second international energy efficiency forum (ieef2 ... · energy economics and financing...
TRANSCRIPT
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Energy Economics and Financing Mechanisms: Approaches to Energy
Efficiency and Renewable Energy
Mr. Mohd Hafdzuan AdzmiAssistant Secretary
Sustainable energy DivisionEnergy Sector
Ministry of Energy, Green Technology and WaterMalaysia
SECOND INTERNATIONAL ENERGY EFFICIENCY FORUM (IEEF2)
DUSHANBE, TAJIKISTAN
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Presentation Outline
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ENERGY SCENARIO IN MALAYSIA
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Malaysia’s Oil And Gas Reserves
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Trends In GDP, Primary Energy
Supply & Demand
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1980 1990 1992 1994 1996 1998 2000 2002 2004
Perc
enta
ge
Year
Hydro
Coal
Oil & Distillate
Natural Gas
Power Generation Mix
In Malaysia
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Overview Of Energy Pricing (2009)
SUBSIDIZED PRICE MARKET PRICE (DECEMBER 2009)
FUEL PRICE RM/MMBTU FUEL PRICE RM/MMBTU
EQUIVALENT
SUBSIDY ELEMENT
(RM/MMBTU)
Gas For Energy Sector RM10.70/MMBTU 10.70 RM41.16/MMBTU 41.16 30.46
Gas Large Users RM15.35/MMBTU 15.35 RM56.20/MMBTU 56.20 40.85
Gas for Gas Malaysia Sdn
Bhd
RM11.05/MMBTU 11.05 RM42.35/MMBTU 42.35 31.30
LPG RM1.75/kg 37.39 RM3.36/kg 71.71 34.32
Diesel
(agriculture/transport)
RM1.43/ltr 38.65 RM2.04/ltr 55.00 16.35
Diesel (pump price) RM1.70/ltr 45.95 RM2.04/ltr 55.00 9.05
Petrol Ron 95 (pump
price)
RM1.80/ltr 55.21 RM2.14/ltr 65.60 10.39
Petrol Ron 97 RM2.05/ltr 62.88 RM2.20/ltr 67.51 4.63
Oil - - AS$72.14/tong 39.58
Coal - - AS$102.16/MT 14.48
Need to address distortion in energy pricing from efficient use of
energy at the demand side through green practices and technologies
and(EE&RE)
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SUSTAINABLE POLICIES AND FRAMEWORK
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Development of Energy Policies in Malaysia
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National Energy Policy
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Malaysian National RE Policy
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Strategic Thrusts of RE Policy
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Key Success Factors for RE
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National
RE Policy
National
RE Policy
FiTFiT
Implement
Cost
Legal
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National RE Targets
Notes: RE capacity achievements are dependent on the size of RE fund
� Assumptions:
� Feed-in Tariff (FiT) in place
� 15.6% compound annual growth rate (CAGR) of RE power capacity from 2011 to 2030.
Year Cumulative RE Capacity
RE Power Mix (vs Peak Demand)
Cumulative CO2 avoided
2011 73 MW 0.5 % 0.3 mt
2015 985 MW 6% 11.1 mt
2020 2,080 MW 11% 42.2 mt
2030 4,000 MW 17% 145.1 mt
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The Strategic Approach for EE
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EE Initiatives
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Current Development:
Sustainable Policy and Framework
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FINANCING
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Fiscal Incentives For EE & RE
Projects And Products
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Feed-in Tariff (FiT)
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Technology / Source
FiT Duration
Range of FiT Rates
(RM/kWh)
Annual Degression
Biomass (palm oil waste, agro based) 16 0.27 – 0.35 0.5%
Biogas (palm oil waste, agro based,
farming)16 0.28 – 0.35 0.5%
Mini Hydro 21 0.23 – 0.24 0%
Solar PV & PP 21 0.85 – 1.78 8%
Solid waste & Sewage
16 0.37 – 0.45 1.8%
Feed-in Tariff (FiT) Rates
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Source of Fund for FiT
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1%
FiT Cost
Source of Funding
� 2011 - additional tariffs collection from electricity bills
� Every RM100/Month - RM1 for RE
� Additional 1% (proposed in 2012)
The size of RE fund will determine the RE target for Malaysia
Benefit
� polluters pay concept
� will not affect low income consumers (<300 kWh/mth)
� encourages EE and DSM
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Green Technology Fund Scheme
(GTFS)
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Green Technology Fund Scheme
(GTFS)
FEATURES PRODUCER OF GREEN TECHNOLOGY USER OF GREEN TECHNOLOGY
Financing size Maximum: RM50 million per companyMaximum: RM10 million per company
Financing tenure Up to 15 years Up to 10 years
Eligibility criteriaLegally registered Malaysian -owned companies (at least 51%) in all economic sectors
Legally registered Malaysian -owned companies (at least 70%) in all economic sector
Any technology that is suitable for the identified project criteria
provided it is a proven technology
Any technology that is suitable for the identified project criteria
provided it is a proven technology
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Sector
Projects
Processed &
TabledCertified Rejected
Loan
Approval by
FI’s
Guarantee
Approval by
CGC
Energy 69 51 13 11 8
Water & Waste 35 30 4 9 6
Building 7 5 1 0 0
Transport 6 4 2 1 0
TOTAL 117 90 21 21 14
GHG Emission 4,898,157 tCO2-eq
Total Project Cost RM3.7 billion
Green Job Creation (Technical) 606
Green Technology Fund Scheme
(GTFS)
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Other Financing Assistance
� 1) has high impact to the economic growth and has added value and high multiplier effects;
� 2) potential to create sustainable employment opportunities to Malaysian26
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Promoting Green Vehicles
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The Way Forward
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