Microsoft PowerPoint - EETD-AGM Presentation (May-2009).ppt [Compatibility Mode]1) National Energy Security
3) Conducive Working Environment3) Conducive Working Environment
4) Industrial & Commercial Competitiveness
6) A Better Life Style &
7) Ensure Sustainability for Our future Generations IEM – EETD AGM
Electricity Demand Projections and 9MP Targets for EE
Demand Savings with EE (Elasticity 1.5 to 1.3)
35,000
40,000
45,000
50,000
-
5,000
10,000
15,000
20,000
25,000
30,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year
IEM – EETD AGM
Potential Savings from EE Initiatives: 2007 – 2010
Capital Investment & Energy Use Savings (Based on Demand Reduction of 833 MW)
Capital Investment Savings (Gen) 4,163 RM (bn)
Capital Investment Savings (T & D) 1,665 RM (bn)
Energy Use Reduction 2007 to 2010 (at RM Energy Use Reduction 2007 to 2010 (at RM 0.25/kWh) 2,694 RM (b
(Consumer Energy Cost Savings)
Carbon Dioxide Emission Reductions 6,586 Tn (m)
IEM – EETD AGM
1) Insulation for houses, offices & industrial premises to provide comfortable environment –
• Reduced thermal stress
• greater productivity
2) Use of EE appliances & equipment through Regulatory 2) Use of EE appliances & equipment through Regulatory measures & Incentives-
• Use of HEMs • Replacement of incandescent lamps • Use of 5-STAR Refrigerators • Use of EE (high EER) Air Conditioners • Replacement of older plant & machinery
IEM – EETD AGM
Payback time 28°C 26°C 24°C 22°C
Assumptions: Electricity = 0.25 RM/kWh
Annual saving, air con 22,2 30,0 39,4 50,0 kWh/m² ceiling Annual saving 5,6 7,5 9,9 12,5 RM/m² ceiling Insulation cost 25,0 25,0 25,0 25,0 RM/m² ceiling Payback, simple 4,0 3,0 2,3 1,8 years
IEM – EETD AGM
Source: “Design Strategies for Energy Efficiency in New Buildings (non-Domestic)” KTAK/JKR/Danida book on Energy Efficiency in Buildings 2004.
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Malaysian Office Buildings Continuous improvement of Energy Efficiency
Energy Indices ( kWh/m2year)
EC Building (Putrajaya)
IEM – EETD AGM
YEAR CONSUMPTION
ENERGY USAGE
2004 1.36 564,726 103.6 1,605
180,000
200,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1 2 3 4 5 6 7 8 9 10 11 12
Months
IEM – EETD AGM
Purata RM 22,868.40
5,000.00 6,000.00 7,000.00 8,000.00
14,000.00
Bulan
Higher ranking, better performance
of the buildings are more efficient than your building
29% :
0%
10%
20%
30%
40%
50%
60%
Building Energy Index (BEI), kWh/m2/yr
more efficient less efficient
Standard HEM Standard (Local)
HEM (Local) Standard HEM
Actual Motor Market Price RM11,300 RM 24,000 RM1,848 RM2,775 RM6,750 RM13,500
Price after deduction of 10% No
-3 / 41 /* 5 6
deduction of 10% Sales Tax (on Local
& Imported HEM)
Price after deduction of 15% Import Duty (on Imported Motor)
No change RM18,972
RM12,700 RM925 RM6,750
Without Gov. Tax Incentive
Incentive
Price PremiumPrice Premium RM12,700 RM7672 RM 925 RM 673 RM 6,750 RM 3,922
Annual SavingsAnnual Savings RM 4,998 RM 192 RM 1,456
Running HoursRunning Hours 7,000 4,380 4,380
Payback PeriodPayback Period 2.5 yrs 1.5 yrs 4.81 yrs 3.5 yrs 4.6 yrs 2.7 yrs
Return On Return On Investment (15 Investment (15 years lifetime)years lifetime)
33% 58% 14% 22% 15% 31%
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Endorsement LabelEndorsement Label
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1,000 60 1.70 156.00 173.00 0
CFL 10,00 0
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Savings from EE Refrigerators
A 5-Star fridge uses about 25% less electricity than a normal (3-Star) model. For a fridge of 200 to 250 litres the saving is about 150 kWh per year under test conditions. (equivalent to RM 43 a year at the residential electricity tariff of 28.9 sen / kWh). Actual saving is greater in normal operation.
Price difference
Net saving for 10 years use (simple difference
RM saving / year
200.0 43.35 4.6 years 233.50
As fridges last for more than 10 years this gives an attractive saving potential as the electricity tariffs will increase over the time period concerned.
IEM – EETD AGM
In spite of ST’s promotion for EE Refrigerators (5-Star) under the DANIDA
EE/DSM project, such fridges are no longer available on the market.
Manufacturers “refuse” to bring in 5-Star Fridges due to higher cost but
without incentives (e.g. Import Duty & Sales Tax exemptions)
EE Refrigerators - Look for the Stars!
Import Duty & Sales Tax exemptions should be provided on a blanket
approval basis to make EE Fridges (& other appliances) cost competitive
The Government should declare that it will buy only 5-Star Fridges to
encourage importers to bring 5-Star Fridges to the local market.
IEM – EETD AGM
Payback calculations on total investment for Hi-Eff chillers
A/C operating
Energy savings
Energy cost savings RM/an
SPP on total cost – years (at RM 1,300 per RT operating
hours/an savings kWh/an
2,000 400 120 10.8
3,000 600 180 7.2
4,000 800 240 5.4
5,000 1,000 300 4.3
Anecdotal Evidence – Effect of Rain
Anecdotal evidence indicates that rain in the Klang Valley causes the
electrical system demand in P. Malaysia (TNB system) to drop by about
3%.
Current System MD (TNB)
25% before 2009
Appoint a project leader to lead the energy efficiency management
An Energy committee represented by different departments support in implementation of energy saving plan.
Endorsed a Guideline for Energy Efficiency Management – with reference to IKEA’s Sustainability Direction
Energy saving recognized as one of the business KPI and goals for co-workers bonus scheme
Endorsed an inter-departmental energy saving competition to create awareness (among co-workers)
IEM – EETD AGM
Energy Efficiency Action Plan and status
Based on recommendation from Energy Audit done in 2006: Replacement of Metal Halide lightings with T5 energy saving
fluorescent & fittings (electronic ballast) – 75% completion to date
Rewiring by zone (in conjunction with general warehouse maintenance to replace old, worn out wiring) – allow co-maintenance to replace old, worn out wiring) – allow co- workers to switch on/off by zone – completed Dec, 2007
Replace air-conditioner with split units equipped with invertors (split unit allows individual co-worker/dept to control and manage use of air-conditioning) – On-going
Install transparent “smoke vent” - allow for use of natural sun light during the day – completed Oct 07
Training and workshop (for co-workers) on Climate Change & Energy Efficiency – On-going
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Status – Energy KPI (total kWh compared to total cubic meter of goodsflow handled)
FY07 FY06 FY05 Kwh/m3 7.91 8.38 7.41
Kgco2/m3 5.49 5.82 5.15
FY05 as base year Target to achieve by 2009: 5.55 Kwh/m3 (3.86
kgco2/m3) Jan 08(FY08 to date): 6.05 Kwh/m3 (4.15 kgco2/m3) Total investment (T5 Energy Saving fluorescent light):
RM228,000.00 (payback 1.9 yrs) IEM – EETD AGM
There is a need to develop & monitor industrial sector “Energy
Intensity” for specific processes for users to “Benchmark”
themselves against a “Best Practice” yardstick.
Such benchmarks can help Energy Managers to aim for optimum
MIEEIP Saving Potential
Such benchmarks can help Energy Managers to aim for optimum
energy efficiency performance in their facilities
Such a practice has been in use for Buildings (Offices, Universities,
etc.)
Energy Savings
Average energy saving potential is about 28% * Malaysian Industrial Energy Efficiency Improvement Project
IEM – EETD AGM
MIEEIP Saving Potential
Saved gas subsidy for power generation (Million/Yr)
Total Saved in Millions over a 15 Year life span
Cement N/A N/A N/A N/A
Glass 20,877 101.4 87.4 188.8 Glass 20,877 101.4 87.4 188.8
Food 45,496 220.9 190.5 411.4
Rubber N/A N/A N/A N/A
Wood 4,875 23.7 20.4 44.1
Ceramic N/A N/A N/A N/A
I & S 4,187 20.3 17.5 37.9
P & P 5,565 27.0 23.3 50.3
Total 80,999 393.3 339.1 732.5
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Cement
Saved gas subsidy for power generation (Million/Yr)
Total Saved in Millions over A 15 Year life span!
101.4 87.4 188.8
Glass 20,877
Food 45,496
101.4 87.4 188.8
220.9 190.5 411.4
23.7 20.4 44.1
20.3 17.5 37.9
27.0 23.3 50.3
393.3 339.1 732.5
IEM – EETD AGM
Project Title : Replacement of oil fired heating system to wood fired heating system

EXAMPLE OF MIEEIP DEMO PROJECT EXAMPLE OF MIEEIP DEMO PROJECT –– HEVEA BOARDHEVEA BOARD
Forthcoming activities; 1. Monitoring and Verification carried out by ESCO
Description of Project Component E savings (GJ/yr)
C savings (th.RM/yr)
Payback Period (yr)
1. Replacement of oil-fired thermal oil heater to wood dust fired thermal oil heater
33412.2 714.0 2439.1 2160.0 3.0
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Selected Case Studies
1. Installation of automatic controllers to improve energy efficiency of chillers in a hotel.
2. Replacement with energy efficient chillers for an office building
3. Retrofitting of Cooling Towers at an Electronic Manufacturing Facility – Energy & Water SavingsManufacturing Facility – Energy & Water Savings
4. Replacement of Existing Cross-flow Cooling Towers with Counter-flow Cooling Towers.
5. Retrofitting with Variable Speed Drive (VSD) for FAN of a Constant Air Volume Air Handling Unit (CAV AHU) serving hotel lobby.
6. Replacement of Industrial Drying Fans with Certified Performance Fans
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Installation of Chiller Plant Control system to
improve energy efficiency of chillers in a hotel
Case Study Results – Case 1
Install automatic controllers
Optimise chiller sequencing
ROI for the 2 x 700RT < 2 years
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Case Study – Chillers
building
building
Help protect environment
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Case Study – Cooling Towers
Facility – Energy & Water Savings
pressure water distribution system
Case Study – Cooling Towers
Towers with 2-Cell Counter-flow Cooling TowersTowers with 2-Cell Counter-flow Cooling Towers
3000 HRT tower
Fan motors reduced from 84 to 32.4 kW
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towers
Case Study Results – Case 4 (2)
1. Reduce motor kW with VSD or 2-speed motors or HE
motors or install velocity recovery fan stack
2. Reduce ECWT by replacing infill, HE fans, improve water
treatment quality
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Case Study - Fans
serving a hotel lobby
1.To vary fan speed in accordance with load
demand for 24 hour operation
2. Savings of RM 9,600/year
3 ROI < 2 years
Replacement of Industrial Drying fans with Certified
Performance Fans
Replace unrated fans with performance certified fans
for 24 nos 18.5 kW centrifugal fans
Drying time reduced from 26 hours to 16 hours
Savings of RM136,500/year
ROI < 1 year
IEM – EETD AGM
Fans: Best Practice
Fan loads
1. Reduce air flow needs by eliminating leakage losses from
ducts, dampers; apply duty cycling operation
2. Reduce pressure loss by using better filters and flow
meters
IEM – EETD AGM
Information slides from MIDA (Malaysian Industrial Development Authority
explaining the respective incentives and application procedures can be
accessed as below:
Pioneer Status or Investment Tax Allowance for Renewable Energy (RE)
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(Energy Efficiency-EE)
Import Duty & Sales Tax Exemptions
The government fiscal incentives are in addition to the MBIPV project
incentives indicated under the “Market” section of this project.
Potential Savings from EE
Year no. 1 2 3 4 5 6 7 8
Demand BAU MW
17,261 18,608 20,059 21,624 23,310 25,129 27,089 29,202 BAU MW
Reduced Demand MW
Savings MW
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A/C chiller replacement MW
Passive insulation MW 8 24 48 80 120 160
Government facilities savings MW
Total potential savings MW
Desired demand reduction MW
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0.5
0.6
0.7
0.8
12/08/05
0
0.1
0.2
0.3
0.4
0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00
Load Factor, pu
Low Voltage Tariff (0.288sen / kWh)
Medium Voltage (Varies according to LF)
* LF = Annual total energy /Max. Demand x 8760
Demand Limiting Monitors power consumption over a sliding 30 minute interval
(this is the basis of the utility demand charges) Projects average demand for each interval based on demand
during the first part of the interval Compares projected
demand for the interval to a user-
500
12/08/05
demand for the interval to a user- defined target for maximum demand
Selectively sheds loads (turns off equipment) to ensure that demand stays below the target
400
420
440
460
480
Time (Hours)
Demand With Duty Cycling
12/08/05
Sample Unit Cost Calculation
Jul. 180 3,114.00 36,000.00 7,128.00 0.83 307.26 10,549.26 0.293
Aug. 180 3,114.00 39,000.00 7,722.00 0.82 487.62 11,323.62 0.290
Sep. - -
Oct. - -
Nov. - -
Dec. - -
RM per kWh Load & PF M gmt
12/08/05
0.255
0.260
0.265
0.270
0.275
Jan. Feb. M ar. Apr. M ay Jun. Jul. Aug.
Months
Simultaneous Two CHiller Operation
12/08/05
0
50
100
150
500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800
Ti me ( hour s)
SIngle Chiller Operation
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0
20
40
60
500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 Ti me ( hour s)
LOAD MANAGEMENT EXAMPLE -TES Total Incoming Power for 24Hour
800.00
1000.00
1200.00
1400.00
kW
12/08/05
20
40
60
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2 2 1 2 2 2 2 2 2 2 2 3 3 1 3 3 3 3 3 3 3 3 4 4 1
Power Factor (pu)
P F - PENALTY (2002) AREA GOVT PRIVATE
SECTOR TOTAL
Example LV supply case
Monthly consumption of 216,000 kWh (0.5 LF)
pf 0.8
12/08/05
Benefit/Cost calculation for pf improvement P.F. KVA KW KVAR
0.9 667 600 291
0.8 750 600 450
say, 160 kVAR
Therefore payback period (in months) is 5.60
Energy Efficiency – “Lower Voltage”
Study: Utilities Benefit From Reducing Voltage With Lower Costs, Energy Savings And Satisfied Customers
IEM – EETD AGM
Satisfied Customers April 16, 2008 Seattle – Reducing the voltage on power distribution can continue meeting consumer expectations while saving energy for both the customer and the utility, according to a recent study performed by R. W. Beck. K.C. Fagen, project manager for the Distribution Efficiency Initiative (DEI), will present how utilities can generate cost-savings for their businesses without negatively impacting service, at the NorthWest Public Power Association's Engineering and Operations Conference in Reno, NV. "Delivering reduced voltage to individual consumers — while remaining within utility bandwidth standards — results in significant cost savings for the customer and utility due to reduced meter demand for energy," says Fagen. "Our research highlights correctable inefficiencies in the distribution systems based on the 10 substations and 31 distribution feeders included." R. W. Beck collaborated with the Northwest Energy Efficiency Alliance, RLW Analytics, Auriga, Inc., Hunt Power and 13 Pacific Northwest utilities on DEI, a two-part study that investigated the effects of power consumption in relation to the applied voltage. Utilizing advanced software to collect and analyze individual meter data, the DEI team applied the results by performing system improvements on feeders and was able to reduce the overall voltage 3 percent and energy consumption by 2 percent.
Power Consumption vs Supply Voltage
Actice Power (W) Versus Voltage (V)
80
90
100
Voltage (V)
A ct
iv e
P ow
er (W
+ 7 /* 9,%%( :#$ ;+ 7 /* 9,%%( :#$ ;
• Extension of Pioneer Status (PS) and Investment Tax Allowance
(ITA) for RE to those who adopt RE for their own use, and
• Enhancement of the ITA benefits to 100% instead of 60% for those
who institute EE initiatives.
provision of ID and S-T exemption for the “peralatan” involved.
These statements imply that the equipment used for the particular
purposes enjoy exemptions from payment of the respective ID and S-T.
IEM – EETD AGM
IEM – EETD AGM
+ 7 <=# 7 > ? + 7 <=# 7 > ? ? /* 9,%%( :#$ ; ? /* 9,%%( :#$ ;
EE Equipment EE Appliances RE Equipment
High Efficiency Electric Motors Variable-speed drives EE pumps Heat Pumps EE fans and blowers Roof and wall insulation and
glazing materials Heat recovery equipment Combustion air supply
5-star refrigerators EE air-conditioners
conditioners and water heaters
Solar Water Heaters and Air- conditioners
PV (stand alone and hybrid) and BIPV systems and their ancillaries
Biomass/biogas boilers Combustion air supply
controllers Air-to-air heat exchangers High-efficiency luminaries (e.g.
T5 fluorescent tubes) Power control and sensors for
lighting Voltage regulators High-frequency electronic
ballasts EE glazing Power quality improvement
devices (More can be added in the future)
EE fans and ventilators
future)
the future)
Annual All. Rate (%)
20 20
Government Fiscal Incentives
3. Others 20 10
The provision of ITA equals a “double-tax-deduction” of Corporate Tax (26% in 2008 and 25% thereafter) on the qualifying capital investment concerned. The table below shows the tax savings for a hypothetical example of investment of RM 100,000.00.
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IA RM 20,000 0 0 0 0 0 20,000
AA % 14 14 14 14 14 10 80%
Capital Allowance Savings
Total RM 34,000 14,000 14,000 14,000 14,000 10,000 100,00 0
Tax rate %
Tax saving RM
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Total RM 34,000 14,000 14,000 14,000 14,000 10,000 100,000
Tax rate % 26 25 25 25 25 25 N/A
Total Tax (Fiscal) Savings
Tax saving RM – CA
Total ITA savings RM
Total tax savings RM
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0
10
20
30
40
50
60
0 10 20 30 40 50 60 70 80 90 100
Investment
IEM – EETD AGM
RE purchase tariffs have been fixed at RM 0.21 per kWh
(from August 2007) on a fixed rate fr the entire REPPA
period.
period.
RE Tariff should be “Tied” to the utility tariff over the
REPPA duration to cater for inflation & for
“proportionality” against the utility tariff to its customers.
IEM – EETD AGM
Potential RE development in Malaysia
Market Potential of RE Power Generation Capacity, based on Corresponding Annual Growth Rate
4,500
5,000
5,500
6,000
6,500
7,000
7,500
e %
RE (Non-PV) Cum. MW Capacity BIPV Cum. MW Capacity Total RE Cum. MW Capacity
RE (Non-PV) Annual Growth Rate (%) BIPV Annual Growth Rate (%)
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Roof Top Gardens
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Building-integrated food production
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Plan period Public sector Investment (RM million)
Private Sector Investment (RM million)
Potential Electricity Savings GWh
NPV Savings RM million
ENERGY SAVING BENEFITS
ENERGY SAVING BENEFITS
6.40 13.22 1,400,000 11,942,000 76,428,800 157,873,240 81,444,440
Calculations based on MIEEIP Paper for Energy Business Fund
Cost RM per mmBtu Primary Energy Savings from EE/DSM
IEM – EETD AGM