By Napaporn Phumaraphand, Electricity Generating Authority of Thailand Presented at the Mekong Forum on Water, Food and Energy Phnom Penh, Cambodia December 7-9, 2011 Session 8b: Energy Futures

1. Why Energy Efficiency should be an
important part of the Mekong region’s energy future?
Ms. Napaporn Phumaraphand
Electricity Generating Authority of Thailand
9 December 2011
Mekong Forum on Water, Food and Energy
Phnom Penh, Cambodia

2. Outline of the Presentation
I. World Energy Consumption and Efficiency
and climate change : the need to go EE
II. Possible Drivers of and Barriers to EE
III. EGAT Experiences in Implementing EE
IV. What EGAT has learned after 15 years
V. Conclusion
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3. I. World Energy Consumption and Efficiency
and Climate Change : the need to go EE
3

4. World Energy Consumption; 2008 – 2030 increase by 43%
During 2007-2030, 93%
of the increase are from
developing countries with
50% from China and
India
4 Source : IEA World Energy Outlook 2009

5. Drivers of Energy Demand
 Rising Incomes
 As incomes rise,
people use the
To be around 6 kWh increased disposable
per capita per day
income to obtain
consumer goods,
which include energy-
To be around 4-6 kWh
per capita per day intensive appliances
and equipment
Currently ~ 2
kWh per capita
per day
Source : IEA, 2006
Figure: How per capita income drives electricity
demand
5 Source : Energy Trends in Developing Asia: Priorities for a Low-Carbon Future , September 2011

6. Drivers of Energy Demand
 Urbanization & Energy Consumption
By 2030, it’s predicted that While almost 75% of annual
half of the world’s urban global office space
populations will live in Asian construction is taking place in
cities Asia
results in great increase in
energy use and emission
,as buildings are associated
with 40% of global energy
use.
6 6 Source : Energy Trends in Developing Asia: Priorities for a Low-Carbon Future , September 2011

7. Trends in energy Demand and Green House Gas Emissions
in Developing Asia
 In the next 20 years, 90% of the growth in world energy
demand will come from developing countries (share of primary
energy demand from 28% to 38% in 2030)
 Electricity generation will double by 2030 with production
from coal increase by 77% while hydroelectric power will
increase by 44%
 Coal will continue to be
the dominant fuel in
power sector, though its
share decrease from
69% to 59%
Change of World Energy Consumption during 2007-2030
Source : IEA World Energy Outlook 2009
7 Source : Energy Trends in Developing Asia: Priorities for a Low-Carbon Future , September 2011

8. Asia’s Contribution to GHG Emissions
Abatement Measures for CO2 Reduction in 450 ppm Scenario: ASEAN Countries
EE accounts
for 64-84% of
CO2 reduction
during the
year 2020-
2030
Potentially, during 2020-2030, ASEAN countries can reduce CO2 emission by 25%
8 Source : IEA World Energy Outlook 2009

9. World’s Abatement Measures in Contribution to GHG Emissions
Abatement Measures for CO2 Reduction in 450 ppm Scenario: World Overview
EE accounts
for 57-65% of
CO2
reductions
2020-2030
during
9 Source : IEA World Energy Outlook 2009

10. Comparison of Energy Efficiency in various countries
Energy Efficiency = Primary Energy Consumption
GDP
10 Source : IEA Energy Balance, 2008

11. Comparison of Electricity Efficiency in various countries
Electricity Efficiency = Primary Electricity Consumption
GDP
11 Source : IEA Energy Balance, 2008

12. II. Possible Drivers of and Barriers to EE
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13. Frequency of energy efficiency barriers cited by 120 respondents from 27 countries
% Lack of
consumer awareness
% Low or subsidised
energy prices % Accessing
affordable financing
% Policy and
implementation capacity
13 Source : IEA Energy Efficiency Governance, 2010

14. Drivers VS. Barriers to promote EE
Barriers
Drivers × Market organization
and price distortions
 Energy Security
× Financing
 Economic Development Energy
and Competitiveness Efficiency × Information and
awareness
 Climate Change
× Regulatory and
 Public Health Institutional
× Technical
14 Source : IEA Energy Efficiency Governance, 2010

15. III. EGAT Experiences in Implementing EE
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16. EGAT rationales to implement EE programs
a) By cabinet resolutions (1992)
b) Cost-effectiveness; Avoided costs of electricity
supply exceed EE program costs
c) Environmental Benefits
d) Corporate Images
16

17. EGAT’s DSM Philosophy
 Same or better customers’ benefit on electricity use
but less consumption
 Efficiency increase with affordable prices &
standard quality
 Voluntary cooperation of manufacturers &
importers
 Win – Win Solution
<Manufacturers/Customers/Nation>
Electricity Generating Authority of Thailand
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18. Implementation Strategies
DSM Strategies implemented by EGAT
# . Market Transformation
- Thin Tube Program,
- Appliance Efficiency Labeling Program
# . Customer-Oriented Program Design
- Flexibility to Accommodate Customer Needs
- The Green Building Program
# . Public-Private Sector Partnership
- Energy Services Company (ESCO)
# . Attitude Creation
- Green Learning Rooms & Use of Mass Media
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19. DSM Initiatives – Focusing Residential Sector
 Standard & Labeling program
 Energy efficiency labeling, rating scale 1-5
(worst-best)
 13 kinds of appliance to date
Market transformation
 Thin tube program
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20. Energy Labeling by EGAT
 Refrigerator (1994)
 Air conditioner (1995)
 Compact Fluorescent Lamp (1996)
 Electromagnetic Ballast (1998)
 Electric Fan (2001)
 Automatic Rice Cooker (2003)
 Lighting Luminare (2003)
 T5 (2009)
 Electronic Ballast (2009)
 Double-oscillating Fan (2009)
 T5 Luminare (2010)
 Exhaust Fan (2010)
 Standby 1 Watt – Television (2010)
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21. Example of campaign and advertisement
“Together in
conservation”
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22. 22

23. DSM program impacts (as of October 2011)
Share of Peak Demand saving by program
Fan
Rice cooker Other
1.8%
0.7% 0.1%
Air
Lighting Conditioner
31.4% 44.7%
Refrigerator
21.3%
Share of CO2 reduction by program
Other
Fan 0.1% Rice cooker
2.5% 0.1%
Lighting Air
28.7% Conditioner
44.1%
Refrigerator
24.4%
23
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24. DSM program Costs (as of October 2011)
Accumulated DSM Expenditure Baht per
per Unit Saved 2001 2002 2003 2004 2005 2006 2007
Year 1997 1998 1999 2000 by year 2008 2009 Unit2011(O
2010 ct.)
C ost/kW 2,748 2,590 2,992 3,323 3,277 3,174 2,961 2,727 2,492 2,451 2,468 2,364 2,290 2,088 1,897
Cost/kW 0.49 0.47 0.54 0.60 0.58 0.56 0.53 0.49 0.46 0.44 0.43 0.41 0.39 0.35
h 0.32
Cost per kW Saved
Baht/kW
The cost to produce electricity
3,500
3,000  Marginal Capacity Cost 5,053.20
Baht kW/yr.
2,500
 Marginal Energy Cost 1.2451
2,000
Baht kWh
1,500
1,000
500
0
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25. at Generation Level
Year 2010-2015
Estimated Saving CO2
DSM Item Appliance/Equipment
Peak Demand Reduction Energy Saving Reduction
MW % GWh % (Thousand Ton)
Master Plan On-going Programs
1 Refrigerator 192 26.5 524 15.0 288
2 Air Conditioner 77 10.6 631 18.0 347
2010-2015 3 Electric Rice Cooker
4 Electric Fan
0
51
0.0
7.0
2
114
0.1
3.3
1
63
(all types of 12 & 16-inch blade ) 0 0
5 CFL 209 28.8 1,356 38.7 746
6 T5 Fluorescent Lamp 175 24.1 805 23.0 443
7 Low Loss Ballast No saving claimed due to its replacement by electronic ballast-T5 set -
 Continuation 8 Electronic Ballast for T5 Already claim saving in T5 set -
9 Luminaire No saving claimed -
and expansion of Total 704.0 97.1 3,433 98.0 1,888
New Programs
Label NO. 5 10 Standby Power N/A N/A 54 1.6 30
Television N/A N/A 47 1.4 26
 Market-based Computer Monitor N/A N/A 0 0.0 0
Air Conditioner N/A N/A 6 0.2 4
Standard 11 Electric Water Boiler 1 0.1 4 0.1 2
Adjustment 12 Freezer 0 0.1 3 0.1 2
13 Transformer 1 0.1 6 0.2 3
14 Load Control project 19 2.6 0 0.0 0
 Load control 15 Washing Machine 0 0.0 2 0.0 1
16 Air Conditioner (rescaling) Standard rescaling in 2011 and the saving potential is already
project 17 Refrigerator (rescaling) calculated in the on-going program
18 Electric Fan (rescaling) Standard rescaling in 2011 and saving potential is already calculated
(Demand Response) 19 T5 Luminaire No saving claimed
20 Electric Water Heater Feasibility studying
21 Television Feasibility studying
22 Electric Motor Feasibility studying
23 LED Feasibility studying
24 Chiller Feasibility studying
25 Microwave Oven Feasibility studying
26 Pump Feasibility studying
27 Air Conditioner (Invertor, Hybrid) Feasibility studying
Total 21 2.9 70 2.0 38
Grand Total 725 100 3,502 100 1,926
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26. IV. What EGAT has learned after 15 years
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27. Lessons Learned
1. Credit of EGAT as a government-owned utility or
energy provider always gains public trusts in EE
implementation. e.g. Labeling No.5 has been widely
accepted by consumers.
2. Program monitoring and evaluation is as critical to
the success as program delivery/implementation.
Because it is important that the achieved no. of
energy saving to be integrated into power planning
as a supply option should be reliable.
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28. Lessons Learned
3. Supportive government and utility policies on key issues
are necessary.
3.1 For program sustainability. It is obvious that utility or
energy provider like EGAT only performs voluntary
programs which will not last in longer term. While EE
measures could be permanently achieved through
mandatory/compulsory programs that needs strong
policy direction e.g. Voluntary Labeling VS. MEPS
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29. Lessons Learned
3.2 Financial resources and mechanism are critical to the
scale of energy efficiency program delivery and its
sustainability.
Policies and regulations to encourage utility to
promote energy efficiency programs could be
developed such as rewarding mechanism with
comparable level of earnings for energy efficiency
investments as well as earnings from energy sales.
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30. V. Conclusion
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31. Conclusion
 Energy Demand still growing especially in the developing
world.
 Other than RE, we need EE to protect our environment.
RE alone is not sufficient.
 New supply of power does not deserve to be developed if
it is feeding wasteful use.
 Power utility is appropriate for implementing EE / DSM
programs like EGAT does.
 EE / DSM is always a win-win solution to all stakeholders.
Electricity Generating Authority of Thailand
31 4

32. Thank you
for your attention
Ms. Napaporn Phumaraphand
Director, Demand- Side Management & Planning Division
Electricity Generating Authority of Thailand
Bang Kruai, Nonthaburi 11130, THAILAND
E-mail: napaporn.p@egat.co.th
Tel. +66 2436 8100
Fax.+66 2436 8190
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32Electricity Generating Authority of Thailand 2