Training on Energy conservation for Malaysia(ECMY4)-Group Presentation
ENERGY CONSERVATION FORMALAYSIA(ECMY4)BARRIERS IN IMPLEMENTING ENERGYEFFICIENCY AND ENERGYCONSERVATION ACTIVITIES :THE ABSENCE OF COMPREHENSIVEEE&EC POLICY AND LAWGroup name: Group A27 June 2008ENERGY EFFICIENCY INFORMATIONSHARING SERIES
GROUP MEMBERSZaini Abdul Wahab – Energy Commission (Group Leader and Presenter)Gopal Narian Kutty – Public Works DepartmentNoor Maya Abdul Wahab – Malaysia Energy CentreDzainul Khalid – Tenaga Nasional BhdNor Hisham Sabran - Malaysia Energy CentreSaharudin Savee - Malaysia Energy CentreKamal Jumblatt Mohd Afendi – Department of Occupational Safety and Health.
CONTENT1. EXISTING SCENARIO OF EE & EC IMPLEMENTATIONACTIVITIES IN MALAYSIA2. THE EXISTING ENERGY RELATED POLICIES3. THE EXISTING EE RELATED PROVISIONS IN THE LAWS4. WHY EE&EC POLICY AND LEGISLATION NEEDED5. AREAS TO BE COVERED IN THE NEW E & EC POLICY6. AREAS TO BE COVERED IN THE NEW EE & EC LAW7. THE IMPLEMENTATION PLAN8. ACTIONS TO SUPPORT IMPLEMENTATION OF THE NEW EE&ECPOLICY AND LAW9. THE CONCLUSION
1. THE EXISTING SCENARIO OF THEIMPLEMENTATION OF EE & EC ACTIVITIES(1/2)1. Initiated and executed by many parties ( government & internationalagencies, NGOs, private sectors) without any specific and long term policyand legal requirements to be followed.2. On project basis and no continuation once completed and projects ownedby various organizations with their own defined objectives and goals-lackingof long term coordination and collaboration in specific areas.3. No standards recognized by the authorities and followed in EE&ECservices, equipment and appliances and no certification system for thecompetency of EE & EC professionals/practitioners recognized andauthorized by the government.4. Lack of funding sources and confidence to fund EE&EC projects byfinancial institutions.5. Energy price (electricity and fuel) is still being made understood andpromoted as among the lowest in the region- create “cushioned” impactresulted from actual global environment among general public.
1. THE EXISTING SCENARIO OF THEIMPLEMENTATION OF EE & EC ACTIVITIES(2/2)6. Variety of standards and qualities of services provided by EE & EC servicesindustry- lack of confidence among interested parties such as high energyusers (e.g: high cost charged by EE & EC service providers for energyaudits)7. No urgency among the utility companies due to supply of electricity is morethan demand (big reserve).8. Bureaucracy issues in the processing procedures in fiscal incentives such aspioneer status, ITA, import duty and sales taxes exemption offered by thegovernment.9. Lacking of certified competent persons in EE& EC delivery due tounavailability of national competency program.10. Many studies on EE & EC carried out by many foreign governmentagencies and organizations but not translated into comprehensive long termplan for implementation (UNDP,JICA, DANIDA).
2. THE EXISTINGENERGY RELATED POLICIES (1/4)NATIONAL ENERGY POLICY OBJECTIVES The Supply ObjectiveTo ensure the provision of adequate, secure and cost-effective energy suppliesthrough developing indigenous energy resources both non-renewable andrenewable energy resources using the latest cost options and diversification ofsupply sources both from within and outside the country; The Utilization ObjectiveTo promote the efficient utilization of energy and discourage wasteful andnon-productive patterns of energy consumption; and The Environmental ObjectiveTo minimize the negative impacts of energy production, transportation,conversion, utilization and consumption on the environment.
2.THE EXISTINGENERGY RELATED POLICIES (2/4)NATIONAL DEPLETION POLICY The policy, aimed at major oil fields of over 400 million barrels of oil initially inplace (OIIP), restricted their productions to 1.75 per cent of OIIP. At thecurrent production rate, proven oil reserves are expected to last another 16years. Gas reserves -At the current rate of production, known natural gas reserves areexpected to last for about 70 years.
2. THE EXISTINGEE & EC RELATED POLICIES (3/4)9th MALAYSIAN PLAN (2006-2010) - Chapter 19: Sustainable EnergyDevelopment (Energy Efficiency) The implementation of energy efficiency (EE) programs will focus on energy savingfeatures in the industrial and commercial sectors and EE features such as efficientlighting and air conditioning systems as well as establishing a comprehensive energymanagement system will be encouraged. The industrial sector will be encouraged to implement EE measures includingimprovements in plant, equipment and processes and efforts will be undertaken tointroduce the Efficient Management of Electrical Energy Regulations, amend theUniform Building By-laws (UBBL), label electrical appliances and use high-efficiencymotors. Initiatives to develop local expertise in the manufacture of EE equipment andmachineries as new sources of growth will also be supported. Efforts will be undertaken to enhance awareness on EE and suitable courses on REand EE for institutions of higher education will be developed.
2. THE EXISTINGEE & EC RELATED POLICIES (4/4)9th MALAYSIAN PLAN (2006-2010) - Chapter 19: Sustainable EnergyDevelopment (Energy Efficiency) Specialized courses on energy planning and management will be introduced toenhance the capacity of professionals in energy-related management. To promote greater EE in Government buildings, good energy practices suchas optimal lighting and air-conditioning will be adopted and energy audits willbe conducted in Government buildings to identify additional measures thatcan be implemented to further improve EE. To further support the implementation of RE and EE initiatives, existingfinancial and fiscal incentives such as Accelerated Capital Allowance will beimproved during the Plan period.
3. THE EXISTING EE&EC RELATEDPROVISIONS IN THE LAWS(1/2)ELECTRICITY SUPPLY ACT 1990Section 4: Functions And Duties(la) to promote the efficient use of electricityPart VA Efficient Use Of ElectricitySection 23a. Minister To Determine Standards, Etc. The Minister may, from time to time, prescribe the standards, specifications, practicesand measures to be adopted and any other matters in respect of the efficient use ofelectricity.Section 23b. Installation To Meet Requirements. No person shall use or operate any installation unless the installation meets suchrequirements as may be prescribed in respect of the efficient use of electricity.Section 23c. Equipment To Meet Requirements. No person shall manufacture, import, sell or offer for sale or lease any equipmentunless the equipment meets such requirements as may be prescribed in respect of theefficient use of electricity.
3. THE EXISTING EE&EC RELATEDPROVISIONS IN THE LAWS(2/2)ENERGY COMMISSION ACT 2001Section 4(g) to promote efficiency, economy and safety in the generation, production,transmission, distribution supply and use of electricity and the use of gasthrough pipelines and the use of gas supplied through pipelines(i) to promote the use of renewable energy and the conservation of no-renewableenergy(j) to promote into, and the development and the use of new technologies relatedto-(i) the generation, production, transmission, distribution supply and use ofelectricity; and(ii) the use of gas through pipelines and the use of gas supplied throughpipelines.
4. WHY SPECIFIC EE&EC POLICY ANDLEGISLATION NEEDED (1/2)1. To have comprehensive and dedicated approaches with comprehensive policy and legalframework with regard to EE & EC – key elements to drive implementation activities.2. To define meanings of EE & EC and roles of respective parties involved fromgovernment agencies due to energy related issues are under the purview of variousministries.3. To avoid overlapping/redundancy of roles played by government agencies, institutions,private sectors, NGOs and etc.4. To enable the development of the implementation mechanisms by government agenciesbased on their jurisdictions.5. No enforcement powers for the authority to ensure EE & EC targets achieved.6. To ensure allocation of resources and financial support for EE & EC activities with moreestablished , simplified and effective procedures.
4. WHY SPECIFIC EE&EC POLICY ANDLEGISLATION NEEDED (2/2)7. To ensure continuity of projects/program implemented.8. To have standards to measure and monitor of the actual impacts of eachEE&EC activities.9. Specific policy and legislation proven to be effective in other areas such assafe &health (OSHA 1994) and environment protection (EQA 1974).10. Specific policy and legislation proven to be effective in implementing EE &EC in other countries such as Japan (Energy Conservation Act 1979),Thailand (Energy Conservation Promotion Act 1992) and India.11. The avoid Malaysia become “ dumping sites” for energy inefficientproducts.12. To ensure efficient utilization of energy use and the country’s resources toremain sustainable and competitive.
5. AREAS TO BE COVERED IN THENEW EE&EC POLICYPOLICY1. Energy Conservation target for the country mid-long term2. Target areas Electricity and fuel users (people and equipment)3. Target groups Demand side ( high energy users for factories and buildings, transportation)
6. AREAS TO BE COVERED IN THENEW EE&EC LAWLEGISLATION1. Competency (energy managers, auditors, ESCOs)2. Standards and labeling for equipment and appliances3. Promotion and education on EE & EC activities and technologydevelopment.4. Funding sources and distribution mechanisms5. Punishments and monetary penalties
7. THE IMPLEMENTATION PLAN1. Proposed Organizational Structure2. The Implementation Steps Flow Chart3. Implementation Tasks And Timeline Implementation Gantt Chart
1. To convince/lobby the policy makers on the urgency to have a political willin introducing and implementation of EE & EC policy and legislation forthe country.2. To capitalize on the global factors and forces such as fuel price increase(created urgency) and success stories of other countries by having clear EE& EC policies and laws in their implementation approaches (comparisonanalysis).3. To establish one centralized agency to oversee the planning,implementation and monitoring of EE& EE activities and its performance.4. To create a pool of experts and competent persons in the EE& EC toensure higher delivery standards and to prepare for the implementation ofthe new policy and laws.8. ACTIONS TO SUPPORTTHE IMPLEMENTATION OFNEW EE&EC POLICY AND LAW (1/2)
8. ACTIONS TO SUPPORTTHE IMPLEMENTATION OFNEW EE&EC POLICY AND LAW (2/2)5. To have more promotions to create awareness and showcases of moresuccessful EE&EC activities in high energy users within their specificindustry groups.6. Continuously developing standards and best practices informationaccording to Malaysian environment.7. To have more promotion and awareness program on new technologies andtechnology development in EE & EC equipment, appliances and vehicles .
9. THE CONCLUSION Malaysia needs a comprehensive and specific EE& EC policy and legislation frameworkURGENTLY. The establishment of a Centralized Agency tooversee the implementation of EE & ECactivities is very important.
Thank you for your attentionand a special thanks and appreciation to ECCJteam of experts for guidance and knowledgeshared.