Energy Conservation Programme, Phase 3
Policy measure

According to APERC (2010) the third phase of Thailand's Energy Conservation Program, Phase 3, was implemented between 2008 and 2011. One of the Energy Conservation Program's three key sub-programmes, the Energy Efficiency Improvement Programme aims at increasing energy efficiency by reducing commercial energy use.  More precisely, the aim was to reduce energy use from 80,331 thousand tons of crude oil equivalent (ktoe) in 2008 to 72,511 ktoe in 2011, i.e. to reduce non-productive energy use by 10.8 percent or 7,820 ktoe (APERC, 2010). In the industrial sector, the 2011 reduction target was set to 4.4 percent (Thai Ministry of Energy, 2009). The Energy Efficiency Improvement Program meconsisted of studies, R&D and promotional activities aimed at enhancing the efficient use of energy the industrial and other sectors, and capacity-building and awareness-raising activities (GEF, 2011).


At the same time, the Energy Conservation Programme encouraged the development of renewable energy in order to increase its share of the total final energy consumption  to 15.6 percent (APERC, 2010).


According to GEF documentation (2011), the Energy Conservation Programme was financed through the Energy Conservation Promotion Fund (ENCON Fund) and implemented by the Department of Alternative Energy Development and Efficiency (DEDE).

Implementation

According to APEC documentation (2005), the Energy Efficiency Improvement Programme focused on intensifying energy efficiency improvement in small and medium-sized enterprises (SMEs). The programme comprised several support measures to enhance the absorptive capacity of the enterprises, such as (1) provision of soft loans via commercial banks, allocated from the ENCON Fund; (2) tax incentives for the industries, by allowing expenses relating to investments in energy efficiency improvements to be treated as tax-deductible expenses; (3) energy efficiency investment promotion measures under the guidance of the Board of Investment (BOI) of Thailand; and (4) provision of consultancy  services on energy efficiency to foster energy conservation knowledge of the facility personnel (APEC, 2005).


Moreover, the Thai Ministry of Energy (2009) reported that the Energy Efficiency Improvement Programme sought to 1) speed up energy efficiency labelling by establishing Minimum Energy Performance Standards for various industrial products, 2) promote Energy Services Company (ESCO) business, and 3) raising public awareness on energy savings.    

Challenges
No identified challenges.
Outcomes
No identified outcomes. 
References

APEC (Asia-Pacific Economic Cooperation), 2005. APEC EWG 30: Statement on Notable Energy Developments Thailand. Ulsan, Republic of Korea, 24-25 August 2005. Available at: www.ret.gov.au/energy/documents/apec_ewg/ewg30/30NotableDevelopments_Thailand20050901111143.pdf.


APERC, 2010. Compendium of Energy Efficiency Policies of APEC Economies - Thailand. Available at: www.ieej.or.jp/aperc/CEEP/Thailand.pdf.


GEF (Global Environmental Facility), 2011. Council Document. Available at: www.thegef.org/gef/sites/thegef.org/files/documents/document/01-04-2011%20Council%20document_1.pdf.


Thai Ministry of Energy, 2009. Thailand: Recent Developments in the Energy Sector. GMS: Special Meeting of the Sub-regional Energy Forum, Bangkok, Thailand, 18-19 March 2009. Available at: http://www.adb.org/Documents/Events/Mekong/Proceedings/SEFspecial-annex6.5.pdf