Energy policy Energy Policy Energy policy elements are

Energy policy

Energy Policy? Energy policy elements are the main ingredients of energy policy to deal with the energy-sector activities, issues, challenges and barriers through the undertaking of various policy measures or instrument

Energy Policy Malaysia Vested the exclusive right to explore, develop and produce petroleum in Malaysia to PETRONAS To regulate downstream oil and gas industry via the Petroleum Act

Energy Supply-demand Balance • Energy demand is projected to increase from 2, 000 PJ in 2009 to 4, 013 PJ in 2030 • Average rate of 3. 6% p. a. • Malaysia was projected to be a net energy importer by 2019 4

National Energy Policy 1979 A simple form of energy policy defined in terms of its objectives: Supply objective is to ensure adequate and secure energy supply at reasonable prices Utilisation objective is to use energy efficiently and to cut down on wasteful ways of using energy, and Environmental objective is that in ensuring the achievements of the supply and utilisation objectives, the environment is not degraded adversely Four fuel policy 1981 • Oil, gas, hydro, coal • To diversify energy mix used in power generation • To reduce overdependence on oil as the principal energy source 5

National Depletion Policy 1980 • Total annual production of crude oil should not exceed 3% of oiloriginally in place • Limit the production of oil at about 680, 000 barrels a day Fifth Fuel Policy 2000 • RE • Targets 500 MW in 8 th Malaysia Plan 350 MW in 9 th Malaysia Plan 6

New Energy Policy 2010 https: //www. st. gov. my/

New Energy Policy 2010 Energy Pricing (Adoption of market-based energy pricing) Gas price revision every 6 months Itemised billing in consumer utility bills Energy Supply (Initiatives to Secure and Manage Reliable Energy Supply) Third party access to gas sector, RAPID Johore – Refinery and Petrochemical development Power generation stations, Feed-in tariff, studies on alternative energy sources 8

New Energy Policy 2010 Energy Efficiency (Measures to encourage efficient use of energy) SAVE (RM 40 million was disbursed for Sustainability Achieve Via Energy Efficiency (SAVE) Program to SEDA) EE testing lab (A total of RM 45 million was allocated to SIRIM for EE Testing Lab EE Act Governance (Various entities established to address separate element of the energy industry) MPRC, MNPC, My. Power, SEDA Change Management Gradual and phased implementation Regional (ASEAN) Cooperation 9

Framework for Electricity Supply Industry in Malaysia (Acts and Regulations) Electricity act 1. Energy Commission Act 2001 2. Electricity Supply Act, 1990 Regulations 1. Electricity Regulations, 1994 2. Licensee Supply Regulations, 1990 3. Electricity Supply (Exemption) Notification 1994 4. Efficient Management of Electrical Energy Regulations 2008 (EMEER 2008) • Licenses Issued by Energy Commission and approved by Minister • Licenses issued to generators, distributors and suppliers • License conditions Prescribes mandatory standards for licensees’ activities • Industry codes and guidelines issues by Energy Commission Grid Code, Distribution Code, Guidelines provide guidance for industry 1 0

Evolution of Malaysian Electricity Supply Industry (MESI) Energy Commission regulates the electricity supply industry TNB Fuel and PETRONAS, the sole suppliers of coal and gas respectively Single Buyer (SB) and Grid System Operator (GSO) set up and ring fenced within TNB New Energy Dispatch Agreement (NEDA) set up – cost efficiency, short run (daily) competition, instead of long term PPAs

MESI 2. 0 • Fuel supplies, generation segment and retail services may evolve to be under competitive environment • New SB and GSO act as independent functions as part of level-playing field objective • Transmission and distribution wires remain natural monopoly (and regulated) • Green choices 1

Government Initiatives to Promote Energy Efficiency 1

EE Policy National Energy Efficiency Action Plan 2015 The National Energy Efficiency Action takes 5 key initiatives Initiative 1: Promotion of 5 -Star Rated Appliances; Initiative 2: Minimum Energy Performance Standards (MEPS); Initiative 3: Energy Audits and Energy Management in Buildings and Industries; Initiative 4: Promotion of co-generation Initiative 5: Energy Efficient Building Design. 1

EE Strategies Five Fuel Policy • Demonstration projects Focus in industrial and commercial sectors • Integrated complexes/townships Fiscal incentives • Demand side management Regulations • Development of related industries and services • • • Research and development Energy use benchmarking Energy rating and labelling 1

EE Strategies Efficient lighting and air conditioning systems Energy management systems Incorporation of EE in Uniform Building By Laws Courses in learning institutions • Market pricing for energy • Emphasis on demand side management • Regional (ASEAN) coorporation 1

EE Programmes • • Demonstration projects EE and RE incentives enhancement EE/Demand Side Management project Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) Development of Energy Service Companies (ESCOs) Development of EEC Guidelines UNIDO Project Building Sector Energy Efficiency Project (BSEEP) 39

EE Programmes • Awareness Programmes • • Newspaper campaign Seminars/workshops Energy Efficiency (Domestic) Guidebook • Sectoral Programmes • • High Efficiency Motors Promotion High Efficiency Refrigerators Promotion Appliance Energy Efficiency Labelling Building Energy Efficiency Benchmarking 18

EE Awareness/Education • Centre for Education and Training in Renewable Energy and Energy Efficiency (CETREE) Located at Universiti Sains Malaysia Objective – to increase awareness of RE and EE in the country Target groups – secondary schools, universities, professionals, general public To be a national centre for EE and RE awareness 19

MIEEIP The Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) - Objective was to improve EE in Malaysia’s industrial sector by: Identifying and removing barriers Encouraging implementation of EE projects Capacity building Developing legal framework 20

MIEEIP initially focused on 8 energy intensive industrial sub sectors: - Iron & steel - Glass - Cement - Pulp & paper - Wood - Ceramics - Food - Rubber It was later extended to 3 more sectors, oleo-chemical, plastic, and textile sectors 21

MIEEIP • MIEEIP Programmes include: Energy-use Benchmarking Energy audits Energy rating EE promotion ESCOs support Energy Technology demonstration Local manufacturing support 22

Energy Efficiency Rating and Labelling of Appliance and Material 23

EE Rating and Labelling • EE Rating and Labelling for: Refrigerators Air Conditioners Fans Televisions Motors • EE Rating: • Lamps Fluorescent Lamp Ballasts Insulation Material 50

EE Rating 2 5

Building Demonstration Projects by the Government Improved versions with more sustainable features 2 6

Targeted Building Energy Index for EE’s Building: 85 k. Wh/m²/year Building Energy Index Base Building Proposed Building 140 116 120 108 k. Wh/m 2/yea r 100 80 60 40 51 39 28 19 20 13 4 0 Cooling Energy Fan Energy Lighting Energy Plug Load Energy Categories 2 7

Awareness Campaigns and Promotional Activities Printed media: handbooks, brochures, posters, competitions, advertisements 2 8

EE Conservation for Electrical Energy Use Equipment Industrial EE Conservation for Thermal Energy Use Equipment Energy Audit Guidelines Commercial Buildings 2 9

Industry Development Malaysia Industrial Energy Efficiency Improvement Project (MIEEIP) Establishment of Malaysia Energy Services Companies Associations (MAESCO) Establishment of Malaysia Energy Professional Association (MEPA) Establishment of Green Building Confederation and Green Building Index rating tool. Endorsement of Continuous Development Program providers by Energy Commission in efficient management electrical energy 3 0

Developments in Electricity Supply Industry • • Competitive Bidding for new 1000 MW coal-fired power plant. Incentive Based Regulation Activity based licensing Guaranteed Service Level (GSL) / Minimum Service Level (MSL) Ring fencing of the Grid System Operator Revision of the Grid Code New Distribution Code 3

Subsidies Introduced under the government financial budgetary support with the aim of promoting EE projects through the provision of tax incentives; • Investment Tax Allowance • Accelerated Capital Allowance • Import Duty Exemption • Sales Tax Exemption • Energy Efficient Products 3

Legislative Framework, Codes, Guidelines and Standards 3

MS 1525: 2007 – Code Of Practice on Energy; Efficiency and Use of Renewable Energy for Non-residential Buildings: 3

MS 1525: 2014 – Code of Practice on Energy; Efficiency and Use of Renewable Energy for Non-Residential Buildings: • Architectural and passive design strategies • Building envelope • Lighting- illumination levels, lighting controls, O&M • Electric power and distribution • Air conditioning and mechanical ventilation • Energy Management control system 3

Energy Efficiency and Conservation Guidelines 3

EEC Guidelines Part 1 – Electrical Energy Use Equipment : • Published in July 2007 • Section A – Over view on EE in Malaysia • Section B – Equipment Guidelines Types of Equipment EE Potential Selection Guidelines on Operations and Maintenance 3

EEC Guidelines Part 1 – Electrical Energy Use Equipment: • Transformers • Motors • Chillers • Cooling Towers • Fans and Blowers • Pumps • Air Compressors • Lighting 3

EEC Guidelines Part 2 – Thermal Equipment : • Published in June 2010 • Includes: • Boilers and Furnaces • Thermal Oil Heaters • Absorption Chillers and Heat Recovery Equipment • Cogeneration System 3

MS ISO 50001 Energy Management Systems. Requirements with Guidance for Use 4

MS ISO 50001 - Contents Scope 2 Normative references 3 Terms and definitions 4 Energy management system requirements 1. General requirements 2. Management responsibility 3. Energy policy 4. Planning 5. Implementation and operation 6. Checking performance 7. Management review Annex A (info) Guidance on the use of this standard 1 4

k. Wh/m 2/year

Conclusions A number of initiatives have been undertaken to promote EEC and use of RE Not very encouraging results so far The way forward Managing facilities well will contribute significantly in this respect Malaysia’s commitment towards global climate change initiatives 43