1. ENERGY EFFICIENCY IN MALAYSIA
By
Datuk Ir. Ahmad Fauzi Hasan
Energy Commission, Malaysia
12 March 2014

2. Energy Efficiency In Malaysia’s Key Energy Policies
• To ensure
adequacy,
security and
cost-
effectiveness
of energy
supply
• To promote
efficient
utilization of
energy
• To minimize
negative
environmental
impacts in the
energy supply
chain
Five-Fuel
Diversification
Strategy 2001
Four-Fuel
Diversification
Strategy 1981
National
Depletion
Policy 1980
National
Energy
Policy 1979
National
Petroleum
Policy 1975
Petroleum
Development
Act 1974
• Vested on
PETRONAS
the exclusive
rights to
explore,
develop and
produce
petroleum
resources of
Malaysia
• To regulate
downstream
oil & gas
industry via
the
Petroleum
Regulations
1974
• To prolong
lifespan of
Malaysia’s oil
reserves for
future
security &
stability of oil
supply
• To pursue
balanced
utilization of
oil, gas, hydro
and coal
• Renewable
Energy
included as
the “fifth fuel”
in energy
supply mix

3. Energy Supply and Demand
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Primary Energy Supply (ktoe) 21,471 26,335 29,291 29,925 31,662 33,879 37,840 43,173 40,996 44,534 50,710 51,979 53,196 57,565 62,836 66,211 67,021 72,389 76,032 74,583 76,809 79,289
Final Energy Demand (ktoe) 13,146 14,563 16,185 17,728 19,287 22,164 24,181 26,167 25,558 27,228 29,699 31,515 33,289 34,586 37,323 38,285 38,567 41,606 41,968 40,845 41,476 43,455
GDP at 2005 Prices (RM million)* 217,047 237,766 258,891 284,509 310,718 341,258 375,393 402,882 373,231 396,140 431,234 433,466 456,834 483,278 516,061 543,578 573,936 610,087 639,565 629,885 676,653 711,351
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
ktoeRM Million (at 2005 prices)
Note: i) Primary Energy Supply does not include Renewable Energy (RE) except Hydropower
Source: i) Department of Statistics Malaysia
ii) National Energy Balance 2011

5. Energy Efficiency Initiatives In Malaysia
• Energy efficiency promotion in the Seventh Malaysia Plan (1996-2000)
• Malaysian Industrial Efficiency Improvement Programme (MIEEP) (1999)
• Fiscal incentives for EE (2001)
• Development of Malaysian Standard MS 1525 (2001)
• Capacity building on EE and DSM for key institutions (2002)
• Energy audit on government buildings (2002)
• EE and RE in education curriculum and university courses (2002)
• Energy efficient building demonstration projects (2004)
• Development of EE guidelines for Malaysian industries (2006)
• Efficient Management Of Electrical Energy Regulations (2008)
• Green Building Index (GBI) (2009)
• EE rating and labelling (2009)
• Green Technology Financing Scheme (2010)
• EE equipment rebate scheme (2011)
• Minimum energy performance standards (MEPS) regulations (2013)
• Incentive-based tariff regulation (2014)
• 5% energy reduction target for government buildings (2014)

6. Malaysia’s Final Energy Intensity
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Final EnergyIntensity(toe/RM Million at2005 Prices)* 60.5761.2562.5262.3162.0764.9564.4264.9568.4868.7368.8772.7072.8771.5772.3270.4367.2068.2065.6264.8561.3061.09
Industrial EnergyIntensity(toe/RM Million at2005 Prices)** 49.4352.3756.2259.6858.1057.9259.0758.9163.6057.9158.4362.4564.9062.1562.7462.8061.9564.6863.2363.8957.2461.08
45.00
47.00
49.00
51.00
53.00
55.00
57.00
59.00
61.00
63.00
65.00
67.00
69.00
71.00
73.00
75.00
toe/RM Million
(at 2005 prices)
Note: Intensity = Quantity of energy required per unit output or activity
(*): Final Energy Demand / GDP at 2005 prices
(**): Industrial Energy Demand / Industrial GDP at 2005 prices
Source: i) Department of Statistics Malaysia
ii) National Energy Balance 2011

7. Malaysia’s Electricity Intensity
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ElectricityIntensity (toe/GDP at2005 Prices (RM Million))* 7.9 8.1 8.6 8.6 9.4 9.9 10.1 10.9 12.3 12.2 12.2 12.9 13.0 13.1 12.9 12.8 12.7 12.6 12.5 13.2 13.3 13.0
ElectricityIntensity (GWh/GDP at 2005 Prices (RM Million))** 0.092 0.094 0.100 0.100 0.110 0.115 0.117 0.126 0.143 0.141 0.142 0.150 0.151 0.152 0.150 0.148 0.147 0.146 0.145 0.153 0.155 0.151
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
-
0.020
0.040
0.060
0.080
0.100
0.120
0.140
0.160
0.180
toe / RM Million
(at 2005 prices)
GWh / RM Million
(at 2005 prices)
Note: Intensity = Quantity of energy required per unit output or activity
(*): Electricity Intensity (toe/RM Million GDP at 2005 prices
(**): Electricity Intensity (GWh/RM Million GDP) at 2005 prices
Sources: i) Department of Statistics Malaysia
ii) TNB, SESB, SEB and IPPs
iii) National Energy Balance 2011

8. Heavily subsidised gas price does not make EE attractive
8
Diesel data available from 2005 onward – source: Department of Statistics

9. Gradual move towards market pricing of gas and electricity
Peninsular Malaysia’s electricity
tariff over the years

10. Electricity Tariff Comparison
10

11. Implementing new generation capacity biddingImplementing new generation capacity bidding
mechanismmechanism
Promoting co-generationPromoting co-generation
Gradual phasing-out of fuel subsidies with selectiveGradual phasing-out of fuel subsidies with selective
subsidizationsubsidization
Implementing incentive-based electricity tariff regulationImplementing incentive-based electricity tariff regulation
Minimizing technical and non-technical losses in theMinimizing technical and non-technical losses in the
supply chainsupply chain
Enhancing governance in grid system operationsEnhancing governance in grid system operations
through ring-fencing mechanismthrough ring-fencing mechanism
To continue enhancing supply-side EE initiativesTo continue enhancing supply-side EE initiatives

12. Introduction of a National EE Action PlanIntroduction of a National EE Action Plan
Strenthening of EE institutional frameworkStrenthening of EE institutional framework
Strenghtening and updating of EE legislative frameworkStrenghtening and updating of EE legislative framework
Enhancement and streamlining of EE initiativesEnhancement and streamlining of EE initiatives
Implementation of EE improvement programmes and activitiesImplementation of EE improvement programmes and activities
 Savings target and target groupsSavings target and target groups
 Priority areasPriority areas
• Capacity building in energy managementCapacity building in energy management
• Technology applicationsTechnology applications
• Technical supportTechnical support
• Funding mechanismFunding mechanism
• Promotion and information disseminationPromotion and information dissemination
To strengthen demand-side EE implementation frameworkTo strengthen demand-side EE implementation framework

13. 0
20
40
60
80
100
120
140
0 5000 10000 15000 20000 25000 30000 35000 40000 45000
GDP / Capita (US$)
EnergyConsumption
(‘00kWh/Capita)
Need For Benchmarking And Progress Monitoring
Source: EIA
Ukraine
Russia
US
Kazakhstan
Czech Republic
Malaysia
Turkey
Brazil
RomaniaThailand
China
Egypt
Philippines
Indonesia
India
Italy
France
Germany
UK
Japan
Canada

14. Thank YouThank You