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Prof. Thierry Lefevre and Govinda R. Timilsina CENTER FOR ENERGY-ENVIRONMENT RESEARCH & DEVELOPMENT ASIAN INSTITUTE OF TECHNOLOGY UNFCCC Regional Workshop on Technology Transfer 17-19 January 2000 Cebu, Philippines Demand Side Management Program in Thailand: A Model for Implementing GHG Mitigating Technologies in Developing Countries

Prof. Thierry Lefevre and Govinda R. Timilsina

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Demand Side Management Program in Thailand: A Model for Implementing GHG Mitigating Technologies in Developing Countries. Prof. Thierry Lefevre and Govinda R. Timilsina CENTER FOR ENERGY-ENVIRONMENT RESEARCH & DEVELOPMENT ASIAN INSTITUTE OF TECHNOLOGY. - PowerPoint PPT Presentation

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Page 1: Prof. Thierry Lefevre and Govinda R. Timilsina

Prof. Thierry Lefevre and Govinda R. TimilsinaCENTER FOR ENERGY-ENVIRONMENT RESEARCH &

DEVELOPMENTASIAN INSTITUTE OF TECHNOLOGY

UNFCCC Regional Workshop on Technology Transfer17-19 January 2000Cebu, Philippines

Demand Side Management Program in Thailand: A Model for Implementing

GHG Mitigating Technologies in Developing Countries

Page 2: Prof. Thierry Lefevre and Govinda R. Timilsina

Outlines

1. Introduction and Objectives of DSM Program in Thailand

2. Mitigation Technologies Implemented under the Program

3. Institutional Arrangement

4. Program Implementation Strategies

5. Financial Arrangement

6. Achievements of the Program

7. Conclusions and Final Remarks

Page 3: Prof. Thierry Lefevre and Govinda R. Timilsina

INTRODUCTION

• To cope with the very high growth in electricity demand (i.e., 13% AAGR) during the second half of the Eighties and first half of the Nineties, the Thai government decided to launch the demand side management program in the country.

• In 1991, EGAT came up with a DSM master plan, obtained the government’s approval for DSM programs in 1992, which was formally launched on September 20, 1993.

Page 4: Prof. Thierry Lefevre and Govinda R. Timilsina

OBJECTIVES OF THE DSM PROGRAM

Four objectives of the DSM Program:

• to educate, encourage (through incentives) and inform consumers about energy conservation;

• to stimulate manufacturers and importers to produce or import energy-saving and efficient appliances and equipment;

• to support and pursue energy efficiency and load management technologies;

• to build sufficient institutional capability in the electricity sector and the energy-related private sector to deliver cost-effective energy services throughout the economy.

Page 5: Prof. Thierry Lefevre and Govinda R. Timilsina

MITIGATION TECHNOLOGIES IMPLEMENTED

•Residential sectorFluorescent thin tubeLow watt fluorescent fixturesLow loss ballastsCompact fluorescent lampsEnergy efficient refrigeratorsEnergy efficient air conditioners

•Commercial sectorHigh pressure sodium lamp for street lightingEnergy efficient freezersEnergy efficient air conditioners

•Industrial sectorEnergy efficient electric motorsVariable speed drivesEnergy efficient refrigerating, heating and air

conditioning systems

Page 6: Prof. Thierry Lefevre and Govinda R. Timilsina

Efficient Fluorescent Lamp (EFL) • Implemented under the Thin Tube” program since 20

September 1993.

• Under this program, Thailand’s five largest fluorescent lamp manufacturers agreed to replace production of all T-12, 40 W and 20 W fat tubes (with 1.5 inch tube diameter) with T-8, 36 W and 18 W thin tubes, which use 10% less energy for providing the same level of illumination.

• Fluorescent lamps were also implemented under the Low-Income Lighting Retrofit Program, where low income households with electricity consumption less than 35 kWh/month were encouraged to replace their 60 watt incandescent lamps by 18 watt fluorescent fixtures.

Page 7: Prof. Thierry Lefevre and Govinda R. Timilsina

Low-loss Ballasts

• Low-loss ballasts are new types of magnetic ballasts, which require only half of the energy required by the

standard existing ballasts.

• Under the Low-Loss Ballast Program, the EGAT has procured the low-loss ballasts in a large scale and distributed them to the households at a subsidised price through Green Shops.

• Low-loss ballasts were also implemented in low income households under the Low-Income Lighting Retrofit Program.

Page 8: Prof. Thierry Lefevre and Govinda R. Timilsina

Compact Fluorescent Lamp (CFL)

• This technology was implemented under “Million Hearts, Million Lights” program launched in September 1996.

• Under this program, EGAT has planned to sell over 1.5

million units of CFLs through a mass procurement system.

• Up to 35% of the equipment price has been subsidised. CFLs are distributed to households at PTT and Shell gas stations and at Seven Eleven convenience stores.

Page 9: Prof. Thierry Lefevre and Govinda R. Timilsina

High Pressure Sodium Vapour Lamp (HPSVL)

• This technology has been implemented since October 1996 under the street and farm lighting retrofit program, which involved installation of high pressure sodium vapour lamps in 55,000 villages all over the country.

• This technology has also been implemented through a pilot project in northern hills where tribal people were encouraged to replace the incandescent lamps by high

HPSVL.

Page 10: Prof. Thierry Lefevre and Govinda R. Timilsina

Energy efficient refrigerator

• Energy efficient refrigerators have been implemented under the energy efficient refrigerator program, which

was launched in September 1994.

• Under this program, manufacturers and importers of refrigerators were persuaded to test their products for efficiency rating labelling.

• The EGAT on its part launched a comprehensive media campaign to promote the new models, which cost only

10% more than the standard models.

Page 11: Prof. Thierry Lefevre and Govinda R. Timilsina

Energy efficient air conditioner

• Use of energy efficient air conditioners has been promoted through the Air Conditioner Labelling Program, which was launched in September 1995.

• The program target was to replace the sales of inefficient air conditioners with Energy Efficiency Ratio (EER) of 7.6 by the efficient ones with EER of 9.6 to 10.6 or higher.

• The incremental costs incurred were financed by EGAT

through interest-free loans.

Page 12: Prof. Thierry Lefevre and Govinda R. Timilsina

Thermal energy storage

• The concept of thermal energy storage is to chill water or produce and store ice during off-peak periods when electricity demand and utilisation rates are low and use this chilled water or ice to cool the buildings instead of operating large chillers during peak periods.

• This system has been encouraged in the commercial buildings, under the thermal energy storage program. The program was launched in April 1996 through a pilot

project in EGAT’s 15-storey headquarters in Nonthaburi.

• The project installed a 1,500 ton-hours of chilled water storage, which is expected to reduce the buildings peak

demand by 350 kW.

Page 13: Prof. Thierry Lefevre and Govinda R. Timilsina

High efficiency motor (HEM)

• High efficiency motors are 2-6% more efficient than the standard motors. Since electric motors account for 80% of total electricity consumption in the industrial sector, a small improvement in motor efficiency could result in

significant energy savings.

• As HEMs are 15-30% more expensive, EGAT has provided interest-free financing, payable in three

years, at the rate of US$440 per kW saved.

Page 14: Prof. Thierry Lefevre and Govinda R. Timilsina

INSTITUTIONAL ARRANGEMENT

• In order to implement demand side management programs in Thailand, the Electricity Generation Authority of Thailand established a Demand Side Management Office (DMSO) as a department level organisation reporting directly to a DSM-sub

committee.

• This sub-committee, chaired by the Governor of EGAT, oversees and coordinates DSM efforts in the country carried out by various

agencies.

• DSMO is responsible for the development of the programs, implementation strategy and financial packages to support the programs.

• DSMO has hired an independent and internationally recognised agency for monitoring and evaluation of the program.

Page 15: Prof. Thierry Lefevre and Govinda R. Timilsina

Composition of DSM-Sub Committee

The DSM-sub committee consists of representatives from the following agencies.

1. National Energy Policy Office (NEPO)

2. Research and Academic Institutions

3. Department of Energy Development and Promotion (DEDP)

4. Energy Conservation Center of Thailand (ECCT)

5. Fiscal Policy Office (FPO)

6. Electricity Generation Authority of Thailand (EGAT)

7. Metropolitan Electricity Authority (MEA)

8. Provincial Electricity Authority (PEA)

Page 16: Prof. Thierry Lefevre and Govinda R. Timilsina

Organisational Structure for the Implementation of the DSM Program

Pow er Sector Authority

National EnergyPolicy Office (NEPO)

Dem and S ideManagem ent Office (DSMO)

Electricity GeneratingAuthority of Thailand (EGAT)

Prim e Minister'soffice

Energy ConservationCenter of Thailand (ECCT)

Departm ent of EnergyDevelopm ent and Prom otion(DEDP)

Ministry ofST & E

Metropolitan E lectricityAuthority (MEA)

Provincial E lectricityAuthority (PEA)

Ministry ofInterior

National EnergyPolicy Council (NEPC)

Page 17: Prof. Thierry Lefevre and Govinda R. Timilsina

PROGRAM IMPLEMENTATION STRATEGIES

• The DSM implementation strategies implemented by

EGAT can be classified into four categories:

– market transformation through voluntary agreement,

– energy efficiency labelling,

– customer oriented programs,

– public-private sector partnership.

Page 18: Prof. Thierry Lefevre and Govinda R. Timilsina

Market Transformation through Voluntary Agreement

• Under this strategy, EGAT has directly negotiated with the manufacturers and importers of electrical appliances and made them agree to replace their

inefficient products by their efficient counterparts.

• For example, under the “Thin Tube” program EGAT has directly negotiated with the Thai lamp manufacturers to voluntarily agree to ban the production of low-efficiency T-12 fluorescent lamps and to produce only high-efficiency T-8 fluorescent lamps. In return, EGAT financed advertising campaigns in mass media to

promote the new products.

Page 19: Prof. Thierry Lefevre and Govinda R. Timilsina

Energy Efficiency Labelling

• EGAT adopted a product efficiency labelling program for refrigerators and air conditioners under which all participating brands of refrigerators and air conditioners adopted a label.

• The label indicates the efficiency, annual energy consumption and the energy saving estimates. The ratings were numbered 1 to 5 along with increasing efficiency of the products.

• Thanks to the labeling, sales of refrigerators and air conditioners with higher efficiency ratings significantly replaced the sales of those with lower efficiency ratings.

Page 20: Prof. Thierry Lefevre and Govinda R. Timilsina

Customer-Oriented Program Design

• EGAT has implemented an energy efficient building program called the “Green Building” program, through which customers were assisted to comply with the comprehensive energy use standards provided in the Energy Conservation and Promotion Act of 1992.

• For example, EGAT has installed load monitoring and control equipment at a resort hotel. The hotel reduced its monthly peak demand from 1,360 kW to 1,200 kW by continuously monitoring the electricity consumption at locations such as chillers, kitchen, laundry, conference hall, etc.

• A large number of buildings have already been

participating in this program.

Page 21: Prof. Thierry Lefevre and Govinda R. Timilsina

Public-Private Sector Partnership

• To support private sector participation for energy service delivery, EGAT has implemented a pilot phase Energy Service Companies (ESCO) program for implementing energy-efficiency measures in the industrial sector.

• Four ESCOs have been selected to implement energy efficiency investments in the industrial/commercial

sector.

• Financing has been provided by EGAT, while ESCOs are expected to perform the energy auditing, feasibility study, engineering, installation, management, and performance monitoring.

Page 22: Prof. Thierry Lefevre and Govinda R. Timilsina

FINANCIAL ARRANGEMENT

• Of the total budget of US$ 189 million for a five year period (i.e., 1993 to 1998), the external sources (i.e., GEF and OECF) have covered about 21%, whereas the rest has been managed through internal sources.

Table : Budget for the DSM Program in Thailand

Source Amount (Million US$)

(%)

International Resources The Global Environmental Facility - Administered by the World Bank - Co-administered by Government of Australia Overseas Economic Cooperation Fund (OECF) of Japan Domestic Resources (EGAT and NEPO) Total

40.5 15.5 9.5 6.0 25.0

148.5 189.0

21 79 100

Source: EGAT (1998)

Page 23: Prof. Thierry Lefevre and Govinda R. Timilsina

ACHIEVEMENTS OF THE PROGRAM

• The actual reductions of peak demand is twice as much as the targeted reductions, while the actual energy saving from the program is 1.5 times higher than the targeted savings. Similarly, the actual reduction of CO2 emission is

1.4 times higher than the targeted reduction.

Table : Targeted and Actual Achievement of the DSM Program in Thailand

Achievement Indicator Unit Target Actual

Reduction in Peak DemandEnergy SavingCO2 Emission Reduction

MWGWh

Million Tons

2381,4841.16

4682,1941.64

Source: EGAT (1999)

Page 24: Prof. Thierry Lefevre and Govinda R. Timilsina

CONCLUSIONS AND FINAL REMARKS

• The demand side management program (1993-1998) of Thailand is regarded as one of the most successful DSM programs in the developing countries as the program not

only met the target but also well surpassed it. • The program has implemented most of the greenhouse gas

emissions mitigation technologies available on the demand side (i.e., efficient lighting systems, efficient refrigerating systems, efficient air conditioning systems, energy efficient motors).

• The program has several special characteristics, for example, the program was innovative and was designed in the socio-economic and cultural context of the country; it was focussed on mutual benefits among the government, customers and equipment manufacturers and suppliers.

• The program made appropriate financial arrangements (e.g., subsidies to the efficient equipment, interest free

loans) to overcome the first-cost barriers.

Page 25: Prof. Thierry Lefevre and Govinda R. Timilsina

CONCLUSIONS AND FINAL REMARKS

• The program encouraged the market transformation; helped the customers to comply with the existing laws and standards on energy efficiency; launched specific consumer oriented programs and encouraged private sector to participate in energy conservation programs through Energy Service Companies.

• From the success of Thailand’ demand side management program , it can be recommended that other developing countries share Thailand’s experiences in implementing GHG mitigating technologies under the demand side management programs.