23 energy projects facing scrutiny

23 energy projects facing scrutiny

Newly appointed fund board set to scrap most

The new Energy Conservation Fund board chaired by Gen Udomdej Seetabutr, secretary-general of the National Council for Peace and Order (NCPO), yesterday ordered a review of 23 energy-saving and -efficiency projects worth nearly 10 billion baht.

Elected by the NCPO early last month, the board met for the first time yesterday and decided these 23 projects might be scrapped, delayed or have their investment terms revised.

Among the projects are 1.84 billion baht for solar rooftops on state-owned buildings, 400 million for LED lamp replacement for the Defence Ministry and 524 million for energy-saving electrical equipment for small and medium-sized enterprises.

The projects belong to the Energy Ministry's Energy Policy and Planning Office, Energy Business Department, Alternative Energy Development and Efficiency Department and Office of the Permanent Secretary.

"Twelve of the projects will definitely be scrapped, as they're not feasible,"  said one official.

Others should go with public awareness campaigns for saving energy, but since no continuous efforts are planned for next year, chances of them making the cut are not good, the source said.

Areepong Bhoocha-oom, the new energy permanent secretary and a former finance permanent secretary, said all the projects had been marked for funding under the fiscal-2014 budget. Some have yet to start construction, while others are under development.

The board also appointed a subcommittee chaired by deputy energy permanent secretary Karujit Nakornthap to look into some projects to see if any development had taken place.

"We want the fund to play a more significant role in promoting energy savings and efficiency," said Mr Areepong.

Under the renewable energy development plan, Thailand targets alternative energy accounting for 25% of the country's total use by 2021. To achieve that, solar, wind, small hydropower, biomass, biogas and municipal waste-to-energy projects are being promoted to replace fossil fuels.

Moreover, Thailand has a 20-year energy efficiency development plan aimed at reducing energy intensity by 25% in 2030 from 2010 levels and overall energy consumption by 20% during the period.

The Energy Conservation Fund collects a levy of 25 satang a litre for petrol and seven satang for diesel from motorists. Each year, it supports projects to the tune of 7-8 billion baht.

Previously the fund was used extensively in support of biomass, biogas, energy-saving electrical equipment and energy saving consultancy services but in the past couple of years has been heavily used to promote LED and compact fluorescent lamp replacement.

The NCPO last Friday announced that Mr Areepong would replace Suthep Liumsirijareon as the energy permanent secretary.

Mr Suthep is widely known to have received full support from leading executives of the Pheu Thai Party in 2011 and 2012 and worked well with the government these past two years. Before becoming permanent secretary, he had served as secretary-general of the Energy Policy and Planning Office since April 2011.

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