0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

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

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

GW

h

kto

e

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

/R

M M

illi

on

( a

t 2

00

0 p

rice

s)

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

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

GW

h/

RM

Mill

ion

(at

20

00

pri

ces)

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

monitor the effectiveness of implemented measures

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!