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MIDA networking session on clean technologies-21.2.2013


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get together and networking session between newly established Clean Technology and Environment Division at Malaysia Investment Development Authority(MIDA) and green related NGOs

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MIDA networking session on clean technologies-21.2.2013

  2. 2. OutlineIntroduction to ESCO & energy servicesEE Potentials in MalaysiaKey barriers for EE implementation & proposed counter measuresThe way forward
  3. 3. What is ESCO? An Energy Service Company(ESCO)  Develop and implement turn key, comprehensive energy efficiency projects.  ESCOs offer performance-based contracts (i.e., contracts that tie the compensation of the ESCO to the energy savings generated by the project) as a significant part of their business To gain accreditation, ESCOs must demonstrate the technical and managerial competence to design and implement projects involving multiple technologies such as:  Lighting  Motors & Drives  Heating & steam systems  HVAC Systems  Control Systems  Building Envelope Improvements …at building/industrial facilities
  4. 4. Scope of Energy ServicesFull range of services required for a comprehensive EE project implementation: Energy Audit Consultancy Design of energy efficient systems Implementation Project Financing Implementation and Project Management Construction management Energy performance monitoring and verification performance Testing and commissioning Operation and maintenance
  5. 5. Background of MAESCO  The Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) components includes ESCO Development Programs and ESCO participation in EE Technology Demonstration Projects  Industrial was chosen as the sector in which the greatest commercial and environmental impact could be achieved  MAESCO was registered with the Malaysian Registrar of Society in September 2000  Incorporated in conjunction with the launching of the MIEEIP by a Government’s implementation agency, PTM (Energy Centre of Malaysia) which is now known as Malaysia Green Technology Corporation(Green Tech Malaysia)
  6. 6. MAESCO’s Constitutional Objectives1. To develop recognized ESCO Business models in collaboration with Government and Private Sector2. To actively promote the activity of energy cost reduction and efficiency standards in the industrial, commercial and public sector3. To oversee the well being of its members4. To facilitate and do all things necessary towards developing successful energy related projects5. To introduce related products and services for the industry6. To foster healthy co-existence amongst members through ethical professional practices7. Ensure quality & reliable of services by members
  7. 7. Key Activities & Involvement In EE Industry Development Energy Management Training Courses for Energy Managers Preparatory Workshop for Registered Electrical Energy Manager (REEM) Application Rental of Equipment for energy audit and M&V Awareness and promotional programs Visits And Dialogues With Government and Key Stakeholders Industrial Energy Efficiency For Malaysian Manufacturing Sector (IEEMMS) :UNIDO-SMECORP
  8. 8. Membership 60 Registered Members Categories Consist of  Energy Performance Energy Performance Contractors (EPC) Contracting (EPC)  Energy Auditors  Energy Management Non Energy Trainers Performance  Energy Efficient Equipment Contracting (EPC) Manufacturers/Suppliers  Energy Consultants  Energy Management Affiliate Systems/Technologies Associate  Total Facilities Management International
  9. 9. EPC: Shared-Savings ModelNo upfront costs for clientsReturns to ESCO from actual costsavings achieved at agreed % & EEconditions PROJECT Energy saving share Energy saving share (10%-30%) (90%-70%) Financing Loan FACILITIES BANK ESCO OWNER Project Design& Implementation Repayment
  10. 10. Possible areas for strategic collaborations/co-operations/business ventures with MAESCOmembers EE Training& awareness programs in energy management system , system optimizations & technology applications for management & technical groups in government & private organizations EE Competency/certification programs development and implementation Consultancy/advisory in Sustainable Energy Management System Development & Implementation based on ISO50001:2011 standard Sustainable energy policy studies & strategic implementation plan preparation EE projects implementation with suitable financing mechanisms under EPC and PFI models.
  11. 11. EE Potentials In Malaysia
  12. 12. Investment & Saving PotentialsSource: 2011)
  13. 13. Pay Back Period for EE InvestmentsSource: 2011)
  14. 14. Overall Rankings in Asean EE Market 14Source: 2011)
  15. 15. Key Barriers for EE Industry •No clear coordination & clear long-term and medium term objective No Overall National •No systematic and holistic approach in EE implementation at national level Plan, Legal & •No overall laws and limited elements in the existing laws - the electricity sector onlyRegulatory Framework •No legal framework to place the responsibility for EE within the government • No clear authority in charge for EE in the nation’s energy planning-No Champion To Drive more based on demand forecast and supply planning, without taking into account EE EE Implementation • Critical to have a focused agency to drive EE efforts in the country - to enforce the laws and regulations relating to EE & oversee all issues and activities related to EE Low energy prices • Our energy prices are very low compared to developed countries - prevents efforts on EE Lack of Sustainable • Currently, the Government does not provide any Funding dedicated funding to kick-off significant & sustainable EE initiatives Lack of consistency • Most of the efforts on promoting EE have been on projects basis with limited time frame and EE Implementation commitment
  16. 16. Proposed Counter Measures To OvercomeBarriers• Introduce National Energy Efficiency Master Plan(NEEMP) with national EE policy and targets for each energy using sectors• Develop & enforce Regulatory tools for EE with dedicated EE law• Establish a Centralized Agency as one-stop centre for EE Implementation•• Create Sustainable Funding & Financial Mechanism for EE Implementation at all sectors• Capacity Building & Training to• Enhance Research & Development for EE applications & technologies• EE Education & Awareness
  17. 17. Current EE development that affecting EEIndustry NO KEY INITIATIVES STATUS Proposed key criteria to ensure qualified ESCOs for EPC 1 Registration of ESCO projects at government project ignored by the agency in-charge and lack of competency in EPC implementation in the agency National Energy Efficiency Unknown after almost 4 years spent to develop with all 2 Master Plan stakeholders Stopped by the ministry in Dec 2012 for unclear reasons Drafting of EE Act (Thermal 3 & Electrical) despite participation and supports from all stakeholders from March 2011 in drafting working groups. Entry Point Project 9: Government Lead by No champion for the implementation due to handing over of 4 Example, Oil, Gas&Energy the functions to implementation to a different agency Sector, ETP Budget only approved for one year from 3 year as planned. Entry Point Project 9: SAVE Achieved targets to increase the market share for 5-Star 5 Rebate Program for EE rated products products Targeted t be sustained with the proposed introduction of mandatory MEPS & EE label by 2014 in ETP Document Mandatory Standard & Delayed for unknown reasons 6 Labeling for EE products Will result in the market to be flooded with inefficient products
  18. 18. The Way Forward…
  19. 19. The Strategic Approach Establishment of Sustainable Framework - Introduction of National EE Policy and Implementation of key initiatives under the EE master plan
  20. 20. Overall Sustainable FrameworkIntroduce National EE With national and sub sectorsMaster Plan energy saving targets – National EE&C Policy Electricity savings – EE&C Targets (TWh) • National level • Industrial sector Power Plant Capacity savings • Commercial Building and (GW) residential sectors Electricity bills savings • Equipment & appliances (RM Mill) GHG avoidance (ktCO2-eq) Electricity consumption reduction (%)
  21. 21. Proposed Key Supporting Measures To Implement National EE Master Plan Technical Assistance Incentives & Financial & Advisory Assistance• SMEs & SMIs - energy audit • Fiscal incentives and guidance • Low interest loans with• Measurement and government guarantee verification of performance • Grant based on annual• Technical assessment from government budget for other ministries/agencies on specified initiatives and EE projects for financing awareness programs /further approval• Registration and deployment of experts
  22. 22. Expected Impacts Sustainable EE Implementation IMPROVED •Energy Efficiency •Competitiveness/ profits •Environmental IMPLEMENTATION quality & PERFORMANCE, POLICY SUPPORT MEASUREMENT &INTRODUCTION REVIEW MEASURES REDUCED •Energy consumption & costs •CO2 emissions CREATED •Business & job opportunities •More experts/workers from EE industry •New source of economic growth & Direct Domestic Investments
  23. 23. THANK YOU FOR YOUR ATTENTION! 019 2152700