SMEs need financial help for conservation

INDUSTRY / ENERGY SAVING

SMEs need financial help for conservation

ARANEE JAIIMSIN

The new government should step up financial support to encourage small and medium-sized enterprises to invest more in energy conservation, says Chen Namchaisiri, vice-chairman of the executive committee for the Institute of Industrial Energy.

A promotional programme from the Department of Alternative Energy Development and Efficiency (DEDE) had failed to attract much attention from the industrial sector, particularly small and medium-sized businesses, he said.

The department has been offering financial support of 100,000 baht each to large factories that apply to take part in energy conservation programmes. The fund subsidises 30% of their energy-saving investment costs.

Many SMEs needed to be more energy efficient to improve their competitiveness, said Mr Chen.

''I don't think support from the Energy Conservation Fund should be limited to only the large companies as it has done all these years,'' he said. ''That is why the result is disappointing.''

An officer from the DEDE's customer relations division acknowledged that the incentives did not work, so the department decided to offer soft loans at an interest rate of 4% to any firm that has cut energy consumption since 2005. The loan programme has a total budget of two billion baht.

Thailand had been on the right track in promoting energy conservation, Mr Chen said, but the success depended on the continuity of policy implementation in line with energy-savings targets.

John Griffiths, country director for Schneider (Thailand), said the country could become a regional leader in energy conservation as it has made tremendous strides in improving energy efficiency.

The new government, he said, should provide more tax incentives to firms that want to invest in energy conservation in order to promote technological development in the long term.

Schneider and six other energy service companies (Esco) this week signed a memorandum of understanding with the Institute of Industrial Energy to collaborate on conservation through the Esco system.

The other participants are Thai Energy Conservation Co, Goldmark Technical Supply Co, P&S Design Co Ltd, Active Science Co, Guarantee Engineering Co, and Compressed Air Management Co.

Mr Chen said the Esco system could help the industrial sector reduce energy use by more than 5% from current levels.