SUSTAINABILITY ACHIEVED VIA ENERGY EFFICIENCY(SAVE) PROGRAM -THE ORIGIN

OFFICIAL LOGOS OF SAVE PROGRAM IN ENGLISH AND MALAY LANGUAGES FOR CAMPAIGN AND AWARENESS PROGRAMS

BRIEFLY ABOUT SAVE PROGRAM

The SAVE Programme was created and is funded by the Government under the Economic Transformation Programme to stimulate the economy. The SAVE Programme is under Entry Point Project 9 and improving energy efficiency has been identified as a key criteria to boost the economy development in Malaysia.

Under the SAVE Programme, there are five key pillars:

1.   “Government Leading by example” on energy-efficient practises and philosophy

2.   Stimulating the sales of energy efficient appliances

3.   Making co-generation economically viable

4.   Improved regulation on building insulation

5.   Stimulating the sales of energy-efficient vehicles

For 2011, the first initiative under SAVE  is  a rebate Program for energy efficient air-conditioners, refrigerators and commercial chillers. This initiative addresses Pillar #2 of the SAVE Programme which is to stimulate the sale of energy efficient appliances.

The initiative targets the final end user through retailers of electronic appliances and will generate up to 7,300GWh of energy saving by 2020. For the nation, this means a GNI of up to RM5.1 billion by 2020.

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This SAVE program will remain as one of the best memories in my career in promoting energy efficiency. The acronym SAVE itself came from me originally for the purpose of branding the EPP9 for OGE because my thought that time, it would be hard to recognize EPP9 out of over 120 EPPs in ETP.

I must thank to those in KeTTHA and ST who gave me the opportunity and trusted my ability to sit in the NKEA Lab and proposed EE initiatives to be included in the Economic Transformation Program.

I will write more about the program itself from my own perspective since all other public information about it can be referred in www.saveenergy.gov.my. It has been very interesting and challenging journey for me since I was involved from the very beginning until it was finally launched. Here I would like to share more insight about the program, my thoughts about it  and how I experienced it personally.

Here I would like to share how the program was...

• originated
• discussed
• debated
• argued
• rejected 
• re proposed
• and finally  approved to be in ETP Document as launched by PM in October  2010

Then...

• the process of developing its implementation mechanisms and procedures
• the launching by YB Minister on 7 July 2011
• the awareness and promotional programs
• implement the program 
• dealing with responses from public, retailers and critics 
• And finally assessing the impacts again the intended targets (the time that I left the project to explore different perspective of EE as an industry player).

NKEA Lab: Oil, Gas and Energy Sector (Jun - July 2010)

Venue: MAS Academy Kelana Jaya

Task: To propose and convince PEMANDU to include EE as one of the viable projects in ETP on behalf of the government (KeTTHA)

With Mr. Lal Chand while we were working on EPP9 at NKEA Lab in June-July 2010

Together with Mr. Lal Chand, we managed to convince PEMANDU to include EE in ETP with key initiatives as documented under Entry Point Project 9(EPP9) in Oil, Gas and Energy (OGE) in ETP. Comparatively the total GNI contribution from EPP9 is relatively small compare to other EPPs under OGE since we were grouped together  in the same industries like energy sources exploration and oil&gas processing  with worth in hundreds billion of RM  but we believe that there were strong reasons the inclusion of EE was important to be a part of ETP.

I came to the lab equipped with my full awareness and knowledge about the development of EE in Malaysia due to my direct  involvement with other ongoing key strategic initiatives such as

· the National EE Master Plan and policy study (NEEMP was targeted to be introduced in 2011)

·      the plan to ban incandescent lamps by 2014

·  the development and implementation of standards and labelling for electrical equipment

·      regulatory and enforcement of existing EE law

That in-depth information enabled me to think and discussed it with the team of  other experts in the lab. Then we have to find the best possible fit for EE to be in line with the whole targets of ETP to give immediate impacts to the economy and also later could be sustained with more support measures until 2020 and beyond.

In general, the 5 key initiatives for EE in EPP9 were designed for 3 year period in the first phase of the implementation which requires some allocations from the government for a kick-off. When the budget was proposed, it went through an evaluation process at outlined by PEMANDU,MoF and EPU. 

Among the key guides and  criteria for EPPs as required by PEMANDU were:

Inputs

·      Direction set in core economic policies & plans

o  New Economic Model  Part 1

o  Malaysia plans

·      Other core documents

o  Vision 2020 document

·      Foundational sector-specific master plans e.g. industrial Master Plan 3, Capital Markets Master Plan

Design principles  

·      Emphasize private investment-led projects over publicly funded initiatives…

·      by strengthening the sector fundamentals and moving to commercially-oriented activities

·      With higher value-added and drawing on innovative, cutting-edge ideas within NKEAs…

·      that allow Malaysia to reduce dependence on:

o  Resource-intensive sources of growth

o  Foreign workers as a key source of unskilled labour

Rationales

·      Support fiscal consolidation and prudence (Reducing the Federal Government budget deficit)

·      Ensure Government debt sustainability

·      Achieve greater productivity of resources 

·      Generate multiplier effects

o   Boost Malaysia’s competitiveness and make inroads into the global markets

o   Ensure sustainable growth beyond 2020

o   Improve livelihood of bottom 40% households

                

Added to the above, each initiative in EPPs must have its owner and dedicated entity for the implementation.

Each EPP is expected to contribute certain value of GNI including  jobs to be created from each activity that  need to be implemented at specified time frame to achieve the overall goals of ETP.

It was a two months works with everyone selected to represent as an expert or as key resource person and grouped into 12 NKEA labs. 

We started our discussions, consultations and meetings within the lab and with key stakeholders as early as 8 a.m in the morning with relatively no particular time to stop. Everyone was given the tasks to produce something to be brought to the next stages for evaluation by other group at different levels within PEMANDU and team of specialized consultants.

Initial summary of EPP9 and its key initiatives 

In short, every EPP has gone through rigorous assessments from all angles such as practicality, implementable, economically viable, acceptance by key stakeholders and industry players and etc.On top of that, EPPs also were  presented by PEMANDU to be vetted  by the central agencies such  MoF, EPU and relevant ministries to gauge their feedback and inputs.Then each EPP was  presented again to these agencies after actions taken based on feedback and  input given  and finally to be tabled to  the committee which was chaired by the PM for the consideration and approval to be included in ETP.

We had very  tough and challenging  times from the beginning to justify every single RM for EE budget mainly due to lack of understanding of key decision makers at the higher levels. The fact is, we could hardly see them look at EE as one of strategic agenda that needed for the country as we try to grow our economy to become a high income economy. There was a moment when some high level officers from the government said  it  straight to my face 

HOW COULD WE GROW OUR ECONOMY IF WE SAVE OUR ENERGY? 

WHY SHOULD WE SAVE ENERGY WHEN OUR ELECTRICITY SUPPLY PLENTY OF RESERVE MARGIN?

I was not shocked at all to hear all that since my experiences over the years showed me that he and she was not alone thinking that way and we just need to continue convincing them with more facts and successful examples on how EE could be as important as other industry in our economic development as proven in other countries.

Initial summary of all proposed EPPs for alternative energy

There was a time where EE almost taken off from the EPP lists but  the everyone involved in the lab put their efforts together, it was finally accepted. In the process, I was in constant pressure to ensure all is well communicated to the key agencies like KeTTHA and ST through the arrangement of dialogue and briefing sessions together with very dedicated officers from PEMANDU and experts from McKinsey  to get their buy-in.

It was a big accomplishment for us in the lab especially the team  that fought our way to pull it through and when EE was finally and officially approved to be   documented in the ETP, I knew, the real  works was just started and it would not be a walk in park for anyone who will be involved in it. What was proposed and agreed actually just the key concepts and basic strategies for the implementation with detailed mechanisms and approaches will be addressed by owners assigned for each EPP later which will be monitored by PEMANDU according to the proposed time frame.

For the implementation of EPP9, it was proposed and later agreed the owner will be KeTTHA and key agency is ST and to be supported by other relevant organizations such as utility companies, SIRIM and etc.

In that two months period, key stakeholders and other high level decision makers came for planned and also unplanned visits to labs that they have interests. There were also scheduled visit by the PM and briefings by each lab to him at the lab itself on the major progress and accomplishments for each NKEA or EPP at the development stage. 

A visit by PM and Minister at the lab

A briefing by the representative from the lab to PM, Ministers and other high level officers

When each initiative in EPP9 was designed and proposed to PEMANDU, myself and Mr. Lal Chand were thinking about measures that would give quick impacts, proven to be effective as implemented in successful countries in EE and also with reasonable budget which would give less resistance to the decision makers to accept. What we did was by looking into some existing EE measures that being planned to be implemented but  need some policy directives to get the green light.The strategy was to use ETP as a platform to put EE in the mainstream agenda of the country which would require parties related to the implementation of EE measures to give their commitment.

2010 was the year that NEEMP planned to be finalized and both of us had that in-depth knowledge about the key findings and proposed key strategic  initiatives in the initial draft NEEMP document. When we looked at that initiatives, there were some of  them  could be implemented without the endorsement of the final NEEMP document and what needed were just some allocation of budget and commitment by certain parties to implement it. 

That was our  key considerations when we proposed  initiatives such as rebate programs for energy efficient electrical appliances and equipment, implementing of energy management system and energy conservation measures at government buildings and energy efficient insulation for buildings as among the earlier  initiatives to kick-start EPP9 implementation in 2011. 

Based the development of EE at the time, we believe the proposed initiatives would be sufficient to enhance the awareness of EE among the public and prepare the market related industry players such as manufacturers and retailers before the introduction of NEEMP which was targeted in 2011. All initiatives proposed in EPP9 were to be implemented on voluntary basis  and while some of them will become mandatory gradually with the implementation of NEEMP at the later stage.

Finally ETP was launched in October 2010 and me with Mr Lal Chand were involved in ETP Open Days  to answers queries and receive feedback from key stakeholders, industry players and the general public.

With the CEO of PEMANDU, Datuk Seri Idris Jalan at the ETP Open day , PWTC  in October 2010

 I had the opportunity to participate in two of the open days after the launching of ETP in Kuala Lumpur and also in Kota Kinabalu.

It was another great and memorable experiences too when I had the chance to explain and answer questions from all walks of life about ETP which was very new to visitors at the open days and to other Malaysians too.

Sweet and proud moment with NKEA OGE Lab members with Datuk Seri Idris Jala at the end of the open day ,PWTC in Oct 2010

With great friends from NKEA OGE  Lab at the open day to asnwer questions about initiatives proposed by the lab in ETP.

The keynotes from the CEO of PEMANDU at the ETP open day in Kota Kinabalu

With En. Siraj, the leader of NKEA OGE Lab at the open day in Kota Kinabalu

Below are the members of NKEA OGE Lab and it was great to works and communicate with all of them with deep knowledge and  expertise from various industry  and disciplines from OGE sector. It was a small recognition for our contribution by having all of our names at the back of ETP book launched by the PM but what really meant a lot for each us were the experience and opportunity to work together for a better Malaysia through the ETP which  all of us may or may  not be able to witness its achievements in 2020.

No	Organisation	Name in detail
1	PETRONAS	Amir Harudin
2	PETRONAS	Ezrin Johanna  Elias
3	PETRONAS	Ibrahim Mohamed
4	PETRONAS	Khairool Anwar Laksamana
5	PETRONAS	Masnizah Supu
6	PETRONAS	Mohd Azam Yusoff
7	PETRONAS	Norhayati Hashim
9	Petronas	Farehana Bt Hj Hanapiah
2	Dialog Group	Ng Chong Wah
3	EPU	Mohamad Azhar Ashkar Ali
4	ExxonMobil	Zainal A Ahmad
5	Murphy Sarawak Oil Co., Ltd.	Abdul Karim Mohamed Yunus (now deceased)
6	Petronas	Haida Shenny Hazri
7	Petronas	Marina Taib
8	Schlumberger	Fabian Loh Fook Hoy
9	Shell	Ahmad Zaidi Bin Julaihi
10	Shell	Zharin Binti Zhafrael Mohamed
11	Talisman Energy	Norlina Omar
12	MATRADE	Zaimah Osman
13	MISC	Rozainah Awang
14	MITI	Gan Mui Huei
15	Petronas	Aadrin Azly
16	SapuraCrest	Shaharel Bin Shafiei
17	Schlumberger	Gordon Goh Kim Fah
18	Scomi / MOGSC	Shahreen Madros
19	RE/MBIPV Project,	Lalchand Gulabrai
	KeTTHA
20	RE/MBIPV Project,	Gladys Mak Sow Lin
	KeTTHA
21	MIDA	Masni Muhammad
22	MIGHT	Nashiruddin Mohd Tahir
23	Nuclear Malaysia	Jamal Khaer Bin Ibrahim
24	Sarawak Ministry of Public Utilities	Syed Mohamad Fauzi Shahab
25	Sarawak State Planning Unit	Marie Cotilla Louise @ Rozita Kulai
26	Suruhanjaya Tenaga	Endang Jati Bt Mat Sahid
27	Suruhanjaya Tenaga	Zaini bin Abdul Wahab
28	TNB	Amir Hisham Hashim
29	Wah Seong Corp	Mohamed Siraj Abdul Razack

Below are some of the photos  during our own celebration dinner with the NKEA OGE lab members at Nelayan Restaurant Titiwangsa, KL  after the open day in PWTC. Al-fatihah to our great friend from the Lab, Allahyarham Abdul Karim Mohamed Yunus from Murphy Sarawak Oil who was passed away due to heart problem few months after that.

I will share more ...insyaAllah
...on the development of  the implementation mechanisms with many other great and dedicated people from many entities...
I hope I can make the time for me to share more about the SAVE program and how its achievement went beyond the intended targets.