Why Energy Efficiency should be an important part of the Mekong region's energy future

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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

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Why Energy Efficiency should be an important part of the Mekong region's energy future

  1. 1. Why Energy Efficiency should be animportant 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. 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. Conclusion2
  3. 3. I. World Energy Consumption and Efficiency and Climate Change : the need to go EE3
  4. 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 India4 Source : IEA World Energy Outlook 2009
  5. 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 demand5 Source : Energy Trends in Developing Asia: Priorities for a Low-Carbon Future , September 2011
  6. 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. 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 20097 Source : Energy Trends in Developing Asia: Priorities for a Low-Carbon Future , September 2011
  8. 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. 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 during9 Source : IEA World Energy Outlook 2009
  10. 10. Comparison of Energy Efficiency in various countries Energy Efficiency = Primary Energy Consumption GDP10 Source : IEA Energy Balance, 2008
  11. 11. Comparison of Electricity Efficiency in various countries Electricity Efficiency = Primary Electricity Consumption GDP11 Source : IEA Energy Balance, 2008
  12. 12. II. Possible Drivers of and Barriers to EE12
  13. 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 capacity13 Source : IEA Energy Efficiency Governance, 2010
  14. 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 × Technical14 Source : IEA Energy Efficiency Governance, 2010
  15. 15. III. EGAT Experiences in Implementing EE15
  16. 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 Images16
  17. 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 Thailand17 4
  18. 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 Media18
  19. 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 program19
  20. 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)20
  21. 21. Example of campaign and advertisement “Together in conservation”21
  22. 22. 22
  23. 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% 2323
  24. 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 1,000 500 024
  25. 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 3472010-2015 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 1,92625
  26. 26. IV. What EGAT has learned after 15 years26
  27. 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.27
  28. 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. MEPS28
  29. 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.29
  30. 30. V. Conclusion30
  31. 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 Thailand31 4
  32. 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 332Electricity Generating Authority of Thailand 2

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