ENERGY MALAYSIA Orderly Supply Towards a World-Class Energy Sector and Use of Energy Suruhanjaya Tenaga (ST), a statutory body established under the Energy Commission Act 2001, is responsible for regulating the energy sector, specifically the electricity supply and piped gas supply industries in Peninsular Malaysia and Sabah. www.st.gov.my Volume 20 | 2020
Q & A SPECIAL FOCUS EDUCATION ARE MALAYSIANS LIVING THE QUIET VOLUME 20 COMPLACENT ABOUT DANGEROUSLY: ACHIEVERS ARE YOU USING NON-CERTIFIED ENERGY EFFICIENCY? ELECTRICAL PRODUCTS?
BEYOND BORDERS POWERING ACROSS BORDERS KDN: PP 18540/08/2014(033966)PP KDN: The Energy Commission Advises Regulates Promotes Plans and Ministers on all matters concerning electricity and piped gas good practices, as well as develops the national policy objectives tariffs and the quality of research, development and laws, regulations, rules, for energy supply activities, the supply services, as well innovation in the electricity guidelines and programmes for supply and use of electricity, the as promotes competition and piped gas industries. the orderly development and supply of gas through pipelines and prevents misuse of functioning of the electricity and the use of gas. monopoly power. and piped gas industries. Licenses and Monitors and Investigates certifies audits complaints, accidents, electricity and piped gas suppliers, performance and compliance of offences and industry issues; COVER STORY competent electricity and gas licensed and certified suppliers, and enforces compliance. personnel, training providers, service providers, installations, contractors, equipment and equipment importers, installations, energy service manufacturers and retailers. THIRD PARTY ACCESS AT companies and energy managers.
Suruhanjaya Tenaga www.st.gov.my (Energy Commission of Malaysia) st_malaysia ST_Malaysia Portal ST
No. 12, Jalan Tun Hussein, Presint 2, 62100, Putrajaya Toll Free Number: 1 800 2222 78 • Tel: 03 8870 8500 • Fax: 03 8870 8637 • www.st.gov.my WORK CONTENTS
Energy Malaysia 20
Regulars
Welcome, YBhg Dato’ Azian bin Osman02 Farewell, YBhg Datuk Ir. Ahmad Fauzi Hasan
Farewell Commentary03 04 / Industry Bites / News from Malaysia and Around the World FEATURES
06 / Cover Story / Third Party Access at Work Editorial Board
Publisher 12 Energy Commission Malaysia / Q&A / Are Malaysians Complacent about Advisor Energy Efficiency? Abdul Razib Dawood
Editorial Committee Hilmi Ramli 16 Siti Suhaila Ahmad /Education / Adnan Abdullah The Quiet Achievers Noor Hazwani Ghazali
© All rights reserved. Reproduction of all or any part of this publication via electronic, mechanical, recording or other medium is 24 strictly prohibited without written consent / Special Focus / from the Energy Commission. Living Dangerously: Are you using non-certified electrical products? ST Publication No: ST(P)02/07/2020
Published on behalf of the Energy 28 Commission by: / Beyond Borders / pVm communications sdn bhd Powering across Borders A-12-13A Menara Prima, Jalan PJU1/39 Dataran Prima 47301 Petaling Jaya Selangor, Malaysia 34 tel + 603 7887 5016 / Then & Now / email: [email protected] Power to the People www.pvmpublish.com.my
Printed by: Dolphin Press International Sdn Bhd (0803493W) 40 No. 1, Jalan 13/118B / Happenings / Desa Tun Razak - 2019 Energy Efficiency Challenge Results 56000 Kuala Lumpur - IGEM 2019: Innovating Sustainability - Zeepod Breakthrough - 2020 Global Energy Outlook 46 / Parting Shot / Time to Rethink Consumption and the 3Rs / Welcome and Farewell to our Chairmans /
Congratulations and Welcome to YBhg Dato’ Azian bin Osman as the new Chairman of the Energy Commission
On 8 May 2020, Dato’ Azian Osman was appointed as Chairman, replacing Datuk Ir Ahmad Fauzi Hasan who retired on March 31, 2020.
The Commission looks forward to Dato’ Azian’s leadership to elevate its position to the next level. With Dato’ Azian’s extensive experience in various fields, the Commission’s credentials will be further strengthened as an effective and authoritative regulator in a world class energy industry.
Thank you and Farewell to our former Chairman, YBhg Datuk Ir. Ahmad Fauzi Hasan
Datuk Ir. Ahmad Fauzi Hasan had held a few positions within Datuk Fauzi is well known for sharing his vast knowledge the Energy Commission, namely Director of Gas Regulation, gained from hands-on experience, professional networking, Chief Operating Officer and Chief Executive Officer before being and avid reading during his spare time. His contribution to the appointed as Chairman on 1 April 2018. industry has been immense, in terms of the development and enforcement of policies, plans and energy standards as well as As Chairman, Datuk Fauzi steered the Commission to greater international awareness activities. heights as an internationally recognised regulator of a world class energy industry. During his term of office, he assumed His achievements and contributions to the Commission and its a staunch advisory role for the implementation of policies, stakeholders will leave a lasting impression in many years to strategies and legislation related to energy regulation, supply, come. With his experience and insights, the Energy Commission and safety. He was committed to building a more robust energy and the energy industry moved forward into a new era. As a supply industry, acknowledged for its reliability, sustainability, leader, he is well respected and admired for his advice, guidance, and security. This was the key to realising the Commission’s patience, and discipline. vision and mission. The Energy Commission thanks Datuk Ir. Ahmad Fauzi Hasan, Besides his contribution to the industry, Datuk Fauzi stressed for his dedication, contributions, and passion for our industry. on human capital development. He took a direct interest in We wish him all the best and May Allah SWT shower him and his the Commission’s corporate development framework and family with all His blessings. coordination of talent management and development planning that culminated in the launch of the ST Learning Centre.
2 ENERGY MALAYSIA / Farewell Commentary /
In our article entitled “Are Malaysians Complacent about Energy Efficiency?”, energy authority, the Distinguished Professor Dato’ Dr Rajah Rasiah, who No End to was also our former board member, urges the industry to actively engage with consumer groups and the public in the decision making process. In his Learning view, the industry is operating in a closed circle, and needs to become more inclusive.
Professor Dr Rajah Rasiah also points hese are exciting times as we move out that youths can make meaningful forward with commercial operations contributions to changing behaviour under the Gas Third Party Access, as towards energy consumption. Treported in our Cover Story entitled “Third Party Access at Work”. It marks the beginning Youths are becoming powerful voices of the liberalisation of the Malaysian gas who wish to change the way adults market, to make it more competitive, vibrant think and act. In the article entitled and sustainable. “The Quiet Achievers”, we see youths around the world appealing for For the first time, the industry witnessed changes in the energy industry to save the importation of LNG by a private shipper our planet. These quiet achievers are in October 2019, to be delivered to two TNB not taking to the streets like some power plants via gas infrastructure owned by of their peers. They are working PETRONAS. Many insiders closely followed the with communities and authorities to movement of this maiden gas cargo. instigate change because their future is at stake. I believe the time has come The entire process saw various parties for us to engage with youths and coming together to sign “willing buyer-willing learn from them. They can be our best seller” agreements that are a key feature teachers, and help shake up some of us of the Third Party Access system. They also from our comfort zones. had the mandatory licences issued by the Commission, each with its clearly defined roles At the Energy Commission, we have and responsibilities. Tariff schedules were made some overtures to students by also subject to the Commission’s approval. The organising the Energy Efficiency (EE) Commission had embedded these checks in Challenge to encourage students to Datuk Ir Ahmad the Third Party Access system to protect the save energy and power bills at schools. Fauzi Hasan interests of all parties, to avoid conflicts of The winners of the 2019 Challenge Energy Commission interest, and to create a transparent business are published in the “Happenings” Malaysia operating environment. news section of this magazine. We are happy to learn that the EE Challenge The gas delivery to the power plants in Klang has sparked young minds to take home and Port Dickson was completed according to and apply the lessons learnt at school schedule. TNB also reported savings from this as retold by a student in “The Quiet transaction that involved the purchase of gas Achievers”. in the open market when prices were low. One thing is becoming clear: we need The Commission hopes the success of the to learn continuously – not just from inaugural operation will inspire confidence the experts but also from young sparks in the private sector to participate in the and persons on the street. Malaysian gas market, which has many opportunities for domestic supply and export to regional markets.
We recognise that there will always be hurdles and lessons to be learnt with the passage of time. But we are confident that by being responsive to the marketplace, we can address these challenges.
Towards a World-Class Energy Sector 3 / Industry Bites /
News from Malaysia and around the world
Sarawak’s chief minister Datuk Carbon emissions produced during MALAYSIA Patinggi Abang Johari Tun Openg the construction of the pavilion is to be also announced plans to build six offset in Malaysia through tree planting Malaysia has Southeast more hydrogen production facilities initiatives, including reforesting more Asia’s first hydrogen in the state – two in Kuching and land areas. production plant one each in Sri Aman, Sibu, Bintulu and Miri. Malaysia currently has a forest cover that outheast Asia’s first hydrogen constitutes 55.3% (18.3 million hectares) production plant is located Source: Borneo Post, 23 December 2019 of its total land area, exceeding Malaysia’s in Bintawa, in Kuching, initial commitment of 50% at the 1991 SSarawak. It is an integrated Peer to peer solar power Rio Summit. facility constructed and operated trading by Sarawak Energy Berhad, in Source: Focus Malaysia, 29 October 2019 collaboration with Linde Fox Sdn The Sustainable Energy Bhd, a subsidiary of the Linde Fox Development Authority (SEDA) has Go green or be left behind Group, a global leader in sustainable introduced a peer-to-peer energy hydrogen solutions. The Integrated trading programme. Under this, The Malaysian Green Technology Hydrogen Production Plant and consumers with solar PV panels Corporation and Climate Change Centre Refueling Station is in line with can sell excess power generated to (MGTC) is calling for the private sector the state government’s vision other consumers. to make more investments in green to establish an emission-free technologies to help drive the country transportation system. Earlier in The sale of the excess energy can forward into a sustainable future. the year, the state held the first be made through a grid operator or hydrogen-powered bus trial in retailer. In Malaysia, both roles are MGTC Malaysia’s Acting CEO Syed Ahmad Kuching, the state capital. played by Tenaga Nasional Berhad Syed Mustafa said, “There is a need (TNB), which will be paid a grid fee for more involvement from the private The facility uses water to produce for operating the platform that sector, especially given the fact that carbon-free hydrogen through enables prosumers and consumers under the Paris Agreement, Malaysia has electrolysis and has a refueling to trade in solar energy. pledged to reduce its greenhouse gas station for hydrogen powered emissions by 45% by 2030. He added vehicles. It is capable of producing The programme encourages that corporations not implementing up to 130kg of hydrogen per day at Malaysians to invest in solar panels sustainable practices in their businesses a purity of 99.99%. It also comes on the rooftops of their homes, will be at risk of losing out in the with a capacity for refueling up to offices, factories or malls. It is competitive global environment. 10 hydrogen powered buses and estimated that there are 4.1 million cars per day. units of rooftop space available for One of the main challenges to more green this purpose in the country. investments in corporate Malaysia is a lack Hydrogen is an odourless, of awareness, especially among financial colourless and tasteless gas Malaysia is the second Asian institutions. Financial institutions will produced either through natural country, after Thailand, to launch a need to play a bigger role in providing gas steam or electrolysis through peer-to-peer energy trading project. funding for green investments. The water. It is lighter than water, and government’s Green Technology will burn with a clean, invisible Source: The Sun, 29 October 2019 Financing Scheme (GTFS) offers a 60% flame that is carbon-free. It is a government guarantee as well as a 2% powerful energy carrier, holding ‘Net Zero Carbon’ pavilion at per year interest/profit rate subsidy about three times more energy Dubai Expo 2020 on loans for the financing of green than petrol, based on weight. technology development. The Ministry of Energy, Science, The gas can be burned to produce Technology, Enviroment and Climate Malaysia needs RM33 billion in power with zero emissions unlike Change (renamed Ministry of investments in order to achieve its target power produced using fossil fuels. Natural Resources in mid 2020) will of 20% electricity generation from The plant is in line with Sarawak’s be constructing a rainforest canopy- renewable sources by 2025, from the 2% vision to establish an emission- themed pavilion at the Dubai Expo recorded in 2018, added GreenTech. free public transport system in the 2020 (postponed indefinitely state. because of the Covid 19 pandemic). Source:Edge Financial Daily, 29 October 2019
4 ENERGY MALAYSIA Lighting up rural roads To date, there are 34 such A recent Uptime Institute survey systems in the state, supplying of 1,600 data centre owners and The Rural Development Ministry power to people living in remote operators found that the 2019 has embarked on a project to install parts of Sabah. average PUE is 1.67, and that 60,000 street lights nationwide to energy efficiency in data centres has brighten up roads in rural areas. Source: Borneo Post, 18 October 2019 deteriorated slightly over the last two The project is to be completed over years. This PUE shows that 60% of two years. Aging power station their electricity consumption is for decommissioned IT activities and the rest for cooling, Source: The Star, 7 November 2019 lighting and so on. Southeast Asia’s first combined- Net Energy Metering goes to cycle power station, the Sultan Data centres are now moving in a Sabah Ismail Power Station in Paka, different direction to save energy. Terengganu, was decommissioned Instead of human-implemented The Net Energy Metering (NEM) end 2019, after 33 years of service. recommendations, they are using programme implemented in Artificial Intelligence (AI) systems to Peninsular Malaysia has been TNB said the shutting down of the directly control the use of energy. expanded to Sabah. The Federal station is inevitable as Malaysia is With efficiency gains much needed Government has approved a 50MW replacing its aging power plants for their voracious use of power, quota for NEM in Sabah beginning with more advanced, cost-efficient these centres will need to become 2020. and environmentally friendly ones more energy efficient to avoid the to comply with best practices in the adverse effects they could have on NEM will enable consumers to global electricity supply industry. power grids and utilities. generate clean energy using solar PV systems installed on the The 1,400MW power station was Source: Edge Financial Daily, 16 December rooftops of their completed in 1987 at a cost of 2019 premises. RM1.51 billion. Its current value is The energy estimated at RM2.4 billion. Renewables outpace fossil generated can fuels in the UK be used for self- Source: The Star, 2 January 2020 consumption, For the first time ever, renewable with excess sold to energy overtook fossil fuels in power the distribution licensee INTERNATIONAL generation in the United Kingdom, at a price set by the Sabah according to specialist website Carbon Energy Commission. Big data’s hot problem Brief. In the third quarter of 2019, the UK’s wind farms, solar panels, NEM participants can benefit from he insatiable demand for biomass and hydro plants generated lower electricity bills because they electrons by data centres has more electricity than the combined will be buying less electricity from resulted in a rise in electricity output from power stations fired by Tsales last year, after nearly a decade coal, oil and gas, said the website. the utility provider. Consumers under this programme will also of being flat or falling slightly. contribute towards reducing carbon Renewables accounted for less than emissions and help to mitigate The power-hungry data market is 10% of UK’s power generation at climate change. where some of the world’s biggest the turn of the decade. It has since and most innovative companies quadrupled, but gas remains the Source: Astro Awani and Borneo Post, 5 are struggling to become more single biggest source of electricity November 2019 energy efficient. A crucial metric to production, accounting for 38% of consider when it comes to energy the total over the three months, Solar power boost for remote use in these centres is the Power followed by nuclear power (21%) and island Usage Effectiveness (PUE) ratio. wind (20%). Coal now generates less PUE is a measure of a data centre’s than 1% of the country’s electricity Pulau Bait, an island off Semporna energy efficiency – the ratio of total needs, and is expected to be phased in Sabah, will receive around the energy used divided by energy out completely by 2025. clock electricity supply after the consumed for IT activities. Now setting up of a Hybrid Solar System. with more computational power Britain is looking to exploit offshore The off grid Pulau Bait is one of needed in the cloud, it’s worth wind resources as it tries to achieve eight islands to benefit from the finding out what today’s PUEs are its target of carbon neutrality system that supplies electricity to and how close a company can get to by 2050. In August 2019, the 400 homes. an ideal level of 1.0. government authorised the extension of a project to build the world’s largest wind farm in the North Sea.
Source: AFP, Daily Express (KK) 16 October 2019
Towards a World-Class Energy Sector 5 / Cover Story / AccessThird Party at Work The arrival of the first third party LNG shipment in October n 7 October 2019, the Regasification Terminal 2019 was a major Sungai Udang (RGTSU) in Melaka took delivery of the first Third Party Liquefied Natural Gas milestone in the (LNG) cargo that arrived in Malaysia under the Third Party Access (TPA) arrangement. The implementation approximately 3.5 TBTU LNG import is the result of sales agreements between utility company of the Third Party Tenaga Nasional Berhad (TNB) and Shell Trading Sdn Bhd. The cargo was unloaded and regasified Access arrangement. at RGTSU, and then transported via the Peninsular Gas Utilisation (PGU) pipeline network to TNB’s power stations Besides being a in Port Dickson, Negeri Sembilan and Klang, Selangor. trial run for open Shell Trading had earlier signed a Gas Transportation Agreement with Petronas Gas Bhd and a Terminal Usage fuel sourcing, it Agreement with Regas Terminal (Sg Udang) Sdn Bhd, a subsidiary of Petronas Gas Bhd. also provided the “This marked the beginning of commercial operations under Energy Commission the TPA arrangement introduced in 2017,” says Rumaizi Abdul Halim, Energy Commission’s Deputy Director, Gas TPA. “We the opportunity to expect it to attract other players to participate in the TPA’s new gas importation mechanism. TPA aims to make the market test the operational more competitive and vibrant while ensuring the security of gas supply in the country.” and commercial effectiveness of the Third Party Access arrangement introduced in 2017.
6 ENERGY MALAYSIA Under the TPA arrangement, licensed shippers “We expect the TNB, Shell and Petronas shall have access to gas infrastructure owned and agreements to send a strong message to the operated by Petronas Gas (regasification terminals market. They are agreements negotiated on a and transmission network) and Gas Malaysia willing seller-willing buyer basis, a salient feature (distribution network). Previously, only Petronas of the TPA. Other third parties are said to be and Gas Malaysia were the exclusive suppliers currently negotiating with customers, and trying of gas in the country, with Petronas serving the to put together packages attractive to both sides,” wholesale market and Gas Malaysia Berhad, the says Rumaizi. retail market. The 2016 amendment to the Gas Supply Act 1993, which came into effect on 16 There are two types of customers – one that January 2017 provides the legal framework for the buys gas from the PGU transmission network TPA, which allows other shippers to supply gas to (wholesale) and the other that buys from the the Malaysian gas market by using the existing gas distribution network (retail). Wholesale buyers infrastructure. comprise mainly the power sector, petrochemical industry, large manufacturers, exporters and “Since TPA was introduced, we have had several the distribution network. The retail market expressions of interest from parties keen to covers mainly SMEs, such as rubber glove and participate in the potentially lucrative gas industry steel manufacturers as well as the commercial & in this part of the world. As at end November 2019, residential segments. the Energy Commission had issued 14 new licences for this purpose,” says Rumaizi. “Seven are for Meanwhile, in a media statement issued in LNG importation and seven for shipping. This is a conjunction with the third party LNG shipment healthy response by any measure. It shows market last October, Petronas Gas Berhad (PGB) confidence in the liberalised Malaysian gas market, Managing Director and Chief Executive Officer currently valued at close to RM20 billion a year.” Kamal Bahrin said, “TPA provides a platform
The first Third Party shipment of LNG arrived at the for gas market liberalisation, thus encouraging Regasification Terminal Sungai Udang in October 2019, to mark healthy competition at market determined prices. the operationalisation of the TPA arrangement. Furthermore, the maiden Third Party LNG cargo will allow PGB to examine the effectiveness of the entire TPA arrangement, both commercially and operationally.”
Towards a World-Class Energy Sector 7 / Cover Story /
Getting it right
The Energy Commission started revamping the gas supply industry by deregulating the marketplace in 2017. This involved studying best practices of gas market liberalisation in the United Kingdom, Netherlands, Australia and Singapore, regarded as among the best models in the world. Subsequently, several measures were introduced to help the Malaysian gas industry transition from monopolistic practices to a free market environment. The ultimate goal of deregulation is to create a competitive, vibrant and sustainable market of multiple players, selling gas at market- determined prices to consumers who can choose who best serves their needs.
As part of the transition, the Commission introduced the following measures:
Third Party Access Unbundling Petronas Gas and Gas Malaysia The Third Party Access (TPA) arrangement was introduced in 2017. It allows Third Party gas suppliers to use Malaysia’s In the interest of good governance and gas facilities, namely, regasification terminals, transmission fair business practice, the Commission pipelines and distribution pipelines in a fair, equitable and unbundled the vertically integrated entities non-discriminatory manner. The objective is to create a Petronas and Gas Malaysia. Subsequently, level playing field where players can compete fairly and Petronas incorporated Petronas Energy healthily. TPA allows gas suppliers to negotiate costs with and Gas Trading Sdn Bhd as a gas seller and infrastructure owners on willing buyer-willing seller basis. shipper at wholesale level. For the retail It also ensures that there is no conflict of interest between market, Gas Malaysia formed Gas Malaysia asset operators and asset users. As the regulator, the Energy Services Sdn Bhd. This demarcation Energy Commission will monitor the actions of all players in is to avoid conflict of interest between asset this value chain. operators and asset users. The new entities will compete in the market like other third parties.
Gas Price Rationalisation
Gas price rationalisation has been on the cards since 2010, when the Government announced plans to “unlock premium gas demand”. Put simply, it means removing gas subsidies over a period of time. Under the Commission’s Incentive Based Regulation (IBR) scheme, gas prices are reviewed every six months with the intent to increase the regulated gas price of RM1.50/mmBtu until it reaches the market price. As at Q1 2019, Malaysian gas prices had reached parity with global market prices.
“We also review the Access Arrangement document Enticing new players published by facility operators/licensees. This document details the rules of conduct for both the infrastructure “As the regulator, the Energy Commission is concentrating operator and user, and it is subject to the Commission’s on establishing a business environment that is efficient, approval. We make sure the document is fair to all parties. competitive and fair. This is one of the defining features of In addition, the Access Arrangement document also TPA, to protect the interests of all parties,” says Rumaizi. publishes the tariffs of each asset that is subject to the “The key to this is a licensing scheme that is well-defined Commission’s approval. With this document, users can and unambiguous to avoid conflicts of interest. With evaluate the risks and opportunities in the market. This licences in hand, companies can proceed to negotiate kind of transparency is critical for gas industry players, access arrangements with infrastructure operators to typically large companies with the financial strength, transport their supply to buyers,” says Rumaizi. technical and operational expertise to serve the industry, both regionally and globally. Transparency governs the way these companies conduct business,” he adds.
8 ENERGY MALAYSIA Types of licences
Under the TPA arrangement, the Energy Commission issues seven “Since the types of licences. They are:
gas business 1. Import into regasification terminals – to bring LNG into is capital or within Malaysia by any means except trans-shipment. intensive, only 2. Regasification – regasifying shippers and LNG, including receiving, storing of LNG and subsequent delivery of regasified gas to transmission lines. 5. Distribution – owning/ importers with operating a distribution pipeline. 3. Shipping – delivering gas to a minimum consumer’s premises by owner 6. Retail – using gas for one’s own of gas molecules through consumption and on-selling gas to paid up capital arrangements made with consumers through the said retail regasification, transportation or licensee’s piping system. of RM5 million distribution licensees. 7. Use of Gas – using gas for one’s are eligible 4. Transportation – owning/ own consumption and not getting operating a transmission pipeline. supply for a retail licensee. to apply for licences.
This applies especially to Innovative products importers and shippers,” says Rumaizi. “A second condition is “Since we publish prices, from gas “We wish to see this happen in the that they must be incorporated prices by market segment to tariffs gas industry. Through deregulation, in Malaysia. This is to encourage by facility and capacity, newcomers consumers will be empowered and local companies to participate. have access to the information at the same time, we will have a gas We do not limit who can enter needed to become creative and market that is innovative, vibrant the market provided they meet innovative in their product offerings and competitive.” these two conditions. to win customers,” explains Rumaizi.” “Another incentive for players, especially importers, “Here, a good model to emulate is is competitive gas prices. In the Malaysian telco industry. Fifteen Malaysia, gas prices are seen years ago, there were only a handful as subsidised although they of players offering a small selection are being rationalised to reflect of packages. Consumers had little market prices. Our approach has choice. Now, with more players, been to review and increase competition has set in and telcos the regulated gas price of have become creative to attract RM1.50/mmBtu every six customers. Consumers are now months. Today, the regulated spoilt for choice and can choose gas price is at par with market packages that best suit their mobile prices. This new pricing should phone habits and needs. If they are encourage more players into not happy, they can always switch to our market,” adds Rumaizi. someone who serves them better.”
Towards a World-Class Energy Sector 9 / Cover Story /
...the target is for
“renewable energy to make“ up 20%..
of the capacity mix by 2025. The preferred renewable source is solar energy that is infinite.
10 ENERGY MALAYSIA Understanding the story of gas The main challenge in Malaysia for new players is market penetration. There are currently 20 gas-fired power plants in Malaysia, accounting for about half the power needs of the country, Rumaizi says, “It is and making gas the main source of energy. Population growth and environmental considerations are likely to have a positive not easy breaking impact on gas demand for power generation in the future. Malaysia’s population, at 32 million in 2017 is forecast to grow into a long-held to 45 million in 2050, with almost 90% expected to live in cities. Rapid urbanisation will trigger increased demand for monopoly, where energy to sustain city dwellers and satisfy urban lifestyle relationships have needs. While cost remains a key consideration with regards to fuel choices – the removal of gas subsidies may make it a been built over a relatively costly option - countries are also mindful of their international commitments to reduce carbon emissions. long time. Malaysia is a signatory to the 2016 Paris Agreement that commits countries to reducing their carbon emissions. With this, renewable energy has gained traction as the fuel of the Penetrating the market future. In Malaysia, the target is for renewable energy to make up 20% of the capacity mix by 2025. The preferred renewable The main challenge for new players is source is solar energy that is infinite. market penetration. Rumaizi says, “It is not easy breaking into a long-held monopoly, But policymakers know that fuel diversity is the key to energy where relationships have been built over security. As such, renewable energy needs to exist alongside a long time. New suppliers must convince fossil fuels. According to the Smithsonian.com (Feb 13, 2014) customers who have relied 100% on when talking about climate change, not all fossil fuels are Petronas and Gas Malaysia for their gas created equal. Burning natural gas, for instance, produces supply over the past 30 years. They must nearly half as much carbon dioxide per unit of energy compared offer something better than the existing with coal. The magazine also says that gas is considered by arrangements. many as the “bridge fuel” that can help nations lower their carbon dioxide emissions while they transition more slowly “Besides, buyers may have become from fossil fuels to renewable carbon-neutral forms of energy. comfortable, even complacent, with the status quo. After all, Petronas and Gas Besides being a fuel, gas is also a feedstock, and herein is a Malaysia are big companies with strong dilemma. So long as there is an abundant gas supply, there will credentials. And they are likely to have be enough to serve both markets. But shortages will cause enjoyed gas flowing at the flick of a tap. prices to spike. But then, this is the reality of the free market, New players have to thus match, more where pricing is determined by supply and demand. likely exceed, buyer expectations not only in terms of pricing but also in terms of For new suppliers, Malaysia’s robust petrochemical industry services. is a market to explore. And demand is set to grow given the country’s ambition to become the oil & gas and petrochemical “We also hope that with deregulation, hub of the Asia Pacific in the near future. gas users can manage their gas portfolio better. For example, a glove manufacturer The export market also holds much allure. Gas suppliers can can buy gas packages according to its leverage on the country’s strategic location at the crossroads gas consumption pattern that may vary of Asia to access the populous and rapidly industrialising Asia between standard operating times, Pacific market that includes the power houses of ASEAN, India peak periods and down time. So, instead and China. Besides, Malaysia has long been regarded as a safe of being locked into a fixed long-term haven by domestic and foreign direct investors, attracted by its contract, the manufacturer can buy political stability and pro-business environment. shorter term packages that are aligned to seasonal needs. With a choice of For now, industry watchers are likely to be watching closely suppliers, they can scout the market for the outcome of the Shell-TNB transaction. There may be some the best deals, according to the season. hurdles to cross and issues to fix. But there is no turning back, This will help reduce the manufacturer’s with the Government pressing on with market liberalisation as overall energy costs,” adds Rumaizi. part of its agenda to future proof the energy supply industry.
Towards a World-Class Energy Sector 11 / Q & A /
Are Malaysians Complacent about Energy Efficiency?
The term “energy efficiency” is used as shorthand to describe wide ranging energy saving measures. Distinguished Professor of Economics, Dato’ Dr Rajah Rasiah, from the Asia Europe Institute, University Malaya says energy efficiency is often confused with energy savings, and that each has its own definition in the energy world. In his various engagements in the country, the world- renowned academic finds Malaysians complacent on both counts.
Distinguished Professor Dato’ Dr Rajah Rasiah
12 ENERGY MALAYSIA Q. How do you define energy Then, there is TNB as the is trying to change this, but efficiency? national utility company. The there is resistance from certain Government is also a stakeholder stakeholders. I feel these A. There is a misconception on because it determines stakeholders need to come how the public understands energy policies, and their together to form a common energy efficiency. It simply implementation and regulation. agreement moving forward as means producing a given output we do not wish to exacerbate of energy at the lowest possible With new technologies, private global warming. We haven’t got cost. Producers may achieve individuals are becoming there yet, though. this by using the cheapest prosumers, and therefore, they fuel and/or technology. For are stakeholders in their own There is also a move by the consumers, it is about paying a right. I would prefer to have a Government to pro-rate tariffs lower electricity charge to obtain bottom to top approach when according to supply and demand. the same benefit. They can do defining stakeholders, and one This means consumers will this by choosing energy saving that is inclusive of the wider have to pay more when they appliances or machinery to public. use power during peak demand perform tasks instead of energy times. Most energy demand in intensive equipment. Q. How well are these roles Malaysia comes from factories, being played out, and what and they have standardised Energy savings, also referred more can be done? work schedules. As such, they to as energy conservation, will face greater challenges however, is about using less A. From my experience sitting in adjusting to this tariff schedule. energy by adjusting behaviour energy-related committees, you The introduction of smart and habits, for example, by have to accept decisions made at meters will help consumers switching off the lights when some point. A common decision organise their power usage leaving a room. always requires compromises, patterns according to prices. which obviously will mean that Both need not necessarily fulfill we end up accepting consensus For domestic consumers, I bigger and noble objectives. For driven decisions rather than the think there is a need to build example, the movement to save best possible solutions. At the awareness and educate people the environment by consciously same time, I do feel that with on how to use appliances during mitigating the effects of climate any particular agenda related off-peak hours, and save on their change requires a focus on to energy, we try to address too energy costs. renewable energy. But this is many issues in too short a time. Are Malaysians Complacent about Energy Efficiency and Savings? likely to incur a higher cost in the Q. Can you share some early stages, which may then However, with priority shining examples of energy compromise on efficiency. This issues, I agree with what the efficiency driven countries? is where energy effectiveness Government is doing by moving enters the picture. While quickly away from fossil fuels A. There are some countries efficiency is about saving unit towards renewable energy. that have made good progress costs, effectiveness is about The Government has set clear in producing green energy doing the right things. Energy targets. It wants to reduce efficiently, and made it a efficiency is always related to carbon emissions by 45% by profitable industry. cost, but energy effectiveness is 2030, and have 20% renewable goal related. energy in the capacity mix by In terms of net surplus 2025. generated by green energy, Q. Who are the stakeholders Denmark would be a good in energy efficiency, and From the energy efficiency example. Besides home what are their roles? standpoint, it is better to use consumption, it exports a lot fossil fuels because they will be of green energy to Germany A. In Malaysia, the normal notion cheaper in the long run when among other countries. Norway, of stakeholders is players from the required sources mature. Sweden and Finland would the supply and demand side When you deal with traditional also be good examples. These of the energy industry. It has power suppliers, they prefer countries do a lot to address precluded the wider public. coal because it is currently the climate change problems as From a holistic perspective, cheapest fuel but we also know well as inequalities in society. stakeholders should cover that coal generates emissions They continue to explore green the entire spectrum of energy that will only increase global energy sources such as wind, producers and consumers. warming. The Government waves and so on.
Towards a World-Class Energy Sector 13 / Q & A /
Their goal is to reduce the cost of youth. You have to be a lot more green energy and make it accessible personal and passionate with the to larger sections of the population. youth of today since they have access to much more information Another good example is Germany than ever before. With the right kind that was the first to use solar panels of approach, I think it will work and on a large scale after the Chernobyl youths will begin to influence each disaster. China’s ascension to solar other in their power consumption power comes from learning from habits. Germany. In Japan, solar power is also widely used, especially Q. Malaysia is moving towards since the Fukushima disaster. energy market liberalisation There are factories where roofs that will see more competition are completely covered with solar and possibly lower tariffs. panels, like the Toyota factory. Would cheaper electricity make Malaysians more wasteful? The 2016 Paris Accord gives each country the leeway to A. If the Malaysian energy industry reduce carbon emissions based is driven just by cost, there could on their Intended Nationally be wastefulness. The Government Determined Contribution (INDC) can play a big part in coming up that is determined by respective with social programmes that aim governments. The agreement calls to educate consumers on saving upon signatories to adopt strategies energy. If Malaysia starts embracing for energy and climate change to the civic conscious standards found meet the global 2030 targets, which in Germany and Scandinavian was extended in timeline terms at countries, there will be a greater the 2016 Marrakesh Proclamation. chance of influencing consumers to The target has now been revised reduce wastage. to 40% carbon emission reduction, 30% green energy in total energy Having said that, I think market mix by 2030. liberalisation will be good at breaking down monopolies. While Currently, coal is more efficient liberalisation is useful, it needs a than green energy because of a lot of regulation as a number of glut in the global market. I think by sectors are still driven by scale 2029, there will be an equalisation economies rather than scope between green energy and non- economies. Currently, there is still green energy in terms of cost and a need to strengthen regulation in consumption. Green energy will the country. become more efficient from 2029 with the current advancement in Q. How can smart meters drive technology and the scale of use. an energy saving culture in the country? Q. Do you think Malaysians are complacent about energy A. Smart meters give you all efficiency? the information you need to act rationally, but it depends on A. I think they are. Producers are whether consumers take conscious profit-driven, and they will always actions to save energy. These go for the lowest cost fuel unless meters can offer prices determined there are government policies to by demand-supply patterns, which incentivise them to do otherwise or consumers can then follow to prohibit them. lower their bills. Smart meters are a good initiative because current Among consumers, I think consumption patterns show that there is a strong need to create people are using energy without consciousness, especially with the thinking.
14 ENERGY MALAYSIA Are Malaysians Complacent about Energy Efficiency and Savings? 15 or
rgy Sect Energy orld-Class Towards a W a Towards Distinguished Professor Dato’ Dr Dato’ Professor Distinguished in obtained his doctorate Rajah Rasiah Cambridge University from Economics at fellow was a Rajawali in 1992, and in 2014. The University widely Harvard public delivered academic has published speeches policy talks and keynote lectures, in the USA, UK, universities premier at and Australia. India, China, ASEAN ofWhile the prime focus is on his research technology and international development, on foreign extensively he has also worked health human capital, public investment, is the 2014 recipient He and environment. of the World from the Celso Furtado prize ofAcademy the advancing Sciences for offrontiers science (economics) social thought. In the light of his outstanding to scholarship, and impactful contributions Ministry ofMalaysia’s Higher Education in made him Distinguished Professor the field of Economics in 2017. He was (Independence) the Merdeka conferred in 2018. academic excellence for Award To raise awareness for energy energy for awareness raise To must get players key savings, will Factories involved. households savings energy of be conscious to interest because it is in their way One effective costs. reduce tap into is to awareness raise to media and online channels. various think energy Do you Q. should be consciousness our education into integrated system? in topics energy have already A. We Malaysian at engineering courses also incorporate They universities. as a topic subjects. Energy greening economics energy is also part of though engineering courses, focusing increasingly journals are non- fuels to fossil on the shift from fuels. fossil be done needs to I think what shift the to educators is for being the environment to focus is My feeling a global common. energy of the social element that should be emphasised consumption I is done now. than what much more in schools, if it is taught don’t know then it should start not, but if it’s kindergarten age, from a young at itself. more any have Do you Q. share? to insights can be done in A. I think more energy efficiency, energy of terms in and the environment savings about the I am concerned Malaysia. Lynas disposal by waste issue of the Australia-based Corporation, has a that earth producer rare in Kuantan. plant manufacturing dump radioactive to If it is allowed it will be in the country, waste signal. There sending the wrong on the transportation UN codes are goods, dangerous and disposal of with these. must comply and Lynas the same position on I also take livelihoods fishermen’s destroying land create and mining sand to must be a very the sea. There from the on greening taken stance strong and air pollution itself. environment / Education /
The
QuietAchievers ouths around the world Energy Efficiency are rallying to make Challenge sparks climate change and energy Ytheir business. While Greta young minds Thunberg and other activists are alaysian high school student Noresqandar Dzulqharaaim, making headlines, there are also 16, convinced his mother to change the fan and air hundreds of thousands of quiet conditioner at home to five-star rated appliances. “They young achievers doing their part Mcost more, but I persuaded my mother that these new purchases will reduce our electricity bills. I also told her why it is important to be in schools and campuses, and efficient with energy consumption. My family has now become more spreading their knowledge, hoping diligent about turning off electrical appliances and devices when for decision makers to change they are not in use. their ways.
Sixteen-year-old Greta Thunberg shook up world leaders at the 2019 United Nations Climate Action Summit on 23 September, when she denounced them with:
“How dare you! You have stolen my dreams and my childhood with your empty words.”
This emotional outcry has been played time and time again in news channels as a grim reminder of the climate crisis we face today. Once a solo street protestor, this Swedish teen now leads climate change activism with her “Fridays for the Future” strikes that demand action from political leaders to prevent the degenerating impact of climate change.
Thunberg and her followers represent the angry voices of youth urging politicians to act quickly. At the same time, there are bands of quiet achievers scattered around the world, who have been working for some years with authorities to make climate change and energy a priority. They are leading by example, and their actions have started to ripple across their families, communities and decision makers.
16 ENERGY MALAYSIA “By being sensible about how we encouraged by our principal to go all out to win. Our use electricity, we save money. students became excited and decided to produce Our home electricity bills have a video because we have a recording studio and come down because of the new broadcast channel in our school. Because of the high appliances and new habits. From level of interest, we had to audition students to select what I have learned at school, our squad. We selected only those with good video a few simple actions can help production and social media skills.” reduce carbon emissions and in turn save our planet. I know “We did a lot of research into energy efficiency climate change is real. When I was and how to present the content creatively,” says young, the weather was not as Noresqandar. “We know Malaysians love horror hot as it is now. My mother tells movies, so our submission had a ghoulish character to me that our area is also seeing spook errant energy users. We uploaded our video on more floods these days.” Facebook and Youtube and shared it on Instagram and Twitter to create awareness about energy efficiency. Noresqandar was the project head of the 2019 Energy Efficiency (EE) “We also sent our video to broadcast networks in Challenge at his school Sekolah Kuala Lumpur. Astro Awani then invited us for an Menengah Kebangsaan (SMK) interview, where our video was shown. We are proud Paka in the east coast state of of this because Astro Awani has one of the highest Terengganu. His school won the viewership in Malaysia. We also decided to screen our Most Creative and the Most Viral video at a kindergarten so that young children can video categories of the challenge start learning habits to save energy. that is organised by the Energy Commission annually. I try to share this with others, but it is not always successful. I asked my tuition centre to change its At SMK Paka, 20 student 3-star energy efficiency rated air conditioner to a volunteers participated in the 5-star one. There has been no action so far.” 2019 EE Challenge, under the guidance of Kamal Mizan Ismail, a 38-year old science and math “As project head for the competition, I found myself learning teacher. The teacher says, “It is the first time our school entered the importance of energy efficiency and how climate change the competition, and we were will affect my future.”
Far left: Nuresqandar The EE Challenge was launched by the Energy Dzulqharaaim Commission in 2014 to instill an energy efficient culture among students. It began with seven schools in the Klang Valley and Putrajaya and grew to become a national event. As at end 2019, it has engendered the participation of 398 schools over a period of six years.
The Energy Commission’s Deputy Director of the Energy Efficiency and Conservation Unit, Zulkiflee Umar, says, “We are happy with the impact the EE Challenge is having on students and its ripple effect at home, the local community and beyond. Initially, the Challenge focused on energy savings in the school environment over a 6-month period. The judging criteria measured energy savings based on the electricity bills, and the whole school became involved.
“We have seen principals, teachers and students coming together to work on reducing consumption and adopt energy efficiency practices for six months. We believe this time frame will help many of them internalise energy efficiency as their way of life.
Towards a World-Class Energy Sector 17 / Education /
“The Challenge assesses schools on actual savings, regression savings, energy intensity per class, energy intensity per capita, number of activities, impact of these activities and report creativity. The school with the highest score becomes the winner of the EE Challenge. Since it was introduced, we have recorded a total savings of 1,422,346 kWh from participating schools. This is equivalent to RM561,135 saved in electricity bills.
“In 2017, we decided to introduce two new categories – Most Creative Video and Most Viral Video as part of energy advocacy. We felt that by tapping into the creativity and social media skills of our youths, we could carry the message of energy efficiency more effectively and to a wider audience. YES also has a competition for high school and college The results have been encouraging. students and teachers. Participants are asked to come up with meaningful and innovative strategies and suggest “The EE Challenge 2019 received 48 entries for the relevant solutions on issues about energy access and energy Most Creative Video and 56 entries for Most Viral efficiency. Video. At our count end October 2019, these videos had received 581,168 views, 52,709 likes, 9,449 Scheduled to be held in 2020, the theme of the inaugural comments and 38,124 shares.” YES is “Energy for Social Good,” and students and teachers are invited to submit proposals for five tracks: Energy in the Community; Energy Investigation; Energy Innovation; Energy Advocacy; Best Practices in Energy Education. in the Energy in the Community invites proposals involving ideas and concepts with the potential to provide and/or improve energy access, conservation, and/or generation in power- Philippines poor communities. Energy Investigation, meanwhile, mobilises the high school and college community to n the Philippines, utility undertake research and explore new energy sources and company Meralco has partnered with the NGO materials, and efficient models for energy use. It also ICoalition for Better Education to encourages proposals to include studies that examine the host the Youth Energy Summit, viability of alternative energy sources and its implications to better known as YES. the environment.
According to the YES website: The third track on Energy Innovation focuses on innovative “The youth’s role as a catalyst products and technologies that may enhance energy for change in energy use and generation, reduce cost of production and consumption, consumption has always been mitigate adverse impacts of energy use, and improve undermined simply because energy security. Submissions for innovative products/ parents and those older than tech need to have undergone product use testing / quality them make the decision on testing. Participating teams should also be able to present how to manage energy use a functional free trial/product demo/prototype with key in the household. However, functionalities. over the years, young people have contributed to energy Energy Advocacy requires the creation, production and consumption not only in dissemination of video material on energy efficiency households but in schools and, and access to energy. These materials should be able to on a larger scale, the community. effectively position an energy initiative in the eyes of its The increasing dependence target audience - be it consumers, investors, government, of youth on technology and and other stakeholders. The fifth track on Best Practices equipment that require in Energy Education invites proposals for innovations in electricity cannot be ignored. creative and practical teaching in energy education using There is a need, therefore, for project-based learning approaches. young people to understand their role in promoting the YES will culminate in a summit that will see the leading lights efficient use of energy and drive of energy discussing current energy trends and issues, behavioral change.” energy and technology and alternative energy sources.
18 ENERGY MALAYSIA Another in Nigeria Global gathering of n Africa, undergraduates in Nigeria organised the best young brains first Youth Energy Summit in 2019. Also called YES, the event addressed issues affecting the very other year, the Student Energy Summit (SES) brings Ienergy sector in Nigeria that is rich in oil and gas. together the world’s brightest students to learn and discuss the current issues and trends in energy. The SES started in The Nigeria summit had a competition for ECalgary, Canada in 2009 and has been held in Vancouver, Canada undergraduates from more than 30 tertiary (2011), Trondheim, Norway (2013), Bali, Indonesia (2015), Merida, institutions in Nigeria. A total of 120 applications were Mexico (2017) and London, United Kingdom (2019). received, with submissions for a variety of projects. The competition also created student interest in SES 2019 was held at London’s Imperial University and attended by renewable energy sector as a viable career field. 650 student delegates from 98 countries. The final report of SES 2019 notes that one of the summit’s highlights is the Innovation Jam, At the summit itself, undergraduates presented a fast-paced brainstorming, collaboration and pitch session that has recommendations for sustainable energy in Nigeria. sparked many ideas over the years and turned them into full-fledged The event, which was well attended by prominent initiatives. figures in Nigeria’s energy ecosystem, also heard many conversations among youth delegates. It At the 2019 Summit, the following ideas were born. They are: also heard speakers talking of the need to act at • Know your carbon: How to use blockchain technology to follow the full supply chain of things you buy. This could allow people to harnessing renewable energy sources available in make better decisions by seeing how much carbon each product Nigeria. Green Institute founder, Adenike Akinsemolu, has produced over its life cycle. a key speaker said, “We may not be ready for • Efficiently using space to install renewables: Rather than renewable energy in the fullest of forms, but we are installing centralised renewable energy systems that ready for the traditional biomass.” occupy large areas of land, which is finite, we could pursue a decentralised, networked system that utilises wasted space on buildings, parking lots, etc. • Climate risk pricing: A think tank to make the insurance lobby effective and work in the public interest to bring data into activism and make climate risk data accessible, by using a climate pricing tool. • Just energy transition: To include indigenous voices in the energy transition by integrating traditional knowledge and relationship to the land through policies that actively consider indigenous knowledge. This could be facilitated through a database that would have information on the indigenous tribes in a certain region, and their knowledge regarding energy and climate projects. • Solargency - Energy Storage for Post-Disaster: The 2004 Indian Ocean tsunami created a lack of energy and clean water. Energy storage combined with solar PV can be used at critical times, as it is sustainable, modular, mobile and reliable, especially when used as part of a microgrid. • Smart-E: The UK has the oldest, least energy efficient homes in Europe, and it needs to reduce demand. A data driven app can support homeowners and communities to better understand technical solutions and connect with smart financing options. Smart-E will also connect with other communities and generate income by creating leads for finance-providers and providing contracts.
The final report also highlighted an interview in Horizon magazine (Article: “Young scientists share protesters’ sense of urgency on climate”), where the summit’s vice-chair sponsorship, Luciana Miu, said, “Young people who have come to these summits have been really inspired by seeing what is possible and have gone back to their home countries and done amazing things. They have started business enterprises and started movements by working with their own governments. So, my biggest focus is to make sure that the power of young people is truly acknowledged by their counterparts in business and government.”
Towards a World-Class Energy Sector 19 / Education /
The Green School: An Unconventional Education
n 2008, ex jeweler John Hardy and his wife Cynthia started the Green School in Ubud, on the island of Bali Iin Indonesia. Located in the middle of a lush rainforest, the school’s aim was to challenge the fundamentals of education and groom a generation of world changers, armed with a sustainable tool kit to help bring about change as well as solutions to the planet’s ailments.
The non-profit private international Green School Bali has about 400 students today, from kindergarten to high school. It is also expanding to New Zealand. There are also Green Schools being developed in Johannesburg, South Africa and Tulum in Mexico.
The Hardys have gained worldwide recognition, and in 2017, the pioneering Green School won the Zayed Sustainability Energy Prize. They used the prize money to install a one-of-a- kind hydroelectric centrifugal vortex system to generate power from a flowing river at the bottom of the valley. The vortex has a theoretical generating capacity of 12,000 watts and would provide 80% of the school’s electricity consumption. The remaining 20% comes from solar panels installed when the school was built.
20 ENERGY MALAYSIA School buildings scattered across the 25-acre property The school uses the ‘integrated thematic’ approach were constructed using sustainable construction to education, pulling together multiple school materials and techniques. Bamboo structures replace subjects into each lesson. For example, students brick and mortar school buildings found in most learn both the business and farming skills required countries. The 74 structures were largely assembled to grow hydroponic crops and bring them to market. from bamboo, arguably the world’s most sustainable Overlapping subjects in real-world applications allow construction-grade building material. students to see the value of what they are learning in real life. They are also made more aware of their The architecture also takes into account the personal carbon footprint. local climate and as such, there are no walls, just breezeways. Open sides allow natural breezes to cool This unconventional approach to education is the interiors that have thatched rooftops and raised starting to deliver the results the Hardys set out floors that keep Bali’s tropical torrential downpours to achieve. Currently, Green School’s hall of fame from stopping classes. Fans have been installed to includes students who have spoken at the United keep classrooms cool during the hot and dry season. Nations, converted fryer grease to biodiesel for the school’s buses, and developed a sustainable clothing The Green School also ditched the traditional teaching line. Green schoolers Melati and Isabel Wijsen made a curriculum. Instead of students spending endless name for themselves for starting the Bye Bye Plastic hours in the classroom, they are more involved in Bags movement that resulted in a Bali-wide ban projects thus shifting the educational focus from of plastic bags. They have also helped raise plastic books to learning how to tackle real-world challenges. waste awareness and belong to a global movement of activists looking to ban single-use plastics.
The construction of a vortex system to generate power was supported by graduate students from University of Cologne in Germany. Besides generating electricity, the system can use excess electricity generated to pump water up to a series of 17 holding tanks at the top of the hill. The tanks can then be uncorked to flow water down the hill to generate electricity.
Green School uses renewable energy for power consumption; 20% of this comes from solar energy and the remaining 80% from hydro electricity.
Building designs that are playful, creative and environment friendly resonate the Green School’s education ethos.
Source: https://cleantechnica.com/2018/04/28/zayed-future-energy-prize- winner-green-school-bali-is-raising-a-generation-of-world-changers/
Towards a World-Class Energy Sector 21 / Education /
European Union: School buildings lead with energy efficient renovations
There is only so much The European Union (EU) has started to do just that, and it is a part of a wider aspiration for energy efficient public buildings in member states. students can do for According to a March 2016 post in Build Up, the European portal for energy and climate energy efficiency in buildings, schools are serving as models of energy change in schools. efficient renovation. Educational authorities The article says that the EU’s Recast Energy Performance of Buildings too need to play their Directive requires the public sector in each member state to lead the way as examples of energy performance of buildings. It was found that part, especially by among the most promising public building categories to act as lighthouse ensuring the physical projects are school buildings. They are visited by people of different age environment of schools groups such as pupils, teachers and parents. Classrooms also offer pupils first-hand experience of visible improvements to the building envelope is conducive to realise and technical services systems that allow them to learn how to support the energy goals of energy savings by responsible user behaviour. Furthermore, pupils can students. actively participate in the renovation process and transfer what they have learned to their parents.
22 ENERGY MALAYSIA Between 2011 and 2017, the European results include a catalogue of optimised Commission co-funded several projects to scenarios that is an e-book, to help enhance retrofit schools to become energy efficient. decision-making in the establishment of an They are: efficient energy management programme. Other results include a report on possible Information and Communication Technology (ICT) business models for schools and a guide for financing energy smart schools.
Project RENEW SCHOOL
School of the Future Project RENEW School (2014-2017) promotes quick, affordable, green and The project “School of the Future – Towards healthy school renovations. It does this by Zero Emission with High Performance using prefabricated timber façade elements Indoor Environment” started in February in combination with other energy saving 2011 and was completed in January 2016. measures such as intelligent ventilation, The project involved energy efficient shading and renewable energy systems. The renovation of four school buildings in project facilitates networking, exchange Germany, Italy, Denmark and Norway. Local and training activities between research, planning teams were supported by an companies, school owners and financers. The advisory group consisting of researchers project involved 18 model buildings, which and building industry representatives included renovations to schools and nursery who provided additional ideas to achieve school buildings in Austria, Norway, Germany reduction in total final energy by a factor and Slovenia. Source : www.buildup.eu/en/news/overview-school-buildings-leading-examples-energy-efficient-renovation- of three. At the same time, the buildings’ indoor comfort was improved and resulted Knowledge gathered and actions taken are in better academic performance by the communicated by the project team during pupils. school visits, training sessions, technology talks and other events. The design and outcomes of the demonstration building are shared on Project ZEMedS the project website for others to follow. There are also training materials for pupils, Project ZEMedS (Zero Energy MEDiterranean teachers and caretakers to embark on the Schools) was a 3-year project (2013-2016) project’s goal for a zero-emission lifestyle at that promoted the renovation of schools school. to become Nearly Zero-Energy Buildings (NZEB) in Mediterranean climates. The Project VERY School project’s activities were principally aimed at school policy makers and building designers, by providing technical and financial assistance and support for the successful implementation of school renovations that were in line with the NZEB goals.
These four European projects serve as case The VERY School project - Valuable EneRgY studies to help train planners and building for a smart school - that ran from 2012 to users when renovating school buildings, and 2014 integrates smart LED lighting, smart to share new knowledge and experiences metering, building energy management to maximise their impact. This international systems and energy simulation and energy work was supported by national programmes action management software. The project and projects at the country level. demonstrated technologies in four pilot locations in Europe. Some key project
Towards a World-Class Energy Sector 23 / Special Focus /
Living Dangerously: Are you using non-certified electrical products?
n 30-31 October 2019, “The label means they have been In densely populated areas, such the Energy Commission tested and certified according to accidents can cause financial and conducted a nationwide the safety standards of the Energy personal losses for innocent parties. Oraid of 10 telecommunications Commission and SIRIM. Electrical and IT outlets in nine states. equipment without this label may Data provided by the Fire and The enforcement team seized expose users to danger.” Rescue Department identifies faulty almost 7,000 controlled electrical electrical sources (overloading, equipment with a market value The Commission’s Guidelines for the faulty electrical appliances or exceeding RM150,000 that did not Approval of Electrical Equipment” wiring) as the No. 1 cause of have the Commission’s Certificate of identifies 34 categories of electrical fires in the country. According Approval (CoA) and SIRIM-ST label. and electronics equipment that to its website, out of the total The label is mandatory since they must be tested and certified 712 structural fires reported in are controlled items. according to specified standards. March 2018, 455 were residential Adherence to these standards fires, with 267 cases attributed The Commission’s Deputy Director minimises or avoids the risk of to electrical sources. This high of the Enforcement Planning & electric shocks and radiation incidence is caused by faulty Coordination Unit Ir Shafie Mohamed exposure that can affect personal electrical appliances, and is an said the raid was organised after safety as well as full blown accidents indication that there is a widespread the unit investigated public tip offs. such as fires and explosions. use of non-certified electrical Topping the list of items seized and products in the country. confiscated were mobile phone News reports of fires or explosions chargers, extension socket outlets, caused by electrical and electronic wiring cables, and adaptors (plug equipment have shown that such top). Sellers who display or sell accidents affect not only the safety unapproved and non-certified of the owners but also neighbours. electrical and electronics equipment could face the possibility of fines not exceeding RM5,000 or imprisonment not exceeding one year or both, when convicted.
“The SIRIM-ST label means that electrical equipment, appliances and devices sold in Peninsular Malaysia and Sabah are safe to use.” – Ir Shafie Mohamed, Deputy Director, Enforcement Planning & Coordination Unit, Energy Commission
24 ENERGY MALAYSIA According to Ir. Shafie, all electrical There are sellers who refuse to comply despite and electronic appliances or notices issued by the Commission. Ir Shafie admits equipment sold in Malaysia must that monitoring and conducting raids is easier said obtain Certificates of Approval than done. “During raids, we need the cooperation of from the Commission. This is sellers to enter their premises. Then, there are also issued for both imports and locally instances of threats made to enforcement officers. “ manufactured products. His department is entrusted to ensure Ir. Shafie’s department also collaborates with SIRIM to stores sell only approved electrical ensure that all electrical and electronic equipment are equipment or appliances affixed properly certified before hitting the shelves. The first with SIRIM-ST labels. step is the application of the Certificate of Approval that is required for the importation and manufacture The Unit’s enforcement officers of all electrical and electronic equipment sold in conduct random checks and raids, Malaysia. This can be applied online via the e-Permit assisted by other government system (http://epermit.dagangnet.com). departments and agencies based on complaints received from the public. The department has annual “Prior to importing, applicants or their targets and KPIs to monitor the sale local agents need to register. of unsafe electrical and electronic The Commission will only issue the items. CoA when the application is in order.”
SIRIM’s Head of the Electrical & Electronic Certification & Inspection Section Ariza Mohd Yusof adds that besides the Certificate of Approval, electrical equipment must be certified by SIRIM under its How to lodge Product Certification Scheme or Batch Certification a complaint Scheme, and affixed with SIRIM-ST labels. The SIRIM Product Certification Scheme involves Consumers can help the Energy Commission prevent the product assessment, testing and annual factory sale of non-certified electrical and electronic equipment by audits. This is to ensure that the appliances lodging a complaint. comply with manufacturing standards, and that the manufacturer has a sound quality system to They can do so in the following ways: consistently manufacture products that meet these standards.
As an alternative to the Product Certification Scheme, imported electrical appliances can be certified Visit the Email to Call: through the Batch Certification Scheme, also known Commission’s [email protected] 03-88708800 website and file the (Mon - Fri 8:30am - 5:30pm, as the consignment certification service. Under the complaint under not including public holidays) consignment certification service, approval is given eAduan once the consignment has satisfactorily gone through the product inspection and testing process.
Fax: Write to: Visit the 03-88888651 Unit Hal Ehwal counter at: Pengguna, Suruhanjaya Suruhanjaya Tenaga, Tenaga, No 12 Jalan No 12 JalanTun Hussein, Tun Hussein, Presint 2, Presint 2, 62100 Putrajaya 62100 Putrajaya or any of the Commission’s regional offices
When a complaint is received, the Commission will send an investigation team to verify its authenticity. When there is wrongdoing, a notice is sent to the offending outlet to stop the said activity. A second team returns to the outlet to ensure compliance. When the outlet fails to comply, the Commission will apply for a warrant to raid the errant outlet and seize all unsafe electrical and electronic equipment.
Towards a World-Class Energy Sector 25 / Special Focus /
SIRIM-ST label for electrical appliances approved by the Consignment Service.
To combat label misuse, Ariza explains that in 2018 SIRIM developed the SIRIM QAS mobile application to help consumers get instant information on the SIRIM-ST label for electrical authenticity of labels. This can be downloaded via appliances certified by the Google Play Store or Apple App Store. With this Product Certification Scheme application, consumers can simply enter the serial number on the SIRIM-ST label before making a purchase.
Ariza says that once a certified product is in the market, SIRIM continues to monitor the compliance of these products. “We make random purchases and test them at our laboratories to ensure that they are compliant with our standards. When a manufacturer or licensee is found to be misusing the SIRIM-ST label or if the product is non-compliant, the licence of the errant manufacturer or licensee will be suspended. When the offending party fails to take appropriate actions, we will revoke their licence. The manufacturer will then be instructed to recall all affected products from the market.”
Ariza Mohd Yusof, Head of the Electrical & Electronic Certification & Inspection Section, SIRIM
26 ENERGY MALAYSIA Ariza adds that SIRIM designs “Some buyers knowingly buy these unsafe specific labels for each category and type of electrical appliances, electrical products because they are cheaper. details of which are published Some don’t realise these products must bear in the Commission’s Guidelines for the Approval of Electrical the SIRIM-ST label.” Equipment. When consumers discover label misuse or consider a To address these issues, Ir Shafie says the product unsafe, they can contact Commission organises electrical and gas safety SIRIM (call: 03-55446400, email: seminars. They are held mainly at higher educational [email protected], or visit institutes where there is a high incidence of www.sirim-qas.com.my). undergraduates buying non-compliant products.
Even so, there is still a demand There is also a grassroots CSR programme called for non-compliant electrical “Touchpoint”, which conducts electrical safety appliances or equipment. They inspections at needy schools and charity homes. are usually of low quality, have All unsafe electrical appliances found here are a low life span and expose users replaced at no cost by the Commission. Other public to bodily harm and/or property awareness programmes include regular briefings damage. Ir. Shafie thinks this is a with relevant stakeholders and public service question of economics combined announcements on television and radio, especially with ignorance. during festivals, road shows and exhibitions.
Towards a World-Class Energy Sector 27 / Beyond Borders /
Powering Across
About half of the world’s population lacks access to energy, and this is a serious threat to economic development and poverty reduction. Cross-border power trading via interconnected networks is playing a major part in overcoming these challenges. A 2014 World Bank article notes that trade in electricity can help improve access to power, bring down energy prices, mitigate against power shocks, relieve shortages, facilitate decarbonisation and provide incentives for market extension and integration. Yet, countries have been reluctant to engage in power trading. Currently, global export of electricity hovers around 3% of total production. Here, we look at the pros and cons of power trading.
n advanced economies, the national electricity grid is likely to have developed over a long period of time. As local utility companies grew, they realised that there were substantial cost and quality of service Ibenefits by having interconnected supply between service areas within the country’s grid. These companies began cooperating with each other to create “power pools”. This meant that electricity loads in one area no longer had to be balanced with electricity generation within that same area. Regions with low cost generation resources could become net exporters of power, while markets in high cost areas could benefit from cheaper imports.
28 ENERGY MALAYSIA This type of pooled system needed negotiated This super-grid is envisioned as a interchange agreements and mechanisms for “Pan-European transmission network dispatching electricity from point to point throughout a facilitating the integration of large- grid. Usually a separate Transmission System Operator scale renewable energy production (TSO) is established to regulate power trading as in facilities and the transportation of the case of the National Grid in England and Wales. electricity, with the aim of improving In regions with multiple transmission systems, it is the European market” by the Friends difficult to establish a single TSO. Instead, states of the Super-Grid. It will connect wind often create Independent System Operators (ISO) or farms in Northern Europe and solar Regional Transmission Organisations (RTO), where power producers in the Mediterranean system operation is separated from transmission asset and North Africa to massive power ownership. consuming centres in the heart of the continent. Today, we are seeing a rapid rise in the number of wholesale power markets sprouting across the Without this infrastructure, it is developing world. Vertically integrated utilities that impossible to buy and sell electricity held monopolies for a long time are being disbanded, across borders. The European creating the potential for greater cooperation within Commission (EC) says that with this the energy sector in these countries. system in place, when a power plant fails or during extreme weather conditions, member countries can rely on their neighbours to import the electricity they need.
According to a working paper published by the World Bank, certain criteria must be in place to realise this potential. In the study of six major regional power pools – in Africa, Europe and the Americas – it is clear that openness and commitment to free trade is essential for this to work. The need to have a trade agreement in place is made more important because World Trade Organisation (WTO) rules don’t clearly Powering Across stipulate the conditions for electricity trade. Reliable interconnections with neighbouring Infrastructure is another factor to consider, and there member countries also lower the risk of power must be physical interconnections at borders. Equally critical is adequate cross-border transmission capacity. failures, reduce the need to build new power Because electricity flows in loops, national systems plants, and make it easier to manage various must be able to handle higher loads and fluctuations. renewable power sources such as solar and The regulatory aspect must also be factored into the market design. A well-designed power pool market wind. Surplus renewable energy produced in usually has less cross-border enforcement actions. one country could be used in another country where demand for electricity is high. EU leads the way In 2002, the EU adopted an The development of a cross border grid interconnection target of 10% by 2020. infrastructure is high on the European Union This meant member countries should (EU) agenda. The upgrading of both gas and have in place electricity cables that allow at least 10% of the electricity produced Telectricity grids is considered by EU policymakers as by their power plants to be transported being indispensable for achieving the region’s climate to neighbouring member states. and energy goals in a cost-effective way. This target was seen as the necessary When European national electricity markets began to minimum to end the electricity isolation open up their borders in the 1990s, interconnections of some member states and boost between member states largely served energy competition to bring down prices. As at security needs. Today, the transnational grid is 2016, 17 countries had either achieved expected to boost sustainability as well, mainly this target or were on track. because it will allow more renewable energy to be absorbed by the system. This is considered In 2018, the interconnection target fundamental for the EU to transition to a low-carbon was revised upwards to 15% by 2030, economy. to accelerate the realisation of the EU’s climate change goals.
Towards a World-Class Energy Sector 29 / Beyond Borders /
Hanoi
Vientiane Napyidaw
Manila
Bangkok
Phnom Penh
Bandar Seri Begawan Kuala Lumpur
Singapore
Progress of the ASEAN Power Grid
Cross Border Sub-Regional Total Integrated Bilateral Terms Regional Systems Still Jakarta Legend Expected Electricity Trade Flow
Priority Project Source: ASEAN Centre for Energy (ACE)
In 2018, Malaysia received 16GWh of power from Lao PDR EARLY via the Laos-Thailand-Malaysia (LTM) interconnection. The LTM interconnection showed the feasibility of multilateral power trading under the ASEAN Power Grid. This is the outcome of an Energy Purchase and Wheeling Agreement signed in 2017 between the public utility companies of Malaysia, Lao PDR and Thailand. The agreement covered technical operating procedures and commercial terms of power transfer. Phase 2 of the agreement is scheduled to commence after 2020.
30 ENERGY MALAYSIA StatFact HAPUA has been entrusted to bilateral terms, then expanded to develop a common regional policy a sub-regional basis before being on power interconnection and augmented into an integrated ASEAN target for trading between member countries. regional power architecture. RE in energy mix: The ASEAN Power Grid Thus far, interconnection projects encompasses all 10 member states are on cross-border bilateral and consists of three sub-systems. arrangements. Eight out of 16 They are: 1) the Upper West System projects have been implemented covering Cambodia, Lao PDR, with a power exchange and 23% Myanmar, Thailand, and Vietnam; purchase of 5,200 MW. HAPUA by 2025 2) the Lower West System covering has announced three priority Thailand, Indonesia (Sumatra, projects. These planned projects Batam), Peninsular Malaysia and will connect power grids between stablished in the late 1990s, Singapore and; 3) the East System Peninsular Malaysia and Sumatra; the ASEAN Power Grid aims covering Brunei, Malaysia (Sabah the Malaysian state of Sarawak to improve cross border and Sarawak), Indonesia (West and Brunei in Borneo; Lao PDR and Eelectricity trade to meet rising Kalimantan), and the Philippines. Cambodia. They are targeted to electricity demand in the fast double sales to 10,800MW in 2020, industrialising region. Tasked with The development of the grid is and beyond 16,000MW thereafter. realising this ambitious vision are to be undertaken gradually and the Heads of ASEAN Power Utilities/ incrementally. Power connections For the ASEAN Power Grid to Authorities (HAPUA). are to be developed on cross-border resemble a regional power architecture, it must evolve from bilateral to multilateral arrangements. The Energy Purchase ASEAN Power Grid: and Wheeling Agreement signed between Lao PDR, Thailand and Malaysia is a step in this direction. The deal sees Malaysia purchasing up to 100MW of hydro power from Lao PDR, to be transported via Thailand’s existing transmission grid. The purchase benefits Malaysia because of its competitive pricing while boosting its renewable energy target. Still The immediate challenge to the ASEAN Power Grid is the need to establish a legal framework for interconnections and regional power trading. There is also the lack of technical expertise and funding to see the vision through. Another obstacle is overlapping territorial claims that are likely to hinder free EARLY cross border energy trade. Years
Towards a World-Class Energy Sector 31 / Beyond Borders /
Connecting the world power generated in coal-rich areas in the northwest and hydropower-rich provinces in the southwest to the dense consumer markets in the east coast that includes Guangdong, Zhejiang and Shanghai.
State Grid has built both Alternating Current (AC) and Direct Current (DC) transmission lines operating at Ultra- High Voltage (UHV) to move power over long distances. China sees the super-grid as vital to meeting the country’s surging energy demand.
The Financial Times (June 7, 2018) reports: “UHV had allowed China to binge on dam building in its mountainous he idea of national and regional hinterland, then transport the power interconnections in a super-grid thousands of kilometres to its wealthy, system is not restricted to Europe. industrial east coast. But by enabling this, TThe US has backed ‘Connecting the and other projects, UHV has left western Americas 2022’, an initiative that aims China with a glut of power so much so to bring power to more than 31 million that in 2016, State Grid proposed using people in Central and South America who the technology to export power to as far currently lack access to reliable, clean and away as Germany. affordable electricity. “UHV is being now promoted According to the US Department of internationally through the Global Energy, “Interconnected power systems Energy Interconnection initiative. allow for greater integration of renewable Designated as a national strategy, it energy resources as well as power is championed by China’s President Xi exchanges among countries with varying Jinping. climate and seasonal needs. “The initiative feeds into one of China’s most Interconnection expands the size of power ambitious international plans – to create the markets, creating economies of scale, which can attract private investment, world’s first global electricity grid.” lower capital costs and reduce electricity costs for consumers.” All of this fits in with Beijing’s goals of expansion and being a global standard No country or region can thus far surpass setter,” says Erica Downs, an expert the scale and speed of development of on China and energy at Columbia China’s national super-grid connecting University. “It is also linked to China’s its provinces. China’s State Grid intention to become an advanced Corporation built an enormous inter- industrial superpower. There is a big regional transmission system to move prestige element in this.”
32 ENERGY MALAYSIA A word of caution Furthermore, ECDPM found national power providers were dominated by While nations pursue national politics, and more inclined plans for interconnections towards bilateral transactions and super grids, instead of regional ones. policymakersW are asked to tread with caution because highly It says: “The SAPP case highlights interconnected systems are the important role that South vulnerable. “Vulnerability is an Africa originally played though this unintended side effect of the has waned, while a lack of a real nature and organisation of highly energy champion in the West and centralised technologies,’’ says a Eastern power pools appears to limit report by the US Federal Emergency their immediate potential. Even as Management Agency. Ethiopia becomes an energy giant, it is not clear that this will lead to It adds that the interconnection improved regional energy supplies infrastructure involves building and through a power pool given the linking complex energy devices one political preference for bilateral by one. Sometimes, there is not deals and connections.” enough consideration being given to the ramifications of a flawed “Effectively functioning system, or parts of it. power pools will require Super grids require significant further investment in maintenance works to ensure their underlying infrastructures stability. But the bigger problem lies and a critical mass of in how to keep the system balanced in the event of a failure along one of distributed generation the ultra-high voltage transmission capacity. It also calls for a lines. It could also trigger cascading shift in thinking, from short- failures in several parts, or even the entire network.This could lead term oriented objectives to sweeping power outages at towards long-term gains, tremendous socio-economic costs. and trust-building among states,” added ECDPM. In Africa, the challenge lies in operationalising interconnections. Another challenge to power trading From the mid-1990s onwards, the is political unrest and civil war. continent began to form power Doubt looms over Egypt’s Toshka pools, considered the best strategy substation, built to supply 15-18 to deal with unevenly distributed MW every day to neighbouring energy resources and other energy Sudan, about 100km away. The problems. Four power pools political turmoil in Sudan could emerged: Southern Power Pool affect the safe and steady supply of (1995), Western Power Pool (2000), electricity from Egypt. The project Eastern Power Pool (2003) and is part of Egypt’s plan to become a Central Africa Power Pool (2005). regional energy hub.
In 2018, the European Centre for This aspiration of Egypt is being Development Policy Management undermined by its conflict with (ECDPM) reported that despite Ethiopia over the Grand Ethiopian the initial success of the Southern Renaissance Dam. For Ethiopia, Africa Power Pool (SAPP) – with 17 the dam is a national project that member nations - it suffered from a will help it export electricity and deficit in investment in generating implement development projects. and transmitting power to nations. Egypt, on the other hand, is There was also a lack of trust among concerned about the dam’s impact member states and willingness on the Nile River’s already dropping to liberalise their markets. water levels, which threatens Egypt’s water security.
Towards a World-Class Energy Sector 33 / Then & Now /
In 2018, TNB announced that it will invest RM2.7 billion for its “Grid of the Future” technologies to enhance efficiency.
lectricity transmission in Peninsular Malaysia is starting a new chapter. Now controlled by public utility Tenaga ENasional Berhad (TNB) as sole owner and operator of the national grid, the future holds promise when the Third Party Access arrangement is implemented as part of market liberalisation in the next few years. It means other private utility companies can lease the grid from TNB to distribute power to their customers.
This will require the national grid infrastructure to become smarter and to recognise multiple users, transactions and delivery points. In 2018, TNB announced that it will invest RM2.7 billion for its “Grid of the Future” technologies to enhance efficiency. There are to be future collaborations to deliver new technologies in strategic partnerships with tech-driven companies. With this, the smart grid can be enabled with a variety of applications to perform tasks that meet customer needs.
With the smart grid, Malaysia will join the league of developed nations, where consumers play a significant role in determining the direction of their country’s power industry. The evolution of power transmission in Peninsular Malaysia follows closely behind that in most industrial nations.
34 ENERGY MALAYSIA LATE 1800s to electrification begins
The electrification of Peninsular Malaysia follows closely in the footsteps of developed nations. In 1894, an electric generator installed for private mining operations in Rawang saw the transmission of power to illuminate the town’s streets lights. The following year, the Kuala Lumpur Railway Station received its first electricity supply. In colonial Malaya, rail transportation was used a generation capacity of Hydro scheme, Perak to to carry raw materials such as tin and 39.88 MW. This included Connaught Bridge Power rubber to the ports, for export. the steam power station in Station via Rawang. Then, Bangsar, the hydroelectric in 1969, the first 275kV The start of electrification in the power station in Ulu lines were commissioned country occurred 12 years after New Langat, and various diesel (energised at 132kV) York started enjoying electricity power generators across linking Kuala Lumpur to the supply with the opening of the Pearl the country. They also Port Dickson Power Station. Street Station. Power was then built transmission and transmitted via a 4 kilo Volt (kV) distribution systems above With the national grid, single-phase Alternate Current (AC) and below ground valued electricity could travel transmission line developed during A section of the at close to RM30 million. from power plants to users that time. In 1891 the first 12kV National Grid Between them, they had almost instantaneously. three phase AC transmission line that came into 45,495 consumers and It also made possible the was introduced in Germany. The first existence in 2,466 staff. direct transfer of power modern transmission line, the High- 1965, and was from sources of production Voltage Direct Current (HVDC), came completed in 1950s -1970s: Public to sources of demand. into existence in 1954. 1976 utility formed, National Grid takes shape, 275 kV This period also saw a EARLY 1900s: Pioneer operators circuit commissioned, flurry of rural electrification rural electrification rush projects that were According to TNB records, the first connected to the grid. transmission lines in Peninsular In 1949, the Government Under colonial rule, the Malaysia were 66kV lines built established Central focus of electrification in 1929 by the Perak River Hydro Electricity Board (CEB) projects were urban Electric Power to connect its 45MW as the national public population centres. Now, hydro plant to tin mines in Perak. utility, and it took over the the Government wanted to private power companies. narrow the divide between Power generation was in the hands CEB was later renamed the haves and have nots of private operators then. These National Electricity Board through electrification. pioneers built 34 power stations with (NEB), privatised and then listed as Tenaga Nasional “Malaysia’s rural Malaysia (TNB). electrification programme won World Peninsular Malaysia’s Bank recognition,” says national grid began to Lighting Up Lives, TNB’s take shape in 1953 under 60th anniversary book. CEB, which constructed Today, 99% of Peninsular 66kV lines to transmit Malaysia is electrified, power from Connaught mainly via the national Bridge Power Station to grid. For off grid locations, Kuala Lumpur, Seremban the Government has been and Melaka. Ten years allocating budgets under later, in 1963, it built the the Malaysia Plans for first 132kV lines linking mini hydro and solar PV Cameron Highlands installations.
Towards a World-Class Energy Sector 35 / Then & Now /
TRANSMISSION POWER PLANT 101: From Power Plant to Consumer
The electricity that is generated at a power SUBSTATION NATIONAL GRID SUBSTATION LARGE POWER plant is low voltage CONSUMERS in the range of 11- 20kV and needs to be converted to high voltage for efficient transport. This is done by substation transformers where the electricity is stepped up to 66kV, 132kV, 275kV, and 500kV.
SUBSTATION HOSPITALS, SCHOOLS, High voltage electricity is then transferred to transmission lines that SMALL INDUSTRIES & will carry it over long distances. This is the 21,000 circuit-kilometres COMMERCIAL CENTRES of 132, 275, and 500 kV overhead lines and underground cables criss-crossing the peninsula. When they come closer to commercial and residential centres, the high voltage electricity is stepped down by more substation transformers to 415 volts and 240 volts before being carried by distribution lines into homes, offices and factories RESIDENTIAL AREAS, for industrial, commercial and domestic uses. WORKPLACES & SHOPS
1980s: Forging regional 1990s – 2000: Demand spikes, DEVELOPMENT cooperation transmission overload, remedies suggested In the interest of energy OF THE GRID SYSTEM security, Malaysia and Rapid economic development, neighbouring Singapore population growth and rural- and Thailand embarked on urban migration saw a surging interconnections to manage demand for energy. Between 2015 Towards a Smart Grid power emergencies. 1990 and 2013, consumption grew at an annual average growth With Thailand to the north, rate of 8.2%, to reach 116,087 the original 117 MVA, gigawatt hour (GWh). 2010 Launch Of New Malaysian Grid & Distribution Codes 132 kV Single Circuit Line interconnection of 80MW Spikes in demand caused was commissioned in 1981, transmission lines to transfer 1998 Malaysia-Thailand 300MW linking Malaysia’s grid at Bukit more power than they were High-Voltage Link Ketri-Chuping in the state of designed to carry. This caused Perlis to the Thai grid in Sadao tripping and blackouts. To in southern Thailand. The ensure the robust health 1996 1st 500kV Circuit commissioned line was upgraded to 300MW of transmission lines, the high voltage link in the Department of Electricity and Gas 1990s. With Singapore to the Supply (precursor to the Energy south, the National Grid was Commission Malaysia established 1st Malaysian Grid Code introduced 1994 connected via two 230 kV in 2001) published the Malaysian with a transmission capacity Grid Code in 1994. This set out the of 200 MW. guidelines for the management 1990 TNB established of the National Grid as well as the Meanwhile, in June 1986, roles and responsibilities of the ASEAN leaders mooted the varied stakeholders involved in st 1970 1 275kV Circuit commissioned concept of the ASEAN Power the construction, maintenance Grid, to take interconnections and upgrading of the grid. The to whole new level: power code underscored the reliability 1953 Peninsular Grid system established trading. in electricity supply and healthy competition among players in the value chain.
36 ENERGY MALAYSIA (Source: The Star, 14 January 2005)
MAJOR BLACKOUTS IN MALAYSIA
June 29, 1985 JULY 31, 1992 AUGUST 3, 1996 A sudden 600-megawatt load loss A bolt of lightning during a A transmission line near Paka tripped transmission lines on the thunderstorm struck four power Power Station tripped at 5.17pm East Coast and caused a blackout lines between Paka and Teluk causing all power stations in for several hours in 11 states. The Kalong in Terengganu. It caused a Peninsular Malaysia to collapse trip occurred at 1.37pm on two massive power failure across the resulting in a massive power lines between Paka, Terengganu peninsula at 3pm. Fifteen power failure. The cascading effect of the and Kampung Awah, Pahang stations on the West Coast were trip shut down supply in sequence and tripped all power stations put out of action by this accident. at all power stations. Supply was connected to the national grid. The This part of the grid supplied back to normal by 11pm at Paka and blackout hit during lunch, causing power to the West Coast, and the Dungun in Terengganu, Kalumpang chaos in major towns. resultant overload caused the and Rawang in Selangor, Cheras in 1,000MW Paka Power Station to Kuala Lumpur and Damansara in Proposed Remedies: trip. Power was restored between Petaling Jaya. • Review the effectiveness of six and ten hours in most states. preventive, “load shedding” Proposed Remedies: schemes. Proposed Remedies: • TNB recommended that • Port Klang power plant to provide • TNB to erect an alternative dependence on power power security. transmission line between generated from these stations • The construction of a 275kV Terengganu and the south of be reduced to lower the risk of transmission line from Paka, the peninsula. major system failure. Terengganu to Tanah Merah, • TNB to improve its protection • TNB is to spend between Kelantan in 1986, as an system in the power RM50mil to RM100mil per alternative route to dispatch transmission system and to year in the next five years to power to the grid from major allocate 30% spare capacity improve reliability and security plants in Paka and Kenyir, at any one time in its power of the nation’s electricity Terengganu. generation system. During this distribution. time, there was only 10%. • TNB to provide portable power stations in densely populated areas to ensure supply.
Towards a World-Class Energy Sector 37 / Then & Now /
In 1996, the first 500kV circuit was commissioned. It saw power being transferred from the 2100 MW Manjung power station in Perak to satiate demand in the Central Area, which includes the populous and industrialised Klang Valley.
This period also saw the ASEAN Power Grid, mooted in 1986, inching closer to become a reality with the signing of the Agreement on ASEAN Energy Cooperation by member states in 1997. It was to pave the way for power trading between ASEAN member states.
2000-2010: Expansion of 500kV circuit as grid backbone
The 500kV transmission network was to become the backbone of the national grid. It was planned as a 784 km circuit, stretching Essentially, the smart Another milestone of from the northern tip at Gurun grid builds on the existing the decade was the to Pasir Gudang in the south, grid infrastructure, 2014 announcement of via Kapar and Bukit Tarek in the strengthening it with the Laos PDR-Thailand- Central Region. intelligent technologies. It Malaysia-Singapore is a work in progress, to be Power Integration The decade culminated with TNB rolled out in phases. With Project, which is part of announcing the implementation the smart grid, manual the ASEAN Power Grid. of the Smart Grid in 2009. tasks can be automated, Four years later in 2018, and customers can be the Lao PDR-Thailand- 2010-2020: Towards a Smart empowered through Malaysia interconnection Grid, ASEAN Power Grid takes direct communication. transferred more than off, new 500kV projects It has the intelligence 10GWh of power from Lao to perform a variety of PDR to Malaysia. The Smart Grid’s primary tasks according to the objective is to improve applications installed. In the meantime, the operational efficiency via national grid’s 500kV automation. It also has the Meanwhile, the backbone continues potential to be used for Commission’s System apace, and is scheduled green energy transfers and Operations Deputy for completion by 2028. transactions and facilitate power Director Mohd Najib trading among ASEAN members, Mohd Shah notes that Mohd Najib says, among many other applications. with the smart grid, the “Currently, we have two utility must manage the new 500kV projects. The connected, digital, data- complexity arising from One covers the southern driven era has made the age of the introduction of new region and runs from Smart Grid possible for the power technologies. “There will Yong Peng East in Johor industry. Smart Grid technologies be sophisticated energy to Lenggeng in Negeri will enable the grid to be self demands that require Sembilan. The other is a healing, flexible and intelligent. higher levels of efficiency corridor from Air Tawar in In the long run, it will serve the and reliability.” Perak to Bentong South in country’s urgent need for reliable, Pahang. affordable and clean energy supply.
38 ENERGY MALAYSIA Ongoing maintenance
TNB undertakes continuous lurking in the vicinity of “These lines are necessary to maintenance works of its transmission installations. accommodate the heavy load high voltage transmission The participants, in transfer from new and existing network. There are three this instance, are local power plants to the Klang types of maintenance: authorities, crane Valley where power demand is preventive; corrective; and operators, developers and highest. We also keep tab on grid live. local communities. maintenance to keep up with consumer demand.” Preventive maintenance Transmission lines are built is scheduled whereas with a certain capacity, Today, Peninsular Malaysia’s corrective maintenance using a conductor type and transmission network consists occurs after failure or technology available at that of 420 transmission substations an unacceptable mishap point in time. The challenge with a total installed capacity of has occurred. Its aim is to is to meet new power 105,305 MVA. They are linked by restore the function of the demand and transmission approximately 21,000 circuit- grid. Live maintenance is loads. When new power kilometres of 132kV, 275kV, performed on transmission plants are added to meet and 500 kV overhead lines and lines and related equipment growing demand, some underground cables. without turning off power transmission lines find to customers. This kind of themselves overburdened. maintenance is relatively They are carrying more new and requires special power than they should. equipment and training. When this occurs, its The primary maintenance protection system will kick issues are adverse weather, in, causing an interruption defective equipment, of power transfer from and encroachment. source to demand point. Adverse weather can This is a signal to upgrade be overcome with flood the transmission line to a mitigation measures, higher line capacity or line pre-monsoon inspections, voltage. and lightning protection improvement works. For For this, TNB has an defective equipment, Annual Transmission there is a monitoring and Development Plan that predictive replacement and reviews the adequacy of rehabilitation programme. the transmission system To deal with encroachment, over a rolling 10-year TNB turns to surveillance period. The review is a technologies such as the requirement under its smart camera, Unmanned licensing conditions as grid Aerial Vehicle (UAV) and owner/operator as well as satellite technology. the Energy Commission’s At the same time, it Grid Code for Peninsular conducts awareness Malaysia. programmes to highlight the potential dangers
Towards a World-Class Energy Sector 39 / Happenings /
Schools save RM154,000
at 2019 Energy Efficiency Challenge
he 2019 Energy Efficiency (EE) Challenge delivered The former Minister of Energy, higher savings in terms of Science and Technology, Environment Tenergy consumption and electricity and Climate Change, Yeo Bee Yin, bills compared to the previous year. gave away the prizes to the winning Chairman Datuk Ir Ahmad Fauzi bin teams. In her address, Yeo said, Hasan said an analysis of electricity “Youths are the catalyst to realise bills submitted by 37 schools out of 84 the country’s aspiration for energy that completed the Challenge in 2018 efficient practices to help reduce and 2019 showed the trend towards carbon emissions and the effects of greater energy efficiency among climate change. Energy efficiency is schools. The bills were for the six an important agenda both nationally months of the EE Challenge that is held and globally. annually from April to September. “In Malaysia, the Government “We found that in 2018, 37 schools is implementing various energy used 4,040,457 kWh of electricity efficiency programmes and initiatives. compared to 3,743, 019 kWh in 2019. Among them is the National Energy The difference of 297, 438 kWh is Efficiency Action Plan (NEEAP) where equivalent to saving RM154,866.46 the Government targets to save 8% in electricity bills. We are proud of this energy, that is, 52,223 GWh over a 10- achievement and congratulate the year period from 2016-2025. participants of the EE Challenge 2019. “In addition, there is the Energy “Since its launch six years ago in 2014, Efficiency and Conservation Act that the EE Challenge has recorded energy has been approved by the cabinet savings of 1.4 million kWh valued at and is to be tabled in Parliament. RM561,135.22. “ Through legislation, we can expect energy efficiency initiatives to be The Chairman was speaking at the implemented more strategically. 2019 EE Challenge prize giving ceremony held on 13 November. The “MESTECC has also launched the 2019 Challenge attracted 106 schools ESTECC Education Programme to from across Peninsular Malaysia and increase student awareness in three Sabah. They submitted entries to the key sectors under the Ministry, that Challenge’s three categories: Overall is, energy, science and technology, Energy Efficiency, Most Creative Video environment and climate change. and Most Viral Video. Developed in collaboration with the Education Ministry, NGOs and government agencies, ESTECC aims to create interest among students in STEM subjects (Science, Technology, Engineering and Mathematics).
40 ENERGY MALAYSIA Energy Efficiency Challenge 2019: Winners
Category: Overall Energy Efficiency
Zone
First SMK Taman Nusa Damai, Johor
SMK Kampung Baru Kerteh, Second Terengganu
Third SMK Medini, Johor
Northern Zone SMK Sultanah Asma, Kedah
SMK Sultanah Engku Tun Southern Zone Aminah, Johor
SMK La Salle Sentul, Kuala Central Zone 1 Lumpur The EE Challenge is organised by the Energy Commission, and supported Central Zone 2 SMK Sekysen 9, Selangor by the Government. Launched in 2014 to instill an energy efficiency culture among students, it had a East Coast Zone SMK Sungai Koyan, Pahang humble start with seven schools in the Klang Valley and Putrajaya. Then, Sabah Zone SMK Tamparulli, Sabah entries began to grow to 29 (2015), 72 (2016-2017) and 112 (2018). In 2019, the Challenge attracted 106 schools, Category: Most Creative Video bringing total participation in six years to 398 schools. First SMK Paka, Terengganu
Besides the Challenge, the Commission organises various Second SMK Dato’ Syed Ahmad, Kedah other energy efficiency activities in schools. In 2019, a total of 1,196 Third SMK Sultanah Bahiyah, Kedah activities were recorded. They ranged from seminars, monitoring/ enforcement by energy efficiency Category: Most Viral Video squads, reminder labels to switch off lights, quizzes and audits of First SMK Paka, Terengganu electricity bills to ensure optimal functioning of electrical equipment. Second SMK Kerteh, Terengganu
Third SMK Mutiara Rini, Johor
Towards a World-Class Energy Sector 41 / Happenings /
change responsibilities. We have seen the IGEM 2019: emergence of a low-carbon economy that is based on improving human well-being Innovating and building social equity while reducing environmental risks and scarcities. Over the past couple of decades, the green economy Sustainability has emerged as a strategic priority to basically transform economies into drivers of sustainability.
“Malaysia’s progress as a longstanding proponent of balancing environmental Minister announces conservation, technological innovation and green tariff and economic prosperity has been underpinned by a dynamic innovative ecosystem and Malaysian Green affirmative institutional support. Attribute Tracking System The country has According to a Green Economy Initiative study, the green ramped up efforts to economy could grow from its present 6% to 10% of alaysia hosted the International develop an innovative global market value by 2030. Greentech & Eco Products ecosystem to support Approximately 3,000 globally Exhibition and Conference listed companies already MMalaysia) from 9-11 October 2019 (IGEM new start-ups, and have exposure to the green 2019). With the theme “Innovating economy which has been Sustainability”, IGEM 2019 focused on to garner greater characterised as an economy technological innovations to help combat the inclusivity, we have that is efficient, clean, threat of depleting natural resources, carbon renewable, collaborative and emissions and climate change for a more promoted innovation low carbon. sustainable future. at the grassroots IGEM has become South East Asia’s largest level.” trade event in the green sector. It is an annual event organised by the Ministry of Former Prime Minister Energy, Science, Technology, Environment Tun Dr Mahathir Mohamad & Climate Change (MESTECC) to provide at the official launch of IGEM a platform for green technology and eco 2019 product businesses and government entities to tap into the fast-growing ASEAN region by showcasing the latest innovations and cutting edge technologies.
The 3-day IGEM 2019 celebrated its 10th anniversary with a record 35,000 exhibitors from 35 countries. It witnessed 16 MOUs inked, including collaborative partnerships with co-organiser Malaysian Green Technology and Climate Change Centre. Over the years, IGEM has generated more than RM23 billion in business leads, and attracted over 420,000 delegates, dignitaries and companies from over 50 countries.
At the launch of IGEM 2019, the Guest of Honour, Prime Minister Tun Dr. Mahathir Mohamad, said, “Today is a great day for us to recommit to delivering on our climate
42 ENERGY MALAYSIA ZEEpod, a breakthrough in marginal oil & gas field development
n 10 November 2019, Petronas subsidiary Vestigo Petroleum Oheld a media briefing on the innovative ZEEPod, an offshore platform built to extract oil and gas from marginal fields. Vestigo commissioned the first Zeepod in Tembikai Non-Associated Gas (TNAG), a marginal field off the In her launch address, former MESTECC Minister Yeo Bee coast of Terengganu. Yin said, “IGEM has been through a myriad of transitions over the last decade to stay relevant with changing The installation is an important demands related to the low carbon economy and milestone in Malaysia’s aspiration sustainability actions. Over the years, IGEM has shaped to become a regional oil and gas people’s mindsets to accelerate acceptance, adoption hub. The ZEEPod is developed and appreciation of green technology products and by ZEE Engineering, a Malaysian services across ministries, corporations, entrepreneurs, engineering consultancy that businesses, and the general public. holds the patent. Its Minimum Facility Well Head Platform will “IGEM is undoubtedly a powerful platform to enable operators to develop simultaneously reach out to various stakeholders, and existing marginal fields without is of absolute importance today as it will require the large capital expenditure coordinated efforts and contribution of all ministries, associated with green field stronger partnerships between the public and private developments. sectors, and of course, the Malaysian people to ensure we deliver on our country’s climate promise.” Constructed by Malaysia Marine and Heavy Engineering To encourage greater participation in renewable energy, Holdings, the ZEEPod is a fit- Yeo Bee Yin announced the introduction of a green tariff for-purpose offshore platform. that will take the form of a tariff rider to give consumers Its streamlined design and easy the choice of buying power that is generated solely by assembly minimise construction renewable energy. and installation costs and it is faster to build and operate She also launched the Malaysian Green Attribute Tracking than conventional rigs. The System (MGATS), a national platform for tracking of and cost savings can be as much as trading in renewable energy. MGATS will issue tradable 40% compared to a traditional renewable energy certificate, and is aimed at incentivising platform, depending on the local and foreign investors to have more participation in offshore spreads deployed for the country’s green economy. transportation and installation.
IGEM 2019 was sponsored by Tenaga Nasional, Cypark Resources and UEM Edgenta. It featured 10 conferences, and opportunities for business networking sessions, business-matching services and industry specific talks.
Towards a World-Class Energy Sector 43 / Happenings /
Marginal oil and gas fields are important for Malaysia as a 2020 Global Energy significant portion of Malaysian crude oil lie in marginal fields. Outlook according These fields have not been developed in the past due to their technical challenges as well as to IEEJ high cost incurred in building rigs in these fields. However, to bring these valuable fields onstream, he chief Koyama said balancing Petronas is encouraging new economist of energy security, investments in exploration and the Institute economic efficiency Tof Energy Economics, and environmental production. Petronas defines a marginal field as one that has a Japan (IEEJ) Professor protection involves potential to produce 30 million Dr Ken Koyama spoke of trade-offs between barrels of oil or less and 150 to the global think tank’s what is viable and 250 billion cubic feet (BCF) of 2020 outlook at a talk what is not. This natural gas. entitled “Challenges to involves managing the Overcoming the Global inextricable roles played To encourage the development of Energy Trilemma”. by market forces, policy these fields, Petronas has come up He was addressing makers, innovative with Risk Service Contracts (RSC). undergraduates technology and surging The RSC is a service contract and energy industry demand for energy. Dr. where a contractor undertakes guests at the talk Koyama stressed that exploration of marginal fields for that was organised it is critically important a contractor fee. The contractor by the Universiti to provide energy that is remunerated upon commercial Tenaga (UNITEN) on is stable and affordable production at a pre-negotiated 12 November 2019. in an environmentally terms and conditions. The fee is Dr Koyama is also the sustainable manner. subject to taxes. International Advisor (Chair in Energy He highlighted the key Economics), Energy challenges of 2020 are Commission at UNITEN fluctuating fuel prices since 2015. and political instability in the Middle East, the world’s largest supplier of oil and natural gas. They will affect the stability of supply and cost of energy, and governments and the industry will need to manage them.
44 ENERGY MALAYSIA Developing economies in Asia are likely to become more dependent on Middle Eastern oil. The political instability poses the risk of supply disruption, a priority issue for exporting nations to address. While North America and the EU are forecast to rapidly reduce dependence on oil exports, they will be still be affected by higher oil prices as a direct result of higher demand for oil at a global level.
The report also states that the rapid expansion of Variable Renewable Energies (VREs) such as solar and wind to generate As a guide to decision making, the reinforcement of low-carbon policies, energy will continue IEEJ Outlook 2020 Report released improved efficiency and decreased their upward trajectory. in October 2019 offers two alternate cost of existing technology at However, the challenge scenarios: the reference scenario and the same pace as in the past. The in developing VREs on the advanced technologies scenario. advanced technologies scenario, on a large scale comes the other hand, asserts that policies from the cost of system The reference scenario is based on and technologies need to accelerate integration, which current energy policies in the context at a much faster pace through remains relatively of past and present technologies, collaboration in order to meet carbon high especially in Asia. best practices and benchmarks. emissions targets. Strong policy measures The advanced technologies scenario, will be needed to cover on the other hand, assumes the The report’s findings show that these costs for VREs to introduction of powerful policies to the power sector will use almost increase their share in address energy security and climate double the amount of natural gas in the power mix. change issues based on an aggressive generation while coal will hit peak stance towards developing low- demand by 2040. Oil will continue The reports point out carbon technologies. being an important fossil fuel in that strong and rapid power generation. Renewables measures are needed to What is similar to both scenarios will grow rapidly but their share address issues related is that global energy demand will in the primary demand mix will to climate change. continue to grow. In developing only increase by 2%, showing that Since this affects the countries, demand continues declining demand for fossil fuels entire planet over many despite slower population growth progresses slowly. Over 60% of generations, it calls and rapid diffusion of energy global energy demand is expected to for a mix of different consuming appliances and vehicles. In come from Asia, and its energy supply approaches using developing and emerging economies, cannot match demand. This will mitigation, adaptation energy demand is triggered by the see self-sufficiency declining from and damage control. rising middle class. 72% to 61%. North America and the Middle East are expected to export In terms of energy policies and their surplus capacity and increase technologies, these scenarios paint their global presence as energy different pictures. The reference suppliers. scenario assumes a gradual
Towards a World-Class Energy Sector 45 / Parting Shot /
By: Dato’ Seri Wong Siew Hai TIME TO
ndustries are at the crossroads of gain-and-pain, especially in non- OECD countries engaged in energy Consumption and the 3Rs Iintensive manufacturing. While creating prosperity, such industries are recognised as the biggest contributors to global warming.
But not all industries are created equal; some are more polluting than others. For Malaysia that has a robust electronics industry, there is a need for a rethink of how energy consumption is measured and to focus on reducing waste rather than re- using or recycling it. These paradigm shifts would lead to structural changes in the manufacturing sector and deliver more socio-economic value and less power consumption.
46 ENERGY MALAYSIA Like it or not, the industrial sector is Still, industrial products continue propelling most economies around to grow, and along with it the world, and this trend is likely energy consumption and carbon to continue unabated. Developed dioxide emissions. Some modest nations have been bastions of improvements have been made in industrial societies for more than renewable heat uptake, and some 200 years. Many developing and positive policy and innovative emerging economies have jumped on steps taken. But the United this bandwagon in the 20th century, Nations considers progress far too looking to industries to create more slow. In fact, it declared a climate jobs, raise living standards and emergency in 2019. generate more revenue. Energy intensive industries are Industrialisation has also played its mostly associated with chemicals, hand at equalising social structures iron and steel, cement, pulp and by creating a large middle class that paper and aluminum. They have a is relatively well educated and has long history and are responsible for a respectable disposable income. shaping many Western industrial This was seen in post Industrial societies. Now, they are making Age Europe, and more recently, in their presence felt among more countries such as China, India and recent entrants to industrialisation. Malaysia. One consolation is that not all industries are big energy guzzlers. TO But industries, especially At the other end of the spectrum manufacturing, have their downside, are non-intensive industries, and are the bogeyman of climate typically high technology companies activists. They use up to 54% of the that gather, manage, control and world’s total delivered energy, says manipulate information. Examples the International Energy Outlook of these are tech titans such as 2016. The domino effect of energy Apple, Alphabet, Microsoft and consumption is well documented. Amazon. It triggers generation, which in turn triggers the extraction of raw However, we must keep in mind that materials, mainly finite fossil fuels. In commodities and energy still matter, manufacturing, energy is used for a but perhaps not as much as they did variety of purposes, from process and once. What we are witnessing now is assembly, steam and co-generation that the Organisation for Economic to lighting, heating and cooling of Cooperation and Development buildings. Coal, oil and gas fired power (OECD) countries are shifting plants also have huge appetites for towards non-energy intensive energy. industries, with non-OECD countries becoming manufacturers of products From fuel extraction to generation that are more energy intensive. and manufacturing, there are a multitude of processes that generate greenhouse gas emissions second to none. This pollution is the primary The Goose That Laid The cause of global warming that has Golden Egg catastrophic effects on weather patterns. The good news for Malaysia is that manufacturing is led by the electronics & electrical sector (E&E sector), regarded as the goose that laid the golden egg. It spearheaded the country’s industrialisation programme that began in the 1970s, and is a significant player in the national economy.
Towards a World-Class Energy Sector 47 / Parting Shot /
Today, the E&E sector is a significant the better. In an export market contributor to the national economy economy such as Malaysia, we can in terms of manufacturing output, Let’s Start Measuring divide the value of export sales by employment, investment, exports and Output Value kilowatt hour of power used. The imports, according to the Malaysian Per Kilowatt Hour International Energy Agency calls Investment Development Authority this “industrial energy productivity” (MIDA). It is also the only industry In Malaysia, the industrial sector (industrial value added per unit of with a trade surplus. In addition, is the largest consumer of power, energy used). the semiconductor ecosystem has accounting for about 40% of critical cross-industry linkages and total energy produced. E&E Malaysia needs to adopt this applications that have spurred the companies use a substantial approach. By doing so, it will development of various internet- amount of electricity largely find itself moving towards high capable industrial technologies and because of the size of their value, high technology industries global business services. plants. There are many buildings producing quality products scattered across sprawling sites, instead of low margin consumer Malaysia is now a major global and companies try to be green products that use the same manufacturing hub for the E&E and smart wherever possible. amount of energy, if not more. industry, with many multinationals Some aim for low carbon or zero There will then be a structural choosing the country as their base. carbon environments although shift in manufacturing, away Among the global giants here are they are constrained from using from energy intensive industries, Intel, Western Digital, Hewlett renewable energy because with a larger share coming from Packard, Samsung, Flextronics, First supply is inadequate. value-added sectors such as Solar, Infineon, Osram, Jabil and Plexus, E&E, automotive manufacturing, to name a few. They are technology For now, most green initiatives in medical devices and avionics. leaders engaged in high value and the E&E sector relate to mobility, cutting edge product manufacture. factory buildings and product This shift will have a multiplier manufacture. It is common to effect on the country. Besides These are exciting days for the E&E use electric buggies and bicycles higher returns in terms of sector. Global megatrends are expected to move between buildings and revenue and export sales, it also to impact on, and be impacted by solar panels are installed on roof the E&E sector. Such trends include means better job quality, talent Industry 4.0; pervasive robotics and tops and in car parks. Companies creation and higher income. automation, AI and data analytics in also adopt simple energy savings The benefits will be felt at many manufacturing; adoption of intelligent measures such as switching off layers, economically and socially. home and building technologies; and the lights and motion detectors to the digital lifestyle economy. turn them on, and disconnecting As a matter of good business machines when they are not in practice, high value industries As a result, Malaysia’s E&E sector use. There is a factory in Penang, make energy efficiency part continues to evolve into high where there is water below the of their strategy to reduce technology, high value manufacturing. floor that is used to keep ambient operational costs. They achieve temperatures low, saving on this with the deployment of But does this in any way reduce energy energy usage by air conditioning state of the art technologies, consumption? Only when we start systems. operational adjustments leading rethinking the way power consumption to more efficient equipment is measured. For these initiatives to be use, and try to avoid energy effective there must be staff buy- intensive practices. With the in. Multinational companies do decline of power consumption by well in this regard, and have well these high value prime movers defined programmes to cascade of manufacturing, demand initiatives down to the factory will decline substantially and floor. They also share with staff along with it generation. In all the outcomes of savings and likelihood, there will no longer be reduction in carbon emissions. a need to build more power plants of the fossil fuel variety. But I think it is time for Malaysia to look beyond power consumption I strongly believe this is the way per se. We need to start measuring forward for Malaysia and there is output value per kilowatt hour a need to incentivise industries instead. The higher the value, with high value per kilowatt hour.
48 ENERGY MALAYSIA REDUCE
RESPONSIBLE BUSINESS ALLIANCE RE-USE The Responsible Business Alliance was founded in 2004 by a group of leading electronics companies. A non profit organisation, its membership now consists of RECYCLE! electronics, retail, automotive and toy companies. RBA members commit and are held accountable to a common Code of Conduct and Focus on Reduce Moreover, all industrial waste in they utilise a range of RBA training Malaysia has to be sent to a disposal and assessment tools to support Another matter close to my heart is facility in Port Dickson, Negeri Sembilan. continuous improvements in the for industries to reduce wastage – of Its distance from most industrial sites social, environmental and ethical energy, water, raw materials and final in the country is inconvenient. To save responsibility of their supply products. on transportation costs, factories tend chains. to accumulate enough waste before I understand customers are now keen disposing it. This becomes a risk they RBA regularly engages in to work with suppliers with green then need to manage. dialogue and collaborations practices, and asking for precise with workers, governments, civil measurements. Many multinationals Waste disposal is a worldwide problem, society, investors and academia belong to the Responsible Business with many countries refusing to accept to gather the necessary range Alliance, the world’s largest industry waste transported from elsewhere. of perspectives and expertise to coalition dedicated to socially People can make money with waste, but support and drive its members responsible global supply chains. They the fact is disposal is becoming more toward achieving the RBA mission expect all suppliers to follow closely in and more difficult. This only strengthens and values of a responsible global their green footsteps. my view that we must focus on reducing electronics supply chain. waste instead of creating it. While the 3Rs – Reduce, Reuse, Recycle Today, RBA and its Responsible – is their standard mantra, the emphasis *** Minerals, Labor and Factory now is on the first R – Reduce. With Re- Malaysia will continue to industrialise, Initiatives have more than Use, energy is being used to remodel or but by rethinking how consumption is 380 members with combined re-purpose a product, and this involves measured and the 3Rs implemented, annual revenues exceeding $7.7 a one-time cost. With Recycle, there coupled with the increased uptake of trillion, directly employing more are many costs involved – for transport, renewable energy, the industrial sector than 21.5 million people, with disposal, processing and overall will be able deliver to more value and products manufactured in more management. Also, there are energy less emissions. than 120 countries. In addition costs incurred at every step. to RBA members, thousands Dato’ Seri Wong Siew Hai has worked of companies that are Tier 1 With Reduce, wastage is discouraged. suppliers to these members are for three decades in the electronics This has become one of the most industry. He continues to contribute required to implement the RBA effective ways of reducing power Code of Conduct. to the industry as Chairman of the consumption. If the output is good, it Malaysian American Electronics means less energy has been wasted in Industry and E&E Productivity Nexus. running factories and machines because Wong also sits on the board of the there are fewer or no rejects. Penang Tech Centre, and with the support of the state government, he One of the biggest challenges to the pioneered the set up of Tech Dome E&E sector is electronic waste. The Penang, a science discovery centre Government is trying to come up with to inspire children and students to a way to recover electronic waste pursue science and engineering. that contains gold, silver, copper and platinum that are expensive. We have a recovery process but it needs further enhancement.
Towards a World-Class Energy Sector 49 ENERGY MALAYSIA Orderly Supply Towards a World-Class Energy Sector and Use of Energy Suruhanjaya Tenaga (ST), a statutory body established under the Energy Commission Act 2001, is responsible for regulating the energy sector, specifically the electricity supply and piped gas supply industries in Peninsular Malaysia and Sabah. www.st.gov.my Volume 20 | 2020
Q & A SPECIAL FOCUS EDUCATION ARE MALAYSIANS LIVING THE QUIET VOLUME 20 COMPLACENT ABOUT DANGEROUSLY: ACHIEVERS ARE YOU USING NON-CERTIFIED ENERGY EFFICIENCY? ELECTRICAL PRODUCTS?
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