EETD-AGM Presentation (May-2009).ppt - IEM · (equivalent to RM 43 a year at the residential electricity tariff ... (TNB system) to drop by about ... maintenance to replace old, ...

Institution of Engineers Malaysia

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Why Do We Need EE?

1) National Energy Security

2) Individual & National Economic Benefits

3) Conducive Working Environment3) Conducive Working Environment

4) Industrial & Commercial Competitiveness

5) Environmental Benefits for a Cleaner World

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

MW

Dem

and

Elasticity 1.5Demand growth BAU

-

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

MW

Dem

and

Reduction of 833 MW (2010)

Demand growth EEElasticity 1.3

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)

Total Savings fro 2007 to 2010 8,523 RM (bn)

Gas Subsidy Savings (at RM 0.20/kWh) 2,156 RM (bn)

Carbon Dioxide Emission Reductions 6,586 Tn (m)

IEM – EETD AGM

How Do We Achieve EE on Demand Side

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

Roof Insulation

Cost Savings

potential when insulation the roof

Payback time28°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 ceilingAnnual saving 5,6 7,5 9,9 12,5 RM/m² ceilingInsulation cost 25,0 25,0 25,0 25,0 RM/m² ceilingPayback, simple 4,0 3,0 2,3 1,8 years

IEM – EETD AGM

Potential Energy Savings – EE Buildings

Source: “Design Strategies for Energy Efficiency in New Buildings (non-Domestic)” KTAK/JKR/Danida book on Energy Efficiency in Buildings 2004.

IEM – EETD AGM

Normal buildings (Kuala Lumpur)LEO building(Putrajaya)

Malaysian Office BuildingsContinuous improvement of Energy Efficiency

Energy Indices ( kWh/m2year)

250

300

Typical ConsumptionZEO building

(Bangi)

0

50

100

150

200

250

NormalBuildings

LEOBuilding

ZEOBuilding

ECBuilding

Typical Consumption200 – 300 kWh/m2year

2001 2006 ( 2015) Benchmark year:

EC Building (Putrajaya)

IEM – EETD AGM

GOOD CASE STUDY GOOD CASE STUDY

YEARCONSUMPTION

(RM)

RATE PER GROSS AREA (RM/m2/mth)

ENERGY USAGE

(kWH/mth)

ENERGY INDEX

(kWH/m2/yr)

MAX. DEMAND (kW/mth)

2001 1.99 mil 1.54 643,037 117.9 1,844

2002 1.84 mil 1.42 585,772 107.4 1,736

2003 1.74 mil 1.34 551,865 101.2 1,561

2004 1.36 564,726 103.6 1,605

180,000

200,000

Electricity Consumption 2001, 2002 & 2003

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

RM

2001 2002 2003

Sec

uriti

es C

omm

issi

on M

alay

sia

IEM – EETD AGM

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IEM – EETD AGM

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Bangunan Persekutuan KemamanBangunan Persekutuan Kemaman

21,000.0022,000.0023,000.0024,000.0025,000.00

PurataRM 22,868.40

PENJIMATAN

KKR’s Consortia Case Study

5,000.006,000.007,000.008,000.00

9,000.0010,000.0011,000.0012,000.0013,000.00

14,000.00

15,000.0016,000.00

17,000.0018,000.0019,000.0020,000.00

Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04

Bulan

Bil

Bul

anan

( R

M )

Purata PenjimatanRM 18,072.62

PENJIMATANRM 4,876.37

IEM – EETD AGM

Benchmark – Is your building efficient??

Higher ranking, better performance

Bangunan Persekutuan Maran

What's your building RATING??

124.00 71

BEI Ranking

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60%

70%

80%

90%

100%

Ranking

Higher ranking, better performance

Your occupancy rate is 44.68 m2/occupant

of the buildings are more efficient than your building

29% :

TOWARDS EFFICENT

Now, your building performance is at:-

0%

10%

20%

30%

40%

50%

60%

0 100 200 300 400 500

Building Energy Index (BEI), kWh/m2/yr

more efficient less efficient

IEM – EETD AGM

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IEM – EETD AGM

Details

Oleochemical Factory, 55-kW

Rubber Factory, 18.5-kW Wood Factory, 37-kW

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�/� ��4�1/��*� ��5 ��6 ��

deduction of 10% Sales Tax (on Local

& Imported HEM)

No change RM21,818 No change RM2,523 No change RM12,273

Price after deduction of 15% Import Duty (on Imported Motor)

No changeRM18,972

No change NA (local

motor)No change

RM10,672

Incremental Cost Without Tax Exemption

RM12,700 RM925 RM6,750

Incremental Cost With Tax

ExemptionRM7,672 RM673 RM3,922

IEM – EETD AGM

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Description

Oleochemical Factory, 55-kW

Rubber Factory, 18.5-kW

Wood (MDF) Factory, 37-kW

Without Gov. Tax Incentive

With Gov. Tax

Incentive


With Gov. Tax Incentive


With Gov. Tax

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%

IEM – EETD AGM

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Endorsement LabelEndorsement Label

EE Refrigerators - Look for the Stars!

Endorsement LabelEndorsement Label

IEM – EETD AGM

Savings from EE Lighting

Lamp type

Lamp life hours

Lamp load (watts)

Lamp cost RM

Lifetime energy cost/unit

Total lifetime cost RM

Lifetime savings RM

Incande 1,000 60 1.70 156.00 173.00 0Incandescent

1,000 60 1.70 156.00 173.00 0

CFL 10,000

16 17 41.6 58.60 114.40

IEM – EETD AGM

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

Electricity saving / year

Payback period years (for higher

Net saving for 10 years use (simple difference

RMsaving / year

RMyears (for higher

cost)years use (simple

payback basis)

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

A/C Chiller Savings Potential

KW Saving / RT 0.20 Tariff RM/kWh 0.30

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/ansavings kWh/an

savings RM/an (at RM 1,300 per RT capacity)

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

IEM – EETD AGM

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%.

Klang Valley demand is about 50% of system demand.

System MD MW Rain induced MD reduction (at 3%)

Current System MD (TNB)

13,500 405

IEM – EETD AGM

� DCMY shall:

� reduce energy

consumption by

25% before 2009

IKEA Distribution Centre (DCMY) Energy Efficiency Initiative

25% before 2009

� Reduce CO2

emission by 25%

before 2009

IEM – EETD AGM

DCMY – Management Commitment

� 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

IEM – EETD AGM

Status – Energy KPI(total kWh compared to total cubic meter of goodsflow handled)

FY07 FY06 FY05Kwh/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.)

IEM – EETD AGM

Energy Savings Potential - Findings From Actual Energy Audits (MIEEIP*)

Energy Savings

50.0%

60.0%

70.0%

80.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Food

Woo

d

Ceram

ic

Cemen

t

Glass

Rubbe

rPulp

& p

aper

Iron

& stee

l

Tota

l

Average energy saving potential is about 28%* Malaysian Industrial Energy Efficiency Improvement Project

IEM – EETD AGM

MIEEIP Saving Potential

Sector Straight Line Extrapolated

Electricity Savings (50%)

(MWh/yr)

Saved electricity generation and supply (Million/Yr)

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

IEM – EETD AGM

Sector Straight Line Extrapolated Electricity Savings (MWh/yr)

Cement

Glass 20,877

Saved electricity generation and supply(Million/Yr)

Saved gas subsidy for power generation(Million/Yr)

Total Saved in Millions over A 15 Year life span!

101.4 87.4 188.8

MIEEIP Saving Potential (NPV over 15 years)

Glass 20,877

Food 45,496

Rubber

Wood 4,875

Ceramic

I & S 4,187

P & P 5,565

Total 80,999

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

ESCO : Mensilin Holdings Sdn Bhd / HOST : HeveaBoard Sdn Bhd / Sector : WOOD Accomplishment :-1. Project completed (August 2005)2. In a midst of reviewing and evaluation of the project by TA (Dr. Raju)3. Launching ceremony was held on 7 April 2006Forthcoming activities;

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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)

CO2 (t/yr)Cap Exp. (th.RM)

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

IEM – EETD AGM

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

IEM – EETD AGM

Case Study – Chiller Plant Control

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

� Provide soft start for 2nd chiller

�ROI for the 2 x 700RT < 2 years

IEM – EETD AGM

Case Study – Chillers

Replacement with energy efficient chillers for an office

building

Case Study Results Case - 2

building

�Replace aging chillers 2 x 500RT

�Help protect environment

�Achieve improved EE with ROI < 6 years

IEM – EETD AGM


Case Study – Cooling Towers

Retrofitting of Cooling Towers at an Electronic Manufacturing

Facility – Energy & Water Savings

� Replacing rotating sprinkler arms with stationary low

pressure water distribution system

� Add drift eliminator

� Adjust fan pitch angle

� Saves RM102,600 of water/year

� Saves RM12,816 electricity/yearIEM – EETD AGM

Case Study Results – Case 4 (1)

Case Study – Cooling Towers

Replacement of Existing 4-Cell Cross-flow Cooling

Towers with 2-Cell Counter-flow Cooling TowersTowers with 2-Cell Counter-flow Cooling Towers

� 3000 HRT tower

� Added VSD for fan motors

� Fan motors reduced from 84 to 32.4 kW

IEM – EETD AGM

Cooling Towers: Best Practice

Suggested methods of energy savings in cooling

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

3. Reduce water loss by installing drift eliminator

IEM – EETD AGM

Case Study - Fans

Energy Savings by retrofitting VSD to an AHU FAN

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

IEM – EETD AGM

� Case Study – Certified Performance Fans

� 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

Suggested methods of energy savings that will reduce

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

3. Modify or select fan to meet exact duty

IEM – EETD AGM

Fiscal Incentives for EE & RE

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)

IEM – EETD AGM

Pioneer Status or Investment Tax Allowance for Energy Conservation

(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 2008 2009 2010 2011 2012 2013 2014 2015

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 29,202BAU MW

Reduced Demand MW

17,261 18,590 20,003 21,504 23,095 24,781 26,565 28,451

Savings MW

0 18 56 120 215 348 524 751

IEM – EETD AGM

Saving Potential vs Target

Year 1 2 3 4 5 6

A/C chillerreplacement MW

26 79 158 264 399 532

Passive insulation MW 8 24 48 80 120 160

Government facilitiessavings MW

20 40 60 80 100 100

Total potential savingsMW

54 143 266 424 519 792

Desired demandreduction MW

18 56 120 215 348 524

IEM – EETD AGM

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Demand Management

12/08/05��

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TWO PART TARIFFTWO PART TARIFFAverage Energy Charge

0.5

0.6

0.7

0.8

Tari

ff B

& C

1, S

en/ k

Wh

Average Energy Charge Medium Voltage

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

Tari

ff B

& C

1, S

en/ k

Wh

Medium Voltage Energy Charge (0.208 sen/ kWh)

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

Dem

and

(kW

)

Uncontrolled Demand

Load Management by Duty Cycling

12/08/05��

demand for the interval to a user-defined target for maximum demand

� Selectively sheds loads (turns off equipment) to ensurethat demand staysbelow the target

400

420

440

460

480

Dem

and

(kW

)

0 1 2 3 4 5 6 7

Time (Hours)

Target

Aggressive SheddingNormal Shedding

Low SheddingUncontrolled Demand

Demand With NoDuty Cycling

DemandWith Duty Cycling

Savings Target

Load Management by Duty Cycling

12/08/05��

With Duty Cycling

Time

Off

On

Cycle Period

MinimumOn Time

MinimumOff Time

MaximumOff Time

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Sample Unit Cost Calculation

12/08/05��

Year & Month

Maxdemand – kW

MD charge- R M

Electricity use – kWh

Eelectricitycharge –RM

PF PF penalty – RM

Total bill RM

Cost RMper kWh

2005

Jan. 180 3,114.00 41,000.00 8,118.00 0.86 - 11,232.00 0.274

Feb. 190 3,287.00 42,000.00 8,316.00 0.85 - 11,603.00 0.276

Mar. 170 2,941.00 38,000.00 7,524.00 0.87 - 10,465.00 0.275

Apr. 180 3,114.00 40,000.00 7,920.00 0.89 - 11,034.00 0.276

Sample Unit Cost Calculation

12/08/05��

Apr. 180 3,114.00 40,000.00 7,920.00 0.89 - 11,034.00 0.276

May 195 3,373.50 39,000.00 7,722.00 0.86 - 11,095.50 0.285

Jun. 175 3,027.50 38,000.00 7,524.00 0.85 - 10,551.50 0.278

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. - -

Cost per kWh

0.280

0.285

0.290

0.295

RM

RM per kWh normal

RM per kWh - Load mgmt

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

RM

Demand ManagementDemand Management(Impact on (Impact on load factor)load factor)

Simultaneous Two CHiller Operation

150

200

250

Max. Demand kW

Energy used kWh

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)

Energy used kWhLoad Factor = 0.42

SIngle Chiller Operation

80

100

120

MD kW

Energy used kWh

Load Factor = 0.84

Demand ManagementDemand Management(Impact on (Impact on load factor)load factor)

12/08/05��

0

20

40

60

500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800Ti me ( hour s)

LOAD MANAGEMENT EXAMPLE -TESTotal Incoming Power for 24Hour

800.00

1000.00

1200.00

1400.00

kW

Blok 11

Incoming 2-27

TES-CH Blk 27

Incomer3-line1

Incomer3-line2

12/08/05��

0.00

200.00

400.00

600.00

12:0

0 A

M

12:5

5 A

M

1:50

AM

2:45

AM

3:40

AM

4:35

AM

5:30

AM

6:25

AM

7:20

AM

8:15

AM

9:10

AM

10:0

5 A

M

11:0

0 A

M

11:5

5 A

M

12:5

0 P

M

1:45

PM

2:40

PM

3:35

PM

4:30

PM

5:25

PM

6:20

PM

7:15

PM

8:10

PM

9:05

PM

10:0

0 P

M

10:5

5 P

M

11:5

0 P

M

Time

kW Total (KW)

Implication of Power Factor

Power Factor Power Factor –– GraphicalGraphical

12/08/05��

0.8 0.9 1.0

Power Factor Penalty

60

80

100

120

PF

Pen

alty

%

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)

PF

Pen

alty

%

0.85 0.75 0.65 0.55 0.45

P F - PENALTY (2002)AREA GOVT PRIVATE

SECTORTOTAL

SABAH 1,130,000(290)

3,858,000(1,411)

4,988,000

12/08/05��

PEN. MALAYSIA

9,440,000(2,101)

27,053,000(10,709)

36,493,000

TOTAL 10,570,000(2,391)

30,911,000(12,120)

41,481,000

JBEG Pamphlet Calculations for pf Correction

Example LV supply case

Monthly demand of 600 kW

Monthly consumption of 216,000 kWh (0.5 LF)

pf 0.8

Tariff - LV commercial 0.288 RM/kWh

Power Factor CorrectionPower Factor Correction

12/08/05��

Monthly energy charge 62,208 RM

Monthly pf penalty 4665.6 RM

Benefit/Cost calculation for pf improvement P.F. KVA KW KVAR

0.9 667 600 291

0.8 750 600 450

Capacitors required for pf improvement to 0.9 159

say, 160 kVAR

Estimated cost is approx. RM 26,129

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 CustomersApril 16, 2008Seattle – Reducing the voltage on power distribution can continue meeting consumer expectations while saving energy for both thecustomer 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

Act

ive

Pow

er (W

)

double Magnetic ballast

Single Osram

Energy Efficiency – “Lower Voltage”

12/08/05��

50

60

70

210 220 230 240 250 260 270

Voltage (V)

Act

ive

Pow

er (W

)

Single OsramElectronic Ballast

Variation of system wattage versus supply voltage.

By Khalid Mohamed Nor Universiti of Malaya

+�7 ��/��*� 9,%%(:#$��;+�7 ��/��*� 9,%%(:#$��;

Enhanced Incentives Approved Under Budget 2008

• 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.

The budget incentive approval appendices include statements for the

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

Budget 2008 – Incentives for RE

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

(e.g. EER>12)� Integrated air-

conditioners and water heaters

� EE Water heaters� EE rice cookers� EE fans and

� 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

� EE Washing machines(More can be added in the

future)

boilers � Thermal Energy

Storage systems(More can be added in

the future)

IEM – EETD AGM

Type of Asset Initial All. Rate (%)

Annual All. Rate (%)

1. Motor vehicles, heavy machinery

20 20

2 Plant and machinery 20 14

Government Fiscal Incentives

2 Plant and machinery 20 14

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.

IEM – EETD AGM

Year 1 2 3 4 5 6 Total

IA % 20 N/A N/A N/A N/A N/A 20%

IA RM 20,000 0 0 0 0 0 20,000

AA % 14 14 14 14 14 10 80%

Capital Allowance Savings

AA RM 14,000 14,000 14,000 14,000 14,000 10,000 80,000

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

Tax saving RM

8,840 3,500 3,500 3,500 3,500 2,500 25,340

IEM – EETD AGM

Year 1 2 3 4 5 6 Total

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

8,840 3,500 3,500 3,500 3,500 2,500 25,340

Total ITA savings RM

26,000 0 0 0 0 0 0

Total tax savings RM

34,840 3,500 3,500 3,500 3,500 2,500 51,340

IEM – EETD AGM

Comparative Auxiliary Use & Losses

IEM – EETD AGM

IEM - PPEE

Law of Declining Returns

Law of Declining Returns

70

80

90

100

Declining returns

0

10

20

30

40

50

60

0 10 20 30 40 50 60 70 80 90 100

Investment

Ret

urn

s

IEM – EETD AGM

G. Lalchand G. Lalchand G. Lalchand G. Lalchand EEEE----mail:mail:mail:mail:[email protected]@[email protected]@mbipv.net.my

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.

Potential RE development in Malaysia

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

RE

Cum

ulat

ive

MW

Cap

acity

20%

25%

30%

Gro

wth

Rat

e %

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

Years

RE

Cum

ulat

ive

MW

Cap

acity

0%

5%

10%

15%

Gro

wth

Rat

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 (%)

IEM – EETD AGM

Growing Plants on Rooftops in Chicago

IEM – EETD AGM

Roof Top Gardens

IEM – EETD AGM

Building-integrated food production

IEM – EETD AGM

Savings from EE/DSM Plan (DANIDA Project at Suruhanjaya Tenaga)

Plan period Public sector Investment (RM million)

Private Sector Investment (RM million)

Potential Electricity Savings GWh

NPV Savings RM million

2003 - 2006 33 74 1,400 237

ENERGY SAVING BENEFITS

14 May 2004 Composite file EE/DSM/RE/Co-gen

ENERGY SAVING BENEFITS

Energy saved

Eq. In mmBtu

Extra Rev - RM

MWh Power gen Oil Eq. At US$ 20.0 per

6.40 13.221,400,000 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

EETD-AGM Presentation (May-2009).ppt - IEM · (equivalent to RM 43 a year at the residential electricity tariff ... (TNB system) to drop by about ... maintenance to replace old, ...

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