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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Promotion of Energy Efficiency Improvement through Institutional Development of Building and Energy Management Systems (BEMS) with Certificated Carbon Credits in Thailand
FYFY 2011
Main Implementing EntityYamatake Corporation
FS PartnersDepartment of Alternative Energy Development and Energy Efficiency (DEDE), Thailand Greenhouse Gas Management Organization(TGO), Azbil Thailand, PwC Japan Sustainability, PwC Thailand
Location of Project ActivityThailand
Category of Project ActivityEnergy Efficiency
Summary of FS ReportPDF (760KB)
Description of Project/ ActivityThe promotion of Japanese energy-saving equipment and facilities in foreign countries requires visualization of energy consumption, understanding of the status of facility operation, and improved efficiency of operation. In Japan, introduction of BEMS has been promoted, resulting in accumulation of large energy saving and operation technologies and know-how due to visualization of energy consumption.
In this study, we examined the studies about transfer of energy saving technologies / know-how based on BEMS introduction targeted for commercial sector buildings in Thailand, the energy saving level by improving efficiency of operating systems by active use of the BEMS, and the MRV approach for quantification of CO2 emission reduction.
Reference Scenario and Project/ Activity BoundaryReference scenario is shown based on the estimated trends of floor area, estimated trends of Specific CO2 emission, and consideration of other factors, supposing that BEMS was not introduced in the commercial sector buildings in Thailand (office buildings, commercial facilities, hotels, and hospitals) and the energy-saving control and operation of facilities were not conducted.
The boundary is the entire building. By focusing on energy consumption in the entire building, large emission reduction and improvement of awareness are attained including not only automatic control by BEMS but also energy-saving quantity obtained by operation improvement.
Monitoring Methods and PlanThe monitoring approach uses all the consumptions of electric power, fuel and heat in the building measured on the basis of invoices issued from the electric utilities and fuel suppliers to obtain the actual measurement data. With regard to the monitoring system, consumption data are monitored at least every six months in the internal verification process. When considering the building scale, the buildings expected to achieve significant benefits from introduction of BEMS are considered to be those designated within the framework of the Energy Saving Promotion Law in Thailand in most cases. By synchronization between the interval for tabulation of energy consumption under the Law and the interval of monitoring data tabulation, it could be possible to mitigate the workload of building administrators associated with the monitoring.
GHG Emissions and ReductionsApprox. 0.966 million tCO2/y
MRV System for GHG ReductionsFor the method of MRV, the setting of baseline emission calculated depending on energy consumption in the entire building and understanding of emission associated with energy use after introduction of BEMS are important.

M (Measuring): Conduct the setting of baseline emission not to generate large amount of credit in the energy-inefficient building by BEMS introduction. This method allows the energy-intensive building to prevent large baseline emission by selecting each of the smaller value of the average value of emission during the last three years, and the values calculated based on the basic unit of emission per sector and amount of activities of the building. Consideration of flexibility of the baseline setting is required because Specific CO2 emission indicated considerable dispersion despite of the basic unit of the same sector.

R (Reporting): Reporting of all the values calculated in M is assumed. Further, it should be necessary to indicate the calculation result such as the average value of emission for consecutive three years in the past. With regard to the emission from the building after the BEMS introduction, the emission from the building should be reported on a yearly basis.

V (Verification): With regard to the verification of calculation, the appropriateness of calculation result of the plan reported by R should be verified, and also the evidence data should be verified by using invoices issued from the electric utilities and fuel suppliers. With regard to the achievement report to establish the credits, the appropriateness of calculation result for emission after BEMS introduction and the baseline emission shall be verified.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)In introducing / operating the BEMS in building facilities etc., there seems to be no risk of a drastic increase in emissions. Similarly, the risk of increasing hazardous chemical substance and emissions as well as the risk of causing environmental pollution or disaster are considered to be extremely low in the entire life cycle of the BEMS including its production, transport, installation, use, addition, expansion, modification and disposal. The CO2 emission during lifetime of the manufacturing by BEMS was examined on a hospital on which a field study was conducted, resulting in almost no impact indicating approx. 0.1% of the baseline emission.
Financial PlanningStandard BEMS project was assumed to review financial plan for BEMS project as a single unit and cash flow was simulated. With regard to the subsidies, the impact on the recovery period depending on the subsidy allocation level was analyzed by dividing the situations into two cases where the subsidy is derived from the amount of credits purchasing by Japanese government and the case where additional amount is added by Thai government based on its own effort.
Introduction of Japanese TechnologyThrough this study, it was confirmed that both the Thai Government and the private sector are highly interested in the energy saving. Nevertheless, the level of energy saving operation in this country is still low, and its energy saving activities with the component performance by optimal operation are not sufficient. The process to improve operation for energy saving is to be promoted under the initiative of Japanese companies based on the bilateral mechanism between the Thai Government and the Japanese Government. The active promotion of BEMS within such a framework contributes not only to the propagation of Japanese products, but also to the enhancement of energy saving awareness in Thailand and the development of human resources and ability through transporting Japanese know-how of energy saving activities for operation improvement to Thailand. On the other hand, it is necessary to give the economic incentives for introduction of BEMS, therefore the government or private financial institutions are requested to establish a mechanism to secure commitments to long-term energy saving activities as well as the reporting and monitoring of energy saving / CO2 reduction effects and to monitor the review process at applying for the program or the status of operation, as essential requirements for financial supports.
"Co-benefits"
(i.e. Improvement of Local Environmental Problems)
The reduction of power consumption through BEMS introduction contributes to reduction of NOx and SO2 emissions, reducing carbon and LNG consumption required for power generation. The effect by reduction of power consumption through BEMS introduction was estimated as emission reduction of 3,023 tons/year for NOx and 4,089 tons/year for SO2.
Contribution to Sustainable Development in Host CountryThe development subject of the power system in Thailand is power consumption and reduction of the peak power level. With regard to the power demand in Thailand, the power consumption in 2010 is 149,475 [GWh], indicating a 13.5% increase compared with 2006, and the peak power in 2010 is 25,089 [MW], showing a 12.6% increase compared with 2006. The introduction of BEMS is expected to allow the timing of reinforcing the power supply systems to be postponed and contribute to the stabilization of power supply in Thailand because of reduction of the peak power level. While the usage rate of coal and LNG is high in the fuels used to power generation, most of them are imported from overseas countries. The reduction of power consumption by introducing BEMS will also contribute to the improved energy security in Thailand.

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