This is normally my story line whenever I was asked/requested/invited to share with audience on the way forward for energy efficiency industry in Malaysia when I was I the government trying to push for EE agenda..and my opinions and thoughts are still the same until today and look like for longer time
Computer 10: Lesson 10 - Online Crimes and Hazards
Energy Efficiency for Malaysia-the way forward
1. KEY ENERGY EFFICIENCY
INITIATIVES , INCENTIVES AND THE
WAY FORWARD FOR MALAYSIA
Zaini Abdul Wahab
ENERGY EFFICIENCY INFORMATION
SHARING SERIES
2. Content
Overview of Energy Resources and Trends
Current Related Policies
Energy Efficiency Potentials
Key Government Lead Initiatives
Fiscal And Financial Incentives
Current Development and the way forward
Proposed Strategic Plan & Implementation
10. 10
National Energy Policy
Predicated on the following principles:
Supply Objective
To ensure provision of adequate, secure and cost-effective energy supplies by developing
indigenous energy resources, both non-renewable & renewable, using least-costs options,
& diversifying supply resources within & outside the economy;
Utilisation Objective
To promote the efficient utilisation of energy and the elimination of wasteful &
non-productive patterns of energy consumption;
Environmental Objective
To minimise the negative impacts of energy roduction, transportation, conversion,
utilisation & consumption on the environment
11. National Energy Policy
11
Predicated on the following principles:
• Supply Objective
– To ensure provision of adequate, secure and cost-effective energy supplies by
developing indigenous energy resources, both non-renewable & renewable, using least-
costs options, & diversifying supply resources within & outside the economy;
• Utilisation Objective
– To promote the efficient utilisation of energy and the elimination of wasteful &
non-productive patterns of energy consumption;
• Environmental Objective
– To minimise the negative impacts of energy roduction, transportation, conversion,
utilisation & consumption on the environment
12. National RE Policy
Policy Statement:
To enhance the utilisation of indigenous renewable energy
resources to contribute towards national electricity supply
security and sustainable socio-economic development
Objectives:
To increase RE contribution in the national power generation mix;
To facilitate the growth of the RE industry;
To ensure reasonable RE generation costs;
To conserve the environment for future generation; and
To enhance awareness on the role and importance of RE.
12
14. Global Energy Efficiency Potentials
Oil and natural gas remain
essential through 2030 but the
most important “fuel” of all will
be energy saved through
improved efficiency
Potential gains will reach about
300 quadrillions BTUs per year
by 2030(twice the growth of
global energy demand through
2030)
Gains in energy efficiency
through 2030 will reduce global
energy-demand growth by
approximately 65%
Source: Outlook for Energy. A view to 2030 (exxonmobil.com)
16. Saving Potentials (USD) in SEA
Clearly, the industrial and commercial sector
s offers much higher savings potential
Source: www.reexasia.com
17. Energy Efficiency Potentials in Industrial
Sector
Industry
Type
Total
Potential
Energy Saving
(GJ/yr)
Annual
Energy
(GJ/yr)
Total
Potential.
Energy
Saving
(%)
Capital
Expenditure
(RM ‘000)
Potential
Cost Saving/year
Paybac
Period
(year)
(RM‘000) % of
original.
energy bill
FOOD 272,354 1,418,625 19.2 2,299 4,382 13.7 0.5
WOOD 457,494 874,200 52.3 9,904 4,822 38.9 2.1
CERAMIC 212,974 774,061 27.5 5,760 5,992 24.8 1.0
CEMENT 4,887,239 14,956,56
3
32.7 39,456 33,752 16.5 1.2
GLASS 81,660 4,000,370 2.0 3,586 2,120 2.1 1.7
RUBBER 97,215 460,913 21.1 5,079 3,063 22.6 1.7
PULP &
PAPER
811,547 5,080,208 16.0 29,883 18,174 21.3 1.6
IRON &
STEEL
270,053 4,215,761 6.4 4,443 5,247 3.4 0.8
17Malaysia Industrial Energy Efficiency Improvement Program (MIEEIP) by PTM, ended 2005
18. Energy Saving Potentials in Buildings
Residential Hotels Shopping
Complexes
Offices
Lighting 25.3 18.0 51.9 42.5
Air-Conditioning 8.3 38.5 44.9 51.8
Total 33.6 56.5 96.8 94.3
18
Energy Study-Malaysian Building Sector
Distribution (%) of energy consumption in Malaysian Buildings
(by PTM 2003)
Energy efficiency potentials:
40% to 50% reduction of energy consumption of new buildings.
15% to 25% in reduction in energy consumption of existing buildings.
shift of electricity demand for buildings from day to night to improving load factor
19. Problems/Barriers
Number of key barriers which prevent a wide spread
adoption of energy efficient practices which are:
Lack of overall national plan for energy efficiency
Lack of consistency in embarking on the energy
efficiency
Lack of legal and regulatory framework for energy
efficiency
Lack of champion to drive energy efficiency
Low energy prices due to government subsidies
Lack of funding & financing for energy efficiency
21. Promoting Sustainable Energy Management
The process of managing the energy use in the
organization to ensure that energy has been efficiently use
by adopting Energy Management System(EMS) to achieve
desired results and for continual improvement
Covers all aspects of energy and involving the people and
equipment in the daily operation of the facilities
Energy Management
All activities to ensure efficient use
of energy in the organization
22. Typical EMS Cycle
ENERGY
MANAGEMENT
POLICY
ORGANIZING
PLANNING AND
IMPLEMENTATION
EVALUATION
REVIEW FOR
CONTINUAL
IMPROVEMENT
PLAN
DO
CHECK
ACTION
•Commitment from the top management
•SMART policy
•Setting and sharing common goals•Commitment to
take action
•Organization and
responsibilities
•Energy Manager
•Allocation of
resources
•Management Implementation
plan and time frame
•Energy auditing
•Set baselines for measuring
results
•Designation of responsibilities
•Procedures and standards
•Trainings
•Implement Energy Saving Measures
•Measurement and verification
•Monitoring
•Management Review to confirm
Suitability, Adequacy
& Effectiveness
•Review targets
•Communicate the progress
•Actions to be taken
•Reporting and presenting EPC
23. Energy Audits at Government Buildings By KeTTHA
Bil Building Year Potential
Savings
(RM)
Implementation
Costs
(RM)
ROI
(Year)
1 MOH 2010 740,652.23 1,546,545.00 2.0
2 MAMPU 2010 254,500.64 964,737.20 3.8
3 MOHR 2010 195,146.20 405,180.00 2.1
4 JPA 2010 174,480.00 897,000.00 5.1
5 NRE 2010 316,440.20 963,500.00 3.0
6 MOF 2008 355,892.00 2,326,259.00 6.5
7 Hospital Selayang 2008 1,612,800.00 3,294,350.00 2.0
8 Hospital Kuala Lumpur 2008 2,538,705.00 8,423,740.00 3.32
9 Pusat Perubatan UM
2008
4,477,067.00 622,500.00 0.1
24. Retrofitting By KeTTHA
Building Year Potential
Savings
(RM)1
Implementation
Costs
(RM)
1 MOF 2010 983,829.00
9,987,000.00
2 EPU 2010 154,887.00
Total 1,138716.00
110% potential saving of electricity bill based on 2 months actual bill
(Jan-Feb 2011) with baseline year of 2010
End of Dec 2011
Project
completed
Jan-Feb 2011
Electricity
saving analysis
Oct-Dec 2010
Retrofit work started-
Upgrading BCS & re-
lamping
Jun 2010
Project started with
selection of Energy
Saving Measures
Figure 1: BEI reduction for MOF &EPU
25. 1 Initiatives under Business & Services lab
2 As per subsidy lab recommendation SOURCE: OGE NKEA Lab
2
▪ Give retailers incentives on sales of small capacity appliances to increase
sales of energy efficient goods amongst low-middle income households
▪ SAVE Program was announced by YAB PM on 13th June 2011
▪ Will be launched officially on 7th July 2011 by YBM KETTHA
▪ Introduce and/or enforce legislation (Efficient management
of electrical energy regulations 2008; MEPS - Minimum Energy Performance
standards)
▪ Increase economic viability through review of tariff mechanisms with TNB
▪ Improve legislation on insulation for new housing
▪ Educate building owners on benefits of better insulation1
▪ Government to lead by example on energy efficiency practices
▪ “Push” for EE practices by running large-scale education campaigns1
▪ “Pull” for EE by implementing electricity subsidy rationalization2
Key Focus AreasInitiatives
New
appliances
Co-generation
3
Building
insulation
4
Leading by
example
1
Transport
efficiency
5 ▪ Reduce tax rate on imported hybrid/ electric vehicles and/or offer cash rebate
on purchase of locally manufactured hybrid/electric car
EPP9: EPP9: Sustainability Achieved Via Energy Efficiency
(SAVE) Program in ETP
Energy saved-
127.3GWh/year
GNI- RM3.2 bil
GNI- RM 5.1 bil
SAVE Program: Rebate
26. SAVE Program: Government To
Lead By Example
Energy savings in
government buildings
1st workshop with 20 IPTAs(31st May 2011)
Objective: to discuss implementation plan on energy saving in IPTAs
Consensus from the workshop:
Should be mandatory to all IPTAs to implement Energy Management System;
Adopt EPC to implement energy efficiency in IPTAs;
MOF to issue a circular on payment mechanism for shared-saving mechanism; and
A standard EPC document developed by JKR for reference by IPTAs
2nd workshop with 25 Ministries (22nd June 2011)
• Objective: introduce & discuss the implementation of energy saving in Gov’t buildings
• Target saving = 10% electricity bill saving annually
• Implementation of EPC or internal budget allocation
27. Why Energy Performance Contracting in
Energy Management?
effective measures to implement energy saving
measures to promote energy conservation in government
buildings by market mechanisms-private investments
urgent requirements to cultivate new strategic industries
with active involvement and investments from private
sectors as outlined in ETP
stimulate new economic growth, and objective needs to
build resource-saving and environment-friendly society.
28. Shared –Saving mechanism in EPC
Adaptation from US Dept. of Energy, Measurement & Verification Guidelines, Version 3.0,
time
(year)
Electricity Bill
During EPC contract
period
Lower Electricity
Bill
After EPC Contract
period
Electricity
bill saved
Before EPC Contract
Period
Electricity bill
before EPC
implementation
Payment to
ESCO
Government’s
Savings
Saving for
Government
Baseline
Lower
Electricity Bill
Saving for
Government
29. SAVE Rebate Program: Investment & Potential Savings
2011 TOTAL TARGET
ENERGY SAVINGS
127.3GWh Type of
Appliances
Fridges Air -
Conditioners
Chillers
2011
Target
Savings1
Target # of
Units
100,000
units
65,000 units 72,000RT
Energy 24.9GWh 48.75GWh 53.6GWh
Cost RM5.4mil RM10.6mil RM16.8mil
Estimated
Lifetime
Savings2
RM38mil RM74.4mil RM252mil
Allocation
Offered
Rebates
Per Unit
RM200 RM100 RM200
Total
Budget
Allocation
RM20mil RM6.5mil RM14.4mil
1 Target energy and cost savings at current tariff rate
2 Lifetime saving for fridge and air conditioner in 7 years; for chillers in 15 years
Rebate
Program
www.saveenergy.gov.my
31. Status 5 Star Rated
Equipments:
• Jan ’11- 5 brands
• July’11 -12 brands
Implementation Period:
• 07th July – 30th
September 2011
Appliances
Voucher
Printed
Voucher
Redeemed
Refrigerator 36,757 26,046
A/C 30,344 19,160
Total 67,101 45,206
Application Applied
Capacity
(RT)
Chillers 20 24,465
SAVE Rebate Status (7th July - Sep 2011)
Household Appliances
Industry Appliances
32. • Savings calculation is based on actual
market size
CO2 Reduction:
45,747tonne
*Cost Saving:
RM16.34mill
Energy Savings:
66.3GWh
(equivalent to annual electricity
use for 18, 417 houses using
300kWh per month
Capacity Saving:
26MW
SAVE Program Updates - OUTPUT
100,000
65,000
72,000
*74,663
*42,181
24,465
0
20000
40000
60000
80000
100000
120000
Refrigerators Air-conditioners Chillers
Unit/RT
Appliances/
Equipment
Target
Actual
13%
12.44%
7.03%
8.0%
35%
11.05%
Data is for the period of
7th July – 30th Sept 2011
Translates
into
33. SAVE Rebate : Chiller Replacement Program
Eligible for private business entities registered in Malaysia
Comfort cooling for offices and commercial buildings only
Must purchase a new eligible EE chiller or replace an existing chiller
due to lifespan (more than 15 years) and inefficient existing chiller
within the specified period
No. State/Region Total Targeted Quantity
in 2011* (Refrigerant
Ton,RT)
Percentage
(%)
1 Peninsular 50,400 70
2 Sabah 10,800 15
3 Sarawak 10,800 15
Total 72,000 100
www.saveenergy.gov.my
34. Demonstration Projects
Building Targeted BEI
Low Energy Office (LEO) – MEGTC
Completed in 2004
100kWh/m2/yr
Green Energy Office (GEO) - MGTC
Completed in 2008
Certified rating (GBI)
65kWh/m2/yr
Diamond Building – Energy
Commission
Completed in 2010
Platinum rating (Green Mark & GBI)
85kWh/m2/yr
36. The Decision By The Green Technology and Climate
Change Council Meeting
Meeting on 11th August 2011 decided on:
To reset temperature at the minimum 24 degree
Celsius for all government buildings
Implementation with technical guidelines and
assistance from JKR
37. The Decision By Economic Council (EC) Meeting
EC Meeting on 27th May 2011 decided on:
KeTTHA & MOF to come up with suitable incentives to
encourage energy saving initiatives for the public &
private sectors; and
for the public sector, the energy saving initiative would
be included as one of the KPIs for head of agencies
38. EE related Laws
Amendment of Electricity Regulations 1994 to regulate Energy
Performance for electrical appliances from 2011 (starting with lamps
to phase out incandescent bulbs by 2014)
To include EE and RE standards in Uniform Building By Law(UBBL) in
stages from 2011 by the Ministry of Housing and Local Government
Drafting of the new Energy Efficiency and Conservation Act (Electrical
and Thermal )by the Ministry of Energy, Green Technology and Water
to start in Q4 2011 and targeted to be enforced in 2014
41. Key Elements Required to implement Sustainable Energy
Efficiency & Conservation Program for a long term(10
years) at National Level
• Creation of a Legal & Regulatory Framework to
management all energy using sectors at the demand side
• Creation of a one stop center under one agency for the
planning, implementation and monitoring of energy
consumption for all sectors
• Availability of Sustainable Funding sources & effective
Financial Mechanism
• Capacity Building & Training to build and improve
competencies required in EE&C Industry
• To increase Research & Development for EE technology &
application
• On going Education & Awareness for all types of consumers
42. To have a national and sub sectors energy
saving targets
Electricity savings
(kWh)
Power Plant Capacity savings
(GW)
Electricity bills savings
(RM Mill)
GHG avoidance
(ktCO2-eq)
Electricity consumption reduction
or energy intensity reduction (%)
43. Capacity Building:
EE&C Industry and Practitioners
Certified Energy Managers
Certified Auditors
ESCOs
EE professionals
semi-professionals
facilities managers
Strengthening capacity building of Energy Managers, Energy Auditors &
ESCOs
Training of financial experts, other relevant professional e.g. engineers,
architects, lawyers, semi-professional, etc
44. Capacity Building :
Banks/Financial Institutions
Sharing of experiences in successful
investments in EE projects through
seminars/dialogues
(results, payback period) from people in business
communities who have experienced it
Criteria of viable EE projects
Competency of ESCOs
Promotion of incentives/tax
exemptions for EE investment for
companies
45. Promotion and Awareness
Lecturers and teachers
Students
General public
Education on EE&C from primary school level to all
Institutions of Higher Learning
Campaign and promotion to create awareness of EE&C
among the general public
46. Supporting Measures required to
implement EE&C measures
Technical Assistance
& Advisory
Incentives & Financial
Assistance
SMEs & SMIs - energy
audit and guidance
Measurement and
verification of
performance
Technical assessment
from other
ministries/agencies on EE
projects for financing
/further approval
Registration and
deployment of experts
Fiscal incentives
Low interest loans with
government guarantee
Grant based on annual
government budget for
specified initiatives and
awareness programs
47. Possible Organizational Structure for Sustainable
Implementation of NEEMP
MEGTW
IndustrialBuilding Equipment &
Appliances
Education &
Awareness
Government
Research &
Development
EE Centralized
Agency
Data & Information Enforcement
Commercial
& Residential
EE Fund
Competency &
Accreditation
New and
existing
designated
building
Designated
factories
SMEs &
SMIs
MEPS &
Labeling
ESCO
Energy
Manager
Energy
Auditor
Registered EE
Experts
Other Ministries/
State Governments
Universities,
Schools Syllabus
Lecturers,
Teachers
Campaign &
Promotion for
public
EE
Technology
Development
&
Applications
Existing
(JKR,CIDB)
Subsidiary legislation-
regulations
49. Funding & Financial Support
The need of setting up of a Sustainable EE Fund for the
implementation and promotion of EE&C
The administration and distribution of EE fund by the
centralized agency as a one stop center
Need the Government’s commitment to provide the budget to
implement key EE initiatives under the Sustainable Energy
Efficiency & Conservation Program for a long term(10 years) at
National Level to compliment funds/investment expected to
be committed by the private sectors
50. • Need the Government’s commitment to provide the
budget to implement key EE initiatives under the
Sustainable Energy Efficiency & Conservation Program for
a long term (10 years) at National Level to compliment
funds/investment expected to be committed by the
private sectors
51. Proposed Options
For Government Funding
No. Option#1 Option#2 Option#3
1 Source Federal
Government: Total
annual sales of
diesel and petrol
Combination of budget
from federal
government and
others(international
organization/foreign
governments) - Hybrid
Total budget from federal
government
2 Mechanism A portion from
every subsidy
removal per liter
(RM/liter)
1. Annual allocation
to the centralized
agency by the
federal
government.
2. Approved amount
by the funding
party to the
centralized
agency
Annual allocation to the
centralized agency by the
federal government.
3 Distribution &
administration
of fund
Through provisions in the act and its subsidiary legislations by the
centralized agency for EE &C
52. Options for Private Funding
Distribution Mechanism
2. External Sources
Local and international
commercial banks
With low interest loan for
approved applicants
Approved/endorsed by the
competent body appointed
by the government
1. Internal Sources: Companies’
Internal Budget
53. Existing Fiscal Incentives For EE & RE
Projects
Introduced by the government to
promote EE & RE
Companies implementing EE measures
in their premises (…2015)
Investment Tax Allowance
Accelerated capital allowance
import duty exemption
sales tax exemption
GBI Certified Buildings(…2014)
Implementing Agencies:
MIDA – Business & Other Services
Division(Application)
Energy Commission(Technical
assessment)
www.kettha.gov.my
www.st.gov.my
54. THE CONCLUSIONS
• EE&C initiatives in Malaysia has been limited & slow
• A Sustainable Energy Efficiency & Conservation Program needs to be
implemented comprehensively and holistically for efficient management of energy
resources to ensure energy security
• A sustainable funding sources and distribution mechanism must be provided for
EE&C initiatives to be carried out smoothly to achieve the targets set at the
national and for each energy using sectors
• Implementation budget allocated by the government will indicate the government
is serious by leading the way to achieve the targets which need to be followed by
the private sector for greater benefits to the country
• Key players of EE industry at the demand side have indicated their supports and
give positive feedbacks through seminars, workshops, dialogues, discussions and
meeting for the proposed implementation of NEEMP
55. 55
zainiabdulwahab@yahoo.com
019 2152700
www.goingee.blogspot.com.my
www.facebook/zaini.abdulwahab1
www.slideshare.net/ZAINIABDULWAHAB
www.linkedin.com/pub/zaini-abdul-wahab/31/239/882
Thank You & Let’s SAVE ENERGY
from today!