MALAYSIA ENERGY POLICY Focusing on Sustainable Energy ...

1 MALAYSIA ENERGY POLICYF ocusing on Sustainable ENERGY Development and The Way ForwardCHRONOLOGY OF ENERGY POLICIES IN MALAYSIACURRENTENERGY LANDSCAPESUSTAINABLE ENERGY Supply Side Management Demand Side ManagementKEYCHALLENGESWAYFORWARD12345 OUTLINE PRESENTATION2 ENERGY POLICIES3 Efficientutilizationofpetroleumresources Ensuringthenationexercisesmajoritycontro linthemanagementandoperationoftheindustr yNationalPetroleum POLICY (1975) SupplyObjective:Ensureadequate,secure&co st-effectiveenergysupply UtilizationObjective:Promoteefficientuti lizationofenergyandeliminatewastefulandn on-productiveusage EnvironmentalObjective.

2 MinimizenegativeimpactstotheenvironmentN ational ENERGY POLICY (1979) To prolongthelifespan ofthenation soilandgas reservesNationalDepletionPolicy(1980)4 Aimedatensuringreliabilityandsecurityofs upplythroughdiversificationoffuel(oil,ga s,hydroandcoal)Four-fuelPolicy(1981) Encouragetheutilizationofrenewableresour cessuchasbiomass,solar,minihydroetc EfficientutilizationofenergyFive-fuelPol icy(2001) To prolongthelifespan ofthenation soilandgas reservesNational Renewable ENERGY (RE) POLICY + Action Plan (2010) ENERGY POLICIESENERGY EFFICIENCY IS EMBEDDED IN ENERGY POLICY5 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 chainFive-FuelDiversification Strategy 2001 Four-FuelDiversification Strategy 1981 National DepletionPolicy 1980 NationalEnergyPolicy 1979 National PetroleumPolicy 1975 PetroleumDevelopmentAct 1974 Vested on PETRONAS the exclusive rights to explore.

3 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 mix6 POLICY STATEMENTG reenTechnologyshall be a driver to accelerate the national economy and promote Sustainable developmentNATIONAL GREEN TECHNOLOGY POLICY7As of 2016 INSTALLED CAPACITY (MW)PEAK DEMAND (MW)RESERVE MARGIN (%)Pen.

4 Malaysia23,24917, , ,4373,31534%Total installed capacity is 29,253 MWGDP: (Q4-2016)Electricity penetration: penetration: 95%Electricity penetration: : KeTTHAE lectricity Info Feb 2017 MALAYSIA : STATISTICS8 The flow of ENERGY which is represented by the following equation Primary EnergyEnergy Consumption(Gross inland consumption)Production+Import-Export-Bun kers+ / -Stock ChangeFinal ENERGY consumption+Consumption of the ENERGY transformation sector+Distribution losses+Non - ENERGY Consumption Transformation process Primary ENERGY vs ENERGY Consumption9 MALAYSIA s COMMITMENT TO PARIS AGREEMENT 201510 GREENHOUSE GAS EMISSIONSP ercentages of Greenhouse Gas Emissions by Sector in 2011 Percentage Emissions According To Greenhouse Gas in 2011 Source.

5 Biennial Update Report MALAYSIA 2011 Strengthening stakeholder coordination and collaboration in the ENERGY sector Ensuringthesecurityofsupplyandreliabilit yfortheoilandgassubsectorwithinamarket-b asedapproachEnabling the growth in the oil and gas subsectorManaging supply diversity for security of electricity subsectorImprovingthesustainability,effi ciencyandreliabilityoftheelectricitysubs ectorS111S2S3S4S51111TH MALAYSIA PLAN : ENCOURAGING Sustainable ENERGY USE TO SUPPORT GROWTH1212 Source:RMKe-11 DocumentSTRATEGIC THRUST 4 : PURSUING GREEN GROWTH FOR SUSTAINABILITY AND RESILIENCE1313"Effectively, the provision ofenergysuch that it meets the needs of the present without compromising the ability of future generations to meet their own needsTwo key components of Sustainable ENERGY :Renewable energyand EnergyefficiencyWhat IsSource: ENERGY1414 WHY IS Sustainable ENERGY IMPORTANT ?

6 Environmental Impact-Reduce emissions of greenhouse gasses and mitigate the impact of global Development-Reduce dependence on rapidly depleting fossil Security-Ensure the resilience of MALAYSIA s ENERGY supply by reducing dependence on imported sources of fuelEconomic Development-Tap MALAYSIA s tremendous potential and develop a competitive Sustainable ENERGY industry1515 SUPPLY SIDE MANAGEMENT16 MALAYSIA : POWER MIXS ource: KeTTHAE lectricity Info Feb 2017171720142020 DEVELOPING THE POTENTIAL OF RENEWABLE ENERGYvsSource: RMKe-11 Document1818 LSS is implemented by the ENERGY Commission (EC) Quota allocation 1000 MWfor 2017-2020 (250 MW/year) o800 MW for Peninsular MALAYSIA o200 MW for SabahLARGE SCALE SOLAR1919 NET ENERGY METERING FiTforSolarPVtoceasepost2017duetolimited REFund.

7 NEM&LSSintroducedtocontinuedevelopmentof thesolarPVmarket. AnnouncedbyYABPM duringBudget2016 SEDA asimplementingagencyforNEM QuotaallocationforNEM; 500 MWfor2016-2020(100 MWperyear)o450 MWforPeninsularMalaysiao50 MWforSabah2020 DEMAND SIDE MANAGEMENT2121123 Low ENERGY Office -LEOG reen ENERGY Office -GEOD iamond building 1stshowcasemodelcompletedin2004(GBI-Silv er) DemonstratethefeasibilityofEEdesignstand ardsasimpliedinMS1525:2001 CodeofPracticeonEE&UseofREforNon-Residen tialBuildings BEI 100kWh/m2annually CO2reduction56% 1stcertifiedgreenbuildinginMalaysia(GBI- Certified) DemonstrateadvanceEEandREdesignforcommer cialbuilding-2007 BEI-65kWh/m2annually SolarEnergy-35kWhgenerated CO2reduction86%.

8 ImprovedfrombothLEO&GEObuildingexperienc e. Completedin2010 Platinumcertificate,fromMalaysia sGreenBuildingIndex(GBI)andSingapore sGreenMark. BuildingEnergyIndex-85kWh/m2annuallyPROM OTION OF EE BUILDINGS IN MALAYSIA2222 EFFICIENT MANAGEMENT OF ELECTRICAL ENERGY REGULATIONS (EMEER) 2008 EfficientManagementofElectricalEnergyReg ulations(EMEER)2008hasbeengazettedon15th December2008 KeyProvisions: Appliedtobigenergyusers3milkWh/6months RequiresappointmentofElectricalEnergyMan ager ElectricalEnergyManagementPolicy Energyauditrecommendationsforelectricale nergymanagement Monitoring&ndkeepingofrecords Periodicalreporting23 SAVE PROGRAM ACHIVEMENTS23 SAVE PROGRAM Sustainability Achieved via ENERGY Efficiency (SAVE) Programme, 2011-2013 resulted in.

9 GreenhouseGases(GHGs)emissionreductionof 208,705tCO2eq232424 STANDARDS AND LABELLING least ENERGY efficient products are labelled with 2 Star the most efficient products are labelled 5 Stars . An Endorsement label will be issued by the ENERGY Commission labels would be affixed on ENERGY efficient products by the ENERGY PERFORMANCE STANDARD (MEPS) IntroducedMinimumEnergyPerformanceStanda rd(MEPS) : Refrigerators Air-conditioners Televisions Fans Lightings(Fluorescent,CFL,LEDandIncandes cent) PROGRAM ACHIVEMENTS26 ENERGY PERFORMANCE CONTRACTING (EPC) InitiativestartedinJanuary2013topromoteE Eingovernmentbuildings.

10 Effectivemechanismtoimplementenergysavin gmeasurestopromoteenergyconservationingo vernmentbuildingsbymarketmechanism-priva teinvestments Urgentrequirementstocultivatenewstrategi cindustrieswithactiveinvolvementandinves tmentsfromprivatesectorsasoutlinedinEcon omicTransformationProgram UndertheEPCconceptgovernmentbuildingsare allowedtoengageESCO stoimproveEE ThecostofinvestmenttoimplementEEimprovem entwillbeprovidedbytheESCO,whiletheowner ofgovernmentbuildingsareallowedtopaythec ostofinvestmentsbytheESCO sfromthesavingsmade262727 OVERVIEW OF NATIONAL ENERGY EFFICIENCY ACTION PLAN (NEEAP)Industrial BuildingsEnergy Audit(2016-2018)Commercial BuildingsEnergy Audit(2016-2018)Shared cost of ENERGY Audit between Government & Private Sectors as an incentive for Private Sectors to pursue retrofit programEnergy Audit And ENERGY Management in :28 WAY FORWARD :11thMALAYSIA PLAN (2016-2020)RMK-11.