building sector energy efficiency project - trade sia · •absence of explicit list of eligible...

By Kevin Hor, [email protected] and [email protected]

Building Sector Energy Efficiency Project

TUNE HOTEL CASE STUDY


Government & Private Sectors

Implementing Agency

Implementing Partner

Financer


Introduction – Project Description

Reduction in the annual growth rate of Greenhouse Gas(GHG) emissions from the Malaysia buildings sector

Improve energy utilization efficiency in Malaysian buildings (esp. commercial and government sectors) by :-

1. Promoting the energy conserving design of new buildings 2. Improving the energy utilization efficiency in the operation of existing buildings

GOAL

OBJECTIVE

COMPONENTS

OUTCOMES

1. Institutional

Capacity Development

2. Policy Development

and Regulatory Frameworks

3. EE Financing Capacity

Improvements

4. Information and Awareness Enhancement

5. Building EE Demonstrations

1. Clear and effective system of

monitoring and improving

the energy performance of buildings

2. Implementation

of, favorable policies that

encourage the application of EE technologies in the country’s

buildings sector

3. Availability of financial

and institutional support for

initiatives on EE

4. Enhanced awareness all on EE building

technology applications

5. Improved confidence in the feasibility, performance, energy, environmental and economic benefits of EE building technology applications leading replication


Downloadable online!


• Fundamentals of Energy Efficiency in buildings

• Malaysia’s weather data

• Building form, core location and orientation

• Daylight harvesting

• Glazing properties

• External and internal shades

• Wall insulation

• Roof insulation

• Atrium ventilation strategies

• Zoning and infiltration control

• Interior layout of office


• Energy Rating of Electrical Appliance

• Efficient Electrical Lighting and Control

• Sizing Air-Conditioning System

• Air Side ACMV Energy Efficiency

• Water Side ACMV Energy Efficiency

• Commissioning, Fine-Tuning and Continuous Monitoring

• Lift energy efficiency (To be added in 2015)

• Building Automation and Controls (To be added in 2015)


Component 5 – Demonstration Projects

• Demonstration of EE Building and EE Building Technology Applications• Chiller replacement

• High efficient ACSU

• Insulation use

• Efficient lighting

• Energy management systems

• Improved building envelop material

• Demonstration Project Implementation• Integrity Business Solutions – 3 floor factory office fit out (implementing)

• XiaobyCrustz – 1 floor bakery fit out (implementing)



• Demonstration of EE Building and EE Building Technology Applications

• Demonstration Project Implementation• MRT Corp – New MRT stations (Finalized)• KKR2 – New high Rise Office building (Finalized)• SEDA low energy office – Single floor office retrofit (Finalized)• Tune Hotel – New low rise hotel (Finalised)• PCOM Pacific Sdn Bhd – Three floor office building automation retrofit

(Finalized)• Kings Green Hotel Melaka - New low rise hotel (Finalized)• National Cancer Institute – New hospital (Finalized)• Putrajaya Hospital – Audit and Energy Performance Contract of hospital

(Implementing)



• Demonstration of EE Building and EE Building Technology Applications

• Demonstration Project Implementation• JKR Block F – High rise office retrofit (Implementing)

• Lend Lease – Single floor office energy management retrofit (Implementing)

• Sime Darby Elmina West – New 2 floor residential house (Implementing)

• Sime Darby Bukit Rajah – New 1 floor sales gallery (Implementing)

• The Estate Bangsar South - New high rise residential condo (Implementing)

• Gading Kencana – 3 floor shoplot office retrofit (Implementing)

• Klana Resort Hotel – Audit and potential energy performance contract (implementing)


Details of TUNE KLIA2

• Demonstration of revenue maximization from reduced OPEX • Gold rated benchmark under the Green Building Index (GBI)• Use of daylight and use of LED lights that incorporate motion sensors and

daylight sensors.• ACMV system designed with carbon dioxide sensors• Double glazing for thermal and sound insulation properties• Insulated roof• In-room energy management system by controlling the air conditioning

supply and television by way of an RFID card• 89% of the occupants have access to temperature controls to suit their

personal comfort levels


GBI benchmark - 200KWh/m2/year for up to 3 stars hotel

BSEEP simulation – projected 159KWh/m2/year

Current operations - 164.08KWh/m2/year with 70-90%

occupancy


HEADER SUB ITEM UNIT DESCRIPTIONIMPORT

RATE

9405 10 100 KGM --Fluorescent lamps and lighting fittings 25%

9405 10 900 KGM --Other 20%

9405 20 0 KGM -Electric table, desk, bedside or floor-standing lamps 20%

9405 30 0 KGM -Lighting sets of a kind used for Christmas trees 5%

9405 40 100 KGM --Searchlights and spotlights 5%

9405 40 200 KGM --Fibre-optic headband lamps of a kind designed for medical use Nil

9405 40 912 KGM ----Of a kind used for lighting public open spaces or thoroughfares 25%

9405 40 919 KGM ----Other 5%

9405 40 990 KGM ---Other 20%

9405 50 120 KGM ---Of brass of a kind used for religious rites Nil

9405 50 190 KGM ---Other 15%

9405 50 900 KGM --Other 5%

9405 60 0 KGM -Illuminated signs, illuminated name-plates and the like 20%

9405 91 100 KGM ---For searchlights or spotlights 5%

9405 91 900 KGM ---Other 20%


9405 92 900 KGM ---Other 20%

9405 99 100 KGM ---Lampshades 20%


9405 99 310 KGM ----For oil-burning type 15%

9405 99 390 KGM ----Other 5%

9405 99 910 KGM ----Of ceramic 20%

9405 99 920 KGM ----Of metal 20%

9405 99 990 KGM ----Other 5%



RATE

8415 10 0 UNT -Window or wall types, self-contained or Â“split-systemÂ” 30%

8415 20 0 UNT -Of a kind used for persons, in motor vehicles 30%

8415 81 100 UNT ---Of a kind use in aircraft Nil

8415 81 200 UNT ---Of a kind use in railway rolling stock Nil

8415 81 300 UNT ---Of a kind use in motor vehicles 30%

8415 81 900 UNT ---Other 30%




8415 82 900 UNT ---Other 30%




8415 83 900 UNT ---Other 30%

8415 90 100 KGM --Of a kind used in aircraft or railway rolling stock Nil

8415 90 200 KGM --Evaporators or condensers for air-conditioning machines for motor vehicles 30%

8415 90 900 KGM --Other 30%

Water cooled chillers for buildings - China + ASEAN – 0% duty, all other countries 30% duty



RATE

7020 0 100 KGM -Blinds 20%

7020 0 200 KGM -Glass inners for vacuum flask or other vacuum vessels Nil

7020 0 900 KGM -Other 30%


RATE

7008 0 0 KGM Multiple-walled insulating units of glass. 30%


Details of TUNE KLIA2

• At start of project:• Could qualify for MIDA scheme

• Could qualify for GBI scheme

• To date: • Obtained NONE – due to expiry of GBI scheme and ownership technicality


MIDA Investment Tax AllowanceBeneficiaries Conditions and other info What is financed Barriers

addressed

Companies providing energy conservation services or implementing EE project for own purposes

Pioneer status with tax exemption of 100% of statutory income for ten years; Investment tax allowance on qualifying capital expenditure incurred set-off against 100% of statutory income for 5 years. Import duty and sales tax exemption on energy conservation equipment not produced locally; Sale tax exemption on the purchase of locally produced equipment.

EE equipment - high efficiency motor, insulation material and low-e glass RE equipment -photovoltaic panels, solar heating equipment, biomass furnaces etc.

High up front cost of investment in EE measures, Lack of understanding of financial benefits of EE


MIDA Investment Tax Allowance

• Scheme results from are available for 2013 and consist of 9 projects with energy savings of 9.7 GWh/year with CO2 reduction of 7,200 t/year.

• Challenges in the scheme implementation are:• Lengthy and cumbersome incentive approval process as technical evaluation carried

out by Energy Commission, • Not suitable for industry and commercial sector, that can take up to 1 year,• Absence of explicit list of eligible technologies for the building sector and a lack of

specific boiler plate for applications which reduces the transparency of the scheme process,

• Lack of applications from the ESCO’s to the scheme even though it is suitable for guaranteed savings agreement contracts,

• No measurement and verification process in place to asses projects progress during the measure lifetime,

• Number of applications over last 3 years shows decreasing interest from the industries, due to lack of success stories and promotion of the scheme


MIDA Investment Tax Allowance

30.16%

45.83%

21.05%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0

10

20

30

40

50

60

70

2012 2013 2014*

Number of projects

Number of projects in buildings

% of building projects


GBI Tax Exemption

• Exempts tax for companies/individuals that obtain Green Building Rating.

• Tax exemption was granted in the amount of 100% of qualifying expenditure (QE).

• Qualifying expenditure is an additional expenditure incurred in relation to construction of a building, alteration, renovation, extension or improvement of an existing building using MS:1525 standard as a benchmark.

• Buyers of GBI certified properties are eligible for stamp duty exemption on instruments of transfer of ownership.


GBI Tax Exemption

• 6 projects have obtained GBI tax exemptions totaling RM 37,889,385.63 (2009 till October 2014 )

• 3 are from new commercial buildings segment, 1 is from new residential segment, 1 commercial building retrofit and 1 from industrial new construction.

• Projects energy savings are 71,027,442.00 kWh/year, CO2 reduction 51,890.00 tCO2/year and cost savings are 33,382,897.74 RM/ year.


GBI Tax Exemption

• Challenges identified in the GBI tax exemption implementation are: • Relatively low number of projects in the scheme is resulted by the 4+ years offset from the

enrollment in the scheme to the finish of construction, final certification, gained profit from the building and eligibility for tax exemption under the scheme.

• Prices of items comprising green cost have decreased significantly. Currently additional green cost for obtaining certification is 0-3%, silver 2-4% gold 4-6% and platinum 6-10%.

• Obtaining tax exemptions holds a low priority in the decision of developers for going green, even though it can have significant impact on the income several years down the line.

• GBI certified new buildings in the residential sector are predominantly high-end condominiums and detached houses, leaving the entire segment of low/mid end residential construction without any incentives for going green.

• Difficult claim back process of the stamp duty exemptions resulted in the low uptake of this part of the scheme. Tax exemption is offset by the green cost that usually amounts to less than the 10% of the final price, which has a small impact on the total amount of the stamp duty. Price of the properties, especially in the residential sector, is often inclusive of stamp duty as a form of a discount.

building sector energy efficiency project - trade sia · •absence of explicit list of eligible...

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