ESCO-Related activities An energy service company (acronym: ESCO
or ESCo) is a commercial business providing a broad range of
comprehensive energy solutions including designs and implementation
of energy savings projects, energy conservation, energy
infrastructure outsourcing, power generation and energy supply,
arrange financing for projects and risk management for which
performance contract and measurement and verification is a core
part to ensure that the project technical performance is fully
guaranteed during the contract period.
A total of 59 ESCOs are currently certified by Thai ESCO
Association (not all ESCO are currently members of the
association)
Implement projects in various type of factories and buildings
i.e. Hotels, Universities, Electronics industry, food industry. The
projects include, but not limited to, boiler, HVAC, Heat recovery,
etc.
Government support: ESCO Fund and ESCO
ESCO provides support for ESCO business via raising awareness of
ESCO business as well as arranging ESCO business matching to help
ESCO find prospecting customers ESCO Fund provide funding for
business interested in investing in energy efficient equipment or
renewable energy. Mainly focus on business with high potential but
lacks appropriate funding or collaterals required. Equipment
Leasing Low interest loan (approx. 4%) not exceeding 10 million
baht for purchasing eligible equipment with a repayment period of
3-7 years. Equity Investment Co-investing in renewable energy
projects but not exceeding 50 million baht. Will exit after 3-7
years.
Tax-Incentive Phase 4 Cooperation between the Revenue Department
and Department of Alternative Energy Development and Efficiency
Grant tax exemption for newly purchased energy efficient
equipment (eligible equipment is listed at www.energy-tax.com)
equivalent to 25% of the equipments cost.
Eligible equipment is evaluated by DEDE.
Phase 3 equipment -> 22 types with a total of 7,949 items
eligible.
Phase 3 (2007-2008) resulted in an energy saving of 16.10
ktoe/year, equivalent to a monetary saving of 561.8 Million baht.
The incentive costed the government 357.98 million Baht.
Phase 4 is currently being revised by the Revenue
Department.
Investment Promotion via Board of Investment (BOI) Promote
investment in various activities one of them is promoting
activities that are environment-friendly, save energy or use
alternative energy to drive balanced and sustainable growth. The
activities are divided into groups (A1, A2, A3, A4, B1, B2)
DEDE helps in verifying if applicants fit eligibility
criteria.
Many activities are eligible for investment promotion. However,
DEDE only serves to verify Energy Service Companies (ESCO)
applicants (used to include manufacturing of
energy-efficient/renewable energy-related equipment as well as
import duty exemption for energy efficient equipment).
ESCO (Type A1 business), if accepted, is eligible for 8-year
corporate income tax exemption (no cap) Exemption of import duty on
machinery Exemption of import duty on raw materials or essential
materials for manufacturing for 1 year, extendable if deemed
appropriate Other non-tax incentive
15 manufacturers energy-efficient/renewable energy-related
equipment, 10 import duty exemption for energy efficient equipment
28 ESCOs are accepted since 2004, resulting in a saving of 11531.8
million Baht per year in energy.
Direct Subsidy (80-20) Monetary subsidy for energy efficient
measures with a payback period of less than 7 years. Subsidy of 20%
of total cost for designated buildings and factories, 30% for SMEs,
but not exceeding 3 million Baht or established cost estimate.
Designated buildings/factories = consume more than 20 MJ of energy
or have a collective size of transformers above 1,175 kVA.2010-2011
2012 2013total
Main TargetFactories/buildingsFactories/buildingsSMEs
# of participants 232247115594
# of measures3163621901,462
Total subsidy127.5166.525.7319.7
Energy saving (ktoe/year)10.614.22.126.90
Total investment (MBaht)n/an/an/a2,106.7
Monetary Saving (MBaht/year)n/an/an/a847.1
