Energy Efficiency and Energy Energy Efficiency and Energy Management Initiatives Management Initiatives

in Malaysiain Malaysia

Mr. Ahmad Zairin Ismail

Malaysian Green Technology Corporation

4th October 2012

GREENTECH MALAYSIA GREENTECH MALAYSIA ACTIVITIESACTIVITIES

POLICY AND STRATEGYPOLICY AND STRATEGYMALAYSIA ENERGY POLICY

• The Supply Objective: To ensure adequate, secure and cost-effective energy supply through developing and utilising alternative sources of energy.

• The Utilisation Objective: To promote efficient utilisation of energy and to discourage wasteful and non-productive patterns of energy consumption.

• The Environment Objective: To minimise the negative environmental impacts of the energy supply chain.

Definition of Green TechnologyThe development and application of products, equipment and systems used to conserve the natural environment and resources , which minimizes and reduces the negative impact of human activities .

Satisfy any of the following General Criteria :• minimizes degradation to the environment;• has zero or low green house gas (GHG) emission;• safe for use and promotes healthy and improved

environment for all forms of life;• conserves the use of energy and natural

resources ; and• promotes the use of renewable resources

NATIONAL GREEN NATIONAL GREEN TECHNOLOGY POLICYTECHNOLOGY POLICY

• For Energy Service Companies (ESCOs) providing EE services using Energy Performance Contracting (EPC)– Pioneer Status, Investment Tax Allowance– Import duty & Sales Tax Exemption

• For companies implementing EE projects for own benefit– Initially Accelerated Capital Allowance but enhanced

to Investment Tax Allowance under Budget 2006– Import duty & Sales Tax Exemption

FISCAL INCENTIVESFISCAL INCENTIVES

MALAYSIAN EXPERIENCEMALAYSIAN EXPERIENCE

• Aims to reduce the barriers and encourage implementation of EE improvements in the 8 energy intensive manufacturing sectors; cement, ceramic, iron&steel, food, glass, wood, pulp&paper, rubber + oleochemical, plastic and textile. – Audited 54 companies. Identified potential energy

savings of 5-34% for the sub-sectors– Demonstration Projects

• Fuel Replacement using Wood Waste (ESCO-EPC)• Boiler Heat Recovery - Food• Gob image analyzer / forming machine - Glass• Tunnel Kiln Upgrading – Ceramic

• Established e-Bencmarking facility for industry

Target10% reduction in:

Energy Consumption

Energy Intensity

GHG emissions

Malaysia Industrial Energy EfficiencyImprovement Project (MIEEIP) 2000

MIEEIP FINDINGSMIEEIP FINDINGS--ENERGY SAVING POTENTIALENERGY SAVING POTENTIAL

Source: Malaysian Energy Efficiency Improvement Project (MIEEIP)

0

100

200

300

400

500

600

700

RM

mill

ion

Number of companies audited = 48Estimated Capital Expenditure RM 108 million

Sta

tus

quo

If 10

0%

impl

emen

ted

DescriptionNo

CostLow Cost

High Cost

Total

No of recommended measures

156 212 105 473

No of measures implemented/in progress

104 76 15 195

Success rate 41.20%

Audit date: 2001-2003Survey date: 2005

ENERGY AUDITS ENERGY AUDITS GOVERNMENT BUILDINGSGOVERNMENT BUILDINGS

• Objective: to create awareness and disseminate relevant information regarding energy efficiency (EE) among the government organizations.

• 2001: Developed Energy Audit Guideline for Commercial Buildings and Technical Reference.

• 12 Nos. of government offices In 2002-2003

• Low Energy Office-Ministry Energy Green Technology & Water

• “Energy Efficient Building Best Practices Competition 2006” at the ASEAN level under the “New and Existing Building”category.

ENERGY EFFICIENCY ENERGY EFFICIENCY DEMONSTRATION PROJECTSDEMONSTRATION PROJECTS

• Energy Commission headquarters, the Diamond Building• Most energy-efficient building at the Asean Energy

Awards (AEA) 2012 held on September 12, in Phnom Penh, Cambodia.

• Green Energy Office (GEO) Building, Green Technology Malaysia

• Malaysia’s first completed green-rated office building.• Malaysia’s first Green Building Index (GBI) Certified

Building.

Standards & Labeling• MS 1525: The Code of Practice

on the Use of Renewable Energy and Energy Efficiency for Non-Residential Buildings

• Encourage design of new & existing buildings that reduces energy use

• Provide guidance for EE design

ASEAN Energy Management Scheme (AEMAS)

SUSTAINABLE ENERGY SUSTAINABLE ENERGY MANAGEMENT SYSTEM MANAGEMENT SYSTEM --SCHEMESCHEME

Website: mepa.greentechmalaysia.my

Training and certification of Energy Managers

• Training curriculum focused EXCLUSIVELY on managerial aspect• Two levels of certification: Certified EnMer and P.EnMer

Certification of companies• Based on ISO 50001 with additional requirements• Three levels of certification to progressively drive towards EnMgt best practices

Endorsed by the ASEAN Ministers of Energy Meeting ( AMEM ):

“Promote greater energy stability, security and sustainability as a pathway to building the ASEAN

Economic Community 2015 ; to balance economic development with environmental sustainability,

through improving energy efficiency …”

“System of certification based on Best Practice in energy

management”

Trained more than 300 Energy

Manager

ST & IEM approved CPD

LAUNCHED BY YB MINISTER OF ENERGY, GREEN

TECHNOLOGY AND WATER -19TH JULY 2011

Certified Organizations:UTM, Skudai & TM R&D, Cyberjaya

ENERGY MANAGEMENT ENERGY MANAGEMENT --AEMASAEMAS

Standards & Labeling

• Involved in newly launched standardISO 5001:2009, Energy Management Systems

Efficient Management of Electrical Energy regulations 2008 (Electricity Supply Act 1990)

• Effective date : 5 December 2008• Key Provisions:� Applied to big energy users� Appointment and notification of Electrical Energy

Manager � Electrical Energy Management Policy� Energy audit� Recommendations for electrical energy management� Monitoring and keeping of records� Periodical reporting

• The SAVE Program was launched on July 7, 2011

• Initiative is to stimulate sales of energy-efficient appliances by providing rebates for consumers

STANDARDS & EE LABELINGSTANDARDS & EE LABELING

• Labeling for Industrial Motors and Household electrical equipment

THE WAY FORWARDTHE WAY FORWARD

• Energy Efficiency and Conservation Act expected to be enforced by 2014

• 10-year National Energy Efficiency Master Plan (NEEMP) which in final stage for implementation

• Intensify EE initiatives in industrial, transport and commercial sectors and in government buildings

THANK THANK YOUYOUAhmad Zairin IsmailMalaysian Green Technology CorporationNo. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 943650 Bandar Baru Bangi, Selangor Darul Ehsan

Tel:03-89210800 DL:03-89210808 Fax:03-89210802 Website:

www.greentechmalaysia.mywww.mepa.greentechmalaysia.my