Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Action (RAC NAMA)

CONTEXT

The demand for energy in Thailand’s cooling sector is on the rise. Today, refrigeration and air-conditioning (RAC) technologies already use an estimated 50% of the electricity consumed in Thailand. Without intervention, it is projected that this demand will triple by 2030. With its high-energy consumption and the use of climate-damaging chemicals – refrigerants with high global warming potential (GWP) – the cooling sector has a major impact on Thailand’s greenhouse gas (GHG) emissions. Reducing emissions from the cooling sector will be key to reaching Thailand’s ambitious climate targets.

OBJECTIVE

To support Thailand in initiating a transformation of the cooling sector towards climate-friendly and energy efficient cooling technologies, contributing to the country’s energy and climate targets, strengthening the industry’s competitiveness and bringing additional climate finance to the sector

APPROACHES

Technology Transfer

• The project supports producers in bringing to the market new climate-friendly and energy efficient cooling products that comply with regulations in Thailand. Producers will receive technical support in the product design and financial support for investment in the setting up of production lines.
• The project supports training programmes for service staff and technicians to prepare for different safety challenges.
• The project offers support to responsible ministries and agencies to define safety standards and building code in line with international best practices.

Technology Adoption

• The project demonstrates best practices of energy performance standards, labels and other incentive schemes.
• The project further works with commercial end-users such as supermarket chains and hotels, to develop projects that reduce energy consumption in the RAC sector.

The project increases the demand for green cooling products by setting up financial incentive schemes which increase the attractiveness for consumers in Thailand.

RESULTS SO FAR

Policy Interventions

The project has been incorporated into Thailand’s NDC (Nationally Determined Contributions) Roadmap as a result of increased awareness of the sector’s mitigation potential and strengthened political commitment. The project is currently supporting the Thai government in establishing a Measurement, Reporting and Verification system (MRV) for the RAC sector to serve the country’s reporting obligations to the UNFCCC and encourage more ambitious mitigation targets in the sector.

Technology Transfer and Technical Training

1. Manufacturers: All nine manufacturers have received technical support in production-line conversion and product design. The support includes factory audits, prototype inspection and technical consultation by international experts.
2. Service technicians and vocational trainers: Eight training centres have been established to provide training on the Safe Use and Handling of Flammable Refrigerants. A total of 13 training courses have been carried out with more than 200 trainers trained.
3. Testing facility: The project has supported the Electrical and Electronics Institute (EEI), a testing facility under the supervision of the Ministry of Industry, on capacity building to enhance its testing operation for refrigeration and air conditioning with natural refrigerants focusing on safety aspects and relevant international standards (i.e. IEC and EN).

Financial Assistance

The RAC NAMA Fund of 8.3 million Euro (approx. 300 million Baht) was established in December 2017 as the pioneer climate finance fund in Thailand. The Electricity Generating Authority of Thailand (EGAT) assumed responsibility for managing the fund to promote the production and use of energy-efficient and climate-friendly cooling technologies on behalf of the Thai Government. Over the past two years, a number of financial instruments have been holistically defined for the whole demand and supply chain, as well as the service sector. These measures include:

1. 10-million-baht in consumer finance to promote the purchase of green cooling products on the market
2. A 52-million-baht credit line with zero interest for a duration of one year for the production line conversion to natural refrigerants for Thai manufacturers
3. Sub-grant for production line conversion to natural refrigerants for Thai manufacturers, resulting in 90 million Baht private contribution
4. A 15-million-baht sub-grant for training equipment for the setting up of 8 training centres across Thailand
5. A 155-million-baht credit line with zero interest for market introduction of green cooling products

FINANCED BY

• NAMA Facility
• The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV)
• Department of Business, Energy & Industrial Strategy

COUNTRY

Thailand

PROJECT PARTNERS

The Office of Natural Resources and Environmental Policy and Planning (ONEP), the Department of Alternative Energy Department and Efficiency (DEDE) and the Electricity Generating Authoring of Thailand (EGAT)

PROJECT DURATION

04/2016 – 07/2021