ENERGY SCENARIO,

ENERGY POLICIES
AND LEGISLATION

IR. FRANCIS XAVIER JACOB

ENERGY COMMISSION, MALAYSIA
 PRESENTATION OUTLINE
 Introduction to Energy Commission
 Energy scenario – supply and demand
situation in the country
 Government Initiatives to promote Energy
Efficiency
 Policies, Strategies and Programmes
 Energy Efficiency Rating and Labelling
 Fiscal Incentives
 Legislative Framework, Codes, Guidelines
and Standards:-
 Issues/Barriers and Way Forward
 Conclusions
February, 2016
 GOVERNANCE STRUCTURE

Cabinet

Minister of Energy, Economic Minister of

Green Technology and Planning

Policy On GLCs
Finance
Water Unit
• Major TNB
Formulation

• Sets Electricity Supply Policy Shareholder

• Prescribes Regulations • Formulates Energy Policy
• Approves Licences and Tariffs
Policy

TNB
Energy Commission
Policy Execution

SESB
• Advises the minister on all matters relating to
electricity industry
Regulation
& Industry

• Develops legal frameworks IPPs

• Implements policy
• Issues licences
Other Licencees
• Regulates the industry

Regulator Regulatees
February, 2016
 MAIN FUNCTIONS OF THE ENERGY COMMISSION
[under Energy Commission Act 2001)
 Advise Minister on all matters concerning energy supply
activities
 Implement, enforce and review energy supply laws (Electricity
Supply Act 1990, Gas Supply Act 1993 and regulations)
 Promote efficiency, economy and safety in electricity and piped
gas supply industries
 Promote competition and prevent misuse of monopoly power in
electricity and piped gas supply industries
 Promote renewable energy and conservation of non- renewable
energy
 Promote research and development of new techniques relating
to supply and use of electricity and piped gas
 Promote self-regulation
February, 2016
 FRAMEWORK FOR ELECTRICITY
SUPPLY INDUSTRY REGULATION

Acts of Parliament

1. Energy Commission Act 2001

2. Electricity Supply Act, 1990

Regulations – Power of the Minister to make regulations

3. Electricity Regulations, 1994

4. Licensee Supply Regulations, 1990
5. Electricity Supply (Exemption) Notification 1994
6. Efficient Management Of Electrical Energy Regulations 2008

Licences – Issued by Energy Commission and approved by Minister

7. Licences issued to generators, distributors and suppliers

Licence Conditions
8. Prescribes mandatory standards for licensees’ activities

Industry Codes and guidelines – Issued By Energy Commission

9. Grid Code, Distribution Code, Guidelines provide guidance for industry
Agreements – Between Industry Players
10. Power Purchase Agreements
11. Fuel Supply Agreements
February, 2016
 ENERGY SCENARIO –
SUPPLY AND DEMAND
SITUATION

February, 2016
 Malaysia’s Oil And Gas Reserves

CRUDE OIL : 5.954 billion barrels NATURAL GAS : 92.122 trillion standard cubic feet
(source: National Energy Balance 2012 - as at 1st January 2012)

February, 2016
 DECLINING OIL AND GAS PRODUCTION

Total resources addition has been

shrinking despite increased in exploration
activities
Reserve life:
 Oil – 22 years
Gas - 28 years

February, 2016
 TREND IN GDP, PRIMARY ENERGY SUPPLY AND
FINAL ENERGY DEMAND

* source: Preliminary Results - National Energy Balance 2012 Malaysia

February, 2016
 COMMERCIAL ENERGY SUPPLY

* source: Preliminary Results - National Energy Balance 2010 Malaysia

February, 2016
 FINAL USE OF COMMERCIAL ENERGY

Source: (i) Preliminary Results - National Energy Balance 2012 Malaysia

February, 2016
 FINAL ENERGY USE BY SECTORS

Source: Preliminary Results - National Energy Balance 2012 Malaysia

February, 2016
 HIGH DEPENDENCE ON GAS
IN ELECTRICITY GENERATION
100 %
Hydro
90 %
Coal
80 %

70 %

60 % Natural Gas

50 %

40 %

30 %

20 %
Oil
10 %

0%
1980 1992 1996 2000 2004 2008

February, 2016
 FUEL MIX IN ELECTRICITY GENERATION (%)
YEAR OIL COAL GAS HYDRO OTHERS TOTAL
(GWHR)
1990 41.9 13.8 26.2 17.8 0.3 22,768

1995 11.0 9.7 67.8 11.3 0.2 41,813

2000 4.2 8.8 77.0 10.0 0.0 66,909

2005 2.2 21.8 70.2 5.5 0.3 94,030

2009 2.4 32.5 58.0 5.9 1.2 109,739

2010 1.7 40.0 52.7 5.5 0.1 114,310

2011 7.5 46.6 39.2 6.7 - 107,386

2012 4.7 48.3 39.4 7.3 0.2 116,353

February, 2016
 FINAL ENERGY INTENSITY

Source: Preliminary Results - National Energy Balance 2012 Malaysia

February, 2016
 COAL CONSUMPTION BY SECTORS

Source: NEB 2012

February, 2016
 NATURAL GAS CONSUMPTION BY SECTORS

Source: NEB 2012

February, 2016
 ELECTRICITY CONSUMPTION BY SECTORS

Source: NEB 2012

Note (*): From 2006 until 2009 data were collected directly from train operators
(**): Effective from 1st June 2006, TNB has introduced Specific Agriculture Tariff; previously agriculture was under the Commercial Tariff

February, 2016
 FINAL CONSUMPTION OF PETROLEUM
PRODUCTS(2010)

Source: NEB 2012

February, 2016
ENERGY SUPPLY AND DEMAND
PROJECTIONS

February, 2016
 NATIONAL ENERGY DEMAND

February, 2016
 PRIMARY ENERGY SUPPLY BY FUEL
Coal Oil Gas Hydro Nuclear NRE Electricity Heat

160

140

120

100
Mtoe

80

60

40

20

0
2002 2010 2020 2030

February, 2016
 FINAL ENERGY DEMAND BY FUEL
Coal Oil Gas NRE Electricity Heat

120

100

80
Mtoe

60

40

20

0
2002 2010 2020 2030

February, 2016
Source: APERC 2006
 FINAL ENERGY DEMAND BY SECTORS
Industry Transport Commercial Residential

100%

80%

60%
Mtoe

40%

20%

0%
2002 2010 2020 2030

February, 2016
Source: APERC 2006
 NET IMPORT/EXPORT
Coal Oil Gas Hydro Nuclear NRE Electricity Heat

100%

80%

60%

40%
•Expected to
Percentage

become net
20% importer by
2020
0%
2002 2010 2020 2030
-20%

-40%

-60%

-80%

Source: APERC 2006

February, 2016
 FACTS ON SUBSIDIES

February, 2016
 SUBSIDIES IN 2009
 Total subsidies given = RM74bil
• Average RM12,900 for each
Malaysian
• RM42bil-social services
(including education &
healthcare)
• RM23.5bil-fuel & energy
• RM4.8bil-
infrastructure(including toll)
 From rationalization plan-would
be able to save RM103bil in 5
years
Source:PEMANDU,27th May 2010
February, 2016
Fuel & LPG
 2004-2009 : RM5bil-RM15bil per annum
 To soar to RM200bil between 2010 and 2020
• Malaysians consumed 400 litres per
capita (2004-2009)
• Twice than Singapore (250ltrs per
capita in 2007), Thailand and Indonesia
• India and China – 50ltrs per capita in
2007)
 Blanket subsidy on fuels
• 71% going to middle-high income
groups
• 43% - Middle(RM2500-5000/month)
• 28%High(more than RM5000/month)
 RM1.71bil spent for LPG’s subsidy
• RM397mil (30%) used by households
 Subsidies for Fuels

February, 2016
 GOVERNMENT INITIATIVES
TO PROMOTE ENERGY
EFFICIENCY

February, 2016
POLICIES, STRATEGIES AND
PROGRAMMES

February, 2016
 EXISTING POLICIES
National Energy Policy
 A simple form of energy policy defined in terms
of its objectives
 Supply objective is to ensure adequate and secure
energy supply at reasonable prices

 Utilisation objective is to use energy efficiently and to

cut down on wasteful ways of using energy, and

 Environmental objective is that in ensuring the

achievements of the supply and utilisation objectives,
the environment is not degraded adversely

 Four fuel policy

 Oil, gas, hydro, coal
 To diversify energy mix used in power generation
 To reduce overdependence on oil as the principal energy
source
February, 2016
 EXISTING POLICIES
 National Depletion Policy
 Total annual production of crude oil
should not exceed 3% of oil-
originally in place
 Limit the production of oil at about
680,000 barrels a day

Fifth Fuel Policy -

RE
Targets
 500MW in 8th Malaysia
Plan
 350MW in 9th Malaysia
Plan
February, 2016
 EE POLICY
 Consultant study to formulate Energy
Policy
 National Renewable Energy Policy
and Master Plan being implemented
 National Energy Efficiency Action
Plan - just completed
 RE and EE Master/Action Plan – for
electricity sector only

February, 2016
 EE STRATEGIES
 Five Fuel Policy

 Focus in industrial and commercial

sectors

 Fiscal incentives

 Regulations
February, 2016
 EE STRATEGIES
 Demonstration projects

 Integrated complexes/townships

 Demand side management

 Development of related industries

and services
February, 2016
 EE STRATEGIES
 Research and development

 Energy use benchmarking

 Energy rating and labelling

February, 2016
 EE STRATEGIES
 Efficient lighting and air conditioning
systems

 Energy management systems

 Incorporation of EE in Uniform Building By

Laws

 Courses in learning institutions

February, 2016
 EE STRATEGIES
 Market pricing for energy

 Emphasis on demand side

management

 Regional (ASEAN) coorporation

February, 2016
 EE PROGRAMMES
General
 Demonstration projects
 EE and RE incentives enhancement
 EE/Demand Side Management project
 Malaysian Industrial Energy Efficiency
Improvement Project (MIEEIP)
 Development of Energy Service Companies
(ESCOs)
 Development of EEC Guidelines
 Building Sector Energy Efficiency Project
(BSEEP)
February, 2016
 EE PROGRAMMES
Awareness Programmes
Newspaper campaign
Seminars/workshops
Energy Efficiency (Domestic) Guidebook

Sectoral Programmes
High Efficiency Motors Promotion
High Efficiency Refrigerators Promotion
Appliance Energy Efficiency Labelling
Building Energy Efficiency Benchmarking
February, 2016
 EE AWARENESS/EDUCATION
Centre for Education and Training in Renewable
Energy and Energy Efficiency (CETREE)
 Located at Universiti Sains Malaysia
 Objective – to increase awareness of RE and
EE in the country
 Target groups – secondary schools,
universities, professionals, general public
 To be a national centre for EE and RE
awareness

February, 2016
 EE PLANNING
EE Planning Committee
GoM (EPU, MECM, MoSTE, MITI)

EE Plan
ST Management

EE Advisory Board EE Advisory Board EE Advisory Board

Industry Buildings End use / residential

Energy Rating Work Group Work Group

Work Group

Sub Work group

Sub Work group Sub Work group
Motors

Other Sub Work group

Sub Work group
Sub Work groups

Other Work Groups Work Group

February, 2016
 MIEEIP
The Malaysian Industrial Energy Efficiency
Improvement Project (MIEEIP) - Objective
was to improve EE in Malaysia’s industrial
sector by: -
 Identifying and removing barriers
 Encouraging implementation of EE projects
 Capacity building
 Developing legal framework
February, 2016
 MIEEIP
MIEEIP initially focused on 8 energy
intensive industrial sub sectors: -
- Iron & steel - Glass
- Cement - Pulp & paper
- Wood - Ceramics
- Food - Rubber
It was later extended to 3 more sectors,
oleo-chemical, plastic and textile sectors
February, 2016
 MIEEIP
MIEEIP Programmes include: -
 Energy-use Benchmarking
 Energy audits
 Energy rating
 EE promotion
 ESCOs support
 Energy Technology demonstration
 Local manufacturing support
February, 2016
 ENERGY EFFICIENCY
RATING AND LABELLING OF
APPLIANCE AND MATERIAL

February, 2016
 EE RATING AND LABELLING
 EE Rating and Labelling for: -
 Refrigerators
 Air Conditioners
 Fans
 Televisions
 Motors
 EE Rating: -
 Lamps
 Fluorescent Lamp Ballasts
 Insulation Material
February, 2016
 EE RATING AND LABELLING

February, 2016
 FISCAL INCENTIVES FOR
ENERGY EFFICIENCY AND
USE OF RENEWABLE
ENERGY

February, 2016
 INCENTIVES - EC
1. Companies Providing Energy Conservation
Services (ESCOs)

 Pioneer Status with income tax exemption of 100%

of statutory income for 10 years; or

 Investment Tax Allowance of 100% on the qualifying

capital expenditure incurred within a period of 5
years. The allowance to be set-off against 100% of
the statutory income for each year of assessment;
and

 Import duty and sales tax exemption on energy

conservation equipment that are not produced
locally and sales tax exemption on the purchase of
equipment from local manufacturers.
February, 2016
 INCENTIVES - EC
2. Companies Which Incur Capital Expenditure For
Energy Conservation For Own Consumption (End
User)

 Investment Tax Allowance of 100% of the qualifying

capital expenditure incurred within 5 years. The
allowance to be set-off against 100% of statutory
income for each year of assessment; and

 Import duty and sales tax exemption on energy

conservation equipment that are not produced locally
and sales tax exemption on the purchase of
equipment from local manufacturers

February, 2016
 INCENTIVES - EC
3. For Companies Which Import Energy Efficient
Products
 Exemption of import duty and sales tax be given on EE
equipment such as high efficiency motors and
insulation materials to importers including authorized
agents approved by the Energy Commission.

4. For Companies Which Manufacture Locally

Energy Efficient Products
 Sales tax exemption be given on the purchase of
locally manufactured EE consumer goods such as
refrigerator, air conditioner, lightings, fan and
television.

February, 2016
 INCENTIVES - RE
(A) Companies Generating RE for Sale
PS with tax exemption of 100% of statutory
income for 10 years; or
ITA of 100% for 5 years to be offset against 100%
of the statutory income.

(B) Companies Generating RE for Own Consumption

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

(C) Companies Generating RE for Sale/Own

Consumption
PS with tax exemption of 100% of statutory
income for 10 years for energy sold; or
ITA of 100% for 5 years to be offset against 100%
of the statutory income for the whole project.
February, 2016
 INCENTIVES
 The incentives given is based on the 2011 Budget
as announced by the Prime Minister in the budget
speech.
 The incentives is applicable for applications received
until 31 December 2015
 The company is required to implement the project
within one (1) year from the date of incentive
approval.
 Implementing Agencies:
MIDA – One stop centre for processing
Energy Commission – technical evaluation for
energy efficiency projects and products

February, 2016
LEGISLATIVE FRAMEWORK,
CODES, GUIDELINES AND
STANDARDS

February, 2016
 EFFICIENT MANAGEMENT
OF ELECTRICAL ENERGY
REGULATIONS 2008

February, 2016
 APPLICATION
 Any installation which receives electrical energy
from a licensee or supply authority with a total
electricity consumption equal to or exceeding
3,000,000 kWh as measured at one metering
point or more over any period of six consecutive
months; or
 Any installation used, worked or operated by a
private installation licensee with a total net
electrical energy generation equal to or exceeding
3,000,000 kWh over any period of six consecutive
months;

February, 2016
 NOTIFICATION
The Commission may, at any time by
written notice, direct -
(a)to appoint or designate a
registered electrical energy
manager ;
(b)to submit a written confirmation of
such appointment or designation
(name, particulars, date of expiry
of registration);
(c) to submit information;
(d)to submit reports;
February, 2016
 INFORMATION NEEDED
Information: -
(a)the statement of policy for efficient
electrical energy management of
the installation ;
(b)the objectives of efficient electrical
energy management; and
(c) the accounts and documents
pertaining to efficient electrical
energy management ;
February, 2016
 MS 1525: 2007 – CODE OF
PRACTICE ON ENERGY;
EFFICIENCY AND USE OF
RENEWABLE ENERGY FOR
NON-RESIDENTIAL
BUILDINGS:
February, 2016
 MS 1525
MS 1525: 2007 – Code of Practice on
Energy; Efficiency and Use of Renewable
Energy for Non-Residential Buildings: -
 Architectural and passive design strategies
 Building envelope
 Lighting- illumination levels, lighting
controls, O&M
 Electric power and distribution
 Air conditioning and mechanical ventilation
 Energy Management control system
February, 2016
 ENERGY EFFICIENCY AND
CONSERVATION
GUIDELINES

February, 2016
 EEC GUIDELINES
Part 1 – Electrical Energy Use Equipment : -
 Published in July 2007
 Section A – Over view on EE in Malaysia
 Section B – Equipment Guidelines
Types of Equipment
EE Potential
Selection Guide
Guidelines on Operations and
Maintenance

February, 2016
 EEC GUIDELINES
Part 1 – Electrical Energy Use Equipment:-
 Transformers
 Motors
 Chillers
 Cooling Towers
 Fans and Blowers
 Pumps
Air Compressors
Lighting

February, 2016
 EEC GUIDELINES
Part 2 – Thermal Equipment : -
 Published in June 2010
 Includes: -
 Boilers and Furnaces
 Thermal Oil Heaters
 Absorption Chillers and Heat
Recovery Equipment
 Cogeneration System

February, 2016
 MS ISO 50001
ENERGY MANAGEMENT
SYSTEMS —
REQUIREMENTS WITH
GUIDANCE FOR USE

February, 2016
 MS ISO 50001 - CONTENTS
1 Scope
2 Normative references
3 Terms and definitions
4 Energy management system requirements
4.1 General requirements
4.2 Management responsibility
4.3 Energy policy
4.4 Planning
4.5 Implementation and operation
4.6 Checking performance
4.7 Management review
Annex A (info) Guidance on the use of this standard
February, 2016
 ISSUES/BARRIERS
AND WAY FORWARD

February, 2016
 ISSUES/BARRIERS

 Absence of an overall policy and master

plan as well as proper institutional and
legal framework
 Lack of proper standards and
procedures to ensure quality of services
provided by EEC services industry
 Lack of certified competent persons in
EEC delivery

February, 2016
 ISSUES/BARRIERS
 Availability and accessibility of funding
 No serious effort among utilities to
implement demand side management
measures
 The availability of cheap and often
subsidised energy resources has made
the implementation of EEC activities not
as attractive as it should have been

February, 2016
 ISSUES/BARRIERS
 Balanced fuel mix vs. market-driven pricing
Affordable tariff to consumer
Ensuring efficient utilisation
 Demand side management
 Supply management
Coal importation
Depleting indigenous gas
Logistics management
High demand growth in China, India, Indonesia and
other developing countries
Japan nuclear crisis
February,
Intensifying
2016
renewable energy utilisation
 USE OF
RENEWABLE ENERGY
RESOURCES

February, 2016
 RE DEVELOPMENT IN MALAYSIA
8th Malaysia Plan (2001 – 2005)

RE as the 5th Fuel

Implied 5% RE in energy mix

9th Malaysia Plan (2006 – 2010)

300 MW in Peninsular Malaysia

50 MW in Sabah

10th Malaysia Plan (2011 – 2015) & beyond

New RE Policy & Action Plan

February, 2016
 ISSUES AFFECTING RENEWABLE
ENERGY UPTAKE
 Existence of market failure
 Constraints
 Lack of proper pricing mechanism
 Absence of regulatory framework
 Lack of institutional measures

February, 2016
 SREP PROGRAMME
Small Renewable Energy Power (SREP) Programme

Launched in 2001

Objectives:
To encourage production of RE by small power generators
and allow the sale of generated electricity to utilities

Administrative details:
• Special Committee on Renewable Energy (SCORE) chaired by the
Ministry of Energy, Green Technology & Water was set up to
coordinate the implementation of SREP
• A secretariat which functions as a One-Stop Centre for the
Programme has also been set up at Suruhanjaya Tenaga (ST) to
help facilitate the industry’s participation in the Programme.
February, 2016
 WAY FORWARD
 Energy Efficiency Act

 Energy Efficiency Policy

 National Energy Efficiency Master/ Action

Plan

 Sustainable Energy Agency/Agencies

February, 2016
 RE POLICY AND ACTION PLAN
The Cabinet Meeting on 2 April 2010 had
approved the:

i. Implementation of the new RE Policy and Action

Plan;
ii. Implementation of Feed-in Tariff (FiT) mechanism;
iii. Establishment of the RE Fund; and
iv. Establishment of a new statutory body as the
implementing agency for RE
– Sustainable Energy Development Authority (SEDA)

February, 2016
 RE POLICY AND ACTION PLAN

Synergies of RE Action Plan (5 strategic thrusts) leading towards a successful RE Policy

February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrusts

1. Introduce Legal and Regulatory

framework
2. Provide Conducive Business
Environment for RE
3. Intensify Human Capital Development
4. Enhance RE Research and Development
5. Create Public Awareness and RE Policy
Advocacy Programmes

February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrust 1: Introduce Appropriate Legal
Framework:

 A new RE Act
 Feed-in Tariff (FIT)
 RE Fund (and Professional Fund
Manager)
 FIT Implementing Agency
 Responsibilities and obligations on power
utilities and RE developers

February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrust 2: Creating a Conducive
Business Environment for RE Business:

 Promotion of RE business – SMEs and

manufacturing
 Long term low interest financing
 Standard evaluation process
 Fiscal incentives
 Special incentives for locally developed
R&D
 Incentives to promote local content
 RE Centre for SMEs
February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrust 3: Intensify Human Capital
Development:

 RE in technical and tertiary curricula

 RE training institutes and centres of
excellence
 Pool of experts to fulfil local and overseas
market
 Fiscal relief for RE courses
 Financial incentives for training
programmes

February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrust 4: Enhance RE Research and
Development:

 RE R&D Action Plan – reduce cost of

technology and promote wider application
 Coordination and cooperation in
technology and economic research
between government and private sector
 Strong linkages between local and
international research institutes
 Development of RE innovations

February, 2016
 RE POLICY AND ACTION PLAN
Strategic Thrust 5: Create Public and
Stakeholder Awareness and RE Policy
Advocacy Programmes:

 Effective and continuous information

dissemination
 Relationship with media, NGOs and
private entities
 Demonstration programmes
 Awareness in primary and secondary
schools
 Periodic monitoring and evaluation of RE
developments
February, 2016
 RE POLICY AND ACTION PLAN
Policy Statement

Enhancing the utilisation of

indigenous renewable energy
resources to contribute towards
national electricity supply security
and sustainable socio-economic
development

February, 2016
 RE POLICY AND ACTION PLAN
Objectives

1. To increase RE contribution in the

national power generation mix
2. To promote the growth of the RE industry
and increase its contribution towards the
national economy
3. To enhance competitiveness of RE
4. To conserve the environment for future
generations
5. To enhance awareness on the role and
importance of RE
February, 2016
 RE POLICY AND ACTION PLAN
 Goals:
 2015: 985 MW (6%)

 2020: 2,080 MW (11%)

 2030: 4,000 MW (17%)

February, 2016
GOVERNMENT’S PLAN TO REDUCE
WASTAGE AND INEFFICIENCIES
(PROPOSED BY PEMANDU)

February, 2016
 GAS AND ELECTRICITY
Price Increase Mitigation Plan
Increase gas price to the power and non power Electricity tariff for People who
sectors by RM3/MMBTU every six months after the lifeline consumers(in consume a lot of
initial increase(to be determined by the 2010, ≤200kWh) will electricity will
government) not be increased-About need to be more
This corresponds to an electricity tariff increase of 56% of households will energy efficient.
1.6 sen/kWh every six months not be affected in Strategic industries
2010. will be protected
Consumers with initially.
monthly a bill of RM20
and below will
continue to get free
electricity until
December 2010

Savings(RM mil) Total Mitigation Cost

2010 2011 2012 2013 2014
Gas subsidy rationalization
1,121 4,524 7,502 10,396 12,346
RM180mil/year

February, 2016
 GOVERNMENT’S ECONOMIC
TRANSFORMATION PROGRAM(ETP)
• EE will be one of Entry Point Projects(EPPs) in
Oil, Gas and Energy Lab under the National Key
Economic Area(NKEA) for the ETP spearheaded
by PEMANDU.

• ETP is a program was launched by The Prime

Minister on 25th October 2010 to transform
Malaysia to become a high income nation by
2020.

February, 2016
 EE INITIATIVES UNDER ETP

February, 2016
 ENERGY STUDY-BUILDING SECTOR
• Distribution (%) of energy consumption in Malaysian Buildings
(by PTM 2003)

Residential Hotels Shopping Offices

Complexes
Lighting 25.3 18.0 51.9 42.5

Air-Conditioning 8.3 38.5 44.9 51.8

Total efficiency potentials:

Energy 33.6 56.5 96.8 94.3
• 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

February, 2016
 ENERGY STUDY-INDUSTRIAL SECTOR
• Malaysia Industrial Energy Efficiency Improvement Program
(MIEEIP) by PTM, ended 2005
Industry Total Annual Total Capital Potential Paybac
Type Potential Energy Potential. Expenditure Cost Saving/year Period
Energy Saving (GJ/yr) Energy (RM ‘000) (year)
(RM‘000) % of
(GJ/yr) Saving
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 32.7 39,456 33,752 16.5 1.2

3
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 & 811,547 5,080,208 16.0 29,883 18,174 21.3 1.6
PAPER
IRON & 270,053 4,215,761 6.4 4,443 5,247 3.4 0.8
STEEL

February, 2016
 BUILDING DEMONSTRATION
PROJECTS BY THE GOVERNMENT

Improved
versions
with more
sustainable
features

February, 2016
 Energy Saving Comparison of KeTTHA LEO
Building and GreenTech Malaysia GEO Building.
6000000

5000000

4000000

3000000

2000000

1000000

0
LEO Energy Consp LEO Energy Cost GEO Energy Consp GEO Energy Cost
LEO BEI GEO BEI
[kWh/year] [RM/year] [kWh/year] [RM/year]

If not EE design 275 5,290,125 1,099,000 225 698,500 277,305

With EE design 115 2,218,492 493,000 65 210,687 83,643
Saving 160 3,071,633 606,000 160 487,813 193,662
% 55% 70%

SOURCE: LEO Building - Energy Performance of LEO Building by KTAK-DANIDA (2006)

GreenTech GEO Building - Energy Performance report of GEO Building by GreenTech Malaysia (2010).

If not EE design W ith EE design Saving %

February, 2016
 TARGETED BUILDING ENERGY INDEX
FOR EC’S BUILDING:85 KWH/M²/YEAR

Building Energy Index

Base Building Proposed Building

140

120 116
108

100
kWh/m2/year

80

60
51

39
40
28
19
20 13
4
0
Cooling Energy Fan Energy Lighting Energy Plug Load Energy
Categories

February, 2016
 AWARENESS CAMPAIGNS AND
PROMOTIONAL ACTIVITIES
Printed media: handbooks, brochures, posters, competitions,
advertisements

February, 2016
 EE Conservation for Electrical EE Conservation for Thermal
Energy Use Equipment Energy Use Equipment

Energy Audit Commercial

Industrial
Guidelines Buildings

February, 2016
 INDUSTRY DEVELOPMENT
• Malaysia Industrial Energy Efficiency Improvement Project
(MIEEIP)

• Establishment of Malaysia Energy Services Companies

Associations (MAESCO)

• Establishment of Malaysia Energy Professional Association

(MEPA)

• Establishment of Green Building Confederation and Green

Building Index rating tool.

• Endorsement of Continuous Development Program providers

by Energy Commission in efficient management electrical
energy

February, 2016
FUEL MIX PROJECTION–PENINSULAR MALAYSIA
200000
Distillate
180000 Nuclear

160000 Hydro
17.8%
Coal
140000 3.9% 4.6%
Gas
120000 4.0%
0.4% 4.5%
100000 5.2% 46.7% 36.5%
47.8%
80000 40.2% 44.5%

60000

40000 54.2% 41.1%

51.0% 48.2% 49.4%
20000

2010 2011 2015 2020 2030

February, 2016
 DEVELOPMENTS IN
ELECTRICITY SUPPLY INDUSTRY
• Competitive Bidding for new 1000MW coal-
fired power plant.
• Incentive Based Regulation
• Activity based licensing
• Guaranteed Service Level (GSL) / Minimum
Service Level (MSL)
• Ring fencing of the Grid System Operator
• Revision of the Grid Code
• New Distribution Code
February, 2016
 POSSIBLE STUCTURE:
MANAGING THE DEMAND
EFFICIENT MANAGEMENT
OF ELECTRICAL ENERGY
DEMAND SIDE
SUPPLY SIDE

Management Require Policy

of supply And
Management Of Users
Legislations

Competency&
Standards & Labeling Accreditation
Generation

Education & Awareness Technologies

Transmission

Advisory And Fiscal

Technical Support incentives
Distribution
February, 2016
 CONCLUSIONS

 A number of initiatives have been

undertaken to promote EEC and use of RE
 Not very encouraging results so far
 The way forward
 Managing facilities well will contribute
significantly in this respect
 Malaysia’s commitment towards global
climate change initiatives

February, 2016
 THANK YOU

February, 2016