MAINSTREAMING EE AS AN INDUSTRY...Part 1

1. EE industry? In the APEC Peer Review Report  for  EE in Malaysia 2010, there is a recommendation to make EE as the first fuel rather than the 6th fuel.The justification is very simple because we save unit of energy to perform one task, that unit become a source of energy for another one  task or more than one tasks. It is a source energy if we want to see it that way. In other words for business point of view, one ringgit you saved means one ringgit earned finally and we do not have to put so much efforts to earn that saving sometime.

APEC EE Peer Review Session by EE Experts at EC in 2010

2. For us to to sell something, we must produce it but for us to save some energy, in many ways, we do not have to produce anything or sell it because producing and selling incur costs.

WHAT  IS REQUIRED?...if we really want to make EE on par with other main stream industries

5. Generally, the main attraction for any industry is its ability to offer opportunities for people to jump into it. For investors, they are looking at the economic potentials and benefits of investment in EE to be compared with other industries. Career opportunities offered from EE implementation is the main reasons for people to think to consider EE in their plan. As a country, it comes down to how much EE will help in the economic and social development especially the impacts of energy cost to all segment of its sources of growth.

6. What is an industry like EE industry needs? This is the area will involve more strategic approaches to get the answer by policy makers related to energy. EE industry is no alien like any other industry. EE need to be implemented strategically with clear goals and dedicated industrial framework for each energy using sectors to pursue EE initiatives and sustain them. They are also require some supporting measures such as technical assistance, financial and incentives to kick-off and later to keep improving with changes in the economic environment and technologies. Roles that will be played by them will be finally benefits them and the country in many ways.

So, what is required exactly? Here are some key elements to counter barriers that already being identified as I highlighted in the previous post.

7. I had the opportunity as a participant  for a 2-week training program on EE at AOTS Kita-senju Tokyo, Japan in 2008. In this program  I had the opportunity to  develop a brief strategic plan for EE in Malaysia as my assignment in the workshop activity. This plan was discussed in a group comprising selected professionals from various private and government organizations such as TNB, SIRIM, PTM and  JKR from Malaysia and facilitated by a few EE experts from Energy Conservation Centre of Japan(ECCJ). 

Group discussion with ECCJ Experts

8. Finally the plan was presented and commented by everyone in the training program (about 30 participants) and ECCJ experts as well. Here I would like to highlights some of the key points that we discussed and generally agreeable among the participants and Experts from ECCJ and  what is needed to implement EE in more structured and effective manner in Malaysia.

The Presentation and Discussion

 

9. Then, when I returned to Malaysia, I did use the whole presentation slide to start to share the initial plan with  CEO/Chairman of EC and some people at Ministry of Energy, Water and Communication(MEWC) and now KeTTHA.

10. The strategic requirements that is required for EE Industry would be summarized as the following:

i) The clear direction from the top through policy and legislation for EE 

Why they are needed?

•   To have comprehensive and dedicated approaches  with comprehensive policy and legal framework with regard to EE & EC – key elements to drive implementation activities.  

• To define meanings of EE and EC and roles of respective parties involved from government agencies due to energy related issues are under the purview of various ministries. 
• To avoid overlapping/redundancy of roles played by government agencies, institutions, private sectors, NGOs and etc. 
• To enable the development of the  implementation mechanisms by government agencies based on their jurisdictions. 
• No enforcement powers for the authority to ensure EE & EC targets achieved. 
• To ensure allocation of resources and financial support for EE & EC activities with  more established ,  simplified and effective  procedures. 
• To ensure continuity of projects/program implemented. 
• To have standards  to measure  and monitor  of the actual impacts of each EE&EC activities. 
• Specific policy and legislation proven to be effective  in other areas such as safe &health (OSHA 1994) and environment protection (EQA 1974). 
• Specific policy and legislation proven to be  effective in implementing EE & EC in other countries such as Japan (Energy Conservation Act 1979), Thailand (Energy Conservation Promotion Act 1992)  and India. 
• The avoid Malaysia become  “ dumping sites”  for  energy inefficient products. 
• To ensure efficient utilization of energy use and  the country’s   resources to remain sustainable and competitive.

A clear policy and commonly shared national targets and  for each energy using sector is urgently needed. This policy must come together with policy instruments that will pave the way  for everyone to walk along the same path to achieve the intended targets.

Dedicated policy and clearly defined target as a country will become a single reference point for existing players to put up their strategic plan to enhance their presence  and to benefits from the industry. For potentials players, they would be able to assess the possibility to explore investment and business opportunities in EE industry by referring to the same policy direction.

EE policy should cover the following:

•  Energy Conservation target for the country- mid to long term

•  Target areas - Electricity  and fuel users (people and equipment)
•  
• Target groups -Demand side ( high energy users for factories    and  buildings, transportation)

 ii) Industry and regulatory frameworks 

Generally everyone agreed that we need  a proper frameworks covering all main components in EE industry and that framework will be allow each component to be developed and later to provide necessary assistance to targeted energy using sectors. Below are the the version of the frameworks produced at the training program and I would say "endorsed" by all participants the ECCJ experts too after being discussed at length throughout the program.

The initial reason when I proposed this structure in the group was because I had the idea of Energy Commission would be the suitable agency to look after EE as a centralized agency. That was due to some functions have been with EC as enabled in some provisions in Electricity Supply Act 1990.

When KeTTHA finally started to conduct the EE Master Plan study  by the end of 2008 for the purpose of preparing the national EE policy and strategic plan for EE implementation, more inputs and information have to be considered for the EE framework.
Based on what I digested from what have been written in the draft  master plan until the latest draft I saw in the end of 2011, I would rather suggesting the following structure  for EE framework for Malaysia which is more comprehensive to cater the needs of the EE industry. This framework developed in my mind which evolved from the initial one after gone through so many sessions of meetings, discussions and arguments in series of activities such as seminars, dialogues and workshop organized under KeTTHA which were participated by almost all the key industrial players and stakeholders from private and government sectors.
 

iii) EE  Laws (Act and Regulations)

The current energy related legislation is mainly focusing on energy supply and safety while many components on the energy utilization for the demand side still not regulated. The new law need to enacted one of the critical policy instruments to ensure the sustainability of EE efforts.
 

Laws and regulations are needed to regulate the EE industry more effectively as it serves as an instrument for the government to ensure that EE  policy responsibilities among the industry players are carried out satisfactorily and targets are achieved. 

The Efficient Management of Electrical Energy Regulations which was gazetted in 2008 is the first energy efficiency regulations to be introduced in Malaysia, but these regulations only cover the electricity sector, and specifically focus on the appointment and responsibilities of energy managers, the carrying out of energy audits and the reporting of the implemented measures. 

Other laws and regulations, such as those needed for the implementation of standards and labeling as well as those for other forms of energy, have to be introduced.  

Apart from that, the existing Uniform Building By-Laws (UBBL) should be revised to incorporate relevant clauses in the Malaysian Code of Practice MS1525. The MS1525 has specified minimum criteria for design of the building envelope, air-conditioning and lighting system. Current standards in the MS1525 aim to eliminate the more energy inefficient practices in the building industry. Its incorporation in the UBBL will ensure that all new buildings will be built as low energy buildings. The reviewing, updating and improvement of the MS1525 should be done regularly to ensure that energy efficiency in new buildings will keep improving.  

The scopes that is recommended in a specific and comprehensive EE law in Malaysia should cover the followings:-

• The obligations to implement  EE program for  EE and C policy to achieve its target.
• The designated agency authorized with the responsibilities to implement and regulate EE activities based on the policy.
• Competency and accreditation/licensing for energy managers, energy auditors and companies that provides energy services.
•  The development and introduction of energy efficient standards and labeling for electrical and thermal equipment.
• Promotional and awareness on EE activities on EE&C among energy users such as factories, commercial buildings and domestic consumers.
• The establishment of EE fund and centralized agency to for sourcing and managing the fund for the implementation of the EE activities.
•   Punishment and penalties for noncompliance.