This document discusses an awareness program for Malaysian universities that covers 5 topics: 1) An overview of energy and energy efficiency 2) An introduction to the energy service industry 3) Business potentials in energy efficiency 4) Potential careers in the energy efficiency industry 5) Challenges in the energy efficiency industry in Malaysia and the way forward

1. Awareness Program For Malaysian Universities

2. 1. OVERVIEW OF ENERGY & ENERGY EFFICIENCY
2. INTRODUCTION TO ENERGY SERVICE INDUSTRY
3. BUSINESS POTENTIALS IN ENERGY EFFICIENCY
4. POTENTIAL CAREERS IN ENERGY EFFICIENCY
INDUSTRY
5. CHALLENGES IN ENERGY EFFICIENCY INDUSTRY
IN MALAYSIA & THE WAY FORWARD

4. ENERGY
PRIMARY
(FROM
NATURAL
SOURCE,
UNUSABLE)
Renewable
Biomass,
biogas,
solar,
hydro
Non
renewable
Oil, gas,
coal
SECONDARY
(CONVERTED
TO USABLE
ENERGY)
Electricity,
steam

6.  There is a need to have a dedicated policy on energy efficiency
at the national level &recommended by the study by government
Source: SEDA Malaysia
No clear national policy on
energy efficiency yet

7. CRUDE OIL : 5.46 billion barrels, NATURAL GAS : 88.00 trillion standard cubic feet
RESERVE LIFE : Oil – 19 years, Gas - 36 years
(source: PETRONAS (as at 1st January 2008)

8.  more on the decreasing trends from the early 90s
Source: PEMANDU

9. Total resources addition has been shrinking despite
increased in exploration activities.
Oil explorations activities today require bigger investments
Source: PEMANDU

10. PRIME MINISTER
Ministry of
Internal Trade
& Industry
Licenses for processing
& refining of petroleum
&manufacture of
petrochemical products
Ministry of Domestic
Trade,Cooperative
&Consumerism
Licenses for marketing
& distribution
PETRONAS
Ownership,
management
&control of oil & gas
resources &activities
Through Petroleum Development Act of 1974 & Petroleum Regulations of 1974 (amended in 1975 &1981)

11. Structure of Authorities in Electricity Sector
 Refer to the right agencies on issues related to electricity based
on their scope of authorities and functions

12.  No matter the source, it takes a significant amount of energy to
make electricity
 Globally, more than 35% of the primary energy consumed on a
daily basis is being used to make electricity
Source: Exxon Mobil Energy Outlook 2012

13. Source: IEA

14.  moved from oil dependent to gas &coal dependent for
electricity generation.
 The dependency on coal from Indonesia reduced from 84%
in 2008 to 65% in 2011.
Source: Energy Commission
The reserve margin for 2013 is 31%
•an installed capacity of 21,749 MW
•a peak demand of 16,562 MW
•a minimum reserve margin of
25% would be required

15. source: National Energy Security Forum 2012

16.  The trend of usage is increasing &the biggest usage is for
petroleum related products such as petrol for vehicles &followed
is for natural gas &for electricity generation
Source: National Energy Balance 2012

17.  GDP growth is strongly related to the increase of final energy supply &demand.
 Need to get the GDP to grow as are moving towards a developed country
 To change the trend of the energy demand to increase exactly according to the GDP growth
to show that we are not utilizing our energy resources effectively.
Source: National Energy Balance 2012

18. Source: Energy Commission

19.  Malaysia is expected to become net oil importer by 2020 or
earlier if the demand increase in the same period.
 Coal is biggest imported energy source for Malaysia until 2030
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2002 2010 2020 2030
Percentage
Coal Oil Gas Hydro Nuclear NRE Electricity Heat
Source: APERC 2006
The Prime Minister has announced in January 2015
that Malaysia is already a net importer of petroleum

20.  Energy demand projected to increase from 2,000 PJ(2009) to 4,013
PJ(2030), average rate of 3.6% /year
 Short term &long term measures that can be taken is through EE
initiatives while working on looking for new energy sources (RE&
alternative energy)
To balance and reduce the supply and
demand gap
Source:
EPU,2011
WE NEED
TO CREATE
THE EE
LINE!
TO QUANTIFY!

21.  World oil price is directly affected by major events or crisis in the
world
 Will affect by supply quantity & demand from energy users.
Source: www.wtrg.com

23.  For the policy makers, regulators, utility suppliers &users is
the need to address impacts on energy costs
&environment with the distortion in energy pricing from
efficient use of energy among intensive energy users
0
10
20
30
40
50
60
70
80
90
100
January
08
February 08
March
08
April 08
May
08
June
08
July 08
August 08
Septem
ber 08
October 08
Novem
ber 08
December 08
January
09
February 09
March
09
April 09
Price(RM/MMBtu)
INDUSTRIAL DIESEL
GMSB WEIGHTED AVERAGE TARIFF
INDUSTRIAL LPG
INDUSTRIAL MFO
63% discount
53% discount
67% discount
72% discount
70% discount
63% discount
RM22.06/MMBtu
RM15.00/MMBtu
RM12.87/MMBtu
GAS PRICE TO POWER SECTOR RM6.40/MMBtu
RM14.31/MMBtu
RM10.50/MMBtu

24. Using the same/less
amount of energy
to produce the better Output
Using less energy
to accomplish
the same task/to enjoy
the same comfort level
Process
( Equipment/Operations)
INPUT OUTPUT
• Comfort
level
• Production
volume
• Quality
• Safety
• Electricity
• Fuel

25. ….but how
Malaysia has
been doing it?
….we MUST
CHANGE THIS!

26. SUMBER BAHAN API
MAKIN TERHAD &
AKAN HABIS
Keperluan semakin meningkat
(Pertambahan penduduk,peralatan & kenderaan)
Persaingan mendapatkan bekalan & sumber tenaga semakin sengit
(dalam negara & antara negara)
Harga bahan api semakin tinggi/mahal di pasaran tempatan
& global
Kos penjanaan/carigali, penghantaran & pengagihan bekala
elektrik meningkat
KADAR TARIF/BIL
ELEKTRIK MENINGKAT
Kos barang
keperluan
Kos operasi
syarikat
Kos
pengangkutan
KRISIS!!!
Jika tenaga tidak
diuruskan dan
digunakan dengan
cekap

27.  Economically viable efficiency measures can
halve energy demand growth to 2035
Source: IEA

28.  Energy efficiency potential used by sector in the New Policies Scenario
 2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035
Source: IEA

29. 1,327
1,273
1,192
1,101 1,101
1,059 1,059
1,000
978
951
1,036
1,013
1,013
985
1,049
1,091
1,051
1,0701,077
1,037
1,044
1,021
1,059
1,036
1,038
1,050
1,131
1,142
1,345
1,405
1,467
1,566
1,573
1,438
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
'73
'75
'77
'79
'81
'83
'85
'87
'89
'91
'93
'95
'97
'99
'01
'03
'05
Fiscal Year
Primaryenergyconsumption/GDP
Ton oil eq.
/ Billion yen
2nd Oil Crisis
1st Oil Crisis
Source: METI/General Energy Statistics
10 years
Improvement by 30%
10% improved for 20 years
Main Improvements:
•Energy Management
•Energy Efficient Equipment
•Efficient Processes
Technologies
•R&D

30. Through strong regulatory implementation framework, sustainable funding & holistic
approach for focused sectors

31. Source: American Council for an Energy Efficient Economy(ACEEE)

33.  An Energy Service Company(ESCO)
 Develop and implement turnkey, 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 ensure credentials, ESCOs must demonstrate the
technical & managerial competencies to design &
implement projects involving multiple technologies :
 Lighting
 Motors & Drives
 Heating & steam systems
 HVAC Systems
 Control Systems
 Maximum Demand Controls
 Building Envelope Improvements
…at building/industrial facilities

34. Consultancy & Advisory
Design & Development Of Energy Efficient
Systems/Technologies
Financing & Purchasing
Implementation & Project Management
Construction Management
Energy Performance Targeting, Monitoring &
Verification
Testing & Commissioning
Operation & Maintenance
Energy Analysis &Reporting
Regulatory Compliance
Standards & Ratings

35.  Registered in
September 2000 n
conjunction with the
launching of the
Malaysian Industrial
Energy Efficiency
Improvement Project
(MIEEIP) by the
Government-UNDP
OBJECTIVES
 To develop recognized ESCO businesses in
collaboration with Government & private
sectors.
 To actively promote the activity of cost
reduction and efficiency standards of the
industrial and commercial sector
 To oversee the well being of it’s members
 To facilitate and do all things necessary
towards developing successful energy
related projects.
 To introduce related products and services
for the industry
 To foster healthy co-existence amongst
members through ethical professional
practices
 Ensure quality of services by members

36.  Energy Management
Training Courses for Energy
Managers
 Producing guidelines &
provide advisory in services
delivery
 Awareness & promotional
programs
 Provide inputs on EE industry
to the Government with
other Stakeholders
 Rental of Equipment for
energy audit and M&V

37. Elected Committee Members(2014 /2016)
President
Ar. Zulkifli b. Zahari
Vice President, Policies & Int. Liaison
Ir. Ong Ching Loon
Honorary Secretary &
Historian
VTR Dharamarajah
Honorary Advisor / Internal
Auditor
Ir. Dr. KS Kannan
Business
Development
Ir. Phang Chen
Faut
Training
Mohd Iskandar
b. Majidi
Green Technology
Kevin Yap
Publicity &
Promotions
Ir. Kumarason S
Kandiah
Government
Liaison
Ahmad Zaky
b. Mohd Amin
Internal Auditor
Khairol Nizam
b. Abd Muen
Treasurer &
Finance/Strategic Initiatives
Zaini b. Abdul Wahab
Asst. Honorary Secretary &
Membership and Practice
Koay Keong Tay
Program Coordinator
Anuar b. Mat Saad
Admin / Secretariat
Afiza bt. Mohd Sa’ad
Accountant
Mohd Izzuddin
b. Salahudin

38. Source: Lawrence Berkeley National Laboratory , National Association
of Energy Service Companies, USA September 2013

39. Source: Lawrence Berkeley National Laboratory , National Association
of Energy Service Companies, USA September 2013

40.  Ranked #1 in investment potential &#4 in payback period
due to Malaysia’s lower electricity tariff
 Lagged behind Singapore &Thailand to unavailability of
comprehensive regulatory support

41. The total market size = US$6.7 billion;
Industrial = US$2.9 billion(44%)
Commercial = US$3.7 billion(56%)
source: www.reexasia.com
Biggest potentials in the industrial
sector

43. Building owners can see reduced operating costs, increased building
values, greater return on investment, and higher occupancy from new and
retrofitted green buildings
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green building
certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a
business whose facility is certified as green, while 48% indicated that green
certification of a facility improves their image of a company.
University of Missouri researchers - consumers would be more
willing to pay between 15 & 20% more for retail products from
companies that support sustainable practices
UN Global Compact of 766 CEOs worldwide-93 % of
CEOs said sustainability issues will be a critical factor
to the future success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount
of sustainability-related inquiries from investors in the past year. 70%
inquiries focused on energy management and greenhouse gas emissions
& more than ½ questions about sustainability reporting
Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the
benefits sustainability can bring to the business. 2/3 respondents said they are
involved in driving sustainability strategies .More than 50 % said their
involvement in pushing sustainable practices has increased in the past year.
IS ENERGY EFFICIENCY AN
OPTION OR A MUST DO NOW?

44. 160 companies - 60% of Ireland’s industrial energy use
2% improvement in energy performance per year
Long-term members - have improved energy
performance by 33% (1995 and 2010)
Energy Management Standard helps up to €150m in
avoided energy costs (2005-10)
44

45. ENERGY
EFFICIENCY
IMPROVEMENT
PROGRAM
Sustainable Energy
Management
Awareness Program
Capacity Building –
Training & Development
HRDF refundable
programs
Measurement &
Verification (M&V) Internal/3rd Parties
Adoption of Energy
Management System
(ISO50001)
Internal/Consultant
Energy Saving Project
Energy Auditing
Internal Budget
EPC Model
Full/matching grant –
with commitment to
implement
Energy Saving Projects
Implementation
EPC model
Standard
Procurement
SUPPORT
MEASURES
NEEDED
OPTIONS TO SAVE ENERGY COSTS

47. Profitability
Sustainability
Competiveness
Competency
Working environment
quality
Corporate Image
Operating Costs -
Energy
Risks – price fluctuation
& supply shortages
Pollution
Carbon emission
Depletion of fossil fuel
INCREASE USERS’ COMFORT
SALES & ENERGY COST SAVINGS
BOOST IMAGE & VALUES

48.  One of management resources of an
organization
 Required due to its influence to operation
and activities
All activities to ensure
efficient use of energy
in the organization

49.  The process of
managing the energy
use in the
organization
 to ensure that energy
has been efficiently
use
 adopting energy
management system
 to achieve desired
results and for
continual
improvement
 Covers all aspects of
energy
 the people
 the equipment
in the daily operation of
the facilities

50. MANAGEMENT
COMMITMENT
ENERGY
POLICY
PLANNING
IMPLEMENTATION &
OPERATION
SYSTEM &
PERFORMANCE
CHECKING
MANAGEMENT
REVIEW
Energy saving
measures – to bring
results in improving
energy performance
& cost reduction!

51.  To embrace EnMS among all employees at all levels
from the beginning
› Inclusiveness through capacity building & awareness
 Integrating existing good practices & other
Management Systems
 The use of a single updating point & reference for
EnMS implementation in long term
› Defined responsibilities in the system
› Continuous energy review, planning & performance
monitoring
› Updated document controls & reviews
 User friendly & replicable system for all facilities
› Concurrently & future

53.  Standardization in the field of energy management, including:
• energy supply
• procurement practices for energy using equipment and
systems
• energy use, and any use-related disposal issues
 Also address
 measurement of current energy usage
 implementation of a measurement system to document,
report
 validate continual improvement in the area of energy
management

54.  Will provide organizations with
 technical and management strategies to increase
energy efficiency, reduce costs, & improve
environmental performance
 a recognized framework for integrating energy
efficiency into their management practices.
 An access to a single, harmonized standard for
implementation across the organization
…..with a logical and consistent methodology for
identifying & implementing improvements

57. Energy Supply &
Utilization
Source: Institute of Asset
Management, UK

58. Source:The American Institute of Architects,2010

59. Source: Energy Conservation Centre of Japan, 2011

60. Pumps (25% - 35%)
 Chiller (20% - 25%)
 AHU/FCU (25% - 35%)
 Cooling Tower(15% - 20%

61.  Savings at 40-60% from lighting systems
Energy Saving Micro Ballast
and HP Fluorescent T8-28
watts
LED Fluorescent Tubes LED Down Light
LED Ceiling Light High Performance
LED Street Light
LED Spot/Flood Light

62. No. Building Year Potential
Savings
(RM)
Implementation
Costs
(RM)
ROI
(Year)
1 Ministry Of Health 2010 740,652 1,546,545 2.0
2 MAMPU 2010 254,500 964,737 3.8
3 Ministry Of Human Resource 2010 195,146 405,180 2.1
4 Public Service Department 2010 174,480 897,000 5.1
5
Ministry of Natural Resources
&Environment 2010
316,440 963,500 3.0
6 Ministry of Finance 2008 355,892 2,326,259 6.5
7
Selayang Hospital,
Selangor 2008
1,612,800 3,294,350 2.0
8
Kuala Lumpur General
Hospital, Kuala Lumpur
2008 2,538,705 8,423,740 3.32
9
University Malaya Medical
Center, Kuala Lumpur 2008
4,477,067 622,500 0.1
(Source: KeTTHA,2011)

64. Career :
Life long learning
Tertiary Education:
College/University
PRIMARY &
SECONDARY
EDUCATION: SCHOOL
Lessertimetoprepare&freedomtochoose
Building
Foundation
Building & confirming
targets
Leading & exploring the fullest
potentials

65. Good Study
Habits Good Results
Good & More
CAREER
Options
GOOD LIFE!
...and UNFORTUNATELY there is no single formula for a SUCCESSFUL CAREER but still the
best thing to do is PLAN and WORK HARD that will keep us ON TRACK.
GIVE YOUR BEST SHOT!
CAREER
Employee
Employer/
Entrepreneur
What do you love or what do you have to?

66. ENERGY
EFFICIENCY
Energy
Management
Energy
Management
System
Consultancy/Advisory
Standard &Certification
Performance Measurement
& Verification
EnMS Tools
Hardware
(meters , sensors & etc)
Software
(Computerized EnMS)
Energy Engineering
Energy Efficient
technologies Testing, Rating & Labeling
R&D, TQM
Manufacturing
Energy Auditing
Capacity
Building
Education &
Awareness
Training &
Development
Policy
Policy research &
development
Regulatory
Fiscal & Financial
Investments &
Funding
Analysis & Evaluation

67. Energy
Auditors
Energy Efficient
Technology
Application Experts
Measurement
&Verification
Specialists
Energy Efficient
Equipment
Inventors
Energy Efficient
Facilities Designers
Energy Economists
& Data Analysts
Policy & Regulatory
Experts
Demand Side
Management
Specialists
Energy
Managers
Energy
Management
Consultants
Documentation &
Certification Specialists
ISO50001
EnMS(System/
Technical
Auditors)
Expert Trainers

68. Challenges in Energy Efficiency industry
in Malaysia & the way forward

69. Some issues that provoke this fear include
 Investment insecurity
 Fear of policy changes
 No experience in similar projects
 Lack of management involvement
 Unclear ROI
 Unclear steps to achieving results
 Unclear results
 Huge commitment
 Lack of urgency
 Lack of competitive pressure
 Too many things to do
 Too many things to know
 Too many people to involve
 Too many decisions to make
 Lack of clarity about who and what to believe
The solution: Provide action plans, not raw information.

70. •Clear policy & targets
•Comprehensive regulatory &
implementation framework
•Competencies in institutional set up
Strong governance in policies
implementation
•Competency programs
•Career opportunities
Technical competencies &
human resource capacity
•Sources of funds
•Understanding risks & mitigating
factors in green investments
Sustainable financing &
business friendly mechanisms
•On green practices
•Business opportunities
•Impacts to climate change
mitigation
Information ,education
&awareness
•Funding
•Academic vs. Commercial valuesR&D & commercialization

71.  Solution or technology
based approaches?
or
 Project based or
sustainable
implementation plans
& strategies?

72. Strong
Governance
Financing &
business
friendly
mechanisms
Accountable &
competent
implementing
agency
Information,
Education
& Awareness
R&D &
Commercialization
ENERGY EFFICIENCY Industry
Growth
Policy Targets
Policy Introduction
Focused Sectors +Industry Players
+ Consumers
Industry players just need the basic & right “infrastructure” & supports .
We can take it from there!

73. INTRODUCTION
&
AWARENESS
IMPLEMENTATION
& SUPPORT
MEASURES
PERFORMANCE
MONITORING&
MEASUREMENT
IMPROVED
•Energy
Performance
•Competitiveness/
•profits
•Environmental
quality
REDUCED
•Energy
consumption &
costs
•Pollution
•CO2 emissions
CREATED
•Business & job opportunities
•More experts/workers from energy efficiency industry
•New source of economic growth
•More Direct Domestic Investments

74.  Look and act on EE
holistically & urgently! …not
with ad-hoc approaches
 Clear policy goals & targets
 Strong governance &
comprehensive framework
 Consistency, accountability
& competency
 Inclusiveness in policies
development & reviews

76. WHAT ROLES YOU WOULD LIKE TO PLAY FOR
ENERGY EFFICIENCY FOR YOUR OWN
FUTURE?

77. THANK YOU &
GOOD LUCK!