1. Legal framework for improvement of energy efficiency and conservation
・The Energy Conservation Promotion Act 1992 and its revised Act 2007
・Year of enforcement 1998
・The Act contains a compulsory component for large energy users (so called designated facilities: DFS) to carry on certain tasks.
DFs -> cumulative installed electric meters > 1000 kw, cumulative installed transformers > 1175 kVA or having an annual energy consumption more than 20 million MJ.
(2) Regulatory Measures
1) Regulatory Measures based on the law
・Appointment of person who is responsible for and in charge of promoting EE activities and all obligations prescribed by law. (Based on The Energy Conservation Promotion Act)
・Implementation of the energy management system in their facilities by having an obligation to submit the energy management report annually (Based on The Energy Conservation Promotion Act)
・Promotion on EE&C in the small energy users who consume power less than 1000 kw or 1175 kVA and who are not designated facilities. (Based on The Energy Conservation Promotion Act)
・Training people who are responsible for energy (PRE) in the designated building and factory, where, according to the law, one person is required for energy use of less than 3 Megawatts and two persons for the energy use of more than 3 megawatts. (Based on The Energy Conservation Promotion Act)
2) Other measures for EE&C included in other laws, regulations, programs, etc.(if any)
・Energy labeling program.
・Standard designation on high-efficiency equipment and appliances.
(3) National plan for promoting energy efficiency and conservation
To save energy up to 30% by 2036 through initiating energy conservation implementation via the demand-side management (DSM) bidding; designating energy saving measures for the public and private sectors; guidelines on the issuance of a ministerial regulation establishing high efficiency in using energy; accelerating the labeling of energy efficiency; the launch of a national campaign to encourage the replacement with high-efficient energy equipment and appliances; and accelerating capacity building among stake holders both in public and private sectors.
2. Financial measures taken by the government
(1) Tax system
Several programs to provide tax privileges to industrial users and EE equipment manufacturers have been introduced. For example cost-based incentive provide up to additional 25% of EE equipment expenses to be subtracted from taxable incomes. EE equipment manufacturers and energy service companies can enjoy a tax holiday up to 8 years and will be exempted from import duties of major machinery. Factories and buildings that can achieve energy savings will be able to deduct those measures of saving totally (but not more than 60,606 USD (33 Baht/USD) per project) from their taxable incomes (so called performance-based tax incentives).
A. Tax Incentive
B. Tax Incentive via Board of Investment (BOI)
(2) Low-interest loan
DEDE, together with 11 commercial banks, is about to launch a low-interest sources of fund for energy efficiency investment. In its first phase, this financial mechanism has been successful in providing low cost capital for more than 80 EE projects with an average payback period of 2.4 years and leveraged over 107 million USD of investment. The second phase which was launched in 2006 is expected to convey over 113 million USD of capital for energy efficiency and alternative energy investment over the next two years.
A. Low Interest Loan / Revolving Fund
B. Low Interest Loan / ESCO Revolving Fund
(3) Subsidies and budgetary measures
Energy Conservation Promotion Fund
Government budget allocation
3. Energy prices
(those efforts that are made by various foreign countries, international organizations, local governments, private sectors, etc., and that have effects to promote energy conservation in one’s own country)
・Programs under ASEAN Energy Cooperation, ACMECS, APEC, UNDP.
・Cooperation project with the Government of Japan through JICA, NEDO. EEP 2015 has been officially ratified. Additional measures regarding energy efficiency are available.