The document outlines Malaysia's energy efficiency initiatives, policies, and strategic plans aimed at promoting sustainable energy usage and reducing energy consumption across various sectors. It emphasizes the importance of energy efficiency and conservation, points out significant potential for savings in both the industrial and residential sectors, and highlights key government initiatives and incentives to encourage adoption. The document also discusses barriers to implementation and proposes regulatory frameworks to enhance energy management practices.

1. KEY ENERGY EFFICIENCY
INITIATIVES , INCENTIVES AND THE
WAY FORWARD FOR MALAYSIA
Zaini Abdul Wahab
ENERGY EFFICIENCY INFORMATION
SHARING SERIES

2. Content
 Overview of Energy Resources and Trends
 Current Related Policies
 Energy Efficiency Potentials
 Key Government Lead Initiatives
 Fiscal And Financial Incentives
 Current Development and the way forward
 Proposed Strategic Plan & Implementation

3. Overview of Energy Resources and
Comparison of Trends

4. 4
Net Import/Export
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2002 2010 2020 2030
Percentage
Coal Oil Gas Hydro Nuclear NRE Electricity Heat
•Expected to
become net
importer by
2020
Source: APERC
2006

5. Power Generation Mix
In Malaysia: Oil To Gas Dependency
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1980 1990 1992 1994 1996 1998 2000 2002 2004
Percentage
Year
Hydro
Coal
Oil & Distillate
Natural Gas

6. 0
50
100
150
200
250
300
350
400
450
195519571959196119631965196719691971197319751977197919811983198519871989199119931995199719992001200320052007
Fiscal year
0
100
200
300
400
500
600
Energy Conservation Act
enacted in 1979
Industrial
Transportation
Consumer
24.9%
24.8%
27.9%
47.3%
GDP (trillions of yen
at 1990 values)
Crude Oil Equivalent
(million Kl)
Source: METI/General Energy Statistics
16.2%
16.4%
67.4%
17.9%
57.1%
Trend of the Energy Conservation in Japan
Changes in Final Energy Consumption and GDP
ECCJ
Note: consumer = residential + commercial
1st oil
crisis
2nd oil crisis

7. 7
0
50
100
150
200
250
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Consumer sector
Transport sector
Total
Industrial sector
207
210
141
103
Change in Final Energy Consumption
by Sector In Japan
Index (1973=100)
Source: General Energy Statistics (METI)
ECCJ

8. Trend In Electricity Consumption By Sectors
8
Major users
•Industrial
•Residential & Commercial

9. Current Related Policies

10. 10
National Energy Policy
Predicated on the following principles:
 Supply Objective
 To ensure provision of adequate, secure and cost-effective energy supplies by developing
indigenous energy resources, both non-renewable & renewable, using least-costs options,
& diversifying supply resources within & outside the economy;
 Utilisation Objective
 To promote the efficient utilisation of energy and the elimination of wasteful &
non-productive patterns of energy consumption;
 Environmental Objective
 To minimise the negative impacts of energy roduction, transportation, conversion,
utilisation & consumption on the environment

11. National Energy Policy
11
Predicated on the following principles:
• Supply Objective
– To ensure provision of adequate, secure and cost-effective energy supplies by
developing indigenous energy resources, both non-renewable & renewable, using least-
costs options, & diversifying supply resources within & outside the economy;
• Utilisation Objective
– To promote the efficient utilisation of energy and the elimination of wasteful &
non-productive patterns of energy consumption;
• Environmental Objective
– To minimise the negative impacts of energy roduction, transportation, conversion,
utilisation & consumption on the environment

12. National RE Policy
Policy Statement:
 To enhance the utilisation of indigenous renewable energy
resources to contribute towards national electricity supply
security and sustainable socio-economic development
Objectives:
 To increase RE contribution in the national power generation mix;
 To facilitate the growth of the RE industry;
 To ensure reasonable RE generation costs;
 To conserve the environment for future generation; and
 To enhance awareness on the role and importance of RE.
12

13. Energy Efficiency Potentials

14. Global Energy Efficiency Potentials
 Oil and natural gas remain
essential through 2030 but the
most important “fuel” of all will
be energy saved through
improved efficiency
 Potential gains will reach about
300 quadrillions BTUs per year
by 2030(twice the growth of
global energy demand through
2030)
 Gains in energy efficiency
through 2030 will reduce global
energy-demand growth by
approximately 65%
Source: Outlook for Energy. A view to 2030 (exxonmobil.com)

15. Energy Efficiency Market & Potentials in SEA
Source: www.reexasia.com

16. Saving Potentials (USD) in SEA
Clearly, the industrial and commercial sector
s offers much higher savings potential
Source: www.reexasia.com

17. Energy Efficiency Potentials in Industrial
Sector
Industry
Type
Total
Potential
Energy Saving
(GJ/yr)
Annual
Energy
(GJ/yr)
Total
Potential.
Energy
Saving
(%)
Capital
Expenditure
(RM ‘000)
Potential
Cost Saving/year
Paybac
Period
(year)
(RM‘000) % of
original.
energy bill
FOOD 272,354 1,418,625 19.2 2,299 4,382 13.7 0.5
WOOD 457,494 874,200 52.3 9,904 4,822 38.9 2.1
CERAMIC 212,974 774,061 27.5 5,760 5,992 24.8 1.0
CEMENT 4,887,239 14,956,56
3
32.7 39,456 33,752 16.5 1.2
GLASS 81,660 4,000,370 2.0 3,586 2,120 2.1 1.7
RUBBER 97,215 460,913 21.1 5,079 3,063 22.6 1.7
PULP &
PAPER
811,547 5,080,208 16.0 29,883 18,174 21.3 1.6
IRON &
STEEL
270,053 4,215,761 6.4 4,443 5,247 3.4 0.8
17Malaysia Industrial Energy Efficiency Improvement Program (MIEEIP) by PTM, ended 2005

18. Energy Saving Potentials in Buildings
Residential Hotels Shopping
Complexes
Offices
Lighting 25.3 18.0 51.9 42.5
Air-Conditioning 8.3 38.5 44.9 51.8
Total 33.6 56.5 96.8 94.3
18
 Energy Study-Malaysian Building Sector
 Distribution (%) of energy consumption in Malaysian Buildings
(by PTM 2003)
Energy efficiency potentials:
 40% to 50% reduction of energy consumption of new buildings.
 15% to 25% in reduction in energy consumption of existing buildings.
 shift of electricity demand for buildings from day to night to improving load factor

19. Problems/Barriers
Number of key barriers which prevent a wide spread
adoption of energy efficient practices which are:
 Lack of overall national plan for energy efficiency
 Lack of consistency in embarking on the energy
efficiency
 Lack of legal and regulatory framework for energy
efficiency
 Lack of champion to drive energy efficiency
 Low energy prices due to government subsidies
 Lack of funding & financing for energy efficiency

20. Key Government Lead Initiatives

21. Promoting Sustainable Energy Management
 The process of managing the energy use in the
organization to ensure that energy has been efficiently use
by adopting Energy Management System(EMS) to achieve
desired results and for continual improvement
 Covers all aspects of energy and involving the people and
equipment in the daily operation of the facilities
Energy Management
All activities to ensure efficient use
of energy in the organization

22. Typical EMS Cycle
ENERGY
MANAGEMENT
POLICY
ORGANIZING
PLANNING AND
IMPLEMENTATION
EVALUATION
REVIEW FOR
CONTINUAL
IMPROVEMENT
PLAN
DO
CHECK
ACTION
•Commitment from the top management
•SMART policy
•Setting and sharing common goals•Commitment to
take action
•Organization and
responsibilities
•Energy Manager
•Allocation of
resources
•Management Implementation
plan and time frame
•Energy auditing
•Set baselines for measuring
results
•Designation of responsibilities
•Procedures and standards
•Trainings
•Implement Energy Saving Measures
•Measurement and verification
•Monitoring
•Management Review to confirm
Suitability, Adequacy
& Effectiveness
•Review targets
•Communicate the progress
•Actions to be taken
•Reporting and presenting EPC

23. Energy Audits at Government Buildings By KeTTHA
Bil Building Year Potential
Savings
(RM)
Implementation
Costs
(RM)
ROI
(Year)
1 MOH 2010 740,652.23 1,546,545.00 2.0
2 MAMPU 2010 254,500.64 964,737.20 3.8
3 MOHR 2010 195,146.20 405,180.00 2.1
4 JPA 2010 174,480.00 897,000.00 5.1
5 NRE 2010 316,440.20 963,500.00 3.0
6 MOF 2008 355,892.00 2,326,259.00 6.5
7 Hospital Selayang 2008 1,612,800.00 3,294,350.00 2.0
8 Hospital Kuala Lumpur 2008 2,538,705.00 8,423,740.00 3.32
9 Pusat Perubatan UM
2008
4,477,067.00 622,500.00 0.1

24. Retrofitting By KeTTHA
Building Year Potential
Savings
(RM)1
Implementation
Costs
(RM)
1 MOF 2010 983,829.00
9,987,000.00
2 EPU 2010 154,887.00
Total 1,138716.00
110% potential saving of electricity bill based on 2 months actual bill
(Jan-Feb 2011) with baseline year of 2010
End of Dec 2011
Project
completed
Jan-Feb 2011
Electricity
saving analysis
Oct-Dec 2010
Retrofit work started-
Upgrading BCS & re-
lamping
Jun 2010
Project started with
selection of Energy
Saving Measures
Figure 1: BEI reduction for MOF &EPU

25. 1 Initiatives under Business & Services lab
2 As per subsidy lab recommendation SOURCE: OGE NKEA Lab
2
▪ Give retailers incentives on sales of small capacity appliances to increase
sales of energy efficient goods amongst low-middle income households
▪ SAVE Program was announced by YAB PM on 13th June 2011
▪ Will be launched officially on 7th July 2011 by YBM KETTHA
▪ Introduce and/or enforce legislation (Efficient management
of electrical energy regulations 2008; MEPS - Minimum Energy Performance
standards)
▪ Increase economic viability through review of tariff mechanisms with TNB
▪ Improve legislation on insulation for new housing
▪ Educate building owners on benefits of better insulation1
▪ Government to lead by example on energy efficiency practices
▪ “Push” for EE practices by running large-scale education campaigns1
▪ “Pull” for EE by implementing electricity subsidy rationalization2
Key Focus AreasInitiatives
New
appliances
Co-generation
3
Building
insulation
4
Leading by
example
1
Transport
efficiency
5 ▪ Reduce tax rate on imported hybrid/ electric vehicles and/or offer cash rebate
on purchase of locally manufactured hybrid/electric car
EPP9: EPP9: Sustainability Achieved Via Energy Efficiency
(SAVE) Program in ETP
Energy saved-
127.3GWh/year
GNI- RM3.2 bil
GNI- RM 5.1 bil
SAVE Program: Rebate

26. SAVE Program: Government To
Lead By Example
Energy savings in
government buildings
1st workshop with 20 IPTAs(31st May 2011)
 Objective: to discuss implementation plan on energy saving in IPTAs
 Consensus from the workshop:
 Should be mandatory to all IPTAs to implement Energy Management System;
 Adopt EPC to implement energy efficiency in IPTAs;
 MOF to issue a circular on payment mechanism for shared-saving mechanism; and
 A standard EPC document developed by JKR for reference by IPTAs
2nd workshop with 25 Ministries (22nd June 2011)
• Objective: introduce & discuss the implementation of energy saving in Gov’t buildings
• Target saving = 10% electricity bill saving annually
• Implementation of EPC or internal budget allocation

27. Why Energy Performance Contracting in
Energy Management?
 effective measures to implement energy saving
measures to promote energy conservation in government
buildings by market mechanisms-private investments
 urgent requirements to cultivate new strategic industries
with active involvement and investments from private
sectors as outlined in ETP
 stimulate new economic growth, and objective needs to
build resource-saving and environment-friendly society.

28. Shared –Saving mechanism in EPC
Adaptation from US Dept. of Energy, Measurement & Verification Guidelines, Version 3.0,
time
(year)
Electricity Bill
During EPC contract
period
Lower Electricity
Bill
After EPC Contract
period
Electricity
bill saved
Before EPC Contract
Period
Electricity bill
before EPC
implementation
Payment to
ESCO
Government’s
Savings
Saving for
Government
Baseline
Lower
Electricity Bill
Saving for
Government

29. SAVE Rebate Program: Investment & Potential Savings
2011 TOTAL TARGET
ENERGY SAVINGS
127.3GWh Type of
Appliances
Fridges Air -
Conditioners
Chillers
2011
Target
Savings1
Target # of
Units
100,000
units
65,000 units 72,000RT
Energy 24.9GWh 48.75GWh 53.6GWh
Cost RM5.4mil RM10.6mil RM16.8mil
Estimated
Lifetime
Savings2
RM38mil RM74.4mil RM252mil
Allocation
Offered
Rebates
Per Unit
RM200 RM100 RM200
Total
Budget
Allocation
RM20mil RM6.5mil RM14.4mil
1 Target energy and cost savings at current tariff rate
2 Lifetime saving for fridge and air conditioner in 7 years; for chillers in 15 years
Rebate
Program
www.saveenergy.gov.my

30. SAVE Rebate Program Official Website
www.saveenergy.gov.my

31. Status 5 Star Rated
Equipments:
• Jan ’11- 5 brands
• July’11 -12 brands
Implementation Period:
• 07th July – 30th
September 2011
Appliances
Voucher
Printed
Voucher
Redeemed
Refrigerator 36,757 26,046
A/C 30,344 19,160
Total 67,101 45,206
Application Applied
Capacity
(RT)
Chillers 20 24,465
SAVE Rebate Status (7th July - Sep 2011)
Household Appliances
Industry Appliances

32. • Savings calculation is based on actual
market size
CO2 Reduction:
45,747tonne
*Cost Saving:
RM16.34mill
Energy Savings:
66.3GWh
(equivalent to annual electricity
use for 18, 417 houses using
300kWh per month
Capacity Saving:
26MW
SAVE Program Updates - OUTPUT
100,000
65,000
72,000
*74,663
*42,181
24,465
0
20000
40000
60000
80000
100000
120000
Refrigerators Air-conditioners Chillers
Unit/RT
Appliances/
Equipment
Target
Actual
13%
12.44%
7.03%
8.0%
35%
11.05%
Data is for the period of
7th July – 30th Sept 2011
Translates
into

33. SAVE Rebate : Chiller Replacement Program
 Eligible for private business entities registered in Malaysia
 Comfort cooling for offices and commercial buildings only
 Must purchase a new eligible EE chiller or replace an existing chiller
due to lifespan (more than 15 years) and inefficient existing chiller
within the specified period
No. State/Region Total Targeted Quantity
in 2011* (Refrigerant
Ton,RT)
Percentage
(%)
1 Peninsular 50,400 70
2 Sabah 10,800 15
3 Sarawak 10,800 15
Total 72,000 100
www.saveenergy.gov.my

34. Demonstration Projects
Building Targeted BEI
Low Energy Office (LEO) – MEGTC
 Completed in 2004
100kWh/m2/yr
Green Energy Office (GEO) - MGTC
 Completed in 2008
 Certified rating (GBI)
65kWh/m2/yr
Diamond Building – Energy
Commission
 Completed in 2010
 Platinum rating (Green Mark & GBI)
85kWh/m2/yr

35. Current Development and
The Way Forward

36. The Decision By The Green Technology and Climate
Change Council Meeting
 Meeting on 11th August 2011 decided on:
 To reset temperature at the minimum 24 degree
Celsius for all government buildings
 Implementation with technical guidelines and
assistance from JKR

37. The Decision By Economic Council (EC) Meeting
 EC Meeting on 27th May 2011 decided on:
 KeTTHA & MOF to come up with suitable incentives to
encourage energy saving initiatives for the public &
private sectors; and
 for the public sector, the energy saving initiative would
be included as one of the KPIs for head of agencies

38. EE related Laws
 Amendment of Electricity Regulations 1994 to regulate Energy
Performance for electrical appliances from 2011 (starting with lamps
to phase out incandescent bulbs by 2014)
 To include EE and RE standards in Uniform Building By Law(UBBL) in
stages from 2011 by the Ministry of Housing and Local Government
 Drafting of the new Energy Efficiency and Conservation Act (Electrical
and Thermal )by the Ministry of Energy, Green Technology and Water
to start in Q4 2011 and targeted to be enforced in 2014

39. The Proposed Strategic
Plan & Implementation

40. The Strategic Approach
Introduction of National EE&C Policy and
Implementation of key initiatives under the
master plan

41. Key Elements Required to implement Sustainable Energy
Efficiency & Conservation Program for a long term(10
years) at National Level
• Creation of a Legal & Regulatory Framework to
management all energy using sectors at the demand side
• Creation of a one stop center under one agency for the
planning, implementation and monitoring of energy
consumption for all sectors
• Availability of Sustainable Funding sources & effective
Financial Mechanism
• Capacity Building & Training to build and improve
competencies required in EE&C Industry
• To increase Research & Development for EE technology &
application
• On going Education & Awareness for all types of consumers

42. To have a national and sub sectors energy
saving targets
Electricity savings
(kWh)
Power Plant Capacity savings
(GW)
Electricity bills savings
(RM Mill)
GHG avoidance
(ktCO2-eq)
Electricity consumption reduction
or energy intensity reduction (%)

43. Capacity Building:
EE&C Industry and Practitioners
 Certified Energy Managers
 Certified Auditors
 ESCOs
 EE professionals
 semi-professionals
 facilities managers
 Strengthening capacity building of Energy Managers, Energy Auditors &
ESCOs
 Training of financial experts, other relevant professional e.g. engineers,
architects, lawyers, semi-professional, etc

44. Capacity Building :
Banks/Financial Institutions
Sharing of experiences in successful
investments in EE projects through
seminars/dialogues
 (results, payback period) from people in business
communities who have experienced it
 Criteria of viable EE projects
 Competency of ESCOs
Promotion of incentives/tax
exemptions for EE investment for
companies

45. Promotion and Awareness
 Lecturers and teachers
 Students
 General public
 Education on EE&C from primary school level to all
Institutions of Higher Learning
 Campaign and promotion to create awareness of EE&C
among the general public

46. Supporting Measures required to
implement EE&C measures
Technical Assistance
& Advisory
Incentives & Financial
Assistance
 SMEs & SMIs - energy
audit and guidance
 Measurement and
verification of
performance
 Technical assessment
from other
ministries/agencies on EE
projects for financing
/further approval
 Registration and
deployment of experts
 Fiscal incentives
 Low interest loans with
government guarantee
 Grant based on annual
government budget for
specified initiatives and
awareness programs

47. Possible Organizational Structure for Sustainable
Implementation of NEEMP
MEGTW
IndustrialBuilding Equipment &
Appliances
Education &
Awareness
Government
Research &
Development
EE Centralized
Agency
Data & Information Enforcement
Commercial
& Residential
EE Fund
Competency &
Accreditation
New and
existing
designated
building
Designated
factories
SMEs &
SMIs
MEPS &
Labeling
ESCO
Energy
Manager
Energy
Auditor
Registered EE
Experts
Other Ministries/
State Governments
Universities,
Schools Syllabus
Lecturers,
Teachers
Campaign &
Promotion for
public
EE
Technology
Development
&
Applications
Existing
(JKR,CIDB)
Subsidiary legislation-
regulations

48. Funding Requirements and
Fiscal Incentives

49. Funding & Financial Support
 The need of setting up of a Sustainable EE Fund for the
implementation and promotion of EE&C
 The administration and distribution of EE fund by the
centralized agency as a one stop center
 Need the Government’s commitment to provide the budget to
implement key EE initiatives under the Sustainable Energy
Efficiency & Conservation Program for a long term(10 years) at
National Level to compliment funds/investment expected to
be committed by the private sectors

50. • Need the Government’s commitment to provide the
budget to implement key EE initiatives under the
Sustainable Energy Efficiency & Conservation Program for
a long term (10 years) at National Level to compliment
funds/investment expected to be committed by the
private sectors

51. Proposed Options
For Government Funding
No. Option#1 Option#2 Option#3
1 Source Federal
Government: Total
annual sales of
diesel and petrol
Combination of budget
from federal
government and
others(international
organization/foreign
governments) - Hybrid
Total budget from federal
government
2 Mechanism A portion from
every subsidy
removal per liter
(RM/liter)
1. Annual allocation
to the centralized
agency by the
federal
government.
2. Approved amount
by the funding
party to the
centralized
agency
Annual allocation to the
centralized agency by the
federal government.
3 Distribution &
administration
of fund
Through provisions in the act and its subsidiary legislations by the
centralized agency for EE &C

52. Options for Private Funding
Distribution Mechanism
2. External Sources
 Local and international
commercial banks
 With low interest loan for
approved applicants
 Approved/endorsed by the
competent body appointed
by the government
1. Internal Sources: Companies’
Internal Budget

53. Existing Fiscal Incentives For EE & RE
Projects
 Introduced by the government to
promote EE & RE
 Companies implementing EE measures
in their premises (…2015)
 Investment Tax Allowance
 Accelerated capital allowance
 import duty exemption
 sales tax exemption
 GBI Certified Buildings(…2014)
 Implementing Agencies:
 MIDA – Business & Other Services
Division(Application)
 Energy Commission(Technical
assessment)
www.kettha.gov.my
www.st.gov.my

54. THE CONCLUSIONS
• EE&C initiatives in Malaysia has been limited & slow
• A Sustainable Energy Efficiency & Conservation Program needs to be
implemented comprehensively and holistically for efficient management of energy
resources to ensure energy security
• A sustainable funding sources and distribution mechanism must be provided for
EE&C initiatives to be carried out smoothly to achieve the targets set at the
national and for each energy using sectors
• Implementation budget allocated by the government will indicate the government
is serious by leading the way to achieve the targets which need to be followed by
the private sector for greater benefits to the country
• Key players of EE industry at the demand side have indicated their supports and
give positive feedbacks through seminars, workshops, dialogues, discussions and
meeting for the proposed implementation of NEEMP

55. 55
 zainiabdulwahab@yahoo.com
 019 2152700
 www.goingee.blogspot.com.my
 www.facebook/zaini.abdulwahab1
 www.slideshare.net/ZAINIABDULWAHAB
 www.linkedin.com/pub/zaini-abdul-wahab/31/239/882
Thank You & Let’s SAVE ENERGY
from today!