Accelerating construction of energy efficient green housing units in Thailand

Project General Information



01604



Climate change

Climate Change

VI





 

Thailand’s greenhouse gas emissions have increased by more than 200% since 1992, from 100.03 Mt-CO2 to 305.52 million tons of CO2 equivalent (MtCO2eq) in 2011. The Energy sector at 73% is the largest emissions source (see figure 1 below). Electricity and heat generation are the major source of GHG emissions in the energy sector at 86.87 MtCO2eq or 39% (see fig 2 below). Buildings (residential, commercial, small general services) account for about 64% of electricity consumption, and thus have been identified as a key source to address energy use as well as GHG emissions 

In order to reduce energy demand by 25% in 2030, as per Thailand’s commitment to Asia Pacific Economic Cooperation (APEC) (with 2005 as the base year), Thailand will require implementation of energy conservation measures, such as demand side management. This includes application of energy efficiency technology in terms of equipment/appliances, machinery and improvements in manufacturing process and buildings as well as the change in energy consumption behavior.  The 20-year Energy Efficiency Plan (EEP) 2014 set a target to reduce Energy Intensity by 30% in 2036, while accomplishing the APEC agreement in 2007 to reduce emission intensity by 25% in 2030 compared with that in 2005. At the same time, this plan will reduce GHG emission as pledged and submitted to the UNFCCC in COP20 to reduce 7% emissions from transportation and energy sector by 2020 (Pichalai, MoE, 2015).  The Energy Efficiency Plan (EEP) 2015-2036 outlines following measures to enforce energy conservation standards through the following:

·         Designated buildings - Close supervision on factories and buildings implementation to ensure compliance practice while imposing fees and penalties on those who perform below the set standards.

·         Regulate Building Energy Code (BEC) for new buildings - Newly-built/modified buildings over 2,000 square meters shall be designated according to the ministerial regulations, both standards and criteria.

·         Energy Labelling - Set the High Energy Performance Standard (HEPS) to promote the widespread use of the equipment while setting the Minimum Energy Performance Standard (MEPS) to prevent the importing of low efficiency performance equipment.

·         Design Energy Efficiency Resource Standards (EERS) - Regulate utilities or large energy producers/ distributors to help end-users save energy in their usual or expected electricity use.

·         Provide financial incentives and support for energy performance achievement – Provide supporting financial tools to facilitate retro fitting processes through subsidy, soft loans, ENCON funding, ESCO funding and tax incentives.

·         Promote greater use of LED - LEDs are mercury-free and can reduce electricity costs of up to 30-85% when compared to conventional bulbs.

 

Energy efficiency in buildings is thus one of the key actions identified by Thailand in reducing energy consumption and GHG emissions from building sector. The NAMA of Thailand submitted to UNFCCC lists energy efficiency in buildings as a key element.

 

The focus on addressing energy consumption in buildings in Thailand is currently on multistory residential and commercial buildings. Building Energy Code too was established in 1995, which was only applicable to commercial buildings. This was revised in 2007 and made applicable to all buildings with floor area more than 2000 m2, thus bringing multistory residential buildings into the ambit of regulation. As per the laws a new building has to meet the requirements of code to get approval for construction. The energy code covers specifications for envelope (overall thermal transfer value (OTTV) for walls and roof), lighting (rated power per square meter) and air conditioning (and Co-efficient of Performance values covering both individual units and centralized systems).   The Table for these values is given in Annex 1. These values are designed based on local climatic conditions and adopted from building energy codes for Singapore and other neighboring countries. 


The project will thus build upon the Energy Efficiency Plan of Thailand by supporting the energy conservation promotion and support for the low rise residential sector, as mentioned in Table 1 above, for addressing GHG emissions from energy use in to cover the gap that currently exists in the efforts of the Thailand Government. The project will cover both developing labelling scheme for homes as well as demonstration of design and construction of low energy use homes to accelerate the transformation of the low rise residential sector toward energy efficient homes.

 


Full Size Project(FSP)

National


Asia and the Pacific


Thailand


GEF Trust Fund

Stage Grant to UNEP Grant to other IA Co-Financing UNEP Fee Other IA Fee
Project
$ 3,578,000.00 $ 0.00 $ 30,476,000.00 $ 350,360.00 $ 0.00


No





External



Executing Agency Category

Partner Category

Name Category Period

Low Risk





0





Fiscal Year Project activities and objectives met

Description

Rating

Explanation

Mitigation

Financial Risk

Medium

As there is lack of experience with energy efficient homes, the actual costs could be higher than estimated, resulting in project cost increasing.

There is potential for interest rate to increase over time, though low.

 

The project will work with construction companies for ensuring the cost increases are kept within estimate increase by ensuring technologies and design methods are cost effective. Further project will work the Banks and Thai Government to ensure extra resources for supporting project. Also, Project would adjust the target homes to ensure that increased prices are absorbed by financial mechanism.

Market risk

Low risk

The buyers may not be fully aware of the benefits of the energy efficiency green homes and thus not keen to buy homes.

 

 

The NHA housing is targeted towards low income population and includes a subsidy from the government. Thus the market is captive and risk is low. Further, the project will work on Awareness raising strategies that highlights the benefits as well as the financing mechanism to ensure sale of NHA homes.

Technical Risk

Low to Medium

Construction companies engaged by NHA may not have the capacities to construct energy efficient green homes.  The necessary technologies may not be easily applicable in Thailand context.

This risk will be mitigated through capacity building programmes for construction companies. Also, proper  screening of technologies would be undertaken to ensure that technologies are available to implement energy efficient measures and functional in Thailand context.

Political Risk

Low to medium

There are elections expected early 2018 and this may have an impact on the project if policy continuity is affected.

The change in management of key agencies could impact the adoption of policies and decision on energy efficient green home.

 

The risk to change on emphasis on energy efficiency with change is government is low as the NDC lists building energy efficiency as key measure for meeting the NDC.

Project will focus on internal capacity building in key agencies as well as engage the middle level management to ensure continuity of policy approach within the agencies.

Environmental and

Social Risks

Low

There is no forseen environmental or social risk of implementing the project.

The proposed project will be implemented in accordance with UN Environment’s

environmental and social screening policies to ensure that any environmental risks are minimized. Furthermore, specific analysis will be undertaken during the PPG to ensure that the project design is inclusive and that women and other vulnerable groups will be explicitly considered during project implementation.


$ 0.00


No