BDE 40203

ENERGY MANAGEMENT &

CONSERVATION

Title: Introduction

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Presentation Outline:
Overview on Energy
Current Energy Scenarios
Energy Policies & Legislation

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

What is energy?
Energy is defined as the ability to do work in physics
Here, energy is considered as the resources having
the ability to do work

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Forms of Energy
KINETIC
Energy is energy in
motion (e.g. moving
automobile, falling water,
light from sun)
POTENTIAL
Energy is stored energy
(e.g. water behind a dam
or a litre of oil).

Energy has a basic identity but can change

form- potential energy in oil changes to
kinetic energy (steam) heat, when oil is
burned in a boiler furnace.
When steam strikes the blades of a
turbine, part of the heat in the steam
becomes the kinetic energy of the moving
turbine.
The turbine then turns an electric
generator, converting some of its kinetic
energy into another form of kinetic energy,
electricity.
This electric energy, transmitted to a
factory, may be converted to mechanical
energy to drive a machine, or to light

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Sources Of Energy
Five primary sources of energy : Solar, Geothermal,
Chemical, Tidal And Nuclear
Chemical &nuclear : potential forms of energy
Solar, geothermal & tidal: kinetic forms of energy
Coal, oil and gas (Fossil fuels)
Chemical process that converts these potential energy sources
into usable form
When the carbon atoms in these fuels are burned the stored
energy within is released
Provide the world with most of its energy.

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Summary Of The Sources Of Energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Malaysias Oil And Gas Reserves

Five primary sources of energy : Solar, Geothermal,
Chemical, Tidal And Nuclear
Chemical &nuclear : potential forms of energy
Solar, geothermal & tidal: kinetic forms of energy
Coal, oil and gas (Fossil fuels)
Chemical process that converts these potential energy sources
into usable form
When the carbon atoms in these fuels are burned the stored
energy within is released
Provide the world with most of its energy.

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Malaysias 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)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Oil & Gas Resources

Total resources addition has been shrinking despite increased in

exploration activities

More wells but less quantity extracted from each

well

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Classification
of Energy

Primary &
Secondary energy

Commercial &
Non commercial
energy

Renewable & Nonrenewable energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Primary and Secondary Energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Commercial And Noncommercial Energy

Commercial energy
Available at market price
Electricity, coal, oil, and natural gas
Non-commercial energy
Not available in market for a price
Firewood, cattle dung and agricultural wastes, solar energy,
animal power,
wind energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Renewable & Non-Renewable

Energy

Renewable

NonRenewable

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Renewable Energy : Solar

The energy from the sun is radiant wave energy
Most of the radiant energy received by the earth is reflected
back into space
Only a portion entering into the atmosphere is absorbed by
the air, sea and
wind, increasing their energy.
Energy from wind, water, waves or wood is also a form of solar
energy
Solar energy is the source for the motion of winds and waves.
The suns heat evaporates water and the winds carry it. It falls
as rain and

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Renewable Energy : Solar

Sunlight provides energy for the growth of woody plants and
other plant
material (biomass) which is thus a source of stored solar
energy.
The suns energy can also be indirectly tapped by using the
temperature
gradient of oceans at different depths, or solar ponds
Technical viability of new and renewable energy sources has
been established
The main difficulty is in making them commercially viable

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Geothermal and Nuclear

Geothermal energy
comes from within the earth
the heat of geothermal energy can mined for use
tides are very high a kind of hydroelectric plant can be built to
harness their energy.
Nuclear energy is a form of potential energy stored in the
nucleus of an atom.
Present-day nuclear reactors are based on fission reactions
In this process a heavy atom is split into two lighter ones, releasing
energy
Scientist are currently working to develop nuclear reactor based on
fission reactions, in which two lighter nuclei will be combined to form
a heavier one, releasing energy in the process.
About four decades ago it was thought that nuclear fuel could
substitute for oil and gas
Environmental and safety considerations did not permit its growth

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Geothermal and Nuclear

Today, the world uses each of these four energy sources to a limited
extent and reliance is most heavily on the fifth source : chemical
energy from fossil fuels

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Fuels
Types:
Liquid, solid and gaseous fuels
The main industrial energy
requirements are electricity & fuels purchased from the utility
Tips on Selection of Fuels:
availability
storage
handling
pollution
landed cost of fuel

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Fuel Properties

Conversion Figures
Electricity

1 kWh = 0.0036 GJ

Heavy fuel oil

= 36,000 MJ/m3
(Gross calorific value)
(36,000 kJ/litre)
Coal
= 28 GJ/ton
(Gross calorific value)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Power Generation Mix In

Malaysia: Oil To Gas Dependency

Source: Energy Commission

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Electricity Generation Fuel Mix

in Malaysia

Source: Energy Commission

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

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
Source: Exxon Mobil Energy Outlook 2012
used to make electricity

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Example of energy flow and electric power

consumption

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Structure Of Electricity Supply

Industry in Malaysia

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

UNDERSTANDING ENERGY COSTS

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Key Components In Energy Bills

Energy Cost (Fuel price) fluctuating according to market
price
Fixed and variable costs

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Fuel Pricing Structure

Selling Price = Market Price + Other variable costs +

Fixed Cost + PROFIT

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Movement Of Oil Prices: Crude Oil

Prices (Dollar)

Source: www.wtrg.com

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Movement Of Natural Gas Prices

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Movement Of MFO and Natural Gas

Prices

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Purchased Energy (Based On

Invoices)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Purchased Energy (expressed in

common units)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Cost Of Energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Cost For Various Types Of Energy

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Energy Used Annually

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

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

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FRAMEWORK FOR ELECTRICITY SUPPLY

INDUSTRY REGULATION

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

ENERGY SCENARIO SUPPLY

AND DEMAND SITUATION

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Malaysias 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)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

DECLINING OIL AND GAS

PRODUCTION
Total resources addition has been shrinking despite
increased in
exploration activities
Reserve life:
Oil 22 years
Gas - 28 years

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

TREND IN GDP, PRIMARY ENERGY

SUPPLY AND FINAL ENERGY DEMAND

source: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

COMMERCIAL ENERGY SUPPLY

source: Preliminary Results - National Energy Balance 2010 Malaysia

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL USE OF COMMERCIAL ENERGY

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

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL ENERGY USE BY SECTORS

source: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

HIGH DEPENDENCE ON GAS IN ELECTRICITY

GENERATION

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FUEL MIX IN ELECTRICITY

GENERATION (%)

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL ENERGY INTENSITY

source: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

COAL CONSUMPTION BY SECTORS

source: NEB 2012

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

NATURAL GAS CONSUMPTION BY

SECTORS

source: NEB 2012

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

ELECTRICITY CONSUMPTION BY
SECTORS

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

source: NEB 2012

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL CONSUMPTION OF PETROLEUM

PRODUCTS(2010)

source: NEB 2012

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

ENERGY SUPPLY &

DEMAND
PROJECTIONS

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

NATIONAL ENERGY DEMAND

Demand results : Energy demand
final units
Scenario : BAU

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

PRIMARY ENERGY SUPPLY BY FUEL

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL ENERGY DEMAND BY FUEL

source: APERC 2006

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FINAL ENERGY DEMAND BY SECTORS

source: APERC 2006

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

NET IMPORT/EXPORT

source: APERC 2006

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

FACTS ON
SUBSIDIES

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

SUBSIDIES IN 2009
Total subsidies given = RM74bil
Average RM12,900 for each Malaysian

Fuel & LPG

2004-2009 : RM5bil-RM15bil per annum

To soar to RM200bil between 2010 and 2020

Malaysians consumed 400 litres per capita
education & healthcare)
(2004-2009)
RM23.5bil-fuel & energy
Twice than Singapore (250ltrs per capita in
2007), Thailand and Indonesia
RM4.8bil-infrastructure(including toll)
India and China 50ltrs per capita in 2007)
RM42bil-social services (including

From rationalization plan-would be

able to save RM103 bil in 5 years

source: PEMANDU, 27th May

2010

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 LPGs subsidy
RM397mil (30%) used by households

BDE 40203
ENERGY MANAGEMENT &
CONSERVATION

Subsidies for Fuels