Published on July 16, 2005

The Energy Ministry is trying to find funding sources for Bt5 billion in low-interest loans to help industries pay for changing to energy-saving equipment.

Energy Minister Viset Choopiban said manufacturing and commercial sectors used more than 43 per cent of the country’s energy output. The ministry has set a target of cutting energy consumption in the manufacturing sector by 15-20 per cent. By the end of the year it aims to sign up 600 factories to participate in the programme and cut their energy usage by Bt400 million.

The government will help not only by providing tax incentives for businesses that buy energy-saving equipment, but also by seeking out loan sources for them. The ministry is trying to convince the Thai Banking Association to lend Bt3 billion through the Energy Conservation Fund and to persuade other financial institutions to lend another Bt1.5 billion to Bt2 billion directly to companies.

Siriporn Sailasutr, director general of the Renewable Energy and Energy Conservation Department, said that over the past two years its energy-conservation programme helped save Bt285 million a year. There are 250 buildings and factories participating in its project, and they have spent an aggregate of Bt60 million to cut costs.

More than 600 factories expressed interest in this year’s programme, which started last month and continues through March next year, she said. Financial institutions have also been keen to join the scheme. Many of the companies eager to participate in the project are bank clients. Helping them cut expenses will strengthen their balance sheets.

Separately, Pornchai Rujiprapa, deputy permanent secretary of the ministry, said after a meeting with officials from the Agriculture Ministry yesterday there was no conclusion yet on a plan to help farmers cope with higher diesel price. Another meeting has been scheduled for next week.

The government is expected to help the farmers by selling them diesel for Bt1-Bt2 per litre less than the retail price. Next week’s meeting will attempt to figure out how to fund the scheme. The cost should not be too high, considering that each of one million agricultural households consumes only 100-200 litres a year of petrol, Pornchai said.

But Chaiwat Choorit, acting senior executive vice-president of PTT, said reaching a conclusion had been difficult because there was actually no reliable database on the number of farmers or the amount of petrol they require.

Watcharapong Thongrung

The Nation

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