Energy Efficiency Report 2007

Coordinator: Dr. Lu Aye Department of Civil and Environmental

15 MAY 2007[Energy Efficiency Technology] | 421‐629

ENERGY EFFICIENCY TECHNOLOGY IN MALAYSIA: THE IMPACT ON FUTURE ENERGY

DEMAND IN INDUSTRIAL SECTOR

[Vigneswaran KUMARAN] | 277492

vkurmara

Rectangle

ENERGY EFFICIENCY TECHNOLOGY IN MALAYSIA: THE IMPACT ON FUTURE ENERGY DEMAND IN THE INDUSTRIAL SECTOR

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Abstract

This report attempts to delineate the impact of Energy Efficiency Technologies (EET) in the

Industrial Sector in Malaysia vis‐à‐vis the future energy demand. A holistic approach was

envisaged to demonstrate the paramount importance of evolving Malaysian energy policies

inter alia the energy production, consumption and management, and thus in the

culmination of energy efficiency technology policies. In order to generate an exclusive

analysis of future energy demand and quantify this in respect to implementation of EET in

the industry, a statistical assumption was made to apply the Pareto rule and Simple Ratio

method. Additionally, case studies modeled by the Malaysian government for

implementation of EET in industry were used to complement the available fiscal and energy

data for quantitative impact analysis.

Keywords: Energy efficiency technologies, industrial sector, future energy demand, case

studies, quantitative impact analysis


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Aim

The method and approach integrated in generating this report is designed to meet the following objectives:

• Outline the National Energy Policy development vis‐à‐vis Energy Efficiency Technology (EET)

• Provide a distilled Energy Supply and Demand analysis for Industrial Sector

• Describe the present Energy Efficiency Technology in Industry

• Quantify the future Energy Demand due to the impact of EET


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Contents

Abstract 2

Aim 3

1.0 Introduction 7

2.0 Energy Policy Development 10

3.0 Energy Demand and Supply 12

4.0 Energy Efficiency Technology (EET) in Malaysian Industry 14

5.0 Case Study of EET Model in Industry 16

6.0 Future Energy Demand: Quantitative Analysis 17

7.0 Conclusion 20

References and Notes 21

Appendix

A1 22 Examples of Energy Efficiency Technology

A2 act 23 Energy Demand Curve Estimates without EET Imp

A3 24 Energy Demand Curve Estimates with EET Impact

A4 25 Energy Savings and Quantitative Analysis Calculations

A5 acity 26 Energy Generation Mix and Power Producers’ Cap

A6 tion 27 Generation Mix and Power Producers’ Genera

A7 Sales of Electricity and Electricity Consumers 28

Figures Figure 1 Industrial Fuel Intensity in Selected ASEAN Countries 1980‐2000 13

Figure 2 Energy Demand Curve (without EET) from 1990 to 2000 23


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Figure 3 Energy Demand Estimates (without EET) from 2010 to 2020 23

Figure 4 Energy Demand Estimates with EET Impact from 2010 to 2020 24

Tables Table 1 Final Commercial Energy Demand by Source 8

Table 2 Final Commercial Energy Demand by Sector 9

Table 3 Primary Commercial Energy Supply by Source 12

Table 4 Applicable Energy Efficient Technology for Malaysian Industry (MIEEIP Model) 14

Table 5 Energy Efficient Application in MIEEIP Industry Model (Case Studies) 16

Table 6 Potential Energy and Cost Saving 22

Table 7 List of EE Project for Second Phase of MIEEIP’s Demonstration Project 22

Glossary

CHP: Combined Heat and Power

EET: Energy Efficiency Technology

EPU: Economic Planning Unit

EIB: Energy Information Bureau

GDP: Gross Domestic Product

MIEEIP: Malaysian Industrial Energy Efficiency Improvement Project

OECD: Organisation of Economic Cooperation and Development

PTM: Malaysian Energy Centre


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1.0 INTRODUCTION

“Energy can neither be created nor destroyed”. It is an accepted empirical principle referred

to as First Law of Thermodynamics. Theoretically, the world shall never run out of energy

source. However, the availability of energy in its various physical forms, which have been

indiscriminately consumed by generations of civilization, can and will deplete. This applies

in particular to the energy sources from exhaustible mass such as fossil fuel and minerals.

Therefore, the scrupulous use of this energy sources instrumented by efficient technologies

is crucial to the existence and sustainable growth of any nation, and more so for a

developing country. Importantly, energy efficiency technology offers a powerful and cost‐

effective tool for achieving a sustainable energy future [1].

A developing nation such as Malaysia, with strategic geographical location historically (Map

1) and exemplary political stability, increases its vulnerability to energy supply and demand

equilibrium in the absence of succinct energy policy.

Map1: Peninsular Malaysia, Sabah and Sarawak

Source: CIA World Factbook

A negative imbalance in this equilibrium, can adversely impact the sustained 6.5 % gross

domestic product (GDP) growth achieved by Malaysia over the past 50 years of post‐

independent [2].


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Malaysia is a country with diverse energy sources, both renewable and non‐renewable, such

as petroleum, coal, coke, natural gas and hydroelectric. Its current population of 26.5 million

[3] is estimated to reach 28.96 million in the year 2010, with an average growth projection

of 1.6 % per year [4]. This expansion in population growth has strain on energy demand and

energy intensity. Malaysian statistic reveals that per capita consumption has increased to

62.2GJA1 (2005) from 52.9GJA (2000), and estimated to reach 76.5GJA in the year 2010

(refer Table1).

Table 1: Final Commercial Energy Demand1 By Source

PJ % PJ % PJ % PJ % PJ %SourcePetroleum Products 414 74.9 676 72.8 820 65.9 1023.1 62.7 1372.9 61.9Natural Gas2 45.7 8.3 81.1 8.7 161.8 13.0 246.6 15.1 350 15.8Electricity 71.8 13.0 141.3 15.2 220.4 17.7 310 19.0 420 18.9Coal & Coke 21.5 3.9 29.8 3.2 41.5 3.3 52 3.2 75 3.4Total 553 100 928.2 100 1243.7 100 1631.7 100 2217.9 100Per Capita Consumption (GJ) 29.9 44.3 52.9 62.2 76.5Source of compilation: Malaysia Seventh (1996-2000), Eighth (2001-2005) and Ninth (2006-2010) Plan, Economic Planning Unit (EPU), Malaysia1 Refers to the quantity of commercial energy delivered to final consumers but excludes gas, coal and fuel oil used in electricity generation2 Includes natural gas used as fuel and feedstock consumed by the non-electricity sector

1990 1995 2000 2005 2010

This increase in demand will deplete the countries non‐renewable resources by 2217PJA2, of

which 45% will be from oil and petroleum reserves, while another 42% is derived from

natural gas reserves. At present, the industrial sector is the second largest energy consumer

(lagging the transport sector by mere 1.9%), at 38.6% of the total energy mix for the country

(refer Table2).

1 GJA as Gigajoules Per Annum 2 PJA as Petajoules Per Annum


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Table 2: Final Commercial Energy Demand by Sector

PJ % PJ % PJ % PJ % PJ %SectorIndustrial1 213.5 38.6 337.5 36.4 477.6 38.4 630.7 38.7 859.9 38.8Transport 220.9 39.9 327.8 35.3 505.5 40.6 661.3 40.5 911.7 41.1Residential & Commercial 67.3 12.2 118.8 12.8 162 13.0 213 13.1 284.9 12.8Non-Energy2 18.5 3.3 125.4 13.5 94.2 7.6 118.7 7.3 144.7 6.5Agriculture & Forestry 32.8 5.9 18.7 2.0 4.4 0.4 8 0.5 16.7 0.8Total 553 100.0 928.2 100.0 1243.7 100 1631.7 100 2217.9 100Source for compilation: Malaysia Seventh (1996-2000), Eighth (2001-2005) and Ninth (2006-2010) Plan, Economic Planning Unit (EPU), Malaysia1 Includes manufacturing, construction and mining2 Includes natural gas, bitumen, asphalt, lubricants, industrial feedstock and grease

1990 1995 2000 2005 2010

Against a global backdrop with an average world economic growth of 3.8 percent over a

projection period until 2030 [5], Malaysia with sustained average GDP of 6.5 percent will

potentially outpace the global energy demand growth and its energy supply capacity if

stringent measures of energy management are not applied.

Thus it is imperative that improvement in the efficient use of energy in all sectors and

particularly the industrial, (which contributes more than a third of the GDP) is achieved to

lower the impact on costly energy demand. As such, the Government of Malaysia has,

throughout the years been actively evolving the nation’s energy policy to meet the

increasing demand in general energy utilization.

The Government of Malaysia had introduced policies for energy efficiency program

implementation, apart from the use of alternative and renewable energy sources in the 7th

Malaysia Plan, 1996‐2000 [6]. This has been a clear indication of the government’s stance in

ensuring that the energy related industries and energy end‐users will enhance their efficient

production and utilization of energy.


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2.0 ENERGY POLICIES DEVELOPMENT

In order to comprehend the present situation of energy efficiency technology practice in

Malaysia, it would be worthy to have a brief understanding of how the overall national

energy policies evolved from the early 1970, as the nation began to experience the uprising

tide of global economic expansion as well as the imminent international oil crisis.

The following chronology highlights major energy policies development in Malaysia until the

culmination of energy efficient sub‐policy [7]:

• Petroleum Development Act 1974 – The establishment of Petronas as the national

oil company which was vested with the sole responsibility for exploration,

development, refining, processing, manufacturing, marketing and distribution of

petroleum products.

• National Energy Policy 1979 – Sets the overall energy policy with broad guidelines on

long‐term energy objectives and strategies to ensure efficient, secure and

environmentally sustainable supplies of energy. The three primary objectives of

National Energy Policy encircle supply, utilization and environmental aspect of

energy.

• National Depletion Policy 1980 – Introduced to safeguard the exploitation of natural

oil reserves because of the rapid increase in the production of crude oil. The

production of oil and gas was reduced significantly to cater for future generations

use.

• Four Fuel Diversification Policy 1981 – Designed to prevent over‐dependence on oil

as the main energy resource, its aim was to ensure reliability and security of the

energy supply by focusing on four primary energy resources: oil, gas, hydropower

and coal. This policy was mooted by the international oil crisis in 1979 and the leap in

oil prices subsequently.


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• Fifth Fuel Policy (Eighth Malaysia Plan 2001‐2005) – In the Eighth Malaysian Plan,

Renewable Energy was announced as the fifth fuel in the energy supply mix.

Renewable Energy is being targeted to be a significant contributor to the country's

total electricity supply. With this objective in mind, greater efforts are being

undertaken to encourage the utilization of renewable resources, such as biomass,

biogas, solar and mini‐hydro, for energy generation.

• Energy Efficiency and Renewable Energy (Ninth Malaysia Plan 2006‐2010) ‐ The Ninth

Plan strengthens the initiatives for energy efficiency and renewable energy put forth

in the Seventh and Eighth Malaysia Plan that focused on better utilisation of energy

resources. An emphasis to further reduce the dependency on petroleum provides for

more efforts to integrate alternative fuels.

The culmination of energy efficiency policy marks a new beginning in the Malaysian energy

generation and consumerism. The policy sets forth to regulate and enhance the efficient use

of energy in all aspects of industrial and commercial business via the promotion of energy

efficiency technology.


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3.0 ENERGY DEMAND AND SUPPLY

Energy demand and supply has increased by more than 60 % within the last 15 years (Table

2 and Table 3), and expected to increase further by 2010. The Industrial Sector (mining,

manufacturing and electricity) has been the largest consumer until recently, been surpassed

by the Transport Sector.

Table 3: Primary Commercial Energy Supply1 by Source

PJ % PJ % PJ % PJ % PJ %SourceCrude Oil & Petroleum Products 520.2 71.4 702.2 54.3 988.1 49.3 1181.2 46.8 1400 44.8Natural Gas2 114.4 15.7 459.5 35.5 845.6 42.2 1043.9 41.3 1300 41.6Hydro 38.3 5.3 64.5 5.0 104.1 5.2 230 9.1 350 11.2Coal & Coke 55.5 7.6 67.5 5.2 65.3 3.3 71 2.8 77.7 2.5Total 728.4 100 1293.7 100.0 2003.1 100.0 2526.1 100.0 3127.7 100.0Source for compilation: Malaysia Seventh (1996-2000), Eighth (2001-2005) and Ninth (2006-2010) Plan, Economic Planning Unit (EPU), Malaysia1 Refers to the supply of commercial energy that has not undergone a transformation process to produce energy. Non-commercial energy such as biomass and solar have been excluded2 Excludes flared gas, reinjected gas and exports of liquefied natural gas

1990 1995 2000 2005 2010

However, the percentage of energy consumed by industry is approximately 62 % of the total

energy used in Malaysia, since 50.6 % of electricity3 is consumed by industrial sector (refer

Chart 4 and Chart 5) in addition to the 38.7 % of primary energy. Hence, the Industrial

Sector is the largest energy consumer in Malaysia.

1.0%0.1%

18.9%

29.4%

50.6%

Chart 5: Sales of Electricity of TNB, SESB and SESCO According to

Sectors

Public Lighting

Mining

Domestic

Commercial

Industrial

Source: Energy Commission, Government of Malaysia (www.st.gov.my)

0.7%0.1%

83.3%

15.5%0.4%

Chart 6: Electricity Consumer of TNB, SESB and SESCO According to

Sectors

Public Lighting

Mining

Domestic

Commercial

Industrial


3 Power sector consumes 30 % of primary energy supply


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Subsequent benchmarking of industrial energy consumption against developing countries

(Figure 1), shows Malaysian industries’ energy efficiency and energy intensity can be

improved further.

0

50

100

150

200

250

300

350

400

450

1980 1985 1990 1995 1996 1997 1998 1999 2000toe/GDP Indu

strial 199

5 US Million

Year

Figure 1: Industrial Fuel Intensity in Selected ASEAN Countries 1980‐2000

Phillipines

Thailand

Malaysia

Vietnam

Indonesia

Source: MIEEIP, PTM

A further analysis on the available non‐renewable sources reveals a non‐pleasant scenario in

the coming decades, if Malaysia does not develop and implement succinct energy policies.

The oil reserves are expected to exhaust in 19 years [2] at the current rate of 0.73 million

bpd extraction. Conversely, natural gas reserve may indicate a more positive note, albeit still

will deplete in 33 years [2]. Coal reserves are in abundance, however the local coal

production is limited due to most reserves are in the interiors of the country and would

incur large cost for extraction [8].


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4.0 ENERGY EFFICIENCY TECHNOLOGY (EET) IN MALAYSIAN INDUSTRY

The energy efficiency technology (EET) advancement in Malaysia has been enhanced and

strengthened with the establishment of Malaysia Industrial Energy Efficiency Improvement

Project (MIEEIP). The project is co‐funded by the Malaysian Government (under the Ministry

of Energy, Water and Communications, MEWC), United Nations Development Programme

and the Malaysian private sector, and is executed by the Malaysia Energy Centre (PTM). This

five‐year national initiative (1999‐2004) has been extended to June 2007 due to

overwhelming participation from the industry.

Based on energy audit activities carried out in eight energy intensive industrial sectors, it

was reported that potential energy savings would amount to 7.1PJA. This is realised with an

estimated capital expenditure of USD 26 million [9]. Apart from this, the Malaysian Energy

Efficiency Plan (EEP) foresees a potential energy saving of above 1400 GWh over the

equipment life‐time, equivalent to USD 62.6 million.

The type of energy efficiency technology applicable for the energy intensity enhancement of

an industry is very specific to that industry. The type of application in some of the industry

modelled by MIEEIP is shown in Table 4.

Table 4: Applicable Energy Efficient Technology for Malaysian Industry (MIEEIP Model)

No. Sector Energy Saving Application1 Cement High insulating bricks in rotary kiln burning zone; and/or

Rotary kiln combustion control and management system2 Ceramic Ceramic recuperator in sanitary ware muffle kiln3 Food Compact immersion tube juice pasteurisation; and/or

Mechanical vapour recompression evaporatorEnergy efficient food blanching through steam recirculation

4 Glass Electric heating or glass furnace forehearth; and/orExternal sprayed-applied insulating fibers for furnace refrigerator

5 Iron & Use of low excess air recuperative burners; and/orSteel Improved ladle drying and preheating in small foundaries

6 Pulp & Radio frequency dryingPaper Improved paper drying system

7 Rubber Drying air recirculation; and/orInsulation jackets for rubber injection press mold

8 Wood Flash steam and condensate recovery; and/orAutomatic solid fuel feeding and combustion systemWood dust burning system

Source: MIEEIP, PTM


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The above table provides a small fraction of the technologies available in the market to be

utilised by the industry. There are number of Combined Heat and Power (CHP) efficient

technology being promoted in Malaysia to proliferate the efficient use of primary energy

such as natural gas [10]. The various EETs, but not exhaustive, have been listed in Appendix

1 for a quick perception of the progress of EET in Malaysia.


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5.0 CASE STUDY OF EET MODEL IN INDUSTRY

This part of the report attempts to provide a brief overview of some of the Energy Efficiency

Technology application being modelled by MIEEIP in the industry. Four case studies have

been reviewed in this section and the potential energy and cost savings, along with the

technology applied have been summarised in the following matrix.

Table 5: Energy Efficient Application in MIEEIP Industry Model (Case Studies)

Plant 1: Cargill Palm Products Sdn Bhd Plant 3: Pan-Century Edible OilsProduct: Refined palm oil Product: Refined Palm OilCapacity: 450 kMTA Capacity: 1000 kMTASub-sector: Food Sub-sector: FoodEnergy Efficient Application: Heat Recovery System Energy Efficient Application: Steam system optimization (using vacuum pump,

Process control of Stearin Hold-up Tank heating pressure regulating valves, etc.)Boiler fuel switching to Natural Gas High efficiency motorsOther maintenance activities (non-related) Cooling tower modifications for thermal efficiency

Total Energy Saving 24,522 GJ/annum Total Energy Saving 35,000 GJ/annumTotal Cost Saving USD 0.546 million/annum Total Cost Saving USD 0.285 million/annum

Plant 2: JG Container Sdn Bhd Plant 4: Malayawata Sdn BhdProduct: Glass container Product: SteelCapacity: 120 MTD Capacity: 700 kMTASub-sector Glass Sub-sector Iron & SteelEnergy Efficient Application: Replacement of 1970's with new glass furnace Energy Efficient Application: Two stage recuperator installation

Annealing lehrs replaced with energy efficient VSD for process cooling water pumpLPG/NG fired lehr Reheating furnace burner fuel atomisationRecycle of cullet washing water Fuel pre-hetaing using flue gas

Total Energy Saving 60,100 GJ/annum Total Energy Saving 19,724 GJ/annumWater Saving 8,250 m3/annum Fuel Saving 2,210 T/annumTotal Cost Saving USD 0.514 milliom/annum Total Cost Saving USD 0.572 million/annumSource: MIEEIP, PTM

The above case studies represent some of the typical energy inefficiencies in Malaysian

industry that has the potential for large degree of improvement. These plants are among 6.7

million (refer Chart 6) industrial energy consumers that potentially require some form of

energy efficiency tool to improve their energy intensity.


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6.0 FUTURE ENERGY DEMAND: QUANTITATIVE ANALYSIS

In order to undertake the task of quantifying the impact of EET on future energy demand in

the industrial sector, plausible assumptions are essential due to the dynamics of economy,

social and political force that influence the energy demand in a country. The following are

the assumptions expressed in deriving the quantitative impact of EET:

• Although the economic growth and energy demand are linked, the strength of the

link varies among regions over time. Specifically, for the non‐OECD countries

(excluding non‐OECD Europe and Eurasia), energy demand and economic growth

have been closely correlated for much of the past two decades [5]

• The population projection [4] for Malaysia had been taken at 1.6 % per annum over

the period of analysis, which is from the year 2005 to 2020, hence the energy per

capita rises in tandem

• A linear correlation had been assumed between consumption per capita and time

function as indicated by the per capita against year plot

• Political influence had been thought to remain stable and current policies pertaining

to the use of fossil fuel and renewable will progressively improve

• Pareto principle of 80:20 is utilised to simplify the route of quantification, which

provides a rather low figure of energy saving, compared to actual potential

• MIEEIP energy audit data is considered as a random study of the Malaysian industry,

therefore enabling a secondary assumption that all other cases in the sector have

same level of improvement potential

• Alternatively, the Simple Ratio Method was used to provide a comparison study of

the potential energy saving affected by the use of EET. In this method, the following

secondary assumptions were made:


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o Total energy consumed is directly proportional to inefficient use of energy

o Energy consumed includes both electrical and fuel energy

o All consumers have certain degree of inefficiency and as the number of

consumers increase, the cumulative effect of inefficiency becomes averaged

to the largest consumer’s inefficiency and therefore creates proportional

energy saving relative to the smallest consumer group energy saving

o Other demand factors (such as maintenance, turnaround activity etc) are

assumed constant and has insignificant cumulative effect.

The figures in Appendices 2 and 3 have been generated using some of the above

assumption. The curves obtained from the figures has regression (R square) factor between

0.98‐0.99, which indicates a strong linear relationship of the plots. The estimates of energy

demand for the year 2010 to 2020 has a marginal error of ± 5%, due to data disparity. Figure

4 in Appendix 3 provides a comparison on the impact of EET when implemented in the

industry, with the assumption that the implementation has been carried out earlier than

2010 to produce the effect.

The first curve shows the possible energy demand being 1138 PJA in 2020, without the EET

impact. However, a reduction of 5 % energy demand is observed in the second curve (1081

PJA). This reduction is observed for an energy saving of 57.3 PJA vis‐a‐vis EET application,

and as calculated based on Pareto rule (Appendix 4). The third curve shows a reduction of 5

% in energy demand, using a value of 59.6 PJA as energy saving [9], which was obtained

from a literature by Malaysia Energy Centre (PTM). Alternatively, via the Simple Ratio

method, the fourth curve shows a reduction of 109PJA, which is about 9.6 % of energy

demand.

Although the estimated values’ error margin and impact order is in the same magnitude, the

overall figure indicates a potential gain in energy utilisation with the application of EET.

However, the error margin could be reduced with better set of data over a longer period of


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analysis and a comprehensive industrial energy consumption data, which is lacking in this

analysis.


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7.0 CONCLUSION

A progressive nation such as Malaysia stands to gain more with better technologies. At

present, Malaysia is a net exporter of energy, however, this advantage may not remain in

decades to come, as its natural resources deplete. On a more positive note, Malaysia is

evolving its energy policies effectively, albeit a little slower than many developing countries

such as China and India. Subsequently, an effective implementation of the energy efficient

policies and technologies will be the ultimate outcome anticipated to ensure future energy

use optimisation.

This report has shown the progressive policy development, the industrial energy demand

and several case studies of Energy Efficiency Technology implementation in Malaysia. The

attempt to quantify the impact of EET in the future energy demand for industry has been

made with reasonable assumptions and limited available data. The impact of EET is seen to

be assisting the country between five to ten percent of energy reduction between 2010 and

2020. This impact could be lesser or more, depending on the extent of EET implementation.

The effective implementation of EET in five to ten years from now will depend on how the

policies are regulated, how the consumers’ awareness of economic loss (in the absence of

EET) is projected and the consumers’ capacity to embrace higher energy efficiency

technologies.

Although the analysis indicates lower energy consumption in the industry as an impact of

EET implementation, this may not be the ultimate solution for future energy demand as the

burgeoning economy and population will subsequently drive for higher energy requirement.

A multifaceted synergized approach for technology and renewable energy development

would probably be a more pragmatic solution.


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REFERENCES

[1] International Energy Agency (IEA), www.iea.org. Energy Technology Essentials (2007).

[2] United Nations Development Programme (UNDP), www.undp.org.my. Achieving Industry Energy Efficiency in Malaysia(2006).

[3] Economic Planning Unit (EPU), www.epu.gov.my. The Ninth Malaysia Plan (RMK9), 2006.

[4] The Star Online, www.thestar.com.my. Malaysia Ninth Plan, March 31, 2006.

[5] Energy Information Administration, www.eia.doe.gov/oiaf/ieo.world.html World Energy and Economic Outlook, International Energy Outlook 2006; Report No.:DOE/EIA‐0484(2006).

[6] Economic Planning Unit (EPU), www.epu.gov.my. The Seventh Malaysia Plan (RMK7), 1996.

[7] A. Rahman Mohamed, K.T. Lee. Energy for sustainable development in Malaysia: Energy policy and alternative energy. Energy Policy (2006); 34(15): 2388–2397

[8] Economic Planning Unit (EPU), www.epu.gov.my. The Eighth Malaysia Plan (RMK8), 2001.

[9] R. Ponnudorai. Concept Paper on EE Business Opportunity in Malaysia (2005); PTM, www.ptm.org.my

[10] Phang AC. Potential of Gas Fired CHP in the Manufacturing Sector in Malaysia, Malaysian‐Danish Environmental Cooperation Programme (2005).

http://www.iea.org/

www.undp.org.my

http://www.epu.gov.my/

http://www.thestar.com.my/

http://www.eia.doe.gov/oiaf/ieo.world.html



http://www.ptm.org.my/


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Appendix 1: Examples of Energy Efficiency Technology

Table 6

: Pote

ntial En

ergy an

d Cost

Saving

Identif

ied from

the Fac

tories A

udited

Under

the MIE

EIP, Ma

laysia 2

004

Sectors

Food

Wood

Cerami

cCem

entGla

ssRub

berPul

p &

Iron &

Total

Paper

Steel

Annual

Energy

Consum

ption (G

J/annum

)1,83

5,430

1,03

1,528

774

,061

21,5

56,595

4,00

0,370

611

,307

5,08

0,208

4,22

3,247

39,1

12,746

Annual

Energy

Cost ('0

00 USD1 /ann

um)12,0

67

3,861

6,875

58,3

28

27,9

51

4,831

24,0

57

45,752

183

,721

Tot

al Ener

gy Savin

gs (Tot

al GJ/an

num)

373,587

360

,561

155,356

345,508

104,095

162

,472

811

,547

270,053

2,58

3,179

Tot

al Cost

Saving

('000 U

SD1 /annum)

2,433

1,486

1,712

9,64

3

710

1,232

5,64

8

1,49

9

24,3

63

Sou

rce of D

ata: PT

M Findi

ngs of t

he Ener

gy Audit

s1 1U

SD = R

M 3.5

Tabl

e 7:

Lis

t of E

E Pr

ojec

t for

Sec

ond

Phas

e of

MIE

EIP'

s De

mon

stra

tion

Proj

ect

Proj

ect

Sect

orEn

ergy

GJ

Ener

gy C

ost U

SDBo

iler e

cono

mis

er &

was

te h

eat r

ecov

ery

Food

167,

087

620,

000

El

ectr

ode

Reg

ulat

ing

Syst

em fo

r EAF

Iron

& St

eel

26,2

223,

123,

429

Ener

gy L

eaka

ge R

educ

tion

Cem

ent

9,18

025

7,14

3

Gob

mon

itorin

g &

fuel

sub

stitu

tion

Gla

ss1,

780

400,

571

Im

prov

e in

frac

tiona

tion

plan

t coo

ling

Food

1,90

011

1,42

9

Stea

m a

bsor

ptio

n ch

iller

Pulp

& P

aper

13,1

1621

3,14

3

Dies

el g

ener

ator

flue

gas

dry

ing

Woo

d39

,955

284,

571

Lo

w th

erm

al k

ilnCe

ram

ic16

,107

137,

143

To

tal

275,

347

5,14

7,42

9

So

urce

: Ref

eren

ce (8

)

Ener

gy S

avin

g (a

nnua

l)


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Appendix 2: Energy Demand Curve Estimates without EET Impact

y = 31.72x ‐ 62936R² = 0.984

y = 80.66x ‐ 160013R² = 0.985

y = 2.222x ‐ 4390.R² = 0.990

0

10

20

30

40

50

60

70

80

90

0

500

1000

1500

2000

2500

1985 1990 1995 2000 2005 2010 2015

Energy, PJ

Year

Figure 2: Energy Demand Curve (without EET) from 1990 to 2010

Industry Energy Demand, PJ Energy Demand, PJ GJ/Capita

GJ

0

20

40

60

80

100

120

0

500

1000

1500

2000

2500

3000

3500

1985 1990 1995 2000 2005 2010 2015 2020 2025

Energy, PJ

Year

Figure 3: Energy Demand Estimates (without EET ) from 2010 to 2020

Industry Energy Demand, PJ Energy Demand, PJ GJ/Capita

GJ


23 | P a g e

Appendix 3: Energy Demand Curve Estimates with EET Impact

190

290

390

490

590

690

790

890

990

1090

1985

1990

1995

2000

2005

2010

2015

2020

2025

Energy, PJ

Year

Figure 4: Ene

rgy Dem

and Estim

ates with

EET

Impa

ct from

2010 to 2020

EE3 Impact on Indu

stry (SR)

EE2 Impact on Indu

stry (Re

f)EE1 Impact on Indu

stry (PA

)Indu

stry Ene

rgy Dem

and, PJ


24 | P a g e

Appendix 4: Energy Savings and Quantitative Analysis Calculations

Table 6: Potential Energy and Cost Saving Identified from the Factories Audited Under the MIEEIP, Malaysia 2004

Sectors Food Wood Ceramic Cement Glass Rubber Pulp & Iron & TotalPaper Steel

Annual Energy Consumption (GJ/annum) 1,835,430 1,031,528 774,061 21,556,595 4,000,370 611,307 5,080,208 4,223,247 39,112,746 Annual Energy Cost ('000 USD1/annum) 12,067 3,861 6,875 58,328 27,951 4,831 24,057 45,752 183,721 Total Energy Savings (Total GJ/annum) 373,587 360,561 155,356 345,508 104,095 162,472 811,547 270,053 2,583,179 Total Cost Saving ('000 USD1/annum) 2,433 1,486 1,712 9,643 710 1,232 5,648 1,499 24,363 Source of Data: PTM Findings of the Energy Audits1 1USD = RM 3.5

Using Pareto Analysis1 Total Consumer of Energy in Industry (Electrical Cons.) 33740

Pareto Rule: 80% of inefficient use of energy in industry is caused by 20% of the energy consumer

Number of consumers audited 432 Energy saving reported in the Audit (for electricity) 0.365 PJAPercentage of this consumer 0.127 %Saving from 20% of the Industry 57.28 PJA Electricity

Simple Ratio MethodTotal Energy Consumed by 43 Consumers 39.11 PJATotal Energy Demand by Industry 630 PJA2 Energy Saving reported in the Audit (Total) 6.824 PJATotal potential saving 109.92 PJA

PJA - Peta Joule per Annum2 Based on reference (8)1 0.5 % of Electricity Consumer - Refer Chart 5 & 6


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Appendix 5: Energy Generation Mix and Power Producers’ Capacity

18.4%

2.5%

0.3%

7.5%

1.9%

0.7%

58.4%

10.3%

Chart 1: Generation Plan Mix

Coal

Oil

Distillate

Diesel

Biomass

Hydro

Gas

Others


27.3%

2.3%

2.6%

55.2%

1.5%1.5%

3.5%0.5% 5.6%

Chart 2: Generation Capacity of Major Power Producers

TNB

SESB

SESCO

IPP (Peninsular Malaysia)

IPP (Sabah)

IPP (Sarawak)

Co‐Gen (Peninsular Malaysia)

Co‐Gen (Sabah)

Private Generation



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Appendix 6: Generation Mix and Power Producers’ Generation

23.5%

66.6%

0.1%2.8%

0.6%5.8%0.6%

Chart 3: Generation Mix in Malaysia

Coal

Gas

Distillate

Diesel

Biomass

Hydro

Others

27.9%

1.5%

2.1%

59.8%

1.9%1.9%

3.4%0.4%

1.1%

Chart 4: Generation by Major Power Producers in Malaysia

TNB

SESB

SESCO

IPP (Peninsular Malaysia)

IPP (Sabah)

IPP (Sarawak)

Co‐Gen (Peninsular Malaysia)

Co‐Gen (Sabah)

Private Generation



27 | P a g e

Appendix 7: Sales of Electricity and Consumers

1.0%0.1%

18.9%

29.4%

50.6%

Chart 5: Sales of Electricity of TNB, SESB and SESCO According to

Sectors

Public Lighting

Mining

Domestic

Commercial

Industrial


0.7%0.1%

83.3%

15.5%0.4%

Chart 6: Electricity Consumer of TNB, SESB and SESCO According to

Sectors

Public Lighting

Mining

Domestic

Commercial

Industrial


Documents

Energy Efficiency Report 2007