Energy Technology Demonstration Program
Policy measure

According to van den Akker (2008), the Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) was initiated by the Government of Malaysia in 1999 to improve energy efficiency in Malaysia’s industrial sector. The implementing agency of the project was the United Nations Development Program (UNDP) on behalf of the Global Environment Facility (GEF). The Pusat Tenaga Malaysia (PTM, Energy Centre) was appointed by the Ministry of Energy, Water and Communications (MEWC) to implement the project on its behalf. Funding and support for the programme is provided by the GEF, UNDP, the Government of Malaysia and the private sector.

Component 6 of the MIEEIP, the Energy Technology Demonstration Program, aims to “1) demonstrate the applicability and the feasibility (technical and economic) of proven energy efficiency technologies; 2) document and disseminate information on the application and benefits of energy efficiency technologies in local industrial settings; 3) provide technical and financial assistance to industrial energy users.” (van den Akker, 2008)

In total, USD 324,264 was spent on the Energy Technology Demonstration Program. (van den Akker, 2008)


The major activities in Component 6 involve feasibility studies, engineering design, installation, operation, monitoring and evaluation. By 2007, 7 projects had been completed (installed and commissioned) in the industrial sector. Two types of demonstration projects were formulated and applied to these projects: (i) Fast Track Approach (or ESCO approach) and (ii) Normal Approach (meaning direct implementation by PTM and the host companies). (van den Akker, 2008)

No identified challenges.

The following outcomes have been identified (van den Akker, 2008): Ten energy efficiency technology demonstration projects in energy-intensive industries (pulp and paper, glass, food, steel, palm oil) as well as three local equipment manufacturers (motor rewinding, fans) have been supported by the Energy Technology Demonstration Program. All projects were supported by means of technical assistance (feasibility analysis) and investment support (through the Energy Efficiency Projects Lending Scheme, EEPLS). Moreover, one demonstration project (Heveaboard Bhd in Gemas) based on the ESCO concept has been successfully implemented.


van den Akker, J., 2008. Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP): Final Evaluation. Available at: