The Energy Ministry has set a target to reduce small and medium-sized enterprises' energy consumption by an aggregate Bt3 billion in the second half of the year.

During the "Sunrise for Thai Industrial Energy" event yesterday, caretaker Energy Minister Viset Choopiban said that as oil prices should stay high over the next few years, the industrial sector - the second-largest consumer of energy - must speed up efforts to reduce energy consumption, which in turn will reduce production costs.

"It's our mission to encourage them to reduce energy and rely more on alternative fuels," Viset told the audience. "Our target is to step up the energy conservation campaign in the second half to encourage more than 5,000 factories and offices across the country to use energy more efficiently. Many institutions are now ready to extend financial help to industrial plants that do not have the capital to upgrade their machinery,"

Moreover, the ministry will also come up with a revolving fund facility to promote energy conservation. To date, the Energy Conservation Fund has extended loans worth Bt2 billion through financial institutions. The proceeds would be re-loaned to industrial operators to purchase new machinery that consumes less energy.

"Given the high oil prices, the machinery and equipment replacement costs could be recouped within a year, unlike two or three years as in the past when oil prices were much lower," Viset said.

Viset said that the energy-

conservation campaign had so

far been overwhelmingly successful with cooperation from more than 20,000 factories and buildings nationwide which have upgraded their machinery and equipment and switched to alternative fuels.

Biomass fuels have replaced 3 per cent of electricity and bunker oil consumption, while natural

gas and gasohol have substituted 0.7 per cent of oil consumption. This is equivalent to the not

using 14.1 million barrels - worth Bt28.2 billion based on current oil prices.

From January 30, 2003 to March this year, 81 factories and buildings have submitted requests for financial help worth a total of Bt3.6 billion from the Energy Conservation Fund. Nearly Bt2 billion has been approved, and the investments should save Bt22.183 billion throughout the life of the new equipment.

The "Sunrise for Thai Industrial Energy" event was held to raise awareness among enterprises about saving energy and switching to alternative fuels.