Section 5: PROBLEMS, BARRIERS AND IMPLEMENTATION EVALUATION

 


5.1 COMPULSORY PROGRAM


5.1.1 Government Building Project

Project Evaluation NEPO engaged RAMBOLL, a consultant company from Denmark, to evaluate the project implementation. The major findings are as follows:

Having considered the above issues, the Sub-Committee on the Energy Conservation Program Implementation Evaluation provided the following comments for the DEDP to improve the implementation of the Government Building Project in Phase 2:

  1. The objective of the Government Building Project is to conserve energy in government buildings. If, according to the evaluation, only 37% of the old, low energy-efficient air-conditioners were reinstalled elsewhere in the same buildings (with an assumption that the new ones are 37% more energy-efficient than the old ones), the investment in replacing all existing old air-conditioners would not bear any energy conservation result. Therefore, it is very crucial that an effective measure be established to prohibit reinstallation of removed low energy-efficient air-conditioners.
  2. In demolishing the removed old air-conditioners, there must be a preventive measure not to create impact on the environment. A university or a Rajamangala Technical Institute may be assigned to carry out the demolition. The number of demolished air-conditioners must be checked against the number of air-conditioners removed to ensure that all replaced ones are demolished.
  3. To measure the project achievement, the amount of energy that can be reduced must be the primary indicator, not the number of buildings participating in the project or the number of the appliances replaced, or the investment budget.
  4. The building owners should be encouraged to take a greater role in the implementation, by:
    • supporting those owners who are ready or willing to carry out energy consumption improvement to do it by themselves, with financial assistance from the ENCON Fund; and
    • providing training on proper utilization of energy in buildings to create energy conservation consciousness since the users of the buildings play an important role in the achievement of efficient energy consumption.
  5. The number of Implementing Agencies (IA) must be increased. Access must be opened for potential organizations to undertake the implementation by giving them an opportunity to offer competitive prices and service quality for the DEDP’s consideration. In the contract between the DEDP and an IA, it must be clearly stipulated that “no stakeholders shall be hired to jointly undertake the implementation” and the DEDP must check whether the IA “hires any stakeholder to jointly undertake the implementation.” The approach on the increase of environmental consultants of the Ministry of Science, Technology and Environment should be used as a guideline on increasing the number of IA.
  6. Request the Bureau of the Budget to seriously support energy conservation measures by providing government agencies with a budget for the air-conditioning system maintenance and encouraging the replacement by high-efficiency air-conditioners.
  7. Speed up the enforcement of compulsory energy-efficiency standards for electrical appliances and support the energy-efficiency labeling, including the public relations work so as to create the market for high-efficiency electrical appliances. In the future, it will be easy for the owners of the buildings where energy conservation measures have been implemented to find high-efficiency appliances to replace the broken ones.
  8. The outcome of a pilot project on the Energy Services Company (ESCO) undertaken by the Electricity Generating Authority of Thailand should be taken into consideration in order to determine the feasibility to have ESCO participate in the implementation of the Government Building Project.

5.1.2 Project on Existing Designated Factories and Buildings

The evaluation of the past implementation indicated that there were problems and barriers that delayed and derailed the energy conservation implementation in designated factories and buildings. Some of the problems originated from the facilities and consultant companies; others were caused by the DEDP itself. The gist of the matter can be summarized into two parts, i.e.

Factors not related to the utilization of allocations from the ENCON Fund

Factors related to the utilization of allocations from the ENCON Fund

At present, an engagement of a consultant with high expertise is being carried out to evaluate the project implementation. It is expected that the outcome of the evaluation will be completed around September 2000.

5.1.3 Project on Factories and Buildings under Designing or Construction

According to a condition in applying for financial assistance from the ENCON Fund, the initial plan must already comply with the energy consumption standards and criteria specified by relevant Ministerial Regulations. Such a condition has created a barrier for facilities that are now being constructed to implement energy conservation measures in order to improve their overall energy consumption. Therefore, the criteria and conditions on granting financial support from the ENCON Fund should be reviewed so that facilities under designing or construction can apply for financial assistance to improve their energy consumption by improving related systems or equipment other than those specified by the Ministerial Regulations. This will result in higher energy efficiency of such facilities than formerly required by the Ministerial Regulations when the construction work is completed.

To improve a facility construction plan is considered very important, especially at the initial phase of the ENCON Program when training on energy conservation aspects had not been provided for architects and engineers, nor had scholarships been granted for interested persons to pursue studies in energy-related fields which are essential for achieving the objectives of the ENCON Program. Also, in the past no public awareness campaigns were launched on the importance of and benefits to be obtained from energy conservation. To provide support to improve energy consumption in a facility during its construction stage is, consequently, a proper strategy. To make an improvement after the construction is finished will require much more investment.

One main problem in providing financial assistance to improve the construction plan of a facility is that it is hard to ensure the effectiveness of the project expenditure. This is because certain applicants may submit a construction plan which they should have been able to improve by themselves but did not do so, hoping to get money from the ENCON Fund first.

5.1.4 Project on Energy Conservation in Non-Designated Factories and Buildings

 Implementation of this project has not commenced, as the concerned agency has given priority to designated facilities so that the latter would be able to comply with the laws first. Several meetings were organized between NEPO and academics and experts in various related fields in order to solve problems and set strategies for effective achievement of the ENCON Program. At the meetings, many academics and experts were of the opinion that since the target groups of this particular project are factories and buildings not designated by laws and regulations, this project should be shifted to be under the Voluntary Program.


5.2 VOLUNTARY PROGRAM


During the first year of the Program, the ENCON Fund was not well known. Many other organizations did not know the background and channels for application for financial support from the ENCON Fund. None of the funded projects at that time was completed and hence no public relations were made on such projects. The expenditure of the ENCON Fund allocations for the Voluntary Program implementation was then very low. NEPO, therefore, initiated an aggressive approach by directly contacting potential organizations with sufficient personnel to inform them of guidelines and criteria on requests for financial support from the ENCON Fund. After that, when the ENCON Fund became well known, more project proposals to carry out energy conservation-related activities were received. In the following years, the number of proposals kept increasing.

In mid-1999, an evaluation was made by NEPO to determine problems and barriers to the program implementation. Several seminars were organized with participation of experts and academics in related fields in order to find solutions to the problems. The findings can be summarized as follows:

  1. The objective(s) and direction of support for each technology were still unclear.
  2. The limited scope of work of the Renewable Energy and Rural Industry Project, i.e. only dealing with small-sized activities consuming less than 300 kW of electricity and located outside the municipality areas, created a problem. It obstructed those facilities with energy consumption greater than 300 kW but not considered as designated facilities from being granted assistance from the ENCON Fund to improve their energy consumption efficiency.
  3. There was an inadequate number of skilled and well trained in renewable energy technologies field personnel. There was also a lack of training to create more qualified personnel to make the project sustainable without further assistance from the ENCON Fund.
  4. Not much public relations or information dissemination on renewable energy technologies funded under the Voluntary Program was made.
  5. Those who submitted project proposals for financial assistance did not understand the procedures of project proposal preparation. There were communication failures between project owners and NEPO.
  6. Criteria on providing financial support for large-scaled projects or projects that are of national importance should be publicly announced so that potential organizations interested in undertaking such projects will be aware of the availability of the ENCON Fund assistance and can submit a proposal for the funding.
  7. Energy conservation in other fields, such as the recycling of waste materials and energy conservation in the transportation sector, should also be promoted.
  8. The Project on Energy Conservation in Non-Designated Factories and Buildings was under the Compulsory Program. However, the target groups of this project are factories and buildings that are not considered “designated” by laws and regulations. It is, therefore, more appropriate to shift the project to be under the Voluntary Program.
  9. The project proposal screening and evaluation, including the standards in calculating the EIRR and FIRR of a project, were imprecise.

Besides, NEPO has engaged consultant teams to evaluate the outcome of various funded projects, namely:

1) Biogas for Power Generation in Livestock Farms (Medium and Large Farms: Phase 1) administered by the Biogas Advisory Unit (BAU) of Chiang Mai University. The King Mongkut’s University of Technology, Thonburi (KMUTT) was engaged to undertake the project evaluation. KMUTT selected two farms for detailed evaluation. The outcome showed that the biogas system could produce a large amount of biogas. However, the amount of wastewater to be treated by the system was lower than designed as these are crammed-swine farms; the in/out figures of livestock were almost the same; therefore, the amount of wastewater was variable. The volume of biogas produced was 700-1,400 (average 1,000) cubic meters/day, which was close to the estimate. 73% of the gas produced came from the channel digester. The biogas produced was used solely in power generation for on-site utilization and 30-65% of the gas was released unused. In the future, there is a plan to connect the electricity generated by biogas to the national grid. Organic fertilizer, the by-product from the system, was produced at an average amount of 37 tons/month.

The Sub-Committee on the Energy Conservation Program Implementation Evaluation (the Evaluation Sub-Committee) has expressed a concern over the amount of unused gas and NEPO has been assigned to find out a way to make optimum use of the biogas produced from the system. Some possible solutions may be, for example, providing pricing incentives in purchasing power generated from renewable energy, or introducing a proper management to make use of the biogas.

2) Biogas for Power Generation in Livestock Farms (Small Farms: Phase 1) administered by the Department of Agricultural Extension, the Ministry of Agriculture. The King Mongkut’s University of Technology, Thonburi (KMUTT) was engaged to undertake the project evaluation. From the total 263 small farms participating in the project, with the biogas system sizes ranging from 12 m3, 16 m3, 30 m3, 50 m3, to 100 m3, KMUTT selected two farms from each size, making a total of 10 farms for detailed evaluation. In making the selection, the density of such a system in each province and the types of livestock manure for the system input were taken into consideration. The evaluation showed that the biogas produced was in excess of demand for the household use, replacing the use of LPG in cooking for a period of 45-120 minutes per day. The portion of gas utilized on-site was far smaller than the amount produced from the system. The selection of the system size depended on the number of livestock on that farm. However, a survey showed that many farmers used only a portion of the whole livestock manure to put into the system to generate biogas at the amount that satisfies their household use. Therefore, the amount of input manure did not correspond with the system capacity. Some problems of this project are foreseen. One is about the system maintenance; clogging may occur due to too much manure input and negligence on the farmers’ part to take care of the system. Another one is about the wastewater; although the biogas system can very well digest organic substances, the treated wastewater from the expansion chamber of the system still has too high Biological Oxygen Demand (BOD) value to be directly disposed into public waterways.

The Evaluation Sub-Committee has commented on the amount of biogas produced from the system, which is in excess of the household use. NEPO is to consider a way to promote optimum use of the excessive gas by using an appropriate management.

3) Energy Conservation in Tobacco Curing administered by the Faculty of Engineering, Chiang Mai University. The Energy Research Institute (ERI) of Chulalongkorn University was hired to undertake the project evaluation. The outcome indicated that the construction of the curing stations conformed to the construction plan and that the stations worked satisfactorily. The energy consumption audit showed that the “Centrally-Heated Bulk Curing System” used in the project could reduce lignite consumption by 77.39% and 75.39% when compared with the traditional method (in the project proposal, it was estimated at only 67%). In this connection, if it is estimated that all 5 curing stations participating in this project can produce 90,000 kilograms of cured tobacco leaves/year, a total of 2,999 tons of lignite will be saved per year. Or, when the system life is completed (15 years), it can help reduce lignite consumption by 44,989 tons. The ERI has recommended strategies for the project expansion in the next phase. The recommendations include:

The Evaluation Sub-Committee has noted that the owners of tobacco curing stations have already received a lot of benefits. As a result, consideration should be made to reduce the financial support from the ENCON Fund. In addition, the project owners should pay more attention to the sulphur dioxide emission from tobacco curing using lignite as fuel and should introduce solutions or preventive measures for this matter.


5.3 COMPLEMENTARY PROGRAM


5.3.1 Human Resources Development Project

The project implementation has progressed in line with the Human Resources Development Master Plan, except for the training for energy managers or persons responsible for energy. Problems relating to the curriculum development had been barriers to such training; however, the problems have been solved, and the DEDP, which is the responsible agency, has organized the training for trainers to be able to train approximately 5,000 energy managers. Training has already been provided for some energy managers by using the fiscal budget of the DEDP itself.

Problems Encountered during the Past Implementation. One problem was the delay of training for energy-related personnel and subsequent failure to educate the target number of personnel. This resulted from the delay in developing curriculum and handbooks to be used in training energy managers of designated factories and buildings. However, meetings have been organized among experts in training and curriculum development to jointly establish a suitable curriculum and training on energy conservation for the next phase of implementation to cover wider target groups. Short-term training and technical visits abroad did not reach the target planned either due to the economic crisis and hence the cabinet resolution to suspend traveling abroad if possible. The number of oversee scholarships granted in the initial stage was lower than the target since some applicants could not pass the selection criteria set by the Office of the Civil Service Commission. To solve this problem, NEPO will establish a working group to be responsible for the selection of qualified applicants for scholarships in Phase 2 of the ENCON Program so that those who receive the grants would be able to serve the requirements of concerned agencies in energy conservation-related fields upon their graduation. Finally, the budget for other expenditures was over-estimated, so this has to be adjusted to be in line with the current situation.

During the past implementation, there were many potential personnel working with non-profit organizations, who should have been supported to develop their capability. However, these persons could not apply for the ENCON Fund assistance since they were not entitled to do so under the former funding criteria. Consequently, many academics are of the opinion that, in Phase 2 of the ENCON Program, non-profit organization personnel with knowledge and capability in energy and environmental matters should be able to apply for financial assistance from the ENCON Fund under the Human Resources Development Project.

Implementation Evaluation of “Roong-arun” Project, the development of curriculum on energy conservation and teaching materials for primary and secondary schools, jointly monitored by NEPO and the Ministry of Education, commencing on 25 July 1997, was carried out by Market Support Co. engaged by NEPO. The project has been implemented by decentralizing the administrative authority and organizing training for schoolteachers and community leaders and the project team at provincial coordination offices in 30 provinces, covering a total of experimental 600 schools nationwide. The evaluation has pointed out that in order to increase the effectiveness of the project, the following has to be improved:

5.3.2 Public Awareness Project

Public Awareness Campaigns under NEPO’s Responsibility

Project Follow-ups and Evaluation. NEPO has engaged a consultant company, Market Wise Co., Ltd., to undertake the tasks. According to the project evaluation by surveying the general public’s awareness nationwide, it has been found that 99% of the people surveyed are of the opinion that energy conservation campaigns are important as they will help rehabilitate the current economic conditions of the country. 73% know about the “Divide by Two” campaign and can give details of energy conservation methods disseminated by the campaign as well as understand the energy conservation concept, i.e. to efficiently utilize energy to its optimum worth. In addition, 91% of the people surveyed have responded that they themselves recognize the importance of energy conservation as it very much helps reduce expenditures; 77% have changed their energy consumption behavior due to the “÷ 2” campaign. It is very interesting to note that people could very well remember the topic highlighted in each year and that, when the campaign on each specific theme was completed or had not been continually publicized, it would be less talked about. Therefore, it is very crucial that public awareness campaigns on important energy conservation issues be carried out continually to keep reminding the general public of the concept and to eventually lead to the change of their energy consumption behavior.

With regard to the responses gained through various media, it has been found that TV is the most efficient media to reach the target groups and to create their awareness. Radio is a very cost-effective channel to provide people with up-to-date information and the target groups tend to have more access to this type of media. As for the printed matters, this channel should be used as a backup to make the campaign complete; articles published in newspapers are considered appropriate as they can provide accurate and reliable information in line with the planned strategies to the general public. Also, using this media channel can help create good relationship with the media staff. Anyhow, the number of target groups that each specific type of media can reach has to be taken into consideration in media planning. Using the right media will yield an effective outcome for particular activities.

The evaluation of each activity has revealed that the activities that have continued from the previous years are of very high impact. This is because comments/recommendations from the evaluation made in a previous year was used to improve the quality of the work in the following year. Examples of such activities are the Energy Conservation Youth Camp, the “Divide by Two” Club, and public relations via articles published in newspapers. However, in implementing public awareness campaigns in the last fiscal year of Phase 1 (1999) aiming at creating energy conservation awareness at the national level, e.g. the contest of oil and electricity saving among all provinces in Thailand or that of energy conservation promotion songs, there was one weak point. That is, the campaigns did not reach some potential groups; therefore, those people did not know about the contests and other activities, and hence the general public’s participation in such activities did not reach the level expected. If the campaigns involve interesting innovative ideas, such as car pool and separation of glass from other waste in schools for recycling, and if practical methods and benefits to be gained by oneself and by the society as a whole are clearly explained, there is a potential that the activities will gain good feedback and the outcome can be measured. In any case, besides the widespread campaigns, another major factor for the success is the capability and strong determination of the responsible agencies and persons concerned.

One major problem in implementing the public awareness project under NEPO’s responsibility was about the project evaluation as the implementation could not be valued in terms of rate of return nor the amount of energy saved. Mainly, the project aims at creating energy conservation consciousness among the general public by providing advice on methods and techniques for them to practise in their daily activities. The communication is with the general public as a whole, not any specific target groups. To solve this problem, however, efforts have been made to survey and to try to measure the amount of energy that can be saved in as many projects as possible to report the outcome to the ENCON Fund Committee as well as the general public when all activities are completed. Furthermore, two additional solution methods have been initiated, namely: in planning each activity, NEPO should try to set the objective(s) that can be quantitatively measured, and an evaluation index should be established for each type of activities so that comparison of the achievement gained in each year can be made.

Another problem concerned the campaign topics. Sometimes there were so many topics that people could not remember all the messages provided. Therefore, a specific theme for each year should be established and all campaign activities should revolve around that theme to make it easier for people to remember. The theme for each year must be new, interesting and practicable so that people can apply what they have been advised in their daily life. NEPO has already improved the public awareness campaigns along this line. Emphasis is placed on the practicability of the ideas and presentation will be made in various forms. For example, actual examples of persons who have successfully implemented energy conservation measures and the benefits they have gained will be presented via various media to persuade others to follow their practices.

Another problem identified was the people’s recognition of energy conservation and lack of knowledge on the progress on renewable energy development in Thailand, including energy conservation technologies, especially those in which people can take a part. Consequently, NEPO should expand the scope of the public awareness work to publicize the progress and success of various renewable energy projects to the general public.

Public Awareness Campaigns under the DEDP’s Responsibility

Project Follow-ups and Evaluation. The DEDP has engaged Market Wise Co., Ltd. to undertake the project evaluation. From a survey of 400 persons, 96% recognize the importance of energy conservation and see the benefits to be gained from energy saving. All persons interviewed stated that they had implemented energy conservation practices. As for the factories or buildings under their responsibility, 97% had implemented energy conservation measures by using general practices, not technical measures; for so doing, the main reason expressed by 75% of this surveyed group was to reduce expenses and hence reduce production costs. With regard to the energy conservation information received, 91% had already received the information; of this, 40% received the information directly from the DEDP. Besides, 40% of persons surveyed said that the information that was most interesting and useful was the information on energy conservation techniques and methods for buildings/factories. The questions used in the survey also showed that people interviewed who work in designated factories and buildings understand and know about energy conservation better than the others who work in non-designated facilities.

According to the evaluation of the use of media, 61% of the persons surveyed said that the public relations on energy conservation in relation to buildings/factories would be best accomplished by using media that can give technical details and communicate directly with the target groups. 21% preferred the TV media. The PR program was especially effective when presented by a well-known person with recognized expertise in energy conservation. In this connection, if the broadcast time was not appropriate and if there was low frequency of broadcasting, the PR would not yield expected outcome and would not be cost-effective. This was the same in the use of press media, which had to be of adequate frequency and be attractive for the readers to read the messages. Besides, there should be good planning of the use of media to reach the target groups in order to increase the efficiency of the communication. Higher efficiency of public awareness campaigns was achieved via radio as technical details could be provided. When a popular broadcasting station was used, it created wider impact on target groups.

Public awareness campaigns through activities have proven to be very cost-effective as the messages were directly and efficiently communicated with the target groups. For example, the promulgation of the Royal Decrees and Ministerial Regulations issued under the Energy Conservation Promotion Act has been most effective via visits to designated factories’ owners to provide them with the information and advice. The Contest of Prominent Energy Conservation 1998 is another example that has effectively stimulated energy conservation consciousness in buildings/factories. Seminars for instructors of technical institutes nationwide help create energy conservation awareness as well as knowledge and skills applicable to energy conservation analysis and practices. However, some details may have to be improved, for example, the presentation and handouts should provide more teaching techniques to the instructors.

One major problem of the public awareness campaigns of the DEDP was that the target groups did not have a clear understanding of the roles and responsibility of the DEDP as well as the availability of the ENCON Fund assistance. In addition, the target groups still need detailed information about energy conservation methods, explanation of concrete benefits to be gained from energy conservation practice and quick answers to their doubts or queries. Solutions to these findings, for example, the establishment of information centers, training divisions and regional energy units of the DEDP, have been incorporated into the implementation plan for the next five years.

Another problem encountered was the efficiency of the use of media. Since the target groups of the DEDP are rather specific, the use of such media as TV or newspapers could not effectively reach such target groups. Therefore, the DEDP is planning to use specific media and to organize specific activities for these target groups. However, should there be a need to use TV and newspapers for certain issues, consideration will be made on the appropriate media channel, broadcasting schedule and frequency so as to effectively access target groups.

The Evaluation Sub-Committee has made the following comments:

Nevertheless, the public awareness campaigns during Phase 1 of the ENCON Program did not pay much attention to dissemination on the success of the projects under the Compulsory Program, which is under the DEDP’s responsibility. This may be one reason why owners of factories/buildings have not seriously implemented energy conservation measures. As a result, the Sub-Committee on the Compulsory Program has proposed that the budget for public awareness campaigns under the DEDP’s responsibility be shifted to be under the Compulsory Program so that future public awareness campaigns would be more in line with the progress achieved under the Program.

5.3.3 Management and Monitoring Project

Some project implementations by NEPO and the DEDP were delayed due to the fact that the government regulations had to be strictly adhered to in carrying out the work under the ENCON Program. There were complicated procedures and a lot of paper work to process. If anything in the actual implementation was not in compliance with the regulations, the issue had to be raised to the Ministry of Finance, via the ENCON Fund Committee, for deliberation and resolution before the work could proceed.