Energy Conservation Promotion Fund (ENCON Fund)
Policy measure

The Energy Conservation Promotion Fund (ENCON Fund) with an annual budget allocation of about THB 150 million, has been established to provide working capital, grants or subsidies for the implementation of energy conservation programmes in both the public and private sectors, including energy efficiency improvement, renewable and alternative energy development, R&D projects, human resources development, public education and campaigns on energy conservation, and for the expenses of both the management and monitoring of the Energy Conservation Program. (APERC, 2010). According to Todoc, Todoc and Lefevre (2010), the Fund is, however, mainly used to provide either soft loans or grants for energy efficiency and renewable energy projects.


The main objectives of the ENCON Programme include (Todoc, Todoc and Lefevre, 2010):

  • “Providing financial assistance and incentives for energy conservation, energy efficiency and renewable energy projects.

  • Supporting demonstration of energy conservation and renewable energy technologies

  • Supporting the promotion and dissemination of proven energy conservation and renewable energy technologies.

  • Increasing research and development and training in energy conservation technology.

  • Organizing public awareness campaigns to promote energy conservation.”

The ENCON Fund is funded by revenue derived from a tax of THB 0.07 (USD 0.002) per litre on all petroleum products (APERC, 2010).

Implementation

Financial assistance from the ENCON Fund to materialize the above-mentioned objectives is conducted under the ENCON Program. The program is divided into three main areas (Kerr, 2004):


Compulsory Program

"Laws and regulations, involving designated factories and buildings, and government buildings. Designated factories and designated buildings here are defined as factories and buildings using energy more than 1,000 kW of electricity or its equivalence. “The owner may request for a grant from the Fund to undertake the required energy conservation measures” (Kerr, 2004).


Voluntary Program

“Conservation efforts by both the public and private sectors aiming at more efficient and economical use of energy, utilization of renewable energy which has less adverse impact on the environment, promotion of products and services which contribute to energy conservation, as well as research projects and development of energy conservation technologies.


The National Energy Policy Office (NEPO) oversees the implementation of the Voluntary Program, by providing financial support and incentives to projects that promote energy conservation or make use of renewable energy technologies. This program consists of 5 sub-programs, of which three are concerned with energy efficiency promotion:

  • The Industrial Liaison Sub-Program aims at disseminating energy conservation technologies by enhancing the market of high energy-efficient equipment and energy conservation materials, which will indirectly support producers and distributors of such equipment and materials. Emphasis will be placed on technologies that have not been widely utilized in Thailand.

  • The Research and Development (R&D) Sub-Program aims at developing new or improving existing technologies, with support to small-scale demonstration projects as well as information dissemination. 

  • The Promotion of Energy Conservation in Existing Non-Designated Factories and Buildings Sub-Program provides financial support to owners of existing small and medium-sized factories and buildings, which are not designated facilities under the Compulsory Program, in implementing energy conservation measures. The assistance provided for energy audit and analysis, development of energy conservation plan, and investment in energy conservation, may be in the form of grants or soft loans." (Kerr, 2004)


Complementary Program

Consists of the following sub-programs (Kerr, 2004):

  • "Training: As Thailand still lacks manpower in the energy field, the training sub-program will help develop human resources with right skills and knowledge for both the public and private sectors in order to facilitate relates to mandatory energy conservation implementation as specified by involves provision of financial assistance by the Fund to support energy effective implementation of the ENCON Program

  • Public awareness: several public awareness campaigns have been carried out aiming at motivating consumers to use energy efficiently and to eliminate wasteful behavior in energy consumption.

  • Management & monitoring: The management and monitoring sub-program provides financial support to executing agencies of the government for the implementation of the ENCON Program."

Challenges
No identified challenges.
Outcomes

The following outcomes have been identified since the establishment of the ENCON Fund:

  • During the fiscal period 1995-1999, the total allocation from the ENCON Fund was THB 19,286 million (EPPO, n.d.).

  • During the period 1995-2000, 107 projects on energy efficiency and renewable energy were approved under the Voluntary Program with a total financial support of THB 2.170 million from the ENCON Fund (APERC, 2002).

No outcomes have been identified for the other Fund programmes.

References

EPPO (Energy Policy and Planning Office, Ministry of Energy, Thailand), n.d. Section 1: Background. Available at: www.eppo.go.th/encon/encon-fund01.html.


APERC (Asian Pacific Energy Research Center), 2010. Compendium of Energy Efficiency Policies of APEC Economies – Thailand. Tokyo. Available at: www.ieej.or.jp/aperc/CEEP/Thailand.pdf.


Todoc, J., Todoc, M. and Lefevre, T., 2007. Chapter 9: Thailand. In: Energy Indicators for Sustainable Development: Country Studies on Brazil, Cuba, Lithuania, Mexico, Russian Federation, Slovakia and Thailand, IAEA (International Atomic Energy Agency), 2007. Available at: www.un.org/esa/sustdev/publications/energy_indicators/full_report.pdf. Vienna: International Atomic Energy Agency.


DSD (Division for Sustainable Development, UN), 1997. Natural Resource Aspects of Sustainable Development in Thailand. Available at: www.un.org/esa/agenda21/natlinfo/countr/thai/natur.htm.


Kerr, P. P. B., 2004. Thailand Policies Related to the Kyoto Protocol CDM sink and source projects. Available at: www.thammasatreview.tu.ac.th/tu_doc/2004-Volume9-No1/11%5B1%5D%5B1%5D.ThailandPolicies.pdf.


APERC (Asia Pacific Energy Research Centre), 2002. APEC Renewable Energy Infrastructure Assessment. Expert Group on New and Renewable Energy Technologies. International Center for Sustainable Development, Inc. Tokyo.