M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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Duration: July 2014 – June 2019 (5 Years)

MALAYSIA ENERGY EFFICIENCY AND SOLAR THERMAL APPLICATION PROJECT

(MAEESTA)

Project Title :

GHG Emissions Reductions in Targeted Industrial Sub-Sectors

Through Energy Efficiency (EE) and

Application of Solar Thermal Systems in Malaysia

Partners

Funder: Global

Environment Facility (GEF)

Implementing Agency:

United Nations Industrial

Development Organization

(UNIDO)

Executing Agency:

SIRIM

Stakeholders:

KeTTHA (Chair), MoSTI,

MITI, EPU, MNRE,

SEDA,ST, MGTC, SME

Corp, SERI (UKM), FMM

Project Objective

To reduce Green House Gases (GHG) Emissions in Targeted Industrial Sub-Sectors Through Energy Efficiency (EE) and Application of Solar Thermal System.

Focus Sub-Sector

Hospital

Hotel

Industry

MALAYSIA ENERGY EFFICIENCY AND SOLAR THERMAL APPLICATION PROJECT

Through these approach, the project bringing the opportunity for the industry to • Reducing energy consumption and energy cost • Lowering GHG emissions • Improving operational efficiency • Increasing competitiveness

Regulatory framework, support program and

financial incentive

•Matching the existing incentives and financial provider

• Tax incentive

• GTFS

Capacity building & Awareness Raising

•Free training modules and tools

•Free Energy Measurement Equipment rental

Upscaling and Demonstration Project

•Up to RM 400k fund from UNIDO 20% fund for the solar thermal system installation

Project Impacts

Project Components

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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Component 1

Output 1.1 : Regulations and policy

• National solar thermal roadmap • Incorporation of thermal energy in existing policies • Establish national data for thermal energy through industrial associations

Output 1.2 : Assessment of institutional capacity strengthened

• Assessment of policies and programs by other countries • Hosting a national seminar on solar heating cooling • International collaboration

Output 1.3 : Assessment of financial support programme

• Review of existing fiscal/financial incentives • Matching industry and financial institution • Determine HS code for the components of solar thermal system for the duty

exemption

Output 1.4 : Assessment non financial support programme

• Develop national standard on the solar thermal system

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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PROJECT OUTCOMES

Component 2

Output 2.1 : Skills and competency strengthened on energy efficiency

• Develop national competency and skill training for thermal energy efficiency • User and Expert Training

Output 2.2 : Skills and competency strengthened on solar thermal technology

• Competency and skills training for designer and installer • User and Expert Training

Output 2.3 : Awareness Program

• Widespread awareness program, outreach program, road shows on solar thermal cover six regions to industries and media coverage

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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Host Company o Industry which using heating process (i.e usage of steam, hot water, hot air)

and potential for solar thermal integration are welcomed to be the host site

Benefits of Being a Host Company o Host representative able to join Expert Training Programme for FREE

o Obtain FREE energy audits from local consultant supervised by the International Experts

o The Host Company will receive energy saving findings and recommendation

o The Host Company has the opportunity to implement a demo project where MAEESTA will cover a percentage of the system equipment cost (an average of 20%, term and condition apply)

o The host will gain ownership the solar thermal systems at the end of the demo project

Expert Batch 1 (Nov 2016 –May 2017)

HOST COMPANIES

Expert Batch 2 (May 2017 –Nov 2017)

HOST COMPANIES

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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0 2 4 6 8 10

Food & Beverage

Oleochemicals & Petrochemicals

Textile

Pulp & Paper

Steel & Pewter

Rubber products

Tiles

Poultry

Automotive

Timber

Chemicals

Subsectors of Industries Total = 33

• Number of industries participate in Expert Training Programme and Fast Track process

• CO2 emissions reductions is 128,320.60 tons

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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Component 3

Output 3.1 : Energy saving measures and investment projects

• Energy audit in 40 companies

Output 3.2 Demonstration project

• 10 solar thermal demonstration project

Output 3.3 : Case study

• Findings on the EE and solar thermal shared • Seminar for the case studies

Demonstration Project

PROCESS FLOW

STEP 1 Company participate in the Expert Course 1 training programme STEP 2 Appointment of consultant and technical expert during the training STEP 3 On the Job Training-Energy Audit STEP 4 Company participate in the Expert Course 2 training programme STEP 5 Project proposal with possible EE measures, integration of solar thermal system and financial feasibility

* MAEESTA may also consider the Fast Track Process for any committed company ready to invest in solar thermal integration * For Fast Track Process, the company shall provide proposal following the UNIDO procedure and guideline

Approval by Company

Approval by Technical Committee

Approval by NPSC

Approval by UNIDO

1. Registered entity under Company Act, 1965 or government entity

2. Fall under targeted sub-sector

3. Conducted complete feasibility study by UNIDO consultant

4. Commitment from the company to implement and finance the project

5. The grant will be paid direct to the company upon completion of the project and verified by UNIDO.

6. Willingness to share information about the project to other party/stakeholder to create awareness and knowledge sharing

CRITERIA SELECTION

** UNIDO will cover 20% (with a maximum RM400k of the system cost excluding civil and structural works).

Why Solar Thermal ?

Function Difference Source

SUN

Generate

Electricity

Power Generation

Generate high temperature

Cooling

Heating

Drying

Power Generation

Solar Photo

Voltaic

Solar Thermal

Solar Conversion Technology

• A method of generating thermal energy by absorbing solar radiation. The thermal energy may apply for hot water, power generation ( steam turbine), drying and cooling system ( absorption chiller)

Solar Thermal for cooling in Qatar Stadium

Solar Thermal for water heating Solar Thermal power plant

Solar Thermal for wood drying

SOLAR THERMAL

Global Heat Demand

Collector & Application

Solar Thermal Integration

Drying Application Cooling Application

Heating Power Generation

Integration on supply level

• Feed-in solar energy in heating

circuit

• High set temperature

• Simple system integration

• Small number of system layouts

Integration on process level

• Solar energy is directly used for the

process

• Different system layouts possible

• Often complex system integration

Current Global Status - Sectors

- 10,000 20,000 30,000 40,000

Others

Tabac

Services

Agriculture

Metal

Chemical

Beverage

Textil/Leather

Food

Mining

Collector Area [m²]

SOLAR THERMAL CONTRACTING

• What is it?

• Energy Contracting

• ESCO invests in and operates a renewable energy installation located within the premises of a company and sells energy (heat) to the owner at an agreed price

• The basis is a contract which states the main conditions and rules for a longer-lasting partnership

• Contract duration can be 5-15 years (for solar thermal, possibly on the longer side)

SPLIT OF TASKS AND RESPONSIBILITIES

• The ESCO: • plans, installs, maintains and finances the solar thermal

plant

• guarantees a certain heat price over the contract period

• The client: • provides the (roof) area for the solar thermal collectors

and space for the buffer storage

• buys heat (for hot water, process heat) from the ESCO

SOLAR HEAT METERING

• Solar heat meters consist of the following components: • flow meter (water is used almost exclusively as heat

transfer medium)

• temperature sensors (to measure the temperature difference)

• processor (often also called integrator)

• Meter accuracy is normally defined for a period of time. To keep this guaranteed, accuracy calibration is necessary every 3-6 years.

ELEMENTS OF A SOLAR CONTRACTING AGREEMENT

• scope of services and guarantee of the contractor

• contract duration

• delivery guarantee (xy MWh/year)

• price, price structure, price index

• invoicing and payment schedule

• minimum consumption by the client

• compensation if heat is not delivered

• main technical features of the solar installation

• right to install solar system and access to the site

• ownership during and after the contract

• measurement method and point

• maintenance measures (extent, frequency, costs), technical auditing

• liability, insurance and warranties in case of damages

• provisions in case of bankruptcy and/or change of ownership of the ESCO or the client

• Subcontracting

• confidentiality issues, conflicts of interest

• reasons to terminate the contract, settlement of disputes

• appendix: technical part, scope of supply and services

www.ship-plants.info

Case studies – Göss (1)

• Brewery • FP7 project „SolarBrew“

• AEE INTEC, Sunmark, GEA

• integration in mashing (50 – 75 °C)

• System • In operation since 2013

• 1,375 m² FPC

Source of pictures: AEE INTEC

Case studies – Göss (2)

Source of pictures: AEE INTEC

Case studies – Göss (2)

Göss – construction of collector field

Source of pictures: AEE INTEC

Case studies – Göss (3)

Mashing

Case studies – Codelco Chile (1)

• System • Sunmark

• 39,300 m² flate plate

• 4,300 m³ storage

• 85-100% solar fraction

Process

Electro winning process

Keeping electrolyte at constant 50 °C

+ cleaning processes

Source: Sunmark

Case study – Codelco Chile (2)

Source: Sunmark

Drying

(30-90 °C)

Washing (40-80 °C)

Pasteurizing (80-110 °C)

Boiling

(95-105°C)

Sterilizing (140-150°C)

Heat treatment (40-60 °C)

Solar Thermal Was installed at site:

Industrial Example in Malaysia

Drying Cat Fish, Koperasi Zuriat Haji Abdul Rahman Kubang Pasu Berhad

Supply hot water, F&B company in Malaysia

Opportunity

Food Franchise

Restaurant

Local fruit drying

Sate Ikan, Pulau Pangkor

Food Industry in Malaysia

Syarikat Ameen Sdn. Bhd

Established: 1982 Main product: concentrates and flavored cordials Turnover 2014: RM3 million No of employees: 10 Date of Audit: Sept 2016

Technical Issues/Problems: • Need to install new electric steam

boiler • Need to upgrade power line from

utility and need to spent their own cost

• Cost new boiler(34kw) and heat exchanger RM 93,000.00

Solutions/work in progress • Energy audit • To embark on energy saving measures • Installation of solar thermal hot water by

alternative using electric boiler

Outcome • Electricity reduction: 100% • Economic savings: at least 50 %

reduction in expenditure for electricity (RM54,000/year)

• Environmental effect: 122727.27 kWh/yr ,90.94 ton CO2/yr) • Creates model for industry-wide

solution for beverage industry • Payback: 4 yrs

propose using New boiler

Now Solar Thermal

Syarikat Ameen Sdn Bhd

Hot Water (40-80 °C)

Cooling System

(70-100 °C)

Spa & pool (50-80 °C)

Solar Thermal Was installed at site:

Project Shaftsbury Square, Cyberjaya Source: SDC.my

Solar Cooling: Project Shaftsbury Square, Cyberjaya PKNS HQ, Shah Alam Hot water: Hospital UKM Hospital Sungai Buloh De Baron Resort, Langkawi

PKNS HQ, SHAH ALAM • Absorption cooling powered by 5,000 solar evacuated tubes Source: neapoli.com.my

Buildings in Malaysia

Hospital Sungai Buloh Opportunity

Hotel & Resort

Commercial Building

Hospital

De Baron Resort, Langkawi

Buildings in Malaysia

De Baron Resort

Established: 1982 Main product: Hotel Turnover 2014: RM 8 million No of employees: 96 Date of Audit: Sept 2016

Technical Issues/Problems: High electricity consumption for electric storage heater for shower

Solutions/work in progress •Energy audit •To embark on energy saving measures •Installation of solar thermal hot water by replace the electric storage heater •Company need to invest for remaining rooms

Outcome • Electric reduction: 30% • Economic savings: at least 20 %

reduction in expenditure for electricity (RM840,000/year)

• Environmental effect: 369,600 kWh/yr ,273.87 ton CO2/yr) • Creates model for industry-wide

solution for hotel industry PB: 4.5 yrs

before using Storage heater

Now Solar Thermal

De Baron Resort

M A L AY S I A E N E R G Y E F F I C I E N C Y & S O L A R T H E R M A L A P P L I C AT I O N ( M A E E S TA )

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NO Company Service Brand

1 SOLAR DISTRICT COOLING SDN BHD Solar Thermal Collector/Contractor

SUNDA, CHINA

2 ALPHA SOLAR HEATING SDN BHD Solar Thermal Collector/Contractor

KINGSPAN, UNITED KINGDOM

3 AUMADA ENERGY AND TECHNOLOGY

Solar Thermal Collector/Contractor GREENMAQ,

DENMARK Solar Thermal Collector/Contractor

4 SOLARTECH SALES & SERVICES SDN BHD

Manufacturer/Solar Thermal Collector/Contractor

SUMMER, MALAYSIA

5 TECHPLUS ENGINEERING SDN BHD Solar Thermal Collector/Contractor

6 ADVANCED TECHNICAL LAMINATES MANUFACTURING SDN BHD

Solar Thermal Collector/Contractor

LINUO RITTER, CHINA

7 ZAMATEL SDN BHD Solar Thermal Collector/Contractor

HIMIN, CHINA

8 Green Solar Energy Solar Thermal Collector/Contractor

9 Solarmate Sdn Bhd Solar Thermal Collector/Contractor

10 Impacts Renewable Solutions (M) S/B Solar Thermal Collector/Contractor

11 TAQA MISR Sdn Bhd Solar Thermal Collector/Contractor

12 Aqua Solar Technologies Sdn Bhd Manufacturer/Solar Thermal Collector/Installer

AQUA SOLAR, MALAYSIA

CONTACTS:

Email: maeesta@unido.org

Website:

www.ee-solarthermalsirim.com

Office: SIRIM Complex, Block 24A, Shah Alam

THANK YOU

CASE STUDIES

Projects Sub sector Project Funding Status

1. Pertubuhan Peladang Negeri Johor, Johor

Poultry SIRIM SME Development Programme

Completed

2. Muslim Kitchen, Subang Jaya Food & Beverage

SIRIM SME Development Programme

Completed

3. Syarikat Ameen, Teluk Intan Food & Beverage

SIRIM SME Development Programme

Completed

4. De Baron Hotel, Langkawi Hotel SIRIM SME Development Programme

Completed

5. Pemasangan dan Ujilari Sistem Kebuk Pengeringan Solar Termal di Jeti Sungai Pinang Kechil, Pulau Pangkor, Perak

Food & Beverage

LKIM Completed

CASE STUDY

Projects Sub sector Project Funding Status

6. Development of Solar Thermal Drying System for Marine Product (Kunak)

Food & Beverage

LKIM Completed

7. Development of Solar Thermal Drying System for Agriculture Product (Ranau)

Food & Beverage

LKIM Completed

8. PROJEK PENGERINGAN RUMPAI LAUT MENGGUNAKAN SISTEM HIBRID ANGIN DAN SURIA

Food & Beverage

LKIM Completed

9. Development of small scale Pilot Plant Advanced Solar Thermal Dryer systems for Malaysian export based agricultural and marine products

Food & Beverage

LKIM Completed

10. Hybrid Solar House drying system of cat fish, Padang Siding, Arau, Perlis.

Food & Beverage

KPM Completed

11. Solar cooling for Hospital Sandakan, Sabah

Hospital MOH Completed

12. Solar hot water for Hospital Sg. Buloh, Selangor

Hospital MOH Completed