Francis Xavier Jacobs

8/19/2019 Francis Xavier Jacobs

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EU-Malaysia Cooperation in Green Technology

ENERGY EFFICIENCYINITIATIVES IN MALAYSIA

ENERGY COMMISSIONENERGY COMMISSION


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OutlineOutline

ENERGY SCENARIO IN MALAYSIAENERGY SCENARIO IN MALAYSIA

THE PROJECTION OF ENERGY SUPPLY AND DEMANDTHE PROJECTION OF ENERGY SUPPLY AND DEMAND

ENERGY EFFICIENCY STRATEGIES AND INITIATIVESENERGY EFFICIENCY STRATEGIES AND INITIATIVES

WAY FORWARDWAY FORWARD

CONCLUSIONSCONCLUSIONS


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OVERVIEW OFENERGY SCENARIO

IN MALAYSIA


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TRENDS IN GDP, PRIMARY ENERGY SUPPLY

AND FINAL ENERGY DEMAND


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TRENDS IN ELECTRICITY CONSUMPTION

BY SECTORS


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FINAL ENERGY USE BY SECTORS


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FINAL ENERGY USE BY TYPE OF FUELS


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Fuel Mix In GenerationFuel Mix In Generation

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

1980 1992 1996 2000 2004 2008

Oil

Natural Gas

Coal

Hydro


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THE PROJECTION OFTHE PROJECTION OF

ENERGY SUPPLY AND DEMANDENERGY SUPPLY AND DEMAND


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PRIMARY ENERGY SUPPLY BY FUEL

Source: Asia Pacific

Energy Research Centre

(APERC), 2006

0

20

40

60

80

100

120

140

160

2002 2010 2020 2030

M t o e

Coal Oil Gas Hydro Nuclear NRE Electricity HeatTPES is expected to grow at an

annual

growth

rate

of 3.6 % (2002‐2030)

Sharp increase in

coal will

come

from electricity generation industry


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FINAL ENERGY DEMAND BY SECTOR

0%

20%

40%

60%

80%

100%

2002 2010 2020 2030

M t o e

Industry Transport Commercial Residential

Source: APERC 2006

Industry sector will remain the biggest

energy

user

(47%

in

2030) followed closely by transport sector (40% in 2030)

Industry

sector is

expected to be the fastest‐growing sector (4.3%), followed by transport sector(3.9%), and

residential

sector(3.1%) over the outlook period.


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FINAL ENERGY DEMAND BY FUEL

0

20

40

60

80

100

120

2002 2010 2020 2030

M t o e

Coal Oil Gas NRE Electricity Heat

Source: APERC 2006

Total final energy demand is expected to grow at a annual growth rate of 3.9 % (2002

‐2030)

Natural gas is expected to be the

fastest‐growing

energy

type(5.1%), followed by electricity(4.7%), coal(4.2%) and oil(3.4%) over the

outlook period;


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NET IMPORT/EXPORT

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2002 2010 2020 2030 P e r c e n t a g e

Coal Oil Gas Hydro Nuclear NRE Electricity Heat

•Expected to

become net

importer by 2020

Source: APERC 2006


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STRUCTURE OF ELECTRICITY SUPPLY INDUSTRY

Generation

Transmission

Distribution

TNB,SESB,Private

Licensees, SESCO,IPPs

Public Licensees, SESCO

‘

Energy Commission (PENINSULAR,

SABAH), Electrical Inspectorate(SARAWAK)

Industry, commercial,

residential and transport.

LOSSES LOSSES

LOSSES


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ENERGY EFFICIENCYENERGY EFFICIENCYSTRATEGIESSTRATEGIES

& INITIATIVES& INITIATIVES


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EXISTING POLICIES

National Energy PolicyNational Energy Policy

A simple form of energy policy defined inA simple form of energy policy defined in

terms of its objectivesterms of its objectives

Supply objective is to ensure adequate and secureSupply objective is to ensure adequate and secureenergy supply at reasonable prices,energy supply at reasonable prices,

Utilisation objective is to use energy efficientlyUtilisation objective is to use energy efficientlyand to cut down on wasteful ways of using energy,and to cut down on wasteful ways of using energy,andand

Environmental objective is that in ensuring theEnvironmental objective is that in ensuring the

achievements of the supply and utilisationachievements of the supply and utilisationobjectives, the environment is not degradedobjectives, the environment is not degradedadverselyadversely

Fifth Fuel PolicyFifth Fuel Policy -- RERE


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EXISTING POLICIES

9th MALAYSIAN PLAN (20069th MALAYSIAN PLAN (2006--2010)2010) -- Chapter 19:Chapter 19:Sustainable Energy Development (Energy Efficiency)Sustainable Energy Development (Energy Efficiency)

Efficient lighting and air conditioning systemsEfficient lighting and air conditioning systems

Energy management systemsEnergy management systems

Incorporation of EE in Uniform Building By LawsIncorporation of EE in Uniform Building By Laws

Local manufacture of EE equipment andLocal manufacture of EE equipment andmachineriesmachineries

Courses in learning institutionsCourses in learning institutions

EE in public buildingsEE in public buildings

MIEEIP extension toMIEEIP extension to oleooleo--chemical, plastic andchemical, plastic and

textile sectorstextile sectors

Enhancing of fiscalEnhancing of fiscal incentivesMarketincentivesMarket pricing forpricing forenergyenergy

Emphasis on Demand Side ManagementEmphasis on Demand Side Management

Regional (ASEAN)Regional (ASEAN) coorporationcoorporation


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NEW POLICIES

Consultant study is underway to

formulate Energy PolicyHave just formulated a Renewable

Energy Master Plan

In the process of formulating an EnergyEfficiency Master Plan - expected to becompleted by early 2010

RE and EE Master Plan – for electricitysector only


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LEGISLATIVE TOOLS


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PRESENT LAWS AND REGULATIONS

Existing laws focusing on supplyExisting laws focusing on supplyside(generationside(generation, transmission, distribution), transmission, distribution)

and safety while many elements in demandand safety while many elements in demandside management remain non regulatedside management remain non regulatedareasareas

Voluntary energy efficiency classificationVoluntary energy efficiency classificationand ratings have been introduced byand ratings have been introduced by

Energy Commission for materials andEnergy Commission for materials andelectrical equipment which can be adoptedelectrical equipment which can be adoptedwith the introduction of futurewith the introduction of futurelaws/regulationslaws/regulations


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PRESENT LAWS AND REGULATIONS

ENERGY COMMISSION ACT 2001ENERGY COMMISSION ACT 2001

to promote efficiency, economy and safety in the generation,to promote efficiency, economy and safety in the generation,production, transmission, distribution supply and use ofproduction, transmission, distribution supply and use ofelectricityelectricity

to promote the use of renewable energy and the conservationto promote the use of renewable energy and the conservationof noof no--renewable energyrenewable energy

ELECTRICITY SUPPLY ACT 1990ELECTRICITY SUPPLY ACT 1990

to promote the efficient use of electricityto promote the efficient use of electricity

Ef f i ci ent Use Of Elect r i ci t y Ef f i ci ent Use Of Elect r i ci t y

To determine the standards, specifications, practices andTo determine the standards, specifications, practices and

measures for the efficient use of electricity.measures for the efficient use of electricity.

Installation to meet requirements for installation to meInstallation to meet requirements for installation to merequirements in respect of the efficient use of electricity.requirements in respect of the efficient use of electricity.

Equipment to meet requirements in respect of the efficientEquipment to meet requirements in respect of the efficientuse of electricityuse of electricity


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EFFICIENT MANAGEMENT OF ELECTRICAL

ENERGY REGULATIONS 2008

Effective dateEffective date –– 15 December 200815 December 2008

Key Provisions:Key Provisions: --

Applied to big energy usersApplied to big energy users

Appointment and notification of Electrical EnergyAppointment and notification of Electrical Energy

ManagerManager

Electrical Energy Management PolicyElectrical Energy Management Policy

Energy auditEnergy audit

Recommendations for electrical energyRecommendations for electrical energymanagementmanagement

Monitoring and keeping of recordsMonitoring and keeping of records

Periodical reportingPeriodical reporting


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APPLICATION OF EMEER 2008APPLICATION OF EMEER 2008ConsumersConsumers

Any installation which receives electrical energy with aAny installation which receives electrical energy with atotal electricity consumption equal to or exceedingtotal electricity consumption equal to or exceeding3,000,000 kWh as measured at one metering point or3,000,000 kWh as measured at one metering point ormore over any period of six consecutive months; ormore over any period of six consecutive months; or

Generators for own consumptionGenerators for own consumption

Any installation used, worked or operated by a privateAny installation used, worked or operated by a private

installation licensee with a total net electrical energyinstallation licensee with a total net electrical energygeneration equal to or exceeding 3,000,000 kWh overgeneration equal to or exceeding 3,000,000 kWh overany period of six consecutive months;any period of six consecutive months;


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FUNCTIONS AND DUTIES OF ELECTRICALFUNCTIONS AND DUTIES OF ELECTRICAL

ENERGY MANAGER ENERGY MANAGER

To audit and analyse the total electrical energyTo audit and analyse the total electrical energyconsumption or generationconsumption or generation

To advise in developing and implementing measures toTo advise in developing and implementing measures toensure efficient management of electrical energy atensure efficient management of electrical energy atthe installationthe installation

To monitor effective implementation of the measuresTo monitor effective implementation of the measures

To supervise the keeping of records on efficientTo supervise the keeping of records on efficientmanagement of electrical energy at the installation andmanagement of electrical energy at the installation andverify its accuracy; andverify its accuracy; and

To ensure the timely submission of information andTo ensure the timely submission of information andreports under the regulations.reports under the regulations.


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POSSIBLE LAWS AND REGULATIONSNEEDED FOR EE

Competency (energy managers, auditors,Competency (energy managers, auditors, ESCOsESCOs))

Standards and labeling for equipment andStandards and labeling for equipment andappliancesappliances--to control the incoming and productionto control the incoming and productionof energy inefficient /nonof energy inefficient /non--green productsgreen products

Promotion and education on EE & EC activities andPromotion and education on EE & EC activities andtechnology development.technology development.

Funding sources and distribution mechanismsFunding sources and distribution mechanisms

Establishment of a centralized agency forEstablishment of a centralized agency for

implementing and monitoring EE activities.implementing and monitoring EE activities.


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ECONOMIC TOOLS


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FISCAL INCENTIVES

INCENTIVES FOR RE & EE projects and productsINCENTIVES FOR RE & EE projects and products

(End Users,(End Users, ESCOsESCOs, Importers, local manufacturers), Importers, local manufacturers)

Until 31 December 2010Until 31 December 2010

The company is required to implement the project within oneThe company is required to implement the project within one(1) year from the date of incentive approval(1) year from the date of incentive approval

Implementing Agencies:Implementing Agencies:

MIDAMIDA –– One stop centre for processingOne stop centre for processing

Energy CommissionEnergy Commission –– technical evaluation for energy efficiencytechnical evaluation for energy efficiencyprojects and productsprojects and products

Green Building Index Certified Building until 2014.Green Building Index Certified Building until 2014.

Types of incentivesTypes of incentives-- ITA, PS, STE, IDEITA, PS, STE, IDE


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INCENTIVES – EE

Companies Providing Energy Conservation ServicesCompanies Providing Energy Conservation Services

((ESCOsESCOs))

•• Pioneer status with income tax exemption of 100% ofPioneer status with income tax exemption of 100% ofstatutory income for 10 years; orstatutory income for 10 years; or

•• Investment tax allowance of 100% on the qualifying capitalInvestment tax allowance of 100% on the qualifying capital

expenditure incurred within a period of 5 years. Theexpenditure incurred within a period of 5 years. Theallowance to be setallowance to be set--off against 100% of the statutoryoff against 100% of the statutoryincome for each year of assessment; andincome for each year of assessment; and

•• Import duty and sales tax exemption on energyImport duty and sales tax exemption on energyconservation equipment that are not produced locally andconservation equipment that are not produced locally andsales tax exemption on the purchase of equipment fromsales tax exemption on the purchase of equipment fromlocal manufacturers.local manufacturers.


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INCENTIVES – EE

Companies Which Incur Capital Expenditure ForCompanies Which Incur Capital Expenditure For

Energy Conservation For Own Consumption (EndEnergy Conservation For Own Consumption (End

User)User)

•• Investment Tax Allowance of 100% of theInvestment Tax Allowance of 100% of thequalifying capital expenditure incurred within 5qualifying capital expenditure incurred within 5

years. The allowance to be setyears. The allowance to be set--off against 100%off against 100%of statutory income for each year of assessment;of statutory income for each year of assessment;andand

•• Import duty and sales tax exemption on energyImport duty and sales tax exemption on energyconservation equipment that are not producedconservation equipment that are not producedlocally and sales tax exemption on the purchaselocally and sales tax exemption on the purchaseof equipment from local manufacturersof equipment from local manufacturers


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INCENTIVES - RE

Companies Generating RE for Sale

PS with tax exemption of 100% of statutory income for 10years; or

ITA of 100% for 5 years to be offset against 100% of thestatutory income.

Companies Generating RE for Own Consumption

ITA of 100% for 5 years to be offset against 100% ofstatutory income.

Companies Generating RE for Sale/Own Consumption

PS with tax exemption of 100% of statutory income for 10years for energy sold; or

ITA of 100% for 5 years to be offset against 100% of the

statutory income for the whole project.


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AWARENESS

AND PROMOTION


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EE PUBLICATIONS


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SECTORAL PROGRAMS

High Efficiency Motors Promotion

High Efficiency Refrigerators Promotion

Appliance Energy Efficiency Rating Labeling

Building Energy Efficiency Benchmarking

Green Building Index Rating System for NonResidential and Residential Buildings


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VOLUNTARY EE RATING SYSTEM AND LABELING


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EE PERFORMANCE CRITERIA AND RATING SYSTEM

Material/Equipment Energy Performance Indicator, Rating System

1 Insulation materials Thermal conductivity, k-value,(W/mK )

2 High Efficiency Motors EFF 1 type based on European Committee of

Manufacturers of Electrical Machinery and Power

Electronics

3 Lamps (CFL, Fluorescent

Tube, LED)

Efficacy (Lumen/Watt)

4 Ballasts for fluorescent lamps All ballasts approved by Energy Commission

5 Domestic Air conditioners Energy Efficiency Ratio,EER (Btu/h/W): STAR Rating

6 Domestic Refrigerators Energy Efficiency Factor,EEF,(Litre/kWh) ): STAR

Rating

7 Domestic fans Coefficient of Performance (COP) (m3/min/W) ):STAR Rating

8 Televisions Energy Efficiency Index (cm2/kWh) ): STAR Rating


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EDUCATIONAL

CETREEE, USMCETREEE, USM –– schools, higher learningschools, higher learning

institutionsinstitutions

EE & RE topics in secondary school textbooksEE & RE topics in secondary school textbooks

Recognition of energy management programRecognition of energy management program

(training/courses) for capacity(training/courses) for capacity developmenydevelopmenyby Energy Commissionby Energy Commission


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EE CODE OF PRACTICE AND GUIDELINES

Involved in newly launched standard ISOInvolved in newly launched standard ISO

5001:2009, Energy Management Systems5001:2009, Energy Management Systems--Requirements with guidance for useRequirements with guidance for use

MS 1525: 2007MS 1525: 2007 –– Code of Practice on Energy;Code of Practice on Energy;Efficiency and Use of Renewable Energy forEfficiency and Use of Renewable Energy for

NonNon--Residential BuildingsResidential Buildings


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EE CODE OF PRACTICE AND GUIDELINES

Guidelines for Electrical Energy Use Equipment :Guidelines for Electrical Energy Use Equipment :--

Transformers, Motors, Chillers, Cooling Towers, FansTransformers, Motors, Chillers, Cooling Towers, Fans

and Blowers,and Blowers, Pumps,AirPumps,Air Compressors, LightingCompressors, Lighting

Guidelines for Thermal Equipment :Guidelines for Thermal Equipment : --Boilers andBoilers and Furnaces,ThermalFurnaces,Thermal OilOil Heaters,AbsorptionHeaters,Absorption

Chillers and Heat RecoveryChillers and Heat Recovery equipment,Cogenerationequipment,Cogeneration

SystemSystem


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GENERAL AWARENESS PROGRAMMES

Demonstration projects for buildings and industriesDemonstration projects for buildings and industries

EE and RE incentives enhancementEE and RE incentives enhancement

EE/Demand Side Management projectsEE/Demand Side Management projects

Development of Energy Service Companies (Development of Energy Service Companies (ESCOsESCOs))

Development of energy efficiency guidelinesDevelopment of energy efficiency guidelines

Building Sector Energy Efficiency Project (BSEEP)Building Sector Energy Efficiency Project (BSEEP)


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DEMONSTRATION PROJECTS

Low Energy Office (LEO) Building , Ministry ofLow Energy Office (LEO) Building , Ministry of

Energy Green Technology and Water,Energy Green Technology and Water, PutrajayaPutrajaya

Green Energy Office (GEO) Building, NationalGreen Energy Office (GEO) Building, National

Green Technology Centre (formerly PTM),Green Technology Centre (formerly PTM),BangiBangi SelangorSelangor


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DEMONSTRATION PROJECT-

THE NEW ENERGY COMMISSION’S BUILDING


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TARGETED BUILDING ENERGY INDEXTARGETED BUILDING ENERGY INDEX

FOR ECFOR EC’’S BUILDING: 85 kWh/mS BUILDING: 85 kWh/m²² yearyear

Building Energy Index

108

19

51

116

39

4

13

28

0

20

40

60

80

100

120

140

Cooling Energy Fan Energy Lighting Energy Plug Load Energy

Categories

k W h / m 2 / y e a r

Base Building Proposed Building


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BARRIERS TO IMPLEMENT EE INITIATIVES

• Difficulty in securing EE project funding

• Unattractive tariffs for cogeneration and demand side management.

• Lack of incentives for utilities to promote demand side management.

• Lack of awareness among key decision makers in industry.

• Inadequate measures to ensure quality of services provided by energyservice companies.

• Fragmented EE programs implementation framework

• Fragmented legal and regulatory framework

•Relatively low energy prices made EE projects not as attractive.

To be addressed in National EE Master Plan studies and preparation.


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WAY FORWARDWAY FORWARD


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0

10

20

30

40

50

60

70

80

90

100

J a n u a r y 0 8

F e b r u a r y 0 8

M a r c h 0 8

A p r i l 0 8

M a y 0 8

J u n e 0 8

J u l y 0 8

A u g u s t 0 8

S e p t e m b e r 0 8

O c t o b e r 0 8

N o v e m b e r 0 8

D e c e m b e r 0 8

J a n u a r y 0 9

F e b r u a r y 0 9

M a r c h 0 9

A p r i l 0 9

P r i c e ( R M / M M

B t u )

INDUSTRIAL DIESEL

GMSB WEIGHTED AVERAGE TARIFF

INDUSTRIAL LPG

INDUSTRIAL MFO63% discount

53% discount

67% discount

72% discount

70% discount

63% discount

RM22.06/MMBtu

RM15.00/MMBtuRM12.87/MMBtu

GAS PRICE TO POWER SECTOR RM6.40/MMBtu

RM14.31/MMBtu

RM10.50/MMBtu

Need to address distortion in energy pricing from efficient

use of energy at the demand side


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KEY ELEMENTS IN EFFICIENTKEY ELEMENTS IN EFFICIENT

USE OF ENERGYUSE OF ENERGY

Introduction and implementation of energyIntroduction and implementation of energymanagement system at the organizationalmanagement system at the organizationallevel.level.

Minimum energy performance requirements forMinimum energy performance requirements forenergy using equipment.energy using equipment.

Competent persons and energy efficientCompetent persons and energy efficientsolution providers.solution providers.

On going training and awareness programs.On going training and awareness programs.

Introduction of EE laws and centralized EEIntroduction of EE laws and centralized EEagency at the national level.agency at the national level.


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CONCLUSIONS

Energy Efficiency has been accepted as animportant means towards the use energy in a

sustainable manner

Malaysia has formulated strategies and isimplementing a number of programmes to

promote energy efficiency and renewableenergy in the country.

The government will introduced EE master planThe government will introduced EE master plan

for effective implementation of EE initiativesfor effective implementation of EE initiatives

The initiatives will have to be market/commercially driven


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CONTACT USCONTACT US

Demand Side Management

Energy Management Department

ENERGY COMMISSION

13th Floor, Menara TH Perdana

Maju Junction, 1001,Jalan Sultan Ismail

50250 Kuala Lumpur

Tel:03 2612 5400/5536/554

Fax: 03 26912654

Website: www.s t .gov .my

E-mail: [email protected]

http://www.st.gov.my/http://www.st.gov.my/


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THANK YOU!


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Francis Xavier Jacobs

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