Energy Saving News
Thai Industries Set Up Energy Efficiency Loans
The Federation of Thai Industries (FTI) plans to expand financial assistance for factory operators to improve energy conservation by asking for soft loans from commercial banks.
Rungruang Saipawan, director of the FTI Institute of Industrial Energy, said the federaton and the Energy Industry's Alternative Energy Development and Efficiency Department (DEDE) are talking with major commercial banks about loans to the industrial sector for energy-saving systems.
Funding for the project previously came from the state's Energy Conservation Fund (ECF), but limited funds meant limited participants.
"Since energy use is rising, there is demand for improved energy efficiency. However, we need some capital to invest in these systems," said Mr Rungruang.
ECF provided loans of 500 million baht to the industrial sector last year, half of the 1-billion-baht budget that was allotted by the government. FTI expects the budget will be used up in the first half of this year.
FTI is negotiating with Siam Commercial Bank, Kasikornbank, Bangkok Bank and TMB Bank to be new lenders.
"We want the food, textile, electronics and property development industries to join the programme since all these are among the largest consumers, accounting for about 50% of total power demand in the industrial sector, though most are small- to medium-sized enterprises (SMEs)," said Mr Rungruang.
"About 50% of our 6,600 members in FTI are in these industries."
FTI signed a memorandum of understanding yesterday with DEDE and CIMB Thai bank. Under the agreement, CIMB will provide loans with fixed interest at 4% for seven years to borrowers.
Chen Namchaisiri, chairman of the FTI's Textile Industry Club, said export products may face tougher competition because of the Asean Free Trade Agreement.
"We can compete with lower-cost producers in this region by reducing energy costs instead of cutting selling prices," said Mr Chen.
Meanwhile, SMEs have the option of joining the government's Energy Service Companies (ESCO) project.
Manufacturing operators who use consulting and get systems installed under the scheme can pay the consulting fee from their reduced power bills.
The programme was designed to help smaller operators invest in energy-saving systems. DEDE reported companies invested 5 billion baht through the ESCO programme last year on such systems.
Original article by Yuthana Praiwan - Business Reporter for the Bangkok Post
Thursday 25th February 2010
