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1MRV Demonstration Study (DS) using a Model Project 2012 Final Report Energy Saving through Building Energy Management System (BEMS)implemented by PricewaterhouseCoopersStudy Partners Department of Alternative Energy Development and Energy (DEDE), PricewaterhouseCoopers Thailand Azbil Corporation Mitsubishi UFJ Lease & Finance Company Limited Bright Management Consulting Co.,Ltd Location of Project/Activity Bangkok (Thailand) Category of Project/Activity Energy Efficiency Improvement Description of Project/Activity The objective of the project is to develop a measurement, reporting and verification approach for total energy consumption of a commercial building using a Building and Energy Management System (BEMS) and manage the operation of energy-consuming equipment to reduce both energy consumption and CO 2 emissions. Using past energy consumption data as a baseline, data analysis allows identification of possible reductions in CO 2 emission through an assessment of potential energy conservation measures. These are subsequently used to establish default values. Actual data on CO 2 emissions following introduction of a BEMS is collected and evaluated, based on total building energy consumption. In Thailand’s metropolitan Bangkok area, this project is targeting four categories of building: hotels, offices, hospitals, and shopping centers. Activities under this project started in 2012 following on from the original study started in 2011. The project aims to achieve reductions in emissions in 12 cases achieving a total reduction of 11,538t CO2 per year. Eligibility Criteria Case 1: BEMS shall be installed into existing buildings Case 2: Reduction of energy consumption shall be made by the operation and control of equipment and facilities by BEMS according to the indoor environment, not just upgrading equipments Case 3: The result of performance improvement shall be reported regularly (at least once every six months) by BEMS provider to beneficiaries of energy saving e.g. building owners after the introduction of BEMS, and this is secured by contracts Reference Scenario and Project/Activity Boundary With regard to reference scenarios, the following 2 scenarios are used: Scenario 1: it is Business as Usual (BaU) with the current situation continuing with no introduction of BEMS Scenario 2: buildings become highly efficient as a result of non-BEMS effects The rationale behind Scenario 1 is that there are almost no cases of BEMS introduction in Thailand and the current situation, where there are limited economic incentives for BEMS introduction, is assumed to continue. Scenario 2 is set based on the assumption that buildings will be more

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Page 1: Energy Saving through Building Energy Management System …gec.jp/gec/en/Activities/fs_newmex/2012/2012_mrvds11_ePwC_thainalnd_rep.pdf · 「Energy Saving through Building Energy

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MRV Demonstration Study (DS) using a Model Project 2012

Final Report

「Energy Saving through Building Energy Management System

(BEMS)」

(implemented by PricewaterhouseCoopers)

Study Partners Department of Alternative Energy Development and Energy (DEDE),

PricewaterhouseCoopers Thailand Azbil Corporation Mitsubishi UFJ Lease & Finance Company Limited Bright Management Consulting Co.,Ltd

Location of Project/Activity

Bangkok (Thailand)

Category of Project/Activity

Energy Efficiency Improvement

Description of Project/Activity

The objective of the project is to develop a measurement, reporting and verification approach for total energy consumption of a commercial building using a Building and Energy Management System (BEMS) and manage the operation of energy-consuming equipment to reduce both energy consumption and CO2 emissions. Using past energy consumption data as a baseline, data analysis allows identification of possible reductions in CO2 emission through an assessment of potential energy conservation measures. These are subsequently used to establish default values. Actual data on CO2 emissions following introduction of a BEMS is collected and evaluated, based on total building energy consumption. In Thailand’s metropolitan Bangkok area, this project is targeting four categories of building: hotels, offices, hospitals, and shopping centers. Activities under this project started in 2012 following on from the original study started in 2011. The project aims to achieve reductions in emissions in 12 cases achieving a total reduction of 11,538t CO2 per year.

Eligibility Criteria Case 1: BEMS shall be installed into existing buildings Case 2: Reduction of energy consumption shall be made by the operation and control of equipment and facilities by BEMS according to the indoor environment, not just upgrading equipments Case 3: The result of performance improvement shall be reported regularly (at least once every six months) by BEMS provider to beneficiaries of energy saving e.g. building owners after the introduction of BEMS, and this is secured by contracts

Reference Scenario and Project/Activity Boundary

With regard to reference scenarios, the following 2 scenarios are used:

・Scenario 1: it is Business as Usual (BaU) with the current situation

continuing with no introduction of BEMS

・Scenario 2: buildings become highly efficient as a result of non-BEMS

effects The rationale behind Scenario 1 is that there are almost no cases of BEMS introduction in Thailand and the current situation, where there are limited economic incentives for BEMS introduction, is assumed to continue. Scenario 2 is set based on the assumption that buildings will be more

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efficient than BaU as a result of non-BEMS effects. This scenario is

based on the “Energy Efficiency Development Plan (2011-2030)”

published by Ministry of Energy in Thailand.

Calculation Method Options

Default Values set in Methodology

Working from the assumption that the statistical analysis of default values results in the selection of conservative values, an assessment of commercial building energy efficiency was performed to understand the status of facility operation and energy consumption in Thailand. The results of this assessment were used in the determination of default values. In Thailand, there are a limited number of cases of BEMS introduction with no cases of BEMS being installed for a long period of time. As a result, the assessment tries to define quantitative and manageable defaults (percentage efficiency improvement of energy usage) by collecting information on past energy consumption of the whole building and detailed information on the building operation with an analysis of energy conservation following introduction of the BEMS. The effects of introduction a BEMS include energy savings resulting from operational improvements (intangible) and from automatic control and upgrade of energy consuming equipment (tangible). Operational improvements result from identification of energy saving opportunities and implementation of appropriate measures to realize these opportunities. Data output from the BEMS facilitates identification of aspects of energy consumption and facility operations that have not been previously been recognized and areas where operational performance can be improved leading to identification of energy saving opportunities. Automatic control of equipment enables the optimal operation of energy-consuming equipment resulting in energy saving. Additionally, energy saving benefits can be realized with the replacement of existing equipment with higher efficiency models.

Monitoring Method Energy Usage of a Building after the Introduction of BEMS

Result of Monitoring Activity

To create monitoring reports and verify the trial MRV, energy consumption monitoring was performed at four sites where BEMS's have been installed. The building owners or facility managers were asked to collect data after introduction of the BEMS.

Possible to obtain past three years data required for the calculation

Use the same sets of data after the project

Calculation

Method 3)

Use default value

for the efficiency

improvement factor.

Calculation

Method 1

Calculation

Method 2

Use original

efficiency

improvement factor

which set by project

operator

YES

YES

NO

NO

YES

YES

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Monitored Buildings Building Sector Monitoring Period

Building A Hotel

April 1, 2012 to October 31, 2012 (7 months)

Building B Commercial Facilities

May 1, 2011 to December 31, 2011 (8 months)

Building C Office January 31, 2010 to January 31, 2011 (12 months)

Building D Commercial Facilities

January 1, 2009 to November 31, 2011 (23 months)

GHG Emissions and its Reductions

GHG Emission and Reduction Building Total

Floor Area (m

2)

Reference Emission (t-CO2)

Reduction in Emission (t-CO2)

Percentage Reduction in Emission by

BEMS

Building A

67,562 4,995 524 Implemented at 10.5%

Building B

213,311 27,917 6,554 Implemented at 10.5%

Building C

9,952 1,693 18 Implemented at 1.1%

Building D

27,886 49,349 5,335 Implemented at 10.8%

Method and Result of Verification

Results of Verification Building Verified

Reduction in Emission

[t-CO2]

Results of Verification

Building A 524 1st Verification: The calculation is appropriate. It was pointed out that the source material for the individual technologies of the introduced BEMS was not clearly written.

Building B 2,931 1st Verification: Data was not properly entered or calculated. Modification was requested. 2nd Verification: Calculation was appropriate. CAR was resolved by correct data entry.

Building C 18 1st Verification: Calculation was not performed for a suitable monitoring period. Modification was requested. 2nd Verification: Calculation was appropriate. CAR was resolved through correct data entry. It was pointed out that there was lack of documentation justifying the introduction of individual technologies for the BEMS and information on the precision of actual LPG measurement.

Building D 5,329 1st Verification: Data was not properly entered or calculated. Modification was requested. 2nd Verification: Calculation was appropriate. CAR was resolved through correct data entry.

Environmental Impacts

The environmental impacts of the manufacture of BEMS systems are considered to be lower than other products. Similarly during the overall life cycle of a BEMS, the potential for increased environmental impacts e.g. release of hazardous chemicals, pollution etc is considered to be very low.

Promotion of Three key requirements are identified to support the successful

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Japanese Technology

introduction of Japanese technology: Strong business relationships with real-estate agents, developers, and construction consultants to gain entry to the local market; raising the capacity of Japanese manufacturers so that low-cost financing schemes becoming a viable option for the local market, and training BEMS operators.

Sustainable Development in Host Country

Introduction of BEMS acts as a driver to for reduction in peak power consumption, supports energy efficiency related technology transfer and human resource development, and contributes to reducing environmental pollution. These benefits are in line with the current Thai mid-term development policy and strategy.

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MRV DS Report in 2012

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Study Title: MRV Demonstration Study using a Model Project

“Energy Conservation with a Building and Energy Management

System (BEMS)”

Study Entity: PricewaterhouseCoopers

1.Study Implementation Scheme

PricewaterhouseCoopers: Overall control of the project, creation of an MRV

methodology, MRV negotiation, evaluation of reduction effects

PricewaterhouseCoopers Thailand (Cooperative Organization/Subcontractor):

Selection of a verification authority, summarizing the results of verification,

identification of potential cases, arranging interview with public authorities

Azbil Corporation (Cooperative Organization/Subcontractor): The lead company of

2011 New Mechanism Feasibility Study. In cooperation with Azbil Thailand, the

principal tasks include collecting building data, arranging demonstrations,

introduction and demonstration of BEMS's and collection/measurement of MRV

data.

Mitsubishi UFJ Lease & Finance Company Limited (Cooperative

Organization/Subcontractor): In cooperation with Bangkok Mitsubishi UFJ Lease,

the principal tasks include arranging demonstrations, assistance in

collection/measurement of MRV data, and evaluation of financial feasibility.

Third Party Verification Entity(Bright Management Consulting Co. Ltd)

(Subcontractor): As a third party verification entity in Thailand, the principal tasks

include verifying reduction in GHG emission based on the MRV methodology

proposal and providing feedback on the verification results.

2.Overview of Project/Activity

(1) Description of Project/Activity Contents:

The objective of the project is to measure total energy consumption of a commercial building

using a Building and Energy Management System (BEMS) and manage the operation of

energy-consuming equipment to reduce energy usage and CO2 emissions. Using past energy

consumption data as a baseline, possible reductions in CO2 emission are estimated by

assessing potential energy conservation measures. These are subsequently used to determine

default values. Actual data on CO2 emissions following introduction of a BEMS is collected

and evaluated based on total building energy consumption.

In Thailand’s metropolitan Bangkok area, this project is targeting four categories of building:

hotels, offices, hospitals, and shopping centers. Activities under this project started in 2012

following on from the original study started in 2011. The project aims to achieve reductions in

emissions in 12 cases achieving a total reduction of 11,538t CO2 per year.

(2) Situations of Host Country:

There has recently been a significant increase in energy-originated CO2 emissions from the

commercial building sector in Thailand. This is leading to increased interest in energy saving

amongst building owners. Local companies are also voluntarily working on ESCO projects

and energy conservation.

The new Thai administration inaugurated in 2011 announced a proactive energy policy as part

of its inaugural policy speech. The administration expressed a positive attitude towards the

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introduction of energy saving systems, the promotion of energy saving in buildings, and the

active use of CDM as measures to reduce electricity consumption by 25% in the next 20 years.

A Japan-Thailand summit held in March 2012 issued a joint communiqué regarding

cooperation between the two countries on the bilateral offset credit mechanism (BOCM). For

the bilateral offset credit mechanism, the Thailand Greenhouse Gas Management

Organization (TGO) currently serves as a contact and is in negotiations with the Japanese

government.

The current Thai regulatory framework for energy saving policies is based around the Energy

Saving Promotion Law (1992). The process of reporting on the energy usage of commercial

buildings and facilities has raised awareness of energy consumption levels and associated

costs. This acts as a driver for reduction of both energy consumption and energy related

expenses. To promote energy saving initiatives, the Thai government has established an

ESCO fund as a mechanism to provide support and preferential treatment for energy saving.

Additionally, tax incentives are in place to promote energy efficiency in private sector

buildings and factories.

(3) Complementarity of the CDM:

The purpose of this study is to promote energy saving of commercial buildings through the

introduction of BEMS leading to reductions in CO2 emissions. In CDM, the AMS-II.E.,

Energy efficiency and fuel switching measures for buildings is a methodology for reducing

building energy consumption. The methodology targets energy saving projects such as BEMS

control and equipment replacement. However, there are a number of issues, discussed below,

when implementing projects that control and replaces many pieces of equipment in a building.

In the first place, CDM requires calculation of total reduction in emissions from equipment

related energy saving for each piece of equipment. In a registered project using the AMS-II.E

methodology, baseline and project energy usage are calculated for each piece of equipment

that will be installed in the building to estimate the reduction in emissions from the building.

The reduction calculation requires collecting data regarding a large number of parameters that

are specific to each piece of equipment. As a result, once the project starts, it is necessary to

conduct monitoring for numerous parameters and emission calculations. Therefore, the CDM

methodology places a significant burden on the participants and requires a complicated

verification procedure. Additionally, the CDM methodology (based on calculating energy

saving for each piece of equipment) might not capture the additional energy saving obtained

by the management and control of the entire building using a BEMS as an emission in

reductions. For example, when controlling both lighting and air conditioning, reduction of

lighting time with a BEMS results in a decrease in heat generated in the room and a

subsequent reduction in energy consumption for air conditioning. The synergistic effects of

energy saving between various types of equipment is not be included a methodology which

targets only the individual components (without the considering the whole system).

Secondly, energy saving activities using a BEMS includes both benefits from equipment

replacement and improvements in operational efficiency as a result of BEMS introduction.

However, the CDM might not recognize the latter efforts, or energy savings resulting from

operational improvements made by humans, as a reduction in emissions. In Japan,

measurement of energy usage and equipment operation using a BEMS promotes energy

conservation through operational improvements. It is difficult in the CDM, including

AMS-II.E to include such energy saving efforts into a reduction in emissions. However,

Japanese companies have significant “know-how” on how to achieve operational

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improvements in energy efficiency through operation of a BEMS such as from operator

training, maintenance, and data analysis support. The effects of energy saving with a BEMS

are increased by including operational improvements which creates opportunities for Japanese

companies to capitalize on their knowledge.

For the above reasons, promoting energy saving with a BEMS at JCM/BOCM can

complement the CDM. It can greatly contribute to reducing CO2 emissions from the

commercial sector, a significant source of emissions in developing countries. Energy

conservation with a BEMS can be applied to countries other than Thailand. Creating an MRV

methodology through this study promotes energy saving and emission reduction in many

countries.

(4) Initial Investment for the Model Project:

The initial investment estimated based on the 2011 New Mechanism Feasibility Study is

1,304 million yen for 12 buildings.

The table below lists the results of a trial calculation of the cost of disseminating BEMS's

including running cost such as maintenance for different rate of introduction.

Initial Investment and Cost of Reducing CO2 Emissions at Buildings in Bangkok 20 Buildings per

Year

50 Buildings per

Year

100 Buildings per

Year

Initial Cost (million yen) 2,173 5,433 10,867

Annual Emission Reduction (t-CO2) 19,230 48,075 96,150

Emission Reduction per 10 Years (t-CO2) 192,300 480,750 961,500

Running Cost per 10 Years (million yen) 200 500 1,000

CO2 Reduction Cost (yen/t-CO2) 12,342 12,342 12,342

3. Contents of the Study

(1) Issues to be Addressed in the Study:

Creation of an MRV Methodology

- Macro Analysis (DEDE Data): For the regular notification under the Energy Saving

Promotion Law in Thailand, the data for fiscal 2011 needs to be requested from

DEDE.

- Creating Defaults (DEDE Seminar): DEDE has proposed co-hosting a seminar. It

is necessary to negotiate the details, obtain approval from DEDE, and make

preparations.

- Creating Defaults (Questionnaires): Development of Questionnaires to be

completed by building owners and equipment managers has been started. It is

necessary to collect the results and understand the needs on energy saving control by

sector in Bangkok.

- Creation of an MRV Methodology: An MRV methodology should be established

with third party verification to conduct trial verification at sites where BEMS's have

been installed.

- Harmonization of the MRV Methodology and the Ministry of Environment

Proposal: Creation and development of an MRV methodology should be discussed

with the study subcontractor of the Ministry of Environment project (Mitsubishi UFJ

Research and Consulting)

- Energy Saving Diagnosis for Creating Defaults and MRV Methodology: Energy

saving analysis is being performed to quantitatively understand and verify the effects

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of introducing a BEMS. Approximately 40 analyses are planned before submission of

the final report.

- Demonstration of BEMS Introduction: Collection of actual data from BEMS at

commercial facilities participating in the demonstration study is required. This data

will be used to confirm differences with the results of the energy saving analysis.

Conservative percentage efficiency improvement (defaults) should be set for BEMS

introduction based on the energy saving analysis.

Monitoring

- Obtaining Monitoring Data and Checking Its Storage: It is necessary to check the

data and evidence regarding energy usage and operation to confirm that it can be

measured reliably and easily, and the actual state of data storage. It is also required to

assess whether it can be measured and calculated by the facility manager.

- Checking the Accuracy of Monitoring Data: It is necessary to study the measuring

instruments and methods used for actual measurement of energy usage, etc. in

Thailand to understand required accuracy.

Third Party Verification

- Readiness to Verification: It is necessary to check that the local managers are ready

to respond to the requests made by the Thai verification entity during the verification

conducted based on the JCM/BOCM Verification Manual.

- Feasibility of Verification: It is necessary to check whether it is possible to conduct

local verification based on the JCM/BOCM Verification Manual and provide

feedback on any improvements in using the manual.

(2) Measures Implemented to Resolve Issues Identified in the Study: Field Study

- 1st Field Study: The staff visited the Department of Alternative Energy

Development and Efficiency (DEDE), a Thai government agency, to explain and

request cooperation on the MRV model demonstration project, and to ask them to

provide data from regular notifications under the Energy Saving Promotion Law.

They also visited financial institutions and private enterprises to explain and request

cooperation on the project.

- 2nd Field Study: The staff held a planning meeting with the local subcontractors.

They also visited the DEDE to discuss the details of the DEDE seminar planned for

October. Site surveys were conducted to understand the types of energy-consuming

equipment in commercial buildings in Bangkok, check the monitoring of energy

usage, etc., identifying emission sources, and conducting field hearings on

conformance to the Energy Saving Promotion Law in Thailand. The objective was to

determine the feasibility of the MRV and applicability of the methodology proposal.

- 3rd Field Study: A seminar was prepared and presented by PwC, sponsored by GEC

and DEDE. The purpose of the seminar was to invite companies who wish to receive

energy saving analysis and participate in the development of the defaults.

Discussions with a third party verification entity were held to confirm the terms of

contract and contents of the tasks.

- 4th Field Study: Verification by the third party verification entity was prepared and

implemented. Interviews were conducted with the DEDE and the Thai Green

Building Institute (TGBI). Discussions with the local subcontractors were held to

confirm the progress.

Creation of an MRV Methodology

- Macro Analysis (DEDE Data): The data from regular notifications in fiscal 2011

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under the Energy Saving Promotion Law was obtained from the DEDE. This was

used to assess the energy usage trend in four commercial sectors and specifications

such as total floor areas of the buildings. Based on this data, an analysis of CO2

emission units was performed.

- Creation of Defaults (DEDE Seminar): For the purpose of creating defaults, DEDE

held a seminar to invite companies who wish to receive an energy saving analysis.

160 persons applied and 103 persons attended. A total of 51 companies (offices,

hotels, commercial facilities, and hospitals) participated.

- Creating Defaults (Questionnaires): 275 buildings were selected from the targets of

the Energy Saving Promotion Law. For the buildings that responded, energy saving

analysis was arranged for creating defaults.

Numbers of Questionnaire Sent and Collected

Sector Sent Collected

Office 148 30

Commercial Facilities 21 10

Hotel 74 16

Hospital 32 10

Total 275 66

- Creation of an MRV Methodology: Based on the field studies, an MRV

methodology was created through a monitoring feasibility study based on the Energy

Saving Promotion Law in Thailand.

- Harmonization of the MRV Methodology and the Ministry of Environment

Proposal: Two discussions were held with the study subcontractor of the Ministry of

Environment project (Mitsubishi UFJ Research and Consulting) to exchange views

on the creation and development of an MRV methodology and related information.

The results of the discussions were reflected in the proposed methodology.

- Energy Saving Analysis for Creating Defaults and MRV Methodology: 23 results

were obtained as of the end of December for the quantitative analysis of energy

saving and to verify the benefits of introducing a BEMS. The analysis will be

conducted until the submission of the final report. A total of approximately 40

analyses are expected to be collected.

- Demonstration of BEMS Introduction: The collection of data on BEMS

demonstration at commercial facilities that are the targets of demonstration study

started in late December.

Monitoring

- Monitoring Data and Checking Its Storage: The data and evidence of energy

usage and operational information that can be measured reliably and easily, and the

actual state of storage were checked, and summarized as monitoring data.

- Checking the Accuracy of Monitoring Data: The applicable standards for

measuring instruments used for the actual measurement of energy usage, etc. in

Thailand were studied. This required referral to the Thai Industrial Standard (TIS).

Third Party Verification

- Readiness to Verification: Four sites were investigated based on the JCM/BOCM

Verification Manual to check that the local managers are ready to respond to the

requests made by Thai verification entity during the verification.

- Feasibility of Verification: Investigations were conducted based on the JCM/BOCM

Verification Manual. The feasibility of local verification and improvements on using

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the manual will be summarized through the discussion with the verification entity.

4. Results of MRV Demonstration Study

(1) GHG Emission Reduction Effects by the Implementation of Project/Activity:

In this study, the BEMS refers to the systems comprised of measurement/metering

components, control systems, monitoring systems and data saving/analysis/diagnosis

components etc. In regard to the buildings in the commercial sector etc., this refers to the

systems that are used to understand the indoor environment/energy consumption status as well

as opportunities to reduce energy consumption through operation control for components and

systems, optimized for each indoor environment. BEMS used only for measurement are not

included in the context of the current report as they do not contribute to the direct reduction of

emissions.

The introduction of BEMS in Japan has resulted in a 12.4% energy saving and 10.3%

reduction in CO2 emissions (Analysis of Energy Saving Rate of Total (BEMS) Subsidiary

Entities from 2005 to 2008 by NEDO). In the 2011 New Mechanism Feasibility Study, a field

study was conducted at commercial buildings in Thailand, and it was confirmed that energy

saving and emission reduction similar to Japan were feasible.

For emission reductions, the importance of the operation after BEMS introduction became

evident, as well as the introduction of BEMS technology that is suitable for the Thai climate.

The methodology was created based on the principles that BEMS technology could be used to

maximize emissions reduction, support dissemination of Japanese technology, a simple

method or a range of methods that can be selected according to the actual status, and emission

reduction could be rationally calculated. The following table shows the points of creation.

Points of Creating an MRV Methodology Points Reflection to the Methodology Proposal

Promotion of BEMS The methodology does not include the size of a building so that many buildings can be

the candidates.

Promotion of energy saving and

emission reduction with BEMS

The methodology targets offices, commercial facilities, hotels, and hospitals for which

large effects of introducing BEMS can be expected.

A flexible calculation method is prepared so that defaults can be defined based on the

efforts and achievements by the project participant.

Methodology with easy

calculation

Creation of defaults (percentage emission reduction by BEMS introduction) is

considered.

If defaults are used, monitoring items can be calculated only with the energy usage

following the start of the project (after BEMS introduction).

The required data is energy usage of the entire building, which can be collected from

evidence including power company bills and actual measurement at BEMS.

Appropriate reflection of

energy saving efforts by the

project proposer

In addition to the calculation method that uses the defaults generating conservative

reduction, the project includes a method that is based on operational information such

as past energy usage and total floor area and calculates emission reduction based on

the actual energy saving.

Maintenance and continuation

of energy saving and emission

reduction with BEMS

Maintenance of the operational and management structure after the introduction of

BEMS is required.

Rational calculation method The project targets only existing building and not new buildings that have no past data

that can be used for calculating reference emission.

(2) Eligibility Criteria for MRV Methodology Application:

The MRV eligibility criteria establish three conditions (positive list).

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Case 1: BEMS shall be installed into existing buildings

The project only targets existing buildings as for newly built buildings it is not possible to

estimate the reference emissions based on past emissions and the defaults (percentage energy

usage efficiency improvement after BEMS introduction) cannot be described.

Case 2: Reduction of energy consumption shall be made by the operation and control of

equipment and facilities by BEMS according to the indoor environment, not just

upgrading equipments Measurement of energy usage following BEMS introduction and energy saving through the

control of equipment and devices are the target of the project so that additional energy saving

is available. Energy conservation with only measurement is not considered as it is usually

conducted for cost reduction as opposed to emissions reduction.

Case 3: The result of performance improvement shall be reported regularly (at least

once every six months) by BEMS provider to beneficiaries of energy saving e.g. building

owners after the introduction of BEMS, and this is secured by contracts

It is often the case that only introducing a BEMS does not lead to longer term energy saving

and emissions reduction. Regular checks of energy saving performance and implementing

countermeasures are required to maximize the benefits of BEMS implementation. After

introducing BEMS, the BEMS provider should report semi-annual energy consumption and

propose measures to improve performance. The contract with the provider should include

clauses requiring the provision of operator training, data management services, and

analysis/evaluation reports.

Satisfying the above eligibility criteria is expected to result in additional CO2 emission

reductions in Thailand given the current conditions and experience in use of BEMS.

Condition 3 states provision of maintenance after the introduction of BEMS and support of

data utilization, which are strong points of Japanese companies. Inclusion of Condition 3

promotes the dissemination of Japanese BEMS technology.

(3) Calculation Method Options:

The following chart indicates the flow for selecting a calculation method option.

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Calculation Method Option Selection Flow

* The data required for calculation includes collection of energy consumption data for the past

three years and total floor area, the energy consumption and total floor area after project

launch, and the operating rate of the facility (in case of an office or commercial facility).

Calculation Method 1 is based around the use of default values. This approach uses energy

consumption of the entire building following introduction of the BEMS in combination with

the percentage efficiency improvement achieved following its introduction and the percentage

efficiency improvements of individual technologies.

Calculation Method 2 also relies on the energy consumption of the whole building following

introduction of the BEMS but replaces the default values approach used in Method 1 with

actual percentage of efficiency improvements achieved in similar buildings from the use of

similar technology.

Calculation Method 3 is based on the actual energy usage of the building, past energy

consumption, total floor area, and operation rate.

(4) Necessary Data for Calculation:

For each calculation method option, the information/data required for the calculation of GHG

emissions are summarized in tabular format below. The table lists the information/data

required for setting defaults and the information/data to be monitored after start of the project.

It also describes the status of information/data preparation in the project.

Information/Data Required for Calculating GHG Emissions Information/Data Monitoring (M)/Business

Specific Value Setting

(S)/Default Value Setting

Status of Preparation

Electric Power Usage of the Target

Building (kWh)

M (Calculation Methods 1, 2,

and 3)

Monthly electricity bills have been collated. In

many cases, data for three years is available.

Fossil Fuel Usage of the Target

Building (kl, t, or 1000Nm3/y)

M (Calculation Methods 1, 2,

and 3)

Possible to obtain past three years data required for the calculation

Use the same sets of data after the project

Calculation

Method 3

Use default value

for the efficiency

improvement factor.

Calculation

Method 1

Calculation

Method 2

Use original

efficiency

improvement factor

which set by project

operator

YES

YES

NO

NO

YES

YES

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Total Floor Area (m3) M (Calculation Method 3) The building certification application is stored in

many cases, allowing copies of the application

form to be made available.

Percentage Operating Area (%) M (Calculation Method 3) Lease contract

Percentage Energy Usage Efficiency

Improvement after the Introduction

of individual facilities (%)

D (Calculation Method 1)

Percentage Energy Usage Efficiency

Improvement by Building Type EMS

D (Calculation Method 1)

CO2 Emission Factor of Electric

Power (tCO2/MWh)

S (Calculation Methods 1, 2,

and 3)

Monitoring by the local facility manager is

possible based on Thailand Energy Statistics

2011 by DEDE.

NCVi,y: Net Caloric Value of fossil

fuel I (GJ/Nm3, t, etc)

S (Calculation Methods 1, 2,

and 3)

The factor for the calculation under the Energy

Saving Promotion Law in Thailand can be used

as the default. Default (fixed value) such as IPCC

was used.

EFf,i,y: CO2 Emission Factor of fossil

fuel I (tCO2/GJ)

S (Calculation Methods 1, 2,

and 3)

Same as above

(5) Default Value(s) Set in MRV Methodology:

The MRV process for emission reduction is streamlined by setting as defaults the energy

saving results of building where BEMS are introduced. In other words, introduction of BEMS

improves the efficiency of the entire building, and using those values as defaults, allows

reference emissions to be calculated. (Reference emissions can be calculated by dividing the

amount of emission after BEMS introduction by the default.)

This approach works from the assumption that conservative default values can be determined

from statistical analysis. Defaults were derived through data collection and detailed analysis

of energy savings associated with facility operation and energy consumption in commercial

buildings in Thailand. There are not many examples of BEMS being introduced in Thailand

with no cases of a BEMS being installed for a significant period of time. This study analyzed

energy consumption of the whole building and the resulting energy savings following from

BEMS introduction. It was thought that performing multiple analyses would result in the

generation of quantitative and reliable defaults (percentage energy usage efficiency

improvement).

Energy saving resulting from BEMS implementation includes the effects of operational

improvements, automatic control of facilities, and equipment replacement. Operational

improvements results from the effective use of the facilities by humans. BEMS allows the

measurement and collection of information on energy consumption and facility operations

that have not been previously available allowing identification of areas where people can

improve operations, resulting in energy savings. Changes in human behavior, the effects of

automatic control and equipment replacement allow for the optimal operation of facilities

thereby maximize energy efficiency. The study conducted energy saving analysis on BEMS

technology to investigate and quantify reductions.

The figure below shows the breakdown of energy saving by the introduction of BEMS. First,

it evaluates percentage efficiency improvement by equipment replacement. Then, it calculates

percentage efficiency improvement from BEMS control. Finally it considers the percentage

efficiency improvement resulting from operational improvements (human factors).

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Breakdown of Percentage Efficiency Improvement by BEMS Introduction

Determination of defaults for operational improvements requires data generated from BEMS

implementation in Thailand. As this is not possible at this stage, based on experience gained

from Japan, the default for operational improvement is provisionally set to 1%. This value

should be modified to reflect the actual circumstances in Thailand using data that becomes

available following installation of BEMS. Examples of operational improvements for offices

that can be implemented in Thailand are shown in the list below.

Percentage Energy Usage Efficiency Improvement by Operational Improvement by Sectors

Energy Usage Efficiency

Improvement

1%

Operational Improvements (Office)

■Air Conditioning

- Turning off air conditioners and exhaust fans in areas not used and when not required (Reduction in time of air conditioning

and exhaustion)/Education on and execution of temperature setting for power saving

- Effective use of shades to prevent entrance of heat through the windows

- Regular cleaning of filters

- Use of pipe friction reducer

■Lighting

- Turning off lights when not required (Reduction in lighting time)

- Removing some lighting (i.e. fluorescent tubes, lighting bulbs) near the windows and in the corridors with consideration

given to illumination levels.

- Turning off lights during a lunch break.

■Others

- Energy saving enlightenment posters, energy consumption display, etc. for raising awareness

- Establishment of a energy saving committee consisting of division representatives with an intention of making energy

saving efforts by all residents in the building, and regular discussions for full dissemination of energy saving activities

- Turning off PCs, copy machines and other office equipment, drink servers, and vending machines when not required.

- Partial operation of escalators and elevators during off-peak hours

- Limitation and management of electrical apparatuses using outlets

Example of Operational Improvement at an Office

Percentage Energy Usage Improvement by Automatic Control of Facilities and Facility

Replacement Purpose Individual technologies of

BEMS

Content Average

Percentage

Improvement

(Tentative)

Standard

Deviation

Number of

Samples

1. Lighting

1.1. Replacement with

high-efficiency lighting

(LED)

Replacement with LED

lighting

3.0 % 1.56% ~4.43%

23

Before After

Percentage Efficiency

Improvement (%)

Introduction of BEMS

(3)

(2)

(1)

(3) Percentage efficiency improvement by operational refinements such as changing operations (%)

(2) Percentage efficiency improvement by BEMS control (%)

(1) Percentage efficiency improvement by equipment replacement (%)

Percentage efficiency improvement should be considered in the order:

(1) → (2) → (3)

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1.2. Operation control of

lighting

Scheduled control, human

sensors, etc,

0.2 % 0.05% ~0.40%

10

2.

Heat Source

2.1. Optimal operation

control of heat sources

Control of number of units,

optimal start control, primary

pump inverter control, etc.

2.1 % 1.47% ~2.75%

28

2.2. Introduction of

high-efficiency chillers

Replacement with

high-efficiency chillers

6.8 % 3.83% ~9.70%

11

2.3. Optimal operation

control of cooling water

Cooling water variable flow

control, cooling tower

start/stop control, cooling

tower fan inverter control,

cooling water temperature

optimization, etc.

2.7 % 1.64% ~3.83%

28

2.4. Transfer pump variable

flow control

Secondary pump inverter

control

2.1 % - 9

3.

Air

Conditioning

3.1. HVAC outside air

intake control

CO2 concentration control 1.0 % - 6

3.2. Variable air flow air

conditioners

Fan inverter control 2.4 % 1.07% ~3.72%

15

3.3. Power save operation

(intermittent operation)

Intermittent operation control 1.5 % 0.40% ~2.59%

11

3.4. Power saving

temperature setting

Proper indoor temperature

setting

1.0 % - 7

3.5. Replacement with

high-efficiency Packaged

air conditioners (PAC)

Replacement with

high-efficiency PAC

17.2 % - 2

4.

Ventilation

4.1. Operation control of

ventilation fans

CO concentration control,

scheduled control, device

coordination control

0.7 % - 4

Business specific values used include the calorific value of fuel, fuel emission factors and

electric emission factor. For the calorific value, the specific value of the Energy Saving

Promotion Law by the DEDE is used with the IPCC value used for the fuel emission factor

and the value from the Thai Greenhouse Gas Management Organization (TGO) used as the

basis for the electric emission factor.

(6) Setting of Reference Scenario and Project/Activity Boundary

With regard to reference scenarios, the following 2 scenarios are used:

- Scenario 1: it is Business as Usual (BaU) with the current situation continuing with

no introduction of BEMS

- Scenario 2: buildings become highly efficient as a result of non-BEMS effects

The rationale behind Scenario 1 is that there are almost no cases of BEMS introduction in

Thailand and the current situation, where there are limited economic incentives for BEMS

introduction, is assumed to continue. In Thailand, due to the low energy costs, even if BEMS

that perform highly optimized equipment operation are introduced, the resulting cost saving

from the reduction in energy consumption will be very small with the investment payback

period (including running cost) longer than compared to Japan. The investment payback

period following introduction of BEMS is around 7 to 10 years which means that the

investment is not attractive to building owners. In terms of the applicability of subsidies,

according to DEDE, there are no plans to introduce subsidies for BEMS and it is assumed that

BEMS introduction will not be promoted in near future.

Scenario 2 is set based on the assumption that buildings will be more efficient than BaU as a

result of non-BEMS effects. For example, emission reduction and energy saving will be

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greater than BaU as a result of improvements in the efficiency of building facilities and

factors such as the use of higher performance building insulation. It can be assumed that in

the case that a BEMS is not installed but building energy efficiency increases, at the time of

BEMS introduction, the potential level of energy saving resulting from BEMS introduction

will be lower than compared to the current status and BaU. This scenario is based on the

“Energy Efficiency Development Plan (2011-2030)” published by Ministry of Energy in

Thailand. This plan establishes the policy direction to make buildings highly efficient by

focusing on installation of high efficiency building facilities and improving the performance

of insulation materials.

Diagram below demonstrates the two scenarios in commercial buildings. The assumption is

that the total number of commercial buildings in Thailand will increase with a resulting

increase in total emission levels. Although this project only targets existing buildings, new

buildings can be re-categorized as existing buildings once required energy usage data can be

collected. Therefore, it is assumed that the total number of buildings where BEMS can be

introduced will be increased.

Scenario 1, as BaU, shows that the current emission levels will continue. For scenario 2, if the

building that is set as reference emission becomes highly efficient, the amount of emission

will be increased but the rate of increase will be lower than that experienced with BaU. If

BEMS are introduced using the JCM/BOCM mechanism as a project, it is assumed that

project emission will remain below the reference scenario.

Reference scenario

If the reference scenario is set based on the above graph, for the quantification of emission

reduction resulting from the introduction of BEMS using the JCM/BOCM mechanism, the

following changes need to be implemented:

- Periodic modification of default values

- Periodic monitoring of emissions intensity of building in the commercial sector

The reason why periodic modification of default values is required is that the introduction of

BEMS and other improvements in building energy efficiency over a period of time will result

in higher levels of energy efficiency performance compared to the performance levels

identified in 2013. This means that the original default values will not represent actual

performance levels if they are not periodically modified.

To modify default values, it is necessary to collect data on the actual energy saving value for

each technology following BEMS introduction. As this process takes time and potentially

incurs cost, consideration should be given to establishing a subsidy system at the start of

BaU

Reference emission

Project emission

GH

G E

missio

n in

com

me

rcial b

uild

ing

s

2013

Introduction of BEMS

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JCM/BOCM introduction. Qualification for receipt of the subsidy should include the

requirement to collect data on energy consumption by individual technologies. The modified

default values will be used in calculation method 1 stated in section 4.

It is recommended that periodic monitoring of emission intensity in commercial buildings is

carried out every 3 years by JCM/BOCM participants. Systematic monitoring of

improvements in building energy efficiency buildings will generate data that can be used in

Calculation method 3, which uses past energy consumption data in determining emission

reductions following introduction of BEMS.

As an example, if the emissions from commercial buildings in Thailand have increased as

shown in diagram above, use of the conservative reference emission approach requires

incorporation of monitoring data to correct the reference emission value reflecting reductions

in emissions resulting from 5 years of implementation of BEMS. Although it is not easy to

monitor specific emission intensity values in commercial buildings in Thailand, it would be

possible to judge the required correction by statistically analyzing reporting data collected

under the Energy Saving Promotion Act.

The system boundary was set to cover the entire building as BEMS typically monitor and

control buildings as a whole. The advantages of adopting this system boundary include

potentially larger reduction in emissions and efficient MRV. Large reductions resulting from

operational improvements and synergies achieved from the automatic control of multiple

devices, and some spillover effects (e.g. reduction in air-conditioning costs following

renovation of illumination and upgrading of heat insulation) are captured with the whole

building approach. Additionally, the approach cuts down on the cost of monitoring and

verification by collectively measuring the consumption of electric power and fuel in the

whole building.

The target greenhouse gas is CO2 generated from energy consumption. The reason for this is

that most greenhouse gas emitted from the facilities in the commercial sector in Thailand is

energy-originated CO2. Buildings in Bangkok (Thailand) meet 90% of required energy

consumption from electricity. Therefore, it is important to place the emphasis on electric

emission sources. Electric usage is measured with meters controlled by the Metropolitan

Electricity Authority in Bangkok and the Provincial Electricity Authority in other areas.

(7) Monitoring Methods:

The table below shows the results of monitoring that was planned based on the calculation

method options in 4 (3).

The facility manager confirmed that it is possible to monitor the items listed in the table below.

This is because the items listed are the same as those in the Energy Saving Promotion Law in

Thailand and the facility manager was familiar with data summarization and calculation.

Notification under the Law is required two times per year meaning that monitoring is

conducted at the same period and intervals, which can reduce the burden of the person in

charge of monitoring.

For the purpose of reducing monitoring cost, use of actual measurement data with BEMS was

considered. TIS is a standard on the accuracy of measuring instruments in Thailand, which is

equivalent to JIS in Japan. TIS defines the accuracy of measuring instruments and criteria for

inspection. TIS 1030 specifies the inspection standard for measuring instruments. TIS 2336

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provides the specifications for accuracy and classes of measuring instruments. TIS 1030 is

based on international standards such as IEC, and revised in 2008. TIS 2026 was revised in

2009. If measuring instruments such as power meters used for BEMS are procured from local

Japanese manufacturers, the instruments conform to these standards and generally no problem

occurs. If there is a problem, this could be due to measuring instruments supplied from

non-Japanese manufacturers and use of old measuring instruments for maintenance purposes

in existing buildings connected to BEMS. However, considering the necessity of transmitting

measurement data to BEMS, measuring instruments will need to be upgraded or new

equipment installed, so this should not be a problem. However, use of existing instruments or

simple and cheap instruments from local manufacturers may result in inaccurate data. It is a

basic principle that when configuring BEMS, the measuring instruments should be replaced

with high-precision models.

Items Monitored Monitoring

Frequency

Notification

Requested by

the Energy

Saving

Promotion

Law

Feasibility

PECy: Electric Power Usage of the Target Facility

during the Project (MWh/y)

Once/6 months ○ According to the Thai

Accountants Law, heating and

lighting bills must be stored for

five years.

Many facility management

divisions store and manage those

bills to conform to the Energy

Saving Promotion Law.

For total floor area, there is a

building certificate application to

Bangkok Metropolitan

Government Office. Therefore,

the information on relatively

many facilities is stored in the

management division.

PFCi,y: Fossil Fuel Usage of the Target Facility during

the Project (kl, t, 1000Nm3/y)

Once/6 months ○

REC3y: Average Electric Power Usage of the Target

Facility in the Past 3 Years (MWh/y)

Only at project

planning

RFCi,3y: Fossil Fuel Usage of the Target Facility in the

Past 3 Years (kl, t, 1000Nm3/y)

Only at project

planning

RAG3y: Average Floor Area of the Building in the Past

3 Years (m2)

Only at project

planning ○

ROR3y: Percentage Operational Area in the reference

(%)

Only at project

planning

PAGy: Total Floor Space of the Building during the

Project (m2)

Once/year ○

PORy: Percentage Operational Area of the Building

during the Project (%)

Once/year

EERk: Percentage Energy Usage Efficiency

Improvement after the Introduction of an Individual

Piece of Equipment k Independent from Building Type

(%)

Once/year - (default)

EERi: Percentage Energy Usage Efficiency

Improvement by EMS of Building Type j (%)

Once/year

EFe,y: Electric Power CO2 Emission Factor

(tCO2/MWh)

Once/year

NCVi,y: Net Calorific Value of Fossil Fuel i (GJ/Nm3, t,

etc)

Once/year

EFf,i,y: Fossil Fuel CO2 Emission Factor (tCO2/GJ) Once/year

(8) Quantification of GHG Emissions and its Reductions:

The table below shows the reference emission and emission reduction calculated based on the

MRV methodology from the CO2 emissions at each MRV demonstration site. The emission

reduction is as of the preparation of the first monitoring report. The verification process

checks the emission reduction achieved to determine whether the calculation is appropriate.

The CO2 emission factors used were based on the Energy Saving Promotion Law data by

DEDE. It does not link with the emission factor obtained from the reference emission

calculated based on the MRV methodology of this study, and total floor area.

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The percentage emission reduction after BEMS introduction is from the early stage

implementation of verification on percentage reduction using the values under study, which is

usually done with the default assumed to be available according to the JCM/BOCM system.

The current defaults are tentative values.

MRV Demonstration Sites Building Total Floor

Area (m2)

Reference

Emissions

(t-CO2/y)

Emission

Reduction

(t-CO2/y)

Percentage

Emission

Reduction after

BEMS

Introduction

Monitoring Period

Building A 67,562 4,995 524 Implemented at

10.5%

April 1, 2012 to October 31, 2012 (7

months)

Building B 213,311 27,917 6,554 Implemented at

10.5%

May 1, 2011 to December 31, 2011 (8

months)

Building C 9,952 1,693 18 Implemented at

1.1%

January 31, 2010 to January 31, 2011

(12 months)

Building

D

27,886 49,349 5,335 Implemented at

10.8%

January 1, 2009 to November 31,

2011 (23 months)

For the emissions and reduction of greenhouse effect gas, reference emissions are set based on

the emissions during the project, with actual differences during the project considered as

emission reductions. (See the attached methodology proposal). Emissions that may result

from “leakage” are not taken into consideration because of the whole building system

approach which includes all energy-consuming equipment controlled by the BEMS falls in

the boundary.

(9) Verification of GHG Emission Reductions:

The table below is a summary of trial MRV verification. The verification entity was

requested to conduct on-site reviews and desk-top reviews. Two types of calculation methods

can be executed for the MRV methodology depending on the provision of monitoring data

from the project participants. Since there are few cases where BEMS have been introduced in

Thailand and it is impossible to obtain actual values, Calculation Method 2 was not selected.

However, the basic concept of calculation is similar to Calculation Method 1. Therefore, it is

possible to conduct evaluation by verification of Calculation Method 1.

Trial Verification Building Verification Type Date of Execution

(Date of Submitting the Monitoring

Report)

Date of Submitting the

Verification Report

Building A On site review

Calculation Method 1

November 26, 2012 December 7, 2012

Building B Desk-top review

Calculation Method 1

1st Verification: November 30, 2012

2nd Verification: December 12, 2012

December 17, 2012

Building C Desk-top review

Calculation Method 3

1st Verification: December 3, 2012

2nd Verification: December 12, 2012

December 17, 2012

Building D Desk-top review

Calculation Method 1

1st Verification: December 4, 2012

2nd Verification: December 12, 2012

December 17, 2012

For the on-site review of Building A, the verification entity confirmed the monitoring report

was created based on the evidences of electric, LPG, and light oil usage, and checked the

equipment. It was also confirmed that the calculation was appropriate without any problem.

However, they pointed out that the source document for the optimal control of heat sources by

the BEMS introduced was not clearly written.

For Building B, data was entered into the monitoring report based on the evidences of electric

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and LPG usage. During the first verification, the receiving power meter failed after the

introduction of BEMS, and needed to be replaced. However, the electric usage including the

period of meter failure was entered in the monitoring report, which was found by the

verification entity. The entity pointed out that the period after the meter was replace during

which monitoring was reliable should be taken as the monitoring period after BEMS

introduction and it should be the target of calculation. The staff followed this instruction

because emission reduction is small and conservative calculation was made. In the 2nd

verification, the calculation was confirmed to be appropriate.

Electric bills and actual LPG measurement data were provided in Building C. They were

entered in the monitoring report and verified. In the 1st verification, modification of the

monitoring period was requested. A point in time where individual technology was introduced

was taken as the introduction of BEMS. At the point where BEMS was introduced

(monitoring started), all individual technology must have been introduced. This was fixed

before the 2nd verification and the calculation was confirmed to be appropriate. They pointed

out that there is not enough documentation for the introduction of individual technology and

to determine the accuracy of LPG measurement.

For Building D, the monitoring report was created based on the evidence of electric usage and

verified. During the 1st verification, the power consumption of the pumps used for the

cafeteria and temporarily used pumps outside the area of BEMS control was entered as the

power usage after BEMS introduction and used for calculation. In the 2nd verification, the

monitoring report was fixed and the calculation was confirmed to be appropriate.

The issues revealed by the verifications include: 1) Clarification of the ranges of management

and measurement by BEMS, 2) Setting the BEMS project start date, 3) Monitoring assistance

tools, 4) Creation of a verification check list, and 5) Need for on-site reviews.

For 1), it is necessary to classify the energy usage for each purpose in case of composite

facilities (e.g. commercial facilities and a hotel in a single building) and clarify the scope of

management by BEMS. However, this requires a large number of source documents and time

for site checking. Regarding the second point, this is explained by the need for “system tuning” following introduction of BEMS to reach the optimal operating conditions. When installing

BEMS, several pieces of technology are generally introduced in stages, not as a single batch.

Therefore, it is necessary to define the actual date when BEMS was introduced. Data should

be presented to support selection of the actual date e.g. work reports created on the date of

tuning. For 3), creating and distributing tools to support monitoring report preparation by

project participants may reduce the likelihood of errors in data entry and summation. For 4), it

is important to create a checklist summarizing the points of verification before hand so that

the verification entity can efficiently conduct verification based on the BEMS methodology.

The checklist is effective for keeping quality. With reference to 5) on-site review should be

conducted by default as this allows a better understanding of energy consumption, and checks

on the accuracy and location of individual meters.

(10) Ensuring Environmental Integrity:

It is thought that the environmental risks that occur during the production of BEMS products,

in other words, the environmental impacts due to the dissemination of BEMS, are not high

compared to other products. Similarly, the general life cycle of BEMS from introduction, to

installation and operation does not cause result in significant environmental issues.

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Thailand enacted the Enhancement and Conservation of National Environment Quality Act in

1992. Environmental assessment must be conducted for the target projects. There are 23 target

projects including the construction of dams, reservoirs, and airports for civil uses.

Introduction of BEMS during the stage of construction or renewal is no the target of

environmental impact evaluation.

(11) How to Promote the Dissemination of Japanese Technologies:

Comments from local real-estate agents and construction companies identified three key

points that Japanese companies and the government should take into consideration when

introducing and disseminating Japanese BEMS technology.

The first point to consider is the "retention of local users." As a characteristic of the social

infrastructure market, Large scale equipment and device including BEMS are difficult to

replace. (Once a supplier acquires clients, other companies cannot supply to those clients.)

For the market of existing buildings, equipment, and devices, Japanese electrical

manufacturers in Thailand pointed out "it is not easy to enter the market occupied by leading

European companies."

For Japanese companies, which are new entries, to acquire users in such a situation, they

should: 1) develop "new business" and "new markets," 2) demonstrate the superiority of their

equipment and devices to clients and let them experience them, and 3) design products and

services whose prices and performance are targeted to the needs of local clients.

For 1), the real-estate agencies in Thailand recommended to approach the developers and

chain operators of major commercial facilities, targeting "newly built commercial facilities"

with understanding of the trend of open air markets converted into shopping malls. For 2) and

3), it was pointed out the need for strengthening sales efforts to local construction consultants

who influences the design stage, as well as the building owners and trustees of management

and operations.

Secondly, the local users should be able to access the low-cost finance schemes. In emerging

countries including Thailand, "price matching" indicated in above 3) is required. However, the

lowest price for maintaining the quality (and profitability of the supplier) for assuring energy

saving can exceed those of the local companies. Therefore, use of 4) fundrasing such as loans

and lease, and 5) subsidy and tax credit and other public programs is preferable.

In case of 4), Japanese and local financial institutions provide products and services that can

be used for BEMS introduction with the help of public fund such as International Finance

Corporation. It is expected that the above products and services are further promoted and

cases are expanded. It is also important to build capacity for Japanese manufacturers to

propose their own finance schemes as European and American manufacturers do.

Thirdly, the opportunities for introducing BEMS and recognizing MRV should be provided by

both Japanese and Thai governments. The degree of recognition of BEMS among building

owners in Thailand is not high. In a DEDE seminar held in Bangkok, many building owners

showed strong interest in BEMS, which suggested market potential.

To exploit market potential and link it to energy saving trends at the national level, activities

by both governments are required. While providing the Thai government with the Japanese

experience of BEMS (dissemination process, construction of MRV methodology, types and

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MRV DS Report in 2012

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behaviors of market players, and technological support for dissemination by the government),

a "Japan-Thailand public-private partnership" should be established to disseminate BEMS.

For the dissemination of BEMS, training BEMS engineers is essential. In some buildings the

staff visited in this study, there was no person who can operate a BEMS. It is difficult for

building owners to pay for the training cost. It is requested that the Thai or Japanese

government provide support for human resource development.

(12) Prospects and Challenges for Similar Project/Activity Implementation:

Calculation Method 3 of MRV methodology uses total floor area as key operations data in

emissions calculations. In office and commercial facilities, tenant occupation data is used to

define the operation state to control the effects of factors other than the introduction of BEMS

on energy consumption. However, if the operation rate is not appropriately monitored, or

variations in factors impacting energy consumption other than BEMS introduction are not

captured, significant errors in calculating emission reduction could occur. Therefore, to

improve the accuracy of operating ratio, it is necessary to consider establishing different

operating ratios for different usages of the building.

5. Contribution to Sustainable Development in Host Country Three ways in which introduction of BEMS can contribute to the sustainable development of

Thailand are listed below:

1) Alignment with the development policy and strategy of the host country: use of BEMS

to identify opportunities and measure the results of energy saving are in line with the Thai

government’s mid-term plan to 2015. Government policy aims to support the development of

specialists in energy saving and lower unit energy consumption. Energy saving of individual

facilities resulting from BEMS introduction, and measurement of energy use and operation

not only assist the Thai plan but co-evolve with it.

2) Contribution to Peak Power Reduction: In Thailand, the peak electric power usage in

2010 reached 25,089 MW, 12.6% above 2006 levels. Lowering peak electric power use is an

important issue for the development of Thai electric distribution system. In Japan and other

countries, adoption of BEMS systems has been shown to contribute to a reduction in peak

power usage. Demonstrating the relationship between use of BEMS and potential reductions

in peak power usage in Thailand may act as a driver for the introduction of BEMS removing

some of the issues impacting the development of Thailand’s electric distribution system.

3) Energy Saving Technology Transfer and Human Resource Development: There is a

clear demand for training of staff capable of conducting technical assessments to realize

energy saving opportunities and create financial plans. Introduction of BEMS is an important

tool through which people can be trained about different aspects of energy saving.