Search

Table 4.11 Energy production and consumption, 2007-2013
(...)
2007 2008 2009 2010 2011 2012 2013
Hydroelectricity ('000 tonnes oil equivalent)
Production 1,764 1,540 1,543 1,185 1,758 1,868 1,199
Consumption 2,178 1,780 1,755 1,805 2,679 2,767 2,273

Thailand started providing support for renewable energy projects in 2006. These incentives are still offered, and include: import duty exemptions for energy efficiency/renewable energy equipment; 8-year corporate income tax exemptions for renewable energy manufacturers and energy services companies; and, corporate income tax reductions for companies that improve their energy efficiency or develop renewable energy projects. The Board of Investment has included "Renewable Energy and Environmental Services" as a target industry in its Investment Promotion Policy (2015-2021). Incentives offered under this strategy are corporate income tax exemptions, and import duty exemptions for machinery. Various other incentive programmes are in operation (Table 4.12)

Table 4.12 Renewable energy incentives, 2015
Programme Description
(...)
- Solar water heater subsidy programme: Commenced in 2008 and runs until 2021. 25% subsidy of investment costs through 2017 and 15% thereafter. Programme is available only for commercial hybrid systems, combining a minimum of 40m2 collector area per project with the use of waste heat from air conditioners / boilers etc. The subsidy is provided by the Department of Alternative Energy Development and Efficiency, through the Energy Conservation Promotion Fund.
- Energy Conservation Promotion Fund (ENCON Fund): Commenced in 1992 under the ENCON Act (B.E. 2535). Fund is used as a revolving fund, aid or subsidy for projects, research, demonstrations, public relations, investment and human resources development related to energy efficiency, renewable energy and energy conservation. The fund is managed by the ENCON Fund Committee. To be eligible for subsidies or grant funding foreign and domestic companies' business must be directly related to energy conservation or environmental protection and the correction of environmental problems arising from energy conservation, and may not have political or profit-orientated objectives. Money in the ENCON fund is collected from fuel users (B 0.25/litre). The National Energy Policy Council (NEPC) approved B 7 billion/year to be used as ENCON fund's expense framework for the budget years 2012-16. The balance of the ENCON fund (end May 2015) was B 40.8 billion, of which just over B 20 billion has been allocated, leaving the remaining half available for use.

Table 4.12 Renewable energy incentives, 2015
Programme Description
- Fit for RE programme: Very Small (VSPP) suppliers of renewable energy provided with per KWh payments ("feed-in tariffs") above those paid to standard wholesale producers by the state-owned utilities companies (the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), and the Electric Generating Authority of Thailand (EGAT)). Rates vary according to technology used: solar (B 5.66-6.85 per KWh); biomass (B 5.34 per KWh); wind (B 6.06 per KWh); and hydro (B 4.90 per KWh). The programme was introduced in 2006 and has been revised several times.
- Solar rooftop programme and solar ground mouth programme: In 2014, the Government issued a request for 200 MW of power through solar rooftop installations (with total capacity to be split 50/50 between commercial and residential structures). The feed-in tariff ranges from B 6.01 per KWh to B 6.85 per KWh. Under the solar ground-mouth programme, which is for government agencies and agricultural cooperatives only, each location can establish 5 MW of output and receive a feed-in tariff of B 5.66 per KWh. The contract length is for 25 years, with systems having to be installed by end 2015.
(...)

(...) Biodiesel blending is compulsory for all diesel sold in Thailand, providing a subsidy mandatory consumption; biodiesel is subject to an excise tax exemption.

(...) The strategic aim of the sector over the period up to 2021 is to consolidate Thailand's position as a global green automotive production base with strong domestic supply chains which create high value-added for the country.

Excise taxes are maintained on 15 product groups (including yachts and boats, in practice exempt) and 6 groups of services (including certain telephone services in practice zero rated or exempt), although over 90% (FY2010/11-2013/14) of revenue is derived from four product groups: petroleum products (16.6% in FY2013/14), liquors/alcohol/beer (36.9%), tobacco (15.9%), and motor vehicles (24.4%). [95] (...)

[95] More specifically these product groups comprise (...) ozone depleting halogenated hydrocarbon acrylic, (...) and, business with an environmental impact (i.e., golf courses). Excise Department/Ministry of Finance (2013).

(...) On 24 April 2013 a new excise tax structure was approved and expected to enter into force in 2016; the excise tax level is determined by engine size, carbon emission and types of fuel used. (...)

Concerns about automobiles relate to the various vehicle characteristics, such as engine size, weight, and wheelbase used in the excise tax calculation that is considered as complex and favouring domestically manufactured vehicles. Furthermore, the 2016 excise tax structure (see above) may not be technologically neutral, e.g. a hybrid car emitting CO2 higher than 100 g/km will be subject to a higher excise tax (20%-50% excise tax) than an eco-car emitting CO2 higher than 100 g/km (17% excise tax). The authorities indicated that for excise taxes on a hybrid car and an eco-car, in principle, three elements are taken into account: the CO2 emission, the size of engine, and the type of fuel, to determine the level of environmental friendliness, which the tax structure encourages.

(...) The excise tax structure provides incentives for the purchase of small-engine cars (i.e. those with a capacity of 2000cc or below), to help promote the production of fuel-efficient and environmentally-friendly cars. (...) A change in excise tax policy is expected in 2016, with a movement away from being based on engine size and towards one based on carbon emissions.