Career Talk for Undergraduates:Energy efficiency industry and career potentials
1. ENERGY EFFICIENCY INDUSTRY & ITS
POTENTIAL CAREER OPPORTUNITIES:
INDUSTRY PLAYERS’ PERSPECTIVE
By
ZAINI ABDUL WAHAB
Energy Management System Consultant
UNIVERSITI MALAYSIA KUALA LUMPUR
INTERNATIONAL COLLEGE
2nd March 2016
Career Talk For Undergraduates 2016
2. OUTLINE
1. INTRODUCTION AND OVERVIEW OF ENERGY AND ENERGY EFFICIENCY
POTENTIALS
2. ENERGY SERVICE INDUSTRY & BUSINESS POTENTIALS IN ENERGY
EFFICIENCY
3. OVERVIEW OF ENGINEERING SOLUTIONS FOR ENERGY SAVING PROJECTS
IMPLEMENTATION
4. OVERVIEW OF POTENTIAL CAREERS IN ENERGY EFFICIENCY INDUSTRY
5. REGISTERED ELECTRICAL ENERGY MANAGERS IN MALAYSIA
6. CHALLENGES IN FUTURE CAREER MARKETS FOR GRADUATES
7. THE WAY FORWARD
3. ZAINI ABDUL WAHAB
CONSULTANT/ PRACTITIONER
REGULATOR/
POLICY MAKER IN GOVERNMENT SERVICES
CONSULTANT/
INDUSTRY PLAYER
1997-2004
2004-2012
2012-present
Certified Competent EnMS Expert,
United Nation Industrial Development
Organization
Registered Electrical Energy Manager,
Energy Commission
Certified Trainer, HRDF
Registered ISO50001 Technical Auditor
with Certification Bodies
Registered Consultant, Asian
Development Bank
Member of Board of Judges, Asean
Energy Awards 2011
Expert Facilitator for EE Policy
Workshop, IEA 2012
EE Policy Studies & strategic
implementation plan for national &
state levels
Expert trainer & speaker for energy
management training, seminars and
conferences at local & international
programs
EE Capacity Development Program
Designs
EnMS development &
implementation , energy audit &
business case proposal preparation
& presentation
REEM Coaching for qualified
professionals/EE practitioners
10. WHAT IS ENERGY EFFICIENCY(EE)?
Using the same/less
amount of energy
to produce the better Output
Using less energy
to accomplish
the same task/to enjoy
the same comfort level
Process
( Equipment/Operations)
INPUT OUTPUT
• Comfort
level
• Production
volume
• Quality
• Safety
• Electricity
• Fuel
13. ENERGY EXPOSURE BEYOND
ELECTRICITY PRICE
• EE programs help manage energy risks - reducing exposure to the high costs of sourcing, transport
& energy-intensive upstream products
14. GLOBAL EE POTENTIALS
EE potential used by sector in the New Policies Scenario
2/3 of the economic potential to improve EE remains untapped in the
period to 2035
Source: IEA
17. SEA: INVESTMENT POTENTIALS (US$MIL.)
The total market size = US$6.7 billion
Industrial = US$2.9 billion(44%)
Commercial = US$3.7 billion(56%)
source: www.reexasia.com
Biggest potentials in the industrial
sector
18. IMPACTS OF ENERGY EFFICIENCY POLICIES IN
JAPAN
1,327
1,273
1,192
1,101 1,101
1,059 1,059
1,000
978
951
1,036
1,013
1,013
985
1,049
1,091
1,051
1,0701,077
1,037
1,044
1,021
1,059
1,036
1,038
1,050
1,131
1,142
1,345
1,405
1,467
1,566
1,573
1,438
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
'73
'75
'77
'79
'81
'83
'85
'87
'89
'91
'93
'95
'97
'99
'01
'03
'05
Fiscal Year
Primaryenergyconsumption/GDP
Ton oil eq.
/ Billion yen
2nd Oil Crisis
1st Oil Crisis
Source: METI/General Energy Statistics
10 years
Improvement by 30%
10% improved for 20 years
Main Improvements:
•Energy Management
•Energy Efficient Equipment
•Efficient Processes Technologies
•R&D
19. ENERGY CONSUMPTION PERFORMANCE WITH
NATIONAL ENERGY EFFICIENCY IMPLEMENTATION IN
THAILAND
Through strong regulatory implementation framework, sustainable funding & holistic approach
for focused sectors
21. MALAYSIA’S OIL AND GAS RESERVES
CRUDE OIL : 5.46 billion barrels, NATURAL GAS : 88.00 trillion standard cubic feet
RESERVE LIFE : Oil – 19 years, Gas - 36 years
(source: PETRONAS (as at 1st January 2008)
The Prime Minister has announced in January 2015 that
Malaysia is already a net importer of petroleum
22. ENERGY RELATED POLICIES IN MALAYSIA
There is a need to have a dedicated policy on energy efficiency at the
national level &recommended by the study by government
Source: SEDA Malaysia
No clear national policy on energy
efficiency yet
23. HOW PRIMARY ENERGY IS USED TO PRODUCE
ELECTRICITY FOR CONSUMERS
• No matter the source, it takes a significant amount of energy to make
electricity
• Globally, more than 35% of the primary energy consumed on a daily basis
is being used to make electricity
Source: Exxon Mobil Energy Outlook 2012
25. ELECTRICITY GENERATION MIX IN MALAYSIA:
OIL TO GAS DEPENDENCY
moved from oil dependent to gas &coal dependent for electricity
generation.
The dependency on coal from Indonesia reduced from 84% in 2008 to
65% in 2011.
Source: Energy Commission
The reserve margin for 2013 is 31%
•an installed capacity of 21,749 MW
•a peak demand of 16,562 MW
•a minimum reserve margin of 25%
would be required
26. WHY EE IS CRUCIAL FOR MALAYSIA?
Energy demand projected to increase from 2,000 PJ(2009) to 4,013 PJ(2030),
average rate of 3.6% /year
Short term &long term measures that can be taken is through EE initiatives
while working on looking for new energy sources (RE& alternative energy)
To balance and reduce the supply and demand
gap
Source:
EPU,2011
WE NEED
TO CREATE
THE EE
LINE!
TO QUANTIFY!
28. Energy Supply &
Utilization
Asset Responsibility Period
Energy affects most of the life cycle of assets
Energy costs affected by the fluctuating global primary energy market prices
– mainly from fossil fuels – depleting resources
30. Pumps (25% - 35%)
Chiller (20% - 25%)
AHU/FCU (25% - 35%)
Cooling Tower(15% - 20%
WHERE TO SAVE?... AIR CONDITIONING SYSTEMS
31. ENERGY EFFICIENT LIGHTING
TECHNOLOGIES
• Savings at 40-60% from lighting systems
Energy Saving Micro Ballast
and HP Fluorescent T8-28 watts
LED Fluorescent Tubes LED Down Light
LED Ceiling Light High Performance LED
Street Light
LED Spot/Flood Light
32. Adoption of effective energy management system
technologies for energy performance records &
monitoring
Basic data collection & reporting
Computerized management system
with operational controls of key
operating parameters
Key data gathering, energy
performance tracking,
measurement & reporting system
33. THE INTEGRATED AND INTELLIGENT
ELECTRICITY SYSTEM OF THE FUTURE
Source: IEA
35. Building owners can see reduced operating costs, increased building
values, greater return on investment, and higher occupancy from new and
retrofitted green buildings
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green building
certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a
business whose facility is certified as green, while 48% indicated that green
certification of a facility improves their image of a company.
University of Missouri researchers - consumers would be more
willing to pay between 15 & 20% more for retail products from
companies that support sustainable practices
UN Global Compact of 766 CEOs worldwide-93 % of
CEOs said sustainability issues will be a critical factor
to the future success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount
of sustainability-related inquiries from investors in the past year. 70%
inquiries focused on energy management and greenhouse gas emissions
& more than ½ questions about sustainability reporting
THE CORPORATE TRENDS…
Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the
benefits sustainability can bring to the business. 2/3 respondents said they are
involved in driving sustainability strategies .More than 50 % said their
involvement in pushing sustainable practices has increased in the past year.
MORE TRAINED AND
COMPETENT PERSONNEL IN
SUSTAINABLITY ARE REQUIRED
36. ENERGY
EFFICIENCY
Energy Management
Energy
Management
System
Consultancy/Advisory
Standard &Certification
Performance Measurement &
Verification
EnMS Tools
Hardware
(meters , sensors & etc)
Software
(Computerized EnMS)
Energy Engineering
Energy Efficient
technologies
Testing, Rating & Labeling
R&D, TQM
Manufacturing
Energy Auditing
Capacity
Building
Education &
Awareness
Training &
Development
Policy
Policy research &
development
Regulatory
Fiscal & Financial
Investments & Funding
Analysis & Evaluation
POTENTIAL AREAS TO EXPLORE IN EE INDUSTRY
37. OPTIONS FOR CAREERS IN EE
Energy
Auditors
Energy Efficient
Technology
Application Experts
Measurement
&Verification
Specialists
Energy Efficient
Equipment
Inventors
Energy Efficient
Facilities Designers
Energy Economists
& Data Analysts
Policy & Regulatory
Experts
Demand Side
Management
Specialists
Energy
Managers
Energy
Management
Consultants
Documentation &
Certification Specialists
ISO50001
EnMS(System/
Technical
Auditors)
Expert Trainers
39. SCOPES OF ENERGY SERVICE IN IMPLEMENTING EE
PROJECTS
Built-in scopes:
Project funding & financing options
Engineering & economic feasibility studies
Project design, engineering & permitting
Project construction
Project commissioning
Operations, spare parts & maintenance
Performance measurements, verification & monitoring
Energy performance reporting
Value added/additional
scopes
Consultancy &
Advisory
Regulatory
Compliance
Standards & Ratings
40. WHAT IS AN ENERGY SERVICE
COMPANY(ESCO)?
ESCOs must demonstrate the technical
& managerial competencies to design
& implement projects involving multiple
technologies & energy efficiency
solutions at building/industrial facilities
Develop, implement turnkey &
comprehensive EE projects
ESCOs offer energy performance-based
contracts
Returns of investments by ESCOs are
from the actual energy savings achieved
by the projects as the main element their
business
No upfront costs/investments required
by the facilities owner
41. ESCO INDUSTRY SIZE ESTIMATES BY SELECTED
COUNTRY
Source: Lawrence Berkeley National Laboratory , National Association of
Energy Service Companies, USA September 2013
42. ESCO ORGANIZATION WORKFORCE BY JOB
CATEGORY
Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010
43. JOBS CREATED IN EE SERVICES SECTOR:
COMMERCIAL & INSTITUTIONAL
Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010
44. JOBS CREATED IN ENERGY SERVICE INDUSTRY:
INDUSTRIAL
Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010
45. JOBS CREATED IN EE SERVICES
SECTOR:RESIDENTIAL
Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010
46. THE IMPLEMENTATION OF
EFFICIENT MANAGEMENT OF ELECTRICAL
ENERGY REGULATIONS 2008(EMEER 2008)
IN MALAYSIA
under Electricity Supply Act 1990
effective from 15 December 2008
The legal requirement to have registered
electrical energy managers at affected
installations
47. KEY PLAYERS & ROLES IN
EMEER 2008
EMEER
2008
Energy
Commission
REEMs
Installations
(approx. 2,000)
SUPPORT MEASURES
•Technical assistance , advisory
& guidelines
•Education & awareness
•Incentives/rewards/recognition
s
ENFORCEMENT
•Monitoring for compliance
•Impact study & review
implementation for
improvement
•Comply
•Develop & implement EEM
Program
•Build in-house capacity
•Implement saving measures
•Compliance
•Perform functions &
duties(Reg. 16)
•Expert advice & assistance
in EEM & energy saving
measures
•Continuous professional
development
48. REGISTERED
ELECTRICAL ENERGY MANAGER
(REEM)
The only
competency
certificate for
energy efficiency
practitioners
recognized by the
Malaysian law
Regulation 11: Registered Electrical Energy
Manager Of Installation
• No person shall engage in, be employed or
hold himself out as a registered electrical
energy manager for the purposes of these
Regulations unless the person has been
registered by the Commission
49. REGULATION 12:
QUALIFICATION REQUIREMENTS
A Malaysian citizen aged 23 years and above who –
(i) holds a certificate of registration as a Professional Engineer under the
Registration of Engineers Act 1967 [Act 138] and possesses at least six
months working experience in the efficient management of electrical
energy at an installation; or
(ii) holds a degree in Science, Engineering, Architecture or its equivalent and
possesses at least one year working experience in the efficient management
of electrical energy at an installation; or
(iii) holds a Certificate of Competency issued by the Commission as an
Electrical Services Engineer or a Competent Electrical Engineer and
possesses at least nine months working experience in the efficient
management of electrical energy at an installation; and
(Minimum mandatory requirements)
50. REGULATION 16 :FUNCTIONS AND
DUTIES OF ELECTRICAL ENERGY
MANAGER
• To AUDIT and analyse the total electrical energy consumption or
generation
• To ADVISE in developing and implementing measures to ensure
efficient management of electrical energy at the installation
• To MONITOR effective implementation of the measures
• To supervise the keeping of RECORDS on efficient management of
electrical energy at the installation and verify its accuracy; and
• To ENSURE the timely submission of information and reports under
the regulations.
51. POSSIBLE VALUE ADDED REEMS’ ROLES: EE & ENMS
EXPERT CONSULTANCY & ADVISORY SERVICES
53. KEY SUCCESS FACTOR AS A REEM
Specialization & resourcefulness
Having strong grasps on the key
concepts & elements in energy
management system
Knowing other experts or players
in the market & their specialties
Well defined scope of services and
deliverables
Availability of strong & reliable
technical supports
With a company with a
strong financial standing
Projects reference or track
records
Possess excellent & effective
communication skills
Having added & relevant
qualifications and
competencies
Visibility to the market
64. 11TH MALAYSIA PLAN(2015-2020):
ENHANCING DEMAND SIDE MANAGEMENT
FORMULATING
A COMPREHENSIVE DEMAND SIDE MASTER PLAN
EXPANDING
DEMAND SIDE MANAGEMENT
MEASURES
Industries Buildings Households
Electrical
Energy
Transport
Energy
Thermal Energy
65. FOR ENERGY EFFICIENCY
INDUSTRY DEVELOPMENT IN MALAYSIA
Strong
Governance &
regulatory
framework
Financing &
business
friendly
mechanisms
Accountable &
competent
implementing
agency
Information,
Education
& Awareness
R&D &
Commercialization
INDUSTRY GROWTH
Policy Targets
Policy Introduction
Focused Sectors +Industry Players
+ Consumers
Industry players just need the basic & right “infrastructure” & supports.
We can take it from there!
CREATED
•Business & job opportunities
•More experts/workers from energy efficiency
industry
•New source of economic growth
•More Direct Domestic Investments
66. THE FINAL MESSAGE
WHAT ROLES YOU WOULD
LIKE TO PLAY FOR ENERGY
EFFICIENCY FOR YOUR OWN
FUTURE AND FOR
MALAYSIA?
Which is better for utility companies?
Managing current assets with maximized and efficient utilization by the demand(users) or
Having to add new assets just to me the increasing demands and facing uncertainties on the business outcomes in the regulated market.
Example: In Malaysia, tariff increase purely subject to the government’s decision and directly linked to political climate
Examples of monetary benefits from EE implementation
To highlight the potentials to improve asset’s operational & energy performance to increase profitability for service providers and/or facilities owners
We embrace changes or we will be struggling or out of the business
Develop & implement turnkey, comprehensive EE projects
ESCOs offer performance-based contracts (i.e., contracts that tie the compensation of the ESCO to the energy savings generated by the project) as a significant part of their business
Lighter-colored boxes with dotted outlines show job categories that have emerged primarily as a result of the development of the EESS, and darker-colored solid boxes show firms and job categories that also exist outside of the EESS.
Lighter-colored boxes with dotted outlines show job categories that have emerged primarily as a result of the development of the EESS, and darker-colored solid boxes show firms and job categories that also exist outside of the EESS.
Lighter-colored boxes with dotted outlines show job categories that have emerged primarily as a result of the development of the EESS, and darker-colored solid boxes show firms and job categories that also exist outside of the EESS.
Lighter-colored boxes with dotted outlines show job categories that have emerged primarily as a result of the development of the EESS, and darker-colored solid boxes show firms and job categories that also exist outside of the EESS.
The legal requirement to have registered electrical energy managers at affected installations
Will you participate or just looking?
BUT MALAYSIANS MUST BE GOOD AND SKILLFUL ENOUGH TO COMPETE WITH OTHERS!
The higher the level of your skills, the higher the potential rewards/remunerations
ENHANCING DEMAND SIDE MANAGEMENT
FORMULATING A COMPREHENSIVE DEMAND SIDE MASTER PLAN
ELECTRICAL
THERMAL
TRANSPORTATION
EXPANDING DEMAND SIDE MANAGEMENT MEASURES
INDUSTRIES
BUILDINGS
HOUSEHOLDS