This document summarizes a seminar on energy efficiency for sustainable business. The seminar covered corporate trends and potentials for energy savings to increase profitability, barriers to implementing energy efficiency measures and how to overcome them, key success factors and steps to reduce energy costs, and support needed from the government. Surveys showed that sustainability is increasingly important to businesses and investors. Implementing energy efficiency measures can help businesses reduce costs and boost their image while helping the environment. Barriers to energy efficiency include lack of funding and technical expertise. Adopting an energy management system and clear energy policy can help businesses implement effective energy efficiency projects and achieve sustainable energy savings.

1. Seminar On Energy Efficiency For Sustainable Business
For TNB Prime Consumers
28th January 2014
Puteri Pacific Hotel
Johor Bahru

2. 
Corporate trends & potentials for energy
savings to increase profitability

Barriers and counter measures for organizations
to implement EE

Key success factors & steps to reduce energy
costs

Support measures required from the
government

What’s next?

3. 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.
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
IS ENERGY EFFICIENCY AN
OPTION OR A MUST DO NOW?
University of Missouri researchers - consumers would be more willing
to pay between 15 & 20% more for retail products from companies
that support sustainable practices
Building owners can see reduced operating costs, increased building
values, greater return on investment, and higher occupancy from new
and retrofitted green buildings
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.
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector

4. 
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

6. Source: ESCO
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA
17% reduction of electricity bill in 2011
based on 2010 baseline consumption – SEDA Malaysia

7. 160 companies - 60% of Ireland’s industrial energy use
2% improvement in energy performance per year
Long-term members - have improved
performance by 33% (1995 and 2010)
energy
Energy Management Standard helps up to €150m in
avoided energy costs (2005-10)

8. SOLID FOUNDATION WILL
ENSURE SUSTAINABLE RESULTS

9. SAVING POTENTIALS
 Pumps (25% - 35%)
 Chiller (20% - 25%)
 AHU/FCU (25% - 35%)
 Cooling Tower(15% - 20%
 Lighting System (40-60%)

10. (Source: Energy Conservation Centre of Japan, 2011)

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

12. GENERAL
ISSUES
FINANCIAL
SUPPORTS
• Lack of tangible assets as collateral/guarantee
• Pressure &demand for short payback period
Resources
INFORMATION
•Uncertainty in economic & regulatory framework
•Vague expectations
•No/Short term policy
• Time &human resources
• Inadequate technical know-how
• Poor/inaccurate estimation of energy saving
potentials
• Lack of reference data (baseline/benchmarking)
TECHNICAL SUPPORTS
& ADVISORY
• Lack of competent & reliable service providers

13. EEPs viewed as
“Infrastructure
Investments” – LOW
PRIORITY VS. CORE
BUSINESS – don’t fix if not
broken

EEPs funding through
loans/debts WILL IMPAIR
“CREDIT CAPACITY” from
core business – NO WAY
for SMEs/SMIs

BENEFITS ARE TOO SMALL
TO APPEAR ON CEO’S
RADAR SCREEN & to
justify “perceived’
operating
complexities/risks


NOT CONVINCED ON
ACTUAL COST SAVINGS
ACHIEVED nor aware of
proven Measurement &
Verification(M&V)
methods to ensure
sustainability of savings.

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

15. MEASURES
With LOW/NO
COST
Minimal Cost
Savings
MEASURES
WITH HIGH
COST
Significant Cost
Savings
• Management
Directives
• Implementation of
EnMS - to ensure
sustainability of
energy cost
reduction initiatives
•Priorities of budget
- core
business/operations
•Investment risks
•Limited human
resources & expertise
In-house
initiatives
May require
expert
assistance &
external
financing

16. ENERGY SAVING
MEASURES/PROJECTS
Expertise/
Competency
TECHNICAL
VIABILITY
FINANCIAL VIABILITY
SUSTAINABILITY PLAN
EnMS
(ISO 50001)
Performance
M&V
Financial
criteria &
sources

17. Clearly state the
VALUE
PROPOSITION
upfront
Briefly describe
THE WAY THE
BUSINESS CASE
PROPOSAL WAS
DEVELOPED
Describe
TECHNICAL
CHANGES
REQUIRED &
relevant
planning issues
List & describe
all key COSTS &
BENEFITS
State key
project risks &
how to manage
them
Describe the
FUNDING/SUPPO
RTS that being
sought
EE projects aimed to reduce energy costs TO INCREASE PROFITABIITY!

18. 
Must be strategically prepared to get the approval
from the top management to IMPLEMENT!

19. 
The presentation to precisely
address:
 what they like to hear, see & talk
about
 what is the return from the
Decisions will be based
investment & how soon they can
get back the return

on what
THEY WANT TO HEAR rather than
what are what YOU WANT TO PRESENT!
the risks & measures to
mitigate the risks
 how to get the savings(may be
the only technical element in the
presentation)
 decisions/total fund required to
kick-off the project

20. PRESENT LIKE A GREAT SALES MAN!

21. ISO50001:2011
 Energy
Management
Systems Requirements
With Guidance For
Use
Energy
performance
improvement
for energy
using services

ISO 55000
 An overview of the subject of
asset management and
the standard terms &
definitions to be used

ISO 55001
 The requirements
specification for an integrated,
effective management system
for assets- defines
requirements for
a management system

IS0 55002 provides
 Guidance for the
implementation the system

To be launched in Jan/Feb 2014

22. WHAT’S NEXT?

23. 
Solution or technology
based approaches?; or

Project based ; or

With corporate
sustainable energy
management program
with action plans, clear
targets & strategies?

24. 
To view energy efficiency as an
industry with its own economic
potentials

Clear policy goals & targets

Strong governance &
comprehensive framework

Consistency, accountability &
competency with One-Stop
Centre Agency

Inclusiveness in policies
development & reviews

25. Technical Assistance
& Advisory
Incentives & Financial
Assistance

SMEs & SMIs - energy audit
& guidance

Continue & enhance fiscal
incentives

Technical assessment by the
competent agency on EE
projects for financing
purposes

Business friendly & transparent
procedures & evaluation
criteria

Low interest loans with
dedicated revolving fund for EE
projects.

Grants based on annual
government budget for
specified initiatives 7 awareness
programs


Measurement & verification
of performance
deployment of experts for
technical assistance &
advisory

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

27. THANK YOU!