ENERGY EFFICIENCY PROGRAMS IN MALAYSIA 1
OUTLINE OF PRESENTATION Need for Energy Efficiency Background of Energy Efficiency in Malaysia Energy Resources and Electricity Demand Energy Policy Renewable Energy Programs Energy Efficiency Programs Summary 2
BACKGROUND OF EE IN MALAYSIA Malaysian government started various energy efficiency measures during the oil crisis in the 1970s such as using more efficient lamps and air-conditioning plants in public buildings. However, EE was not pursued actively after the oil crisis. Promotion of EE was renewed in the 1990s by the Electricity and Gas Supply Department( now the Energy Commission) and the Ministry of Energy. 3
BACKGROUND OF EE IN MALAYSIA EE Regulations was drafted in mid 1990 but not implemented due to some legal issue. An Energy Efficiency Unit was set up in late 1990s in the Electricity and Gas Supply Department for promoting EE 4
BACKGROUND OF EE IN MALAYSIA Various activities were carried such as: - Minimum energy performance standards were implemented for certain electrical products which required to be approved by the Department such as lamp chokes and fans - Awareness campaigns were conducted among school children, teachers and the general public as well as the industry and commercial sectors - Brochures and guidebooks on how to use energy wisely were published and distributed to the public 5
WHY ENERGY EFFICIENCY? Reduce impacts of the energy sector on the environment Improve competitiveness of products and services in the global market Conservation of fossil fuels Reduce requirements of planting up infrastructure facilities 6
NATIONAL ENERGY RESOURCES As at early 2003, the country s reserves of energy resources was as follows:- crude oil: 4.23 billion barrels natural gas: 87.3 trillion cubic feet coal: 1,483 million tonnes Hydropower potential: 29,000MW biomass residues potential: > 3,000 MW 7
Electricity Demand Year 1990 2000 2001 2002 2003 Electricity Demand (MW) 4,000 10,640 11,000 11,780 12,420 Increase (%) -- -- 3.4% 7.1% 5.4% 8
NATIONAL ENERGY POLICY The energy policy under the 8 th. Malaysia Plan (2001-2005) focuses on: sustainable development of energy resources greater utilisation of gas increase use of renewable energy improve energy efficiency minimise impacts of energy sector on the environment 9
NATIONAL ENERGY POLICY The original 4 fuels changed to 5 fuels policy Renewable energy (RE) and energy efficiency (EE) have been included as the 5 th. fuel in addition to the traditional 4 fuels i.e, gas, hydro, oil and coal Promote use of RE such as biomass, biogas, waste energy sources, solar and mini hydro with more emphasis on oil palm residues and other agriculture wastes which are abundant in the country. 10
NATIONAL ENERGY POLICY Promote cogeneration in the industry and commercial sectors. There are about 800 MW of co-generation installations in operation now Promote thermal storage Promote district cooling Promote use of energy efficient equipment and appliances 11
NATIONAL ENERGY POLICY Tax exemption benefits have been introduced in the year 2001 to encourage, among others, energy efficiency and renewable energy such as: - accelerated capital allowance - investment tax allowance - import tax and sales tax exemption 12
NATIONAL ENERGY POLICY The Small Renewable Energy Programme or SREP was introduced in 2001 to promote the use of RE A SREP project shall be near to the local distribution grid with connected capacity not more than 10 MW Project which meets the criteria will be allowed to supply electricity to the local distribution grid using a standard power purchase agreement with selling prices in the region of 17 sen/kwh 13
STATUS OF SREP (as of December 2004) 136 applications from 55 developers 65 projects approved by the Ministry of Energy Total generating capacity of 369 MW of which 326MW is to be grid connected Out of 6 licences issued by the Energy Commission, only 1 has been completed. Developers faced with various challenges such as uncertainty of long term supply of biomass and difficulty in securing bank loan 14
STATUS OF SREP (as of December 2004) Energy Source Applications Approved Generation Capacity (MW) Grid Connected Capacity (MW) % Biomass : i) Oil Palm Residue 27 214.7 175.6 53.9 ii) Wood waste 1 6.6 6.6 2.0 iii) Rice husk 2 12.0 12.0 3.7 iv) Municipal waste 1 5.0 5.0 1.5 v) Combination 3 19.2 19.2 5.9 Landfill gas 5 10.2 10.0 3.1 Mini hydro 26 101.2 97.4 29.9 Wind & Solar 0 0 0 0 Total 65 368.90 325.8 100 15
MAJOR ENERGY EFFICIENCY PROJECTS Capacity Building on Energy Efficiency and Demand Side Management (EE/DSM) Project Low Energy Office Demonstration Project Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) Promotion of Awareness and Education in RE and EE among School Children(CETREE) 16
EE/DSM CAPACITY BUILDING PROJECT Capacity Building in the Energy Commission(EE Unit) and Related Key Institutions on Energy Efficiency and Demand Side Management is a three year project commencing in February 2002. 17
EE/DSM CAPACITY BUILDING PROJECT Objective:- To hence the existing capacity of the Commission to manage and co-ordinate initiatives to achieve national energy efficiency targets by co-operation with government institutions and implementing agencies. 18
EE PLANNING EE Planning Committee GoM (EPU, MECM, MoSTE, MITI) EE Advisory Board Industry EE Plan ST Management EE Advisory Board Buildings EE Advisory Board End use / residential Energy Rating Work Group Sub Work group Motors Other Sub Work groups Work Group Sub Work group Sub Work group Work Group Sub Work group Sub Work group Other Work Groups Work Group 19
EE PLAN EE Plan formed as a result of the efforts of and input from the various workgroups A three year revolving plan Various possible programs were evaluated and chosen based on benefit cost ratios of the projects 20
EE PLAN Initial plan suggests 9 programs which will entail a public sector expenditure of RM 33 m This is expected to draw private sector investments of about RM 74 m Estimated savings 1,400 GWh worth RM 238m over the lifetime of the implemented measures Average cost of energy saved: RM0.11/kWh 21
Planned programmes for 2003-2006 News Paper EE Awareness campaign EE lighting campaign Roof insulation campaign Refrigerator campaign Audit for commercial customers over RM 50.000 Audit for industrial customers over RM 50.000 High efficient ventilators campaign Mass media EE awareness campaign High efficient motor campaign EE PROGRAMS Target group Households Households Commercial Households, Commercial Households, Commercial Commercial sector, with bills above RM 50,000 per month Industrial sector, with bills above RM 50,000 per month Industrial, Commercial Households General public Industrial, Commercial Measures Awareness through newspaper adverts Energy Labelling & promotion Awareness & promotion Energy Labelling Audit & Consultancy Audit & Consultancy Energy Labelling & promotion Awareness through mass media: TV, radio, news papers etc. Energy Labelling & promotion Goals Increase EE awareness & adopt EE behaviour Higher market share of CFL Savings on Air con use by reducing heat gains in building (improve comfort) Higher market share of high efficient refrigerators Recommend and implement EE in facilities Recommend and implement EE in facilities Higher market share of high efficient ventilators Increase EE awareness & adoption of EE behaviour Higher market share of high efficient motors 22
Comparative Label Endorsement Label 23
LOW ENERGY OFFICE BUILDING PROJECT The new office building of the Ministry of Energy, which has just been completed in 2004, will be used as a demonstration project on low energy office building (LEO). The energy consumption of the LEO building is only about 50% of a normal office building with similar facilities 24
MIEEIP The Malaysian Industrial Energy Efficiency Improvement Project is Funded by: - United Nations Development Program (UNDP) Global Environmental Facility (GEF) Government of Malaysia 25
MIEEIP Objective to improve EE in Malaysia s industrial sector by: - Identifying and removing barriers to efficient industrial energy use Encouraging implementation of EE improvement projects in industries 26
MIEEIP Promoting capacity building of local EE experts and consultants Prepare groundwork for authorities to develop a legal basis for improving EE 27
MIEEIP MIEEIP focuses on 8 energy intensive industrial sub sectors: - - Iron & steel - Glass - Cement - Pulp & paper - Wood - Ceramics - Food - Rubber 28
MIEEIP MIEEIP Programmes include: - Energy-use Benchmarking Energy audits Energy rating EE promotion 29
MIEEIP ESCOs support Energy technology demonstration Local manufacturing support 30
RE & EE AWARENESS/EDUCATION Centre for Education and Training in Renewable Energy and Energy Efficiency (CETREE) under University of Science Malaysia established few years ago to promote awareness and education on RE and EE among school children and general public. A mobile van equipped with various educational kits, brochures and equipment to conduct activities in schools. 31
RE & EE AWARENESS/EDUCATION Workshops conducted to train teachers to promote RE & EE in schools RE & EE will be included in the school syllabus to educate school children 32
EE & RE CODE OF PRACTICE MS 1525: 2001 Code of Practice on Energy; Efficiency and Use of Renewable Energy for Non-Residential Buildings: - Architectural and passive designs Building envelope Lighting- illumination levels, lighting controls, O&M Electric power and distribution Air conditioning and mechanical ventilation Energy Management control system 33
SUMMARY Energy efficiency and renewable energy are important means towards the development of sustainable energy and reducing the impacts of the energy sector on the environment Malaysia is implementing programs to promote EE & RE in the country. 34
THANK YOU 35