ESCO Venture Capital
Policy measure

In 2008, the Thai government introduced a new initiative, the fund ESCO Venture Capital, which was administered by the Department of Alternative Energy Development and Efficiency (DEDE). According to APERC (2010), the fund was established “as a source of venture capital for the investors to jointly invest between public and private operators in energy efficiency and renewable energy projects through various channels - venture capital, equity investment, equipment leasing, carbon market, technical assistance and credit guarantee facility.”


The fund had an initial capital of THB 500 million targeting potential investors; and as a pilot venture capital initiative to address the issue of the lack of equity capital for small developers. The fund provides equity capital up to 50 percent of total equity; and in the case of very small projects, provides support through equipment leasing. (APERC, 2010)

No identified challenges.

According to Vechakij (2010), “the fund has so far approved as many as 17 projects, including a solar farm, biomass-fired power plants, lighting system improve¬ments, voltage regulators, energy efficiency improvement in A/C systems and heat pumps”. These projects are estimated to save energy amounting to 466 M/year (Lefevre, 2009). 

Examples of ESCO projects conducted by Excellent Energy International Co., Ltd. (Vechakij, 2010):

  • “Bangkok Produce Merchandising Public Co., Ltd.: implemented a pilot Cogeneration Power Plant to a cost of 188.4 MB and an energy cost saving of 47.0 MB/year. BKP Cogeneration, the one-and-only Thailand ESCO Pilot Project since 1999, has been supported by World Bank, Thai Government, EGAT, and private co-operation as to drive ESCO business in Thailand today and the future. Because the pilot project was highly successful, the CP Group considered expanding the implementation of Energy Efficiency Management Project by setting up a Cogeneration Power Plant in it others 4 daughter company with a potential cost saving of 117 MB/year.

  • Nan Yang Knitting Factory Co., Ltd.: implemented a Cogeneration plant to a cost of 155 MB and an energy cost saving of 49 MB/year. 

  • Thai Oil Public Company Limited: implemented a Heat Recovery System to a cost of 175 MB and an energy cost saving of 103 MB/year.

  • Thai Yamaha Motor Company Limited: implemented an Energy Management System to a cost of 14.6 MB and an energy cost saving of 5.7 MB/year.”


Lefevre, T., 2009. Opportunities for Sustainable Energy Technology and CDM Development in Thailand. Sustainable Energy Technology at Work –SETatWork. Bright Green, Copenhagen 12-13 December 2009.

Vechakij, A., 2010. Experience from an ESCO to developing EE Projects in Thailand. “Energy Saving 2010” Exhibition and Conference, 18-19 February 2010, Bangkok, Thailand.

APERC (Asian Pacific Energy Research Center), 2010. Compendium of Energy Efficiency Policies of APEC Economies – Thailand. Tokyo. Available at: