Key highlights: Business Potentials In Energy Efficiency  Implementation Success Stories in energy efficiency programs and projects implementation Barriers & Counter Measures For Sustainable Energy Efficiency Programs Implementation in Malaysia Energy Efficiency Industry Development &  The Way Forward for Malaysia

1. IEM & IET ELECTRICAL CONFERENCE 2013
SUSTAINABLE BUSINESS THROUGH
ENERGY EFFICIENCY IMPLEMENTATION:
AN INDUSTRY PLAYER’S PERSPECTIVE
Zaini Abdul Wahab
Group,Malaysia
20th November 2013
Palace of The Golden Horses Hotel
Kuala Lumpur

2. OUTLINE
1. Business Potentials In Energy
Efficiency Implementation
2. Success Stories
3. Barriers & Counter Measures For Sustainable
Energy Efficiency Programs Implementation
4. Energy Efficiency Industry Development & The
Way Forward

3. Business Potentials In Energy
Efficiency Implementation

4. ENERGY OUTLOOK
TRANSPORTATION
Vehicle efficiency:
Costs influence consumer
choices
INDUSTRIAL
Manufacturing, chemicals to lead
growth in industrial energy demand
ELECTRICITY GENERATION
Industrial demand rises 30 %, led
by growth in Non OECD countries
The global energy mix will grow more diverse
and less carbon-intensive
Source: Exxon Energy outlook 2012
The impact of increased energy
consumption can be reduced through
energy efficiency and a transition to a
stronger reliance on cleaner sources of
energy, including renewable energy and
low-GHG [greenhouse gas] emitting fossil
fuel technologies, such as a shift from coal
to natural gas

5. TOWARDS ENERGY EFFICIENT SCENARIO :
NEW POLICY
 Economically viable efficiency measures can halve
energy demand growth to 2035

6. GLOBAL ENERGY EFFICIENCY POTENTIALS
 Energy efficiency potential used by sector in the New Policies Scenario
 2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035

7. SEA: INVESTMENT POTENTIALS (US$MIL.)
Biggest potentials in the
industrial sector
The total market size = US$6.7 billion;
Industrial = US$2.9 billion(44%)
Commercial = US$3.7 billion(56%)
source: www.reexasia.com

8. WHERE TO SAVE?...BUILDING FACILITIES
SAVING POTENTIALS
 Pumps (25% - 35%)
 Chiller (20% - 25%)
 AHU/FCU (25% - 35%)
 Cooling Tower(15% - 20%
 Lighting System (40-60%)

9. WHERE TO SAVE?...MANUFACTURING FACILITIES
(Source: Energy Conservation Centre of Japan,
2011)

10. THE TRENDS &
PROVEN SUCCESS STORIES

11. 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.
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
University of Missouri researchers - consumers would be more willing to pay
between 15 & 20% more for retail products from companies that support
sustainable practices
Building owners can see reduced operating costs,
increased building values, greater return on investment,
and higher occupancy from new and retrofitted green
buildings
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.
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector

12. More than 50%
of executives consider
sustainability—the management of environmental,
social, and governance issues—“very” or “extremely”
important in a wide range of areas, including newproduct development, reputation building, and
overall corporate strategy.
-McKinsey Global Survey Result, March 2010

13. WHY ENERGY MANAGEMENT?
Profitability
Sustainability
Competiveness
Competency
Working environment
quality
SALES/LEASE & ENERGY COST SAVINGS
Corporate Image
Operating Costs - Energy
Risks – price fluctuation &
supply shortages
INCREASE USERS’ COMFORT
Pollution
Carbon emission
Depletion of fossil fuel
BOOST IMAGE & VALUES

14. SUSTAINABLE APPROACH
FOR ENERGY MANAGEMENT
MANAGEMENT
COMMITMENT
MANAGEMENT REVIEW
POLICY
SYSTEM &
PERFORMANCE
CHECKING
PLANNING
IMPLEMENTATION &
OPERATION

15. RELATED STANDARDS FOR SUSTAINABLE
MANAGEMENT
 ISO 55001
 The requirements specification for
an integrated, effective management
system for assets- defines
requirements for a management
system
 IS0 55002 provides
 Guidance for the implementation the
system
To be launched in January 2014
 ISO50001:2011
 Energy
Management
Systems Requirements With
Guidance For Use
Energy
performance
improvement
for energy
using services
 ISO 55000
 An overview of the subject of asset
management and the standard terms
& definitions to be used

16. ENERGY CONSERVATION PROGRAM IMPLEMENTATION
IN MALAYSIA
Source: ESCO
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA
17% reduction of electricity bill in 2011
based on 2010 baseline consumption – SEDA Malaysia

17. UNITED STATES OF AMERICA
With EPC Model
IDAHO NATIONAL LIBRARY,USA
Petroleum fuel use reduced cumulative 20.3%
from the FY 2005 baseline
-2013 Environmental Leader
EASTMAN CHEMICAL COMPANY
Energy use intensity reductions of 27%, 26% &
9% for the respective building & averaged at
21 % reduction- 2013 Environmental Leader

18. ESCO PROGRAM IN THAILAND

19. ENERGY MANAGEMENT SYSTEM
IMPLEMENTATION BY COMPANIES IN IRELAND
160 companies - 60% of Ireland’s industrial energy use
2% improvement in energy performance per year
Long-term members - have improved energy
performance by 33% (1995 and 2010)
Energy Management Standard helps up to €150m in
avoided energy costs (2005-10)

20. IMPACTS OF ENERGY EFFICIENCY POLICIES IN JAPAN
Ton oil eq.
/ Billion yen
1st Oil Crisis
1,600
Main Improvements:
•Energy Management
•Energy Efficient Equip.
•Efficient Process Tech.
•R&D
2nd Oil Crisis
1,566
1,573
1,467
1,500
1,438
1,405
1,400
1,345
1,327
1,300
1,273
1,200
Improvement by 30%
1,192
1,131
1,142
1,100
1,101
1,091
1,101
10 years
1,050
1,059
1,059
1,000
1,077 1,070
1,0361,037
1,038
1,021
1,059
1,049
1,036 1,013
1,051
1,044
1,013
10% improved for 20 years
1,000
985
978
951
Fiscal Year
'0
5
'0
3
'0
1
'9
9
'9
7
'9
5
'9
3
'9
1
'8
9
'8
7
'8
5
'8
3
'8
1
'7
9
'7
7
'7
5
900
'7
3
Primary energy consumption / GDP
1,700
Source: METI/General Energy Statistics

21. ENERGY CONSUMPTION PERFORMANCE WITH NATIONAL
ENERGY EFFICIENCY IMPLEMENTATION IN THAILAND
Through strong regulatory implementation framework, sustainable funding & holistic approached for
focused sectors

22. Main Barriers In Mainstreaming Energy
Efficiency Industry In Malaysia
WHAT IS STOPPING US?

23. Common BARRIERS…lack of…
Strong governance in policies
implementation
• Clear policy & targets
• Comprehensive regulatory &
implementation framework
• Competencies in institutional set up
Technical competencies & human
resource capacity
• Competency programs
• Career opportunities
Sustainable financing & business
friendly mechanisms
• Sources of funds
• Understanding risks & mitigating
factors in green investments
Information ,education
&awareness
R&D & commercialization
• On green practices
• Business opportunities
• Impacts to climate change
mitigation
• Funding
• Academic vs. Commercial values

24. Support Measures To OVERCOME
barriers…
Technical Assistance
& Advisory
 SMEs & SMIs - energy audit
and guidance
 Measurement & verification of
performance
 Technical assessment from
other ministries/agencies on
EE projects for financing
/further approval
 Registration & deployment of
experts
Incentives & Financial Assistance
 Fiscal incentives
 Low interest loans with
government guarantee
 Grant based on annual
government budget for
specified initiatives and
awareness programs

25. To move forward…
DO WE NEED TO
REINVENT THE WHEEL?

26. Our WAY forward…
Solution or technology
based approaches?
or
Project based or
sustainable
implementation plans &
strategies?

27. EXPECTATIONS FROM POLICY MAKERS
 Clear policy goals & targets
 Strong governance &
comprehensive framework
 Consistency, accountability
& competency
 Inclusiveness in policies
development & reviews

28. For the industry development…
Policy Targets
Focused Sectors +Industry Players
+ Consumers
ENERGY EFFICIENCY Industry
Growth
Policy Introduction
Strong
Governance
Financing &
business
friendly
mechanisms
Accountable &
competent
implementing
agency
Information,
Education
& Awareness
R&D &
Commercialization
Industry players just need the basic & right “infrastructure” & supports .
We can take it from there!

29. EXPECTED IMPACTS FROM HOLISTIC
ENERGY EFFICIENCY IMPLEMENTATION
INTRODUCTION &
AWARENESS
IMPLEMENTATION &
SUPPORT MEASURES
PERFORMANCE
MONITORING&
MEASUREMENT
IMPROVED
•Energy
Performance
•Competitiveness/
•profits
•Environmental
quality
REDUCED
•Energy
consumption &
costs
•Pollution
•CO2 emissions
CREATED
•Business & job opportunities
•More experts/workers from energy efficiency industry
•New source of economic growth
•More Direct Domestic Investments

30. THANK YOU!
zaini@cnsgroup.com.my
019 2152700
www.cnsgroup.com.my