iiec electrical conference 2013:ee implementation-player's perspective
DESCRIPTION
Key highlights: Business Potentials In Energy Efficiency Implementation Success Stories in energy efficiency programs and projects implementation Barriers & Counter Measures For Sustainable Energy Efficiency Programs Implementation in Malaysia Energy Efficiency Industry Development & The Way Forward for MalaysiaTRANSCRIPT
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SUSTAINABLE BUSINESS THROUGH ENERGY EFFICIENCY IMPLEMENTATION:
AN INDUSTRY PLAYER’S PERSPECTIVE
Zaini Abdul Wahab
Group,Malaysia
IEM & IET ELECTRICAL CONFERENCE 2013
20th November 2013
Palace of The Golden Horses Hotel
Kuala Lumpur
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OUTLINE
1. Business Potentials In Energy Efficiency Implementation
2. Success Stories
3. Barriers & Counter Measures For Sustainable Energy Efficiency Programs Implementation
4. Energy Efficiency Industry Development & The Way Forward
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Business Potentials In Energy Efficiency Implementation
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ENERGY OUTLOOK
Vehicle efficiency: Costs influence consumer choices
TRANSPORTATION
Manufacturing, chemicals to lead growth in industrial energy demand
INDUSTRIAL
Industrial demand rises 30 %, led by growth in Non OECD countries
ELECTRICITY GENERATION
The impact of increased energy consumption can be reduced through energy efficiency and a transition to a stronger reliance on cleaner sources of energy, including renewable energy and low-GHG [greenhouse gas] emitting fossil fuel technologies, such as a shift from coal to natural gas
The global energy mix will grow more diverse and less carbon-intensive
Source: Exxon Energy outlook 2012
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TOWARDS ENERGY EFFICIENT SCENARIO : NEW POLICY
Economically viable efficiency measures can halve energy demand growth to 2035
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GLOBAL ENERGY EFFICIENCY POTENTIALS
Energy efficiency potential used by sector in the New Policies Scenario 2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035
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SEA: INVESTMENT POTENTIALS (US$MIL.)
The total market size = US$6.7 billion; Industrial = US$2.9 billion(44%) Commercial = US$3.7 billion(56%)
source: www.reexasia.com
Biggest potentials in the industrial sector
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SAVING POTENTIALS Pumps (25% - 35%) Chiller (20% - 25%) AHU/FCU (25% - 35%) Cooling Tower(15% - 20% Lighting System (40-60%)
WHERE TO SAVE?...BUILDING FACILITIES
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WHERE TO SAVE?...MANUFACTURING FACILITIES
(Source: Energy Conservation Centre of Japan,
2011)
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THE TRENDS & PROVEN SUCCESS STORIES
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Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings
UNEP - GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company.
University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices
UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year. 70% inquiries focused on energy management and greenhouse gas emissions & more than ½ questions about sustainability reporting
THE CORPORATE TRENDS… Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year.
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More than 50% of executives consider sustainability—the management of environmental, social, and governance issues—“very” or “extremely” important in a wide range of areas, including new-product development, reputation building, and overall corporate strategy. -McKinsey Global Survey Result, March 2010
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Profitability
Sustainability
Competiveness
Competency
Working environment quality
Corporate Image
Operating Costs - Energy
Risks – price fluctuation & supply shortages
Pollution
Carbon emission
Depletion of fossil fuel
WHY ENERGY MANAGEMENT?
INCREASE USERS’ COMFORT
SALES/LEASE & ENERGY COST SAVINGS
BOOST IMAGE & VALUES
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SUSTAINABLE APPROACH FOR ENERGY MANAGEMENT
MANAGEMENT COMMITMENT
POLICY
PLANNING
IMPLEMENTATION & OPERATION
SYSTEM & PERFORMANCE
CHECKING
MANAGEMENT REVIEW
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RELATED STANDARDS FOR SUSTAINABLE MANAGEMENT
ISO 55000
An overview of the subject of asset management and the standard terms & definitions to be used
ISO 55001
The requirements specification for an integrated, effective management system for assets- defines requirements for a management system
IS0 55002 provides
Guidance for the implementation the system
ISO50001:2011 Energy
Management Systems - Requirements With Guidance For Use
Ene
rgy
pe
rfo
rman
ce
imp
rove
me
nt
for
en
erg
y u
sin
g se
rvic
es
To be launched in January 2014
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ENERGY CONSERVATION PROGRAM IMPLEMENTATION IN MALAYSIA
Source: ESCO
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA 17% reduction of electricity bill in 2011
based on 2010 baseline consumption – SEDA Malaysia
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UNITED STATES OF AMERICA
IDAHO NATIONAL LIBRARY,USA Petroleum fuel use reduced cumulative 20.3%
from the FY 2005 baseline -2013 Environmental Leader
With EPC Model
EASTMAN CHEMICAL COMPANY Energy use intensity reductions of 27%, 26% & 9% for the respective building & averaged at 21 % reduction- 2013 Environmental Leader
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ESCO PROGRAM IN THAILAND
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ENERGY MANAGEMENT SYSTEM IMPLEMENTATION BY COMPANIES IN IRELAND
160 companies - 60% of Ireland’s industrial energy use 2% improvement in energy performance per year Long-term members - have improved energy performance by 33% (1995 and 2010) Energy Management Standard helps up to €150m in avoided energy costs (2005-10)
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IMPACTS OF ENERGY EFFICIENCY POLICIES IN JAPAN
1,327
1,273
1,192
1,101 1,101
1,059 1,059
1,000978
951
1,036
1,013
1,013
985
1,049
1,091
1,051
1,0701,077
1,037
1,0441,021
1,059
1,036
1,038
1,050
1,131
1,142
1,345
1,405
1,467
1,566
1,573
1,438
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
'73
'75
'77
'79
'81
'83
'85
'87
'89
'91
'93
'95
'97
'99
'01
'03
'05
Fiscal Year
Pri
ma
ry e
ne
rgy
co
ns
um
pti
on
/ G
DP
Ton oil eq. / Billion yen
2nd Oil Crisis
1st Oil Crisis
Source: METI/General Energy Statistics
10 years
Improvement by 30%
10% improved for 20 years
Main Improvements: •Energy Management •Energy Efficient Equip. •Efficient Process Tech. •R&D
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ENERGY CONSUMPTION PERFORMANCE WITH NATIONAL ENERGY EFFICIENCY IMPLEMENTATION IN THAILAND
Through strong regulatory implementation framework, sustainable funding & holistic approached for focused sectors
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WHAT IS STOPPING US?
Main Barriers In Mainstreaming Energy Efficiency Industry In Malaysia
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Common BARRIERS…lack of… • Clear policy & targets • Comprehensive regulatory &
implementation framework • Competencies in institutional set up
Strong governance in policies implementation
• Competency programs
• Career opportunities
Technical competencies & human resource capacity
• Sources of funds
• Understanding risks & mitigating factors in green investments
Sustainable financing & business friendly mechanisms
• On green practices
• Business opportunities
• Impacts to climate change mitigation
Information ,education &awareness
• Funding
• Academic vs. Commercial values R&D & commercialization
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Support Measures To OVERCOME barriers…
Technical Assistance
& Advisory Incentives & Financial Assistance
SMEs & SMIs - energy audit and guidance
Measurement & verification of performance
Technical assessment from other ministries/agencies on EE projects for financing /further approval
Registration & deployment of experts
Fiscal incentives
Low interest loans with government guarantee
Grant based on annual government budget for specified initiatives and awareness programs
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DO WE NEED TO REINVENT THE WHEEL?
To move forward…
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Solution or technology based approaches?
or
Project based or sustainable implementation plans & strategies?
Our WAY forward…
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EXPECTATIONS FROM POLICY MAKERS
Clear policy goals & targets
Strong governance & comprehensive framework
Consistency, accountability & competency
Inclusiveness in policies development & reviews
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Strong Governance
Financing & business friendly
mechanisms
Accountable & competent
implementing agency
Information, Education
& Awareness
R&D &
Commercialization
For the industry development…
ENERGY EFFICIENCY Industry Growth
Policy Targets
Policy Introduction
Focused Sectors +Industry Players + Consumers
Industry players just need the basic & right “infrastructure” & supports . We can take it from there!
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EXPECTED IMPACTS FROM HOLISTIC ENERGY EFFICIENCY IMPLEMENTATION
INTRODUCTION & AWARENESS
IMPLEMENTATION & SUPPORT MEASURES
PERFORMANCE MONITORING& MEASUREMENT
IMPROVED •Energy
Performance •Competitiveness/
•profits •Environmental
quality
REDUCED •Energy
consumption & costs
•Pollution •CO2 emissions
CREATED •Business & job opportunities
•More experts/workers from energy efficiency industry •New source of economic growth
•More Direct Domestic Investments