EE Initiatives and National EE Master Plan by The Ministry of Energy, Green Technology & Water
0%10%20%30%40%50%60%70%80%90%100%199019911992199319941995199619971998199920002001200220032004200520062007200820092010Industrial Transport Residential & CommercialFinal energy demand wasdecreasing but electricityconsumption was growingTransport sector exceededIndustrial sector as thelargest energy user in thecountry, accounted for40.5% in 2010-10000100003000050000700009000011000001000020000300004000050000600007000080000199019911992199319941995199619971998199920002001200220032004200520062007200820092010GWhktoePrimary Energy Supply Final Energy Demand Electricity ConsumptionSource: National Energy Balance 2010
• Final energy intensity ondeclining trend• Strong co-relation betweenIndustrial energy intensity &Final energy intensitySource: National Energy Balance 20100102030405060708090100toe/RMMillion(at2000prices)Final Energy Intensity Industrial Energy Intensity0.000.020.040.060.080.100.120.188.8.131.5299019911992199319941995199619971998199920002001200220032004200520062007200820092010GWh/RMMillion(at2000prices)Electricity IntensityElectricity intensitystabilised
National Energy Policy (1979)6Supply Objective: Ensure the provision ofadequate, secure and cost-effective energysupply.Utilization Objective: Promote efficientutilization of energy and eliminate wastefuland non-productive patterns of energyconsumptionEnvironmental Objective: Minimizenegative impacts of energy production,transportation, conversion, utilization andconsumption on the environment.
7EE Regulatory Framework Electricity Supply (Amendment) 2001-Act A1116 Empowers the Minister to promote the efficient use ofelectricity(Section 23A, 23B & 23C) Determine efficiency standards; Installation to meet efficiency requirements; and Equipment to meet efficiency requirements Efficient Management of Electrical Energy Regulations2008 Requires installations consuming 3 million kWh or more over a 6-month period to engage a registered energy manager to: analyse total consumption of electrical energy; advise on the development and implementation of measures to ensure efficientmanagement of electrical energy; and
Current Development on EE RegulatoryFramework The amendment of Electricity Supply Regulations 1994 to enable theenforcement of the Minimum Energy Performance Standards (MEPS) onelectrical appliances and lighting equipment (incandescent, CFL & LED). The MEPS will phase-out inefficient incandescent bulbs (below 20lumens/Watt) by 2014.
Green Technology Fund Scheme(GTFS) Initial RM1.5 billion fund shared by government and banks to improve the supply andutilization of green technologies in Malaysia 2% subsidized interest rate of the total interest/profit rate Any technology that suitable for the identified project criteria provided it is a proventechnologyFEATURES PRODUCER OF GREEN TECHNOLOGY USER OF GREEN TECHNOLOGYFinancing size Maximum: RM50 million per companyMaximum: RM10 million percompanyFinancing tenure Up to 15 years Up to 10 yearsEligibility criteriaLegally registered Malaysian -ownedcompanies (at least 51%) in alleconomic sectorsLegally registered Malaysian -owned companies (at least70%) in all economic sectorwww.gtfs.my
Fiscal Incentives For EE & REProjects And Products• Introduced by the government to promoteEE & RE• Companies implementing EE measures intheir premises (…2015) Investment Tax Allowance Accelerated capital allowance import duty exemption sales tax exemption GBI Certified Buildings(…2014) Energy Efficient Products(…2012) import duty exemption sales tax exemption Implementing Agencies: MIDA – Business & Other ServicesDivision(Application) Energy Commission(Technical assessment)www.kettha.gov.mywww.st.gov.my
Incentives Energy EfficiencyProjects & ProductsCompanies Providing EnergyConservation Services (ESCO)Companies Incurring CAPEX ForConserving Energy For OwnConsumption Pioneer Status Investment TaxAllowance Import duty and salestax exemption Investment Tax Allowance Import duty and sales taxexemptionImporters – exemption ofimport duties& sales tax forproductsLocally manufacturedproducts-exemption ofsales tax
Green BuildingsOwners Of Buildings AwardedWith The GBI Certificate Buyers Of Buildings AndResidential Properties AwardedWith The GBI Certificates BoughtFrom Real Property DevelopersTax exemptionequivalent to 100% ofthe additional capitalexpenditure incurredto obtain the GBICertificate Stamp duty exemption oninstrument of transfer ofownership of such building. Amount of stamp dutyexemption is on theadditional cost incurred andis given only once to the firstowner of the building13
Energy –Efficient Buildings: Demonstration ProjectsBuilding Targeted BEILow Energy Office (LEO) – MEGTCCompleted in 2004100kWh/m2/yrGreen Energy Office (GEO) - MGTCCompleted in 2008Certified rating (GBI)65kWh/m2/yrDiamond Building – EnergyCommissionCompleted in 2010Platinum rating (Green Mark & GBI)85kWh/m2/yr
Energy-Efficient Equipment: Rating And Labeling Refrigerator Wall mounted split unit airconditioner Domestic fans (standing,ceiling, table) TelevisionThe list is available atwww.st.gov.my
2011 TOTAL TARGETENERGY SAVINGS127.3GWhType ofAppliancesFridges Air -ConditionersChillersAllocationTarget # ofUnits100,000units65,000 units 72,000RTOfferedRebatesPer UnitRM200 RM100 RM200TotalBudgetRM20mil RM6.5mil RM14.4mil2011TargetSavings1Energy 24.9GWh 48.75GWh 53.6GWhCost RM5.4mil RM10.6mil RM16.8milCO2(tons/year)17,181 33,638 36,992EstimatedLifetimeSavings2RM38mil RM74.4mil RM252milExpected Total Energy Savings2 : 1,319.6GWh (equivalent to RM364.2mil)SAVEProgram1 Target energy and cost savings atcurrent tariff rate2 Lifetime saving for fridge and airconditioner in 7 years; for chillers in15 years
Adaptation from US Dept. of Energy, Measurement & Verification Guidelines, Version 3.0,time(year)Electricity BillDuring EPC contractperiodLower ElectricityBillAfter EPC ContractperiodElectricitybill savedBefore EPC ContractPeriodElectricity billbefore EPCimplementationPayment toESCOGovernment’sSavingsSaving forGovernmentBaselineLowerElectricity BillSaving forGovernmentEPC Saving Mechanism
NEEMP’s main objective is to enhance the nation’s energyefficiency & conservation initiatives over a 10-year period. NEEMP is focused on the industrial sector, buildings andequipment . NEEMP’s targets are:Targets Short(3rd Year)Medium(6th Year)Long/Total(10th Year)Electricity Savings(GWh)2,774 14,840 50,594Monetary Savings(RM Mill)832 4,373 14,627Electricity consumptionreduction (%) 1.3 3.4 5.6