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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Industrial Transport Residential & Commercial
Final energy demand was
decreasing but electricity
consumption was growing
Transport sector exceeded
Industrial sector as the
largest energy user in the
country, accounted for
40.5% in 2010
-10000
10000
30000
50000
70000
90000
110000
0
10000
20000
30000
40000
50000
60000
70000
80000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GWh
ktoe
Primary Energy Supply Final Energy Demand Electricity Consumption
Source: National Energy Balance 2010
• Final energy intensity on
declining trend
• Strong co-relation between
Industrial energy intensity &
Final energy intensity
Source: National Energy Balance 2010
0
10
20
30
40
50
60
70
80
90
100
toe/RMMillion(at2000prices)
Final Energy Intensity Industrial Energy Intensity
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GWh/RMMillion(at2000prices)
Electricity Intensity
Electricity intensity
stabilised
National Energy Policy (1979)
6
Supply Objective: Ensure the provision of
adequate, secure and cost-effective energy
supply.
Utilization Objective: Promote efficient
utilization of energy and eliminate wasteful
and non-productive patterns of energy
consumption
Environmental Objective: Minimize
negative impacts of energy production,
transportation, conversion, utilization and
consumption on the environment.
7
EE Regulatory Framework
 Electricity Supply (Amendment) 2001-Act A1116
 Empowers the Minister to promote the efficient use of
electricity
(Section 23A, 23B & 23C)
 Determine efficiency standards;
 Installation to meet efficiency requirements; and
 Equipment to meet efficiency requirements
 Efficient Management of Electrical Energy Regulations
2008
 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 efficient
management of electrical energy; and
Current Development on EE Regulatory
Framework
 The amendment of Electricity Supply Regulations 1994 to enable the
enforcement of the Minimum Energy Performance Standards (MEPS) on
electrical appliances and lighting equipment (incandescent, CFL & LED).
 The MEPS will phase-out inefficient incandescent bulbs (below 20
lumens/Watt) by 2014.
Green Technology Fund Scheme(GTFS)
 Initial RM1.5 billion fund shared by government and banks to improve the supply and
utilization 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 proven
technology
FEATURES PRODUCER OF GREEN TECHNOLOGY USER OF GREEN TECHNOLOGY
Financing size Maximum: RM50 million per company
Maximum: RM10 million per
company
Financing tenure Up to 15 years Up to 10 years
Eligibility criteria
Legally registered Malaysian -owned
companies (at least 51%) in all
economic sectors
Legally registered Malaysian -
owned companies (at least
70%) in all economic sector
www.gtfs.my
Fiscal Incentives For EE & RE
Projects And Products
• 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)
 Energy Efficient Products(…2012)
 import duty exemption
 sales tax exemption
 Implementing Agencies:
 MIDA – Business & Other Services
Division(Application)
 Energy Commission(Technical assessment)
www.kettha.gov.my
www.st.gov.my
Incentives Energy Efficiency
Projects & Products
Companies Providing Energy
Conservation Services (ESCO)
Companies Incurring CAPEX For
Conserving Energy For Own
Consumption
 Pioneer Status
 Investment Tax
Allowance
 Import duty and sales
tax exemption
 Investment Tax Allowance
 Import duty and sales tax
exemption
Importers – exemption of
import duties& sales tax for
products
Locally manufactured
products-exemption of
sales tax
Green Buildings
Owners Of Buildings Awarded
With The GBI Certificate Buyers Of Buildings And
Residential Properties Awarded
With The GBI Certificates Bought
From Real Property DevelopersTax exemption
equivalent to 100% of
the additional capital
expenditure incurred
to obtain the GBI
Certificate
 Stamp duty exemption on
instrument of transfer of
ownership of such building.
 Amount of stamp duty
exemption is on the
additional cost incurred and
is given only once to the first
owner of the building
13
Energy –Efficient Buildings: 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
Energy-Efficient Equipment: Rating And Labeling
 Refrigerator
 Wall mounted split unit air
conditioner
 Domestic fans (standing,
ceiling, table)
 Television
The list is available at
www.st.gov.my
2011 TOTAL TARGET
ENERGY SAVINGS
127.3GWh
Type of
Appliances
Fridges Air -
Conditioners
Chillers
Allocation
Target # of
Units
100,000
units
65,000 units 72,000RT
Offered
Rebates
Per Unit
RM200 RM100 RM200
Total
Budget
RM20mil RM6.5mil RM14.4mil
2011
Target
Savings1
Energy 24.9GWh 48.75GWh 53.6GWh
Cost RM5.4mil RM10.6mil RM16.8mil
CO2
(tons/year)
17,181 33,638 36,992
Estimated
Lifetime
Savings2
RM38mil RM74.4mil RM252mil
Expected Total Energy Savings2 : 1,319.6GWh (equivalent to RM364.2mil)
SAVE
Program
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
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
EPC Saving Mechanism
 NEEMP’s main objective is to enhance the nation’s energy
efficiency & conservation initiatives over a 10-year period.
 NEEMP is focused on the industrial sector, buildings and
equipment .
 NEEMP’s targets are:
Targets Short
(3rd Year)
Medium
(6th Year)
Long/Total
(10th Year)
Electricity Savings
(GWh)
2,774 14,840 50,594
Monetary Savings
(RM Mill)
832 4,373 14,627
Electricity consumption
reduction (%) 1.3 3.4 5.6
Programs Plant and
Processes
Industrial
Technologies
High Efficient
Motors
Cogeneration
Policy Tools Incentives
(Soft loans)
Incentives
(Grant)
Incentives
(Cash rebates)
Regulatory
Awareness Awareness MEPS Awareness
Awareness
Public Fund
(RM, Mill)
401 295 2 0
Private Fund
(RM, Mill)
2,649 570 174 750
Electricity
Savings
(GWh)
22,388 4,950 934 3,675
Programs Govt Buildings Commercial
Buildings
New Buildings
Policy Tools Incentives
(Financial)
Incentives
( Financial & Tax)
Building Codes
(MS1525)
Awareness Awareness Awareness
Public Fund
(RM, Mill)
69 127 5
Private Fund
(RM, Mill)
235 589 1,260
Electricity Savings
(GWh)
2,038 3,914 932
Programs EE Refrigerators EE Lightings EE Air-
Conditioners
EE Fans
Policy Tools MEPS MEPS MEPS MEPS
Labeling Labeling Labeling Labeling
Incentives
(Cash Rebates)
Incentives
(Cash Rebates)
Incentives
(Cash
Rebates)
Awareness Awareness Awareness Awareness
Public Fund
(RM, Mill)
50 2 19 17
Private Fund
(RM, Mill)
1,118 127 1,294 751
Electricity
Savings
(GWh)
2,079 3,056 5,983 645
THANK YOU!

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EE Initiatives and National EE Master Plan by The Ministry of Energy, Green Technology & Water

  • 1.
  • 2.
  • 3. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Industrial Transport Residential & Commercial Final energy demand was decreasing but electricity consumption was growing Transport sector exceeded Industrial sector as the largest energy user in the country, accounted for 40.5% in 2010 -10000 10000 30000 50000 70000 90000 110000 0 10000 20000 30000 40000 50000 60000 70000 80000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GWh ktoe Primary Energy Supply Final Energy Demand Electricity Consumption Source: National Energy Balance 2010
  • 4. • Final energy intensity on declining trend • Strong co-relation between Industrial energy intensity & Final energy intensity Source: National Energy Balance 2010 0 10 20 30 40 50 60 70 80 90 100 toe/RMMillion(at2000prices) Final Energy Intensity Industrial Energy Intensity 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GWh/RMMillion(at2000prices) Electricity Intensity Electricity intensity stabilised
  • 5.
  • 6. National Energy Policy (1979) 6 Supply Objective: Ensure the provision of adequate, secure and cost-effective energy supply. Utilization Objective: Promote efficient utilization of energy and eliminate wasteful and non-productive patterns of energy consumption Environmental Objective: Minimize negative impacts of energy production, transportation, conversion, utilization and consumption on the environment.
  • 7. 7 EE Regulatory Framework  Electricity Supply (Amendment) 2001-Act A1116  Empowers the Minister to promote the efficient use of electricity (Section 23A, 23B & 23C)  Determine efficiency standards;  Installation to meet efficiency requirements; and  Equipment to meet efficiency requirements  Efficient Management of Electrical Energy Regulations 2008  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 efficient management of electrical energy; and
  • 8. Current Development on EE Regulatory Framework  The amendment of Electricity Supply Regulations 1994 to enable the enforcement of the Minimum Energy Performance Standards (MEPS) on electrical appliances and lighting equipment (incandescent, CFL & LED).  The MEPS will phase-out inefficient incandescent bulbs (below 20 lumens/Watt) by 2014.
  • 9.
  • 10. Green Technology Fund Scheme(GTFS)  Initial RM1.5 billion fund shared by government and banks to improve the supply and utilization 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 proven technology FEATURES PRODUCER OF GREEN TECHNOLOGY USER OF GREEN TECHNOLOGY Financing size Maximum: RM50 million per company Maximum: RM10 million per company Financing tenure Up to 15 years Up to 10 years Eligibility criteria Legally registered Malaysian -owned companies (at least 51%) in all economic sectors Legally registered Malaysian - owned companies (at least 70%) in all economic sector www.gtfs.my
  • 11. Fiscal Incentives For EE & RE Projects And Products • 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)  Energy Efficient Products(…2012)  import duty exemption  sales tax exemption  Implementing Agencies:  MIDA – Business & Other Services Division(Application)  Energy Commission(Technical assessment) www.kettha.gov.my www.st.gov.my
  • 12. Incentives Energy Efficiency Projects & Products Companies Providing Energy Conservation Services (ESCO) Companies Incurring CAPEX For Conserving Energy For Own Consumption  Pioneer Status  Investment Tax Allowance  Import duty and sales tax exemption  Investment Tax Allowance  Import duty and sales tax exemption Importers – exemption of import duties& sales tax for products Locally manufactured products-exemption of sales tax
  • 13. Green Buildings Owners Of Buildings Awarded With The GBI Certificate Buyers Of Buildings And Residential Properties Awarded With The GBI Certificates Bought From Real Property DevelopersTax exemption equivalent to 100% of the additional capital expenditure incurred to obtain the GBI Certificate  Stamp duty exemption on instrument of transfer of ownership of such building.  Amount of stamp duty exemption is on the additional cost incurred and is given only once to the first owner of the building 13
  • 14.
  • 15. Energy –Efficient Buildings: 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
  • 16. Energy-Efficient Equipment: Rating And Labeling  Refrigerator  Wall mounted split unit air conditioner  Domestic fans (standing, ceiling, table)  Television The list is available at www.st.gov.my
  • 17. 2011 TOTAL TARGET ENERGY SAVINGS 127.3GWh Type of Appliances Fridges Air - Conditioners Chillers Allocation Target # of Units 100,000 units 65,000 units 72,000RT Offered Rebates Per Unit RM200 RM100 RM200 Total Budget RM20mil RM6.5mil RM14.4mil 2011 Target Savings1 Energy 24.9GWh 48.75GWh 53.6GWh Cost RM5.4mil RM10.6mil RM16.8mil CO2 (tons/year) 17,181 33,638 36,992 Estimated Lifetime Savings2 RM38mil RM74.4mil RM252mil Expected Total Energy Savings2 : 1,319.6GWh (equivalent to RM364.2mil) SAVE Program 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
  • 18. 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 EPC Saving Mechanism
  • 19.
  • 20.  NEEMP’s main objective is to enhance the nation’s energy efficiency & conservation initiatives over a 10-year period.  NEEMP is focused on the industrial sector, buildings and equipment .  NEEMP’s targets are: Targets Short (3rd Year) Medium (6th Year) Long/Total (10th Year) Electricity Savings (GWh) 2,774 14,840 50,594 Monetary Savings (RM Mill) 832 4,373 14,627 Electricity consumption reduction (%) 1.3 3.4 5.6
  • 21. Programs Plant and Processes Industrial Technologies High Efficient Motors Cogeneration Policy Tools Incentives (Soft loans) Incentives (Grant) Incentives (Cash rebates) Regulatory Awareness Awareness MEPS Awareness Awareness Public Fund (RM, Mill) 401 295 2 0 Private Fund (RM, Mill) 2,649 570 174 750 Electricity Savings (GWh) 22,388 4,950 934 3,675
  • 22. Programs Govt Buildings Commercial Buildings New Buildings Policy Tools Incentives (Financial) Incentives ( Financial & Tax) Building Codes (MS1525) Awareness Awareness Awareness Public Fund (RM, Mill) 69 127 5 Private Fund (RM, Mill) 235 589 1,260 Electricity Savings (GWh) 2,038 3,914 932
  • 23. Programs EE Refrigerators EE Lightings EE Air- Conditioners EE Fans Policy Tools MEPS MEPS MEPS MEPS Labeling Labeling Labeling Labeling Incentives (Cash Rebates) Incentives (Cash Rebates) Incentives (Cash Rebates) Awareness Awareness Awareness Awareness Public Fund (RM, Mill) 50 2 19 17 Private Fund (RM, Mill) 1,118 127 1,294 751 Electricity Savings (GWh) 2,079 3,056 5,983 645