; - Research, development and demonstration: 3,500 million THB, 12% of the total; - Management & public relations: 3,000 million THB, 10% of the total - EE measures, standards, and labeling development : 1,500 million THB, 5% of the total - Human resources & institutional development: 1,500 million THB, 5% of the total

References & Footnotes

References

[1] Thailand 20-Year Energy Efficiency Development Plan (2011-2031). Available at : http://www.eppo.go.th/encon/ee-20yrs/EEDP_Eng.pdf

Footnotes

(*1) From 16.2 ktoe/billion baht in 2005 to 12.1 in 2030, which is a 25% reduction

(*2) From 151 million toe in the BAU case in the year 2030, to 121 million in the EE Plan case, which is a 20% reduction.