Energy efficiency promotion: the options for Thailand

In the future, I think the government will have do much more to encourage energy efficiency in Thailand.  We should create incentives to reduce unnecessary travel demand through the collection of charges for the use of roads (“road pricing”) in heavily congested areas. There should be a limitation of car-parking areas, or the collection of high parking fees in city center areas. Annual license plate taxation, according to the distance travelled per year, should be levied. There should be prohibition of driving into inner-city areas on odd/even dates based on car license plate numbers. We can also promote the use of information technology (IT) to support and promote working from home instead of commuting.

In the transport sector, Thailand needs to switch from certain modes of transport for both passengers and freight – from cars and light trucks to an improved rail system. In Bangkok and its vicinities, investment will be needed to speed up the construction of rail systems as well as other forms of mass transport.  

In the provincial areas, investment in dual-rail tracks will have to be accelerated. On logistics, we need to develop efficient networks of multi-modal transport. The networks of the transportation systems, both by land and by waterway, and the depot system nationwide, will have to be improved. This includes for oil transport via the oil pipeline networks.  

The government should use tax incentives to promote the use of energy-efficient vehicles, and use a “town and country” planning system in determining goods transport routes. Finally, the Ministry of Finance needs to introduce tax measures to induce energy conservation in the transportation sector.

In the industrial sector, different government agencies in Thailand – namely, the Ministry of Industry, the Ministry of Finance, the Ministry of Energy, the National Competitiveness Committee (NCC) and the NESDB – should work together in jointly determining measures and speeding up industrial structure reform to enhance the country’s competitive edge. In addition, there must be a review of the investment promotion policy, attaching greater importance to the energy aspect and economic value.  

The Ministry of Finance should devise tax measures to promote energy conservation in factories and goods transportation. The Ministry of Industry and the Ministry of Energy should jointly speed up the implementation of the Minimum Energy Performance Standards (MEPS) for electrical appliances, and energy-efficiency labelling for cars.

On alternative energy, Thailand needs to establish regulations and legal enforcement to give incentives to power generation plants to achieve a certain percentage of their generation capacity through renewable energy such as solar, wind or biomass. The government should devise incentive measures aimed at encouraging the purchase of power generated by renewable energy – for example, through the provision of tax credits, privileges and subsidies from the Energy Conservation Promotion Fund.  

The government can do much more to support research and development on renewable energy, for which Thailand has high potential, such as solar, micro-hydropower, wind and biomass (from agricultural waste and municipal wastes).  

Finally, we must encourage the participation of, and partnership with, local communities in renewable energy-fuelled power plants. There is the agenda for energy sector reform in Thailand that is crucially needed for our sustainable future.

 

Dr Chodechai Suwanaporn is executive vice president of economics & energy policy, PTT Public Company Limited. [email protected]