The Energy Conservation Fund is required to change its strategic plan in fiscal 2020 to focus on projects that help increase the efficiency of energy usage, innovative energy and community businesses related to energy and innovative energy, as well as projects that help reduce income disparity.
Kulit Sombatsiri, the energy permanent secretary, said the fund committee chaired by Deputy Prime Minister Somkid Jatusripitak yesterday approved the new strategy for the 10-billion-baht fund in fiscal 2020.
Of the total, 5 billion baht or 50% of the conservation fund should go to support R&D for energy conservation, a prototype of energy conservation and innovative energy.
A further 4.7 billion baht will be allocated to renewable energy or alternative energy and projects aiming to raise the quality of energy conservation in communities such as community power plants and energy projects for community tourism.
The remaining 300 million baht will be allocated to energy management, human resources development on energy and public relations on energy conservation.
Mr Kulit said the committee yesterday also approved a fixed budget for the fund of 10 billion baht a year for five years, down from 12 billion baht in previous years.
The Energy Conservation Fund was established in 1992 to provide financial support for the implementation of energy efficiency and renewable energy projects. The fund was sourced from a tax on all petroleum sold in the country.
The fund has been disbursed through a number of economic and financial mechanisms, including grants, subsidies, tax incentives, a feed-in premium for renewable energy and the energy efficiency revolving fund.
Mr Kulit said lower annual budget allocation was due to a reduction of contributions to the fund.