NEPC approves Energy Efficiency Plan 2015 to reduce energy intensity to 30%

August 13, 2015, at 0900hrs, at the Inner Santi Maitree Building, Government House, Prime Minister Gen Prayut Chan-o-cha presided over the 2/2015 meeting of National Energy Policy Council (NEPC).

The Prime Minister stated in the meeting that creating awareness of energy security is important. Clarification on rationales, principles, and transparent and fair implementation/competition, as well as social impacts must be made to the public. At the same time, 3rd person organizations should be involved to provide further clarification in order to boost confidence and trust in the undertakings.

After the meeting, Minister of Energy Narongchai Akrasanee, together with the Ministry’s Permanent Secretary Kurujit Nakornthap, revealed outcome of the meeting as follows:

The meeting approved Energy Efficiency Plan 2015- 2036 (EEP 2015) which targets reduction of energy intensity (EI)/GDP at 30% in 2036 (increasing the target from 25% in 2010). Adjustment was made in line with the National Economic and Social Development Plan which adjusted economic growth and transport infrastructure development plan according to the Government’s policies. Coupling with decreasing trend in oil prices, strategic adjustment is necessary to intensify mobilization of energy conservation under 3 strategies, 10 measures, and 4 economic clusters, namely, measure to strictly enforce Energy Conservation Promotion Act in factories, buildings, and public buildings through charging of additional fees on excessive electrical use (based on Ministry of Energy’s standard); measure to require calculation on energy use per area for construction of new buildings; collaborative measures between public and private sectors, such as replacement of machineries, uses of LED light bulbs, improvement/repair of houses and building to encourage reduction of energy consumption; as well as key policies of the Government, such as restructure of gasoline prices to reflect genuine costs, and campaign on promotion of discipline in using energy with care and wise. It is expected that those measures could result in the energy saving of over 8.5 trillion Baht in value. Ministry of Energy will make regular reports to the public on the result of these implementations.

On the mobilization of plan for alternative energy, NEPC approved measure to promote construction of biomass and biogas power plants in the 3 southernmost provinces (Pattani, Yala, Narathiwas), and 4 districts (Jana, Thepa, Sabayoi, and Natawee) in Songkhla. Power from alternative energy produced by very small power producers (VSPP) in the 3 provinces and 4 districts in Songkhla will be purchased through FiT Bidding for the total installed capacity of 50 megawatts.

With regard to security of power system in the Southern region, NEPC approved in principle an increase amount of crude palm oil for power production in Krabi Power Plant from 10% to 20%. This is also the measure to tackle over-supply palm of around 200,000 tons. It also approved delay of scheduled commercial operation date (SCOD) of power production from land solar farms for public offices and cooperatives from June 30, 2016 to September 30, 2016.

The meeting also agreed upon criteria for electricity tariff structure of 2015 as proposed by Energy Regulatory Commission (ERC). Once NEPC approves the policy on electricity tariff structure for 2016-2020, ERC is to review the criteria based on the newly approved policy to be in effect from the year 2017 onward. It approved expansion of fuel pipeline transport system to the North and the Northeast, and revocation of privilege in procurement of over 10,000 liters of fuels and petroleum products between PTT (PLC) and EGAT to increase flexibility in fuel procurement of EGAT and to encourage transparency and fair competition.

The meeting also endorsed draft contracts on SPA procurement between PTT (PLC) and Shell Eastern Trading (PTE) LTD, and BP Singapore PTE. Limited.

Source: Royal Thai Government