Local Energy Efficient Equipment Manufacturing Support Programme
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 7 of the MIEEIP, the Local Energy Efficient Equipment Manufacturing Support Programme, aims to “initiate design and manufacturing improvement projects of local industrial equipment manufacturers as a means of promoting and accelerating the production and utilization of energy efficient equipment in industries”. (van den Akker, 2008).


By 2007, USD 113,446 had been spent on Component 7 (van den Akker, 2008).

Implementation

To improve the design and manufacturing of energy efficient industrial equipment by local manufacturers, assessments of their manufacturing capabilities were conducted as well as evaluations of their performance and potential improvements.


To conduct training of local industrial equipment manufacturers on high efficiency design and production technologies, workshops were held: in total, three local manufacturers have been offered assistance. Of these, two have completed the installation and disseminated the results of their respective project through seminars.


“Component 7 has mainly focused on industrial equipment, such as boilers, pumps, fans & blowers and motor re-winding. Two strategic documents “How to Encourage Local Manufacturers to Produce High Energy-Efficient Equipment”, one for pumps and one for fans and blowers, aim at laying out a pathway for Malaysian manufacturers of this equipment to produce high-efficiency products with competitive prices so that they are able to find a place in the highly competitive globalized market.


The main pump market in Malaysia is for water supply and the local water pump market is dominated by low-price, lower-quality pumps imported from China. As a result overall quality of the imported and purchased pumps is compromised in terms of their energy consumption per work capacity characteristics. The Malaysian pump market is estimated at RM 450 million annually. Imported pumps dominate about 85% of this market, valued approximately at RM 380 million. The local manufacturers enjoy only a 15 percent share of the market, valued at a total of RM 70 million. Currently, the survey indicated that there are no more than 5 local pump manufacturers. There are two approaches of impro-ving pump efficiency, and these are: (i) Manufacturing pumps of higher efficiency at competitive prices; (ii) Ensuring pumps are operated at optimum conditions.


Similarly, the most of the fans and blowers used in industries are of ‘average’ standard and quality. There is therefore high potential for local manufacturers to produce high quality and energy-efficient fans and blowers in this country, both for local and international markets. The potential for designing and manufacturing of these products lie in blade designing (which includes choice of materials, housing design, motor efficiency and variable speed drives).


Fans and blowers use motors to drive them. In one survey made by the Energy Commission in 2005, 70 percent of the electricity used in industries is by electric motors alone, of which only two percent of them are High-Efficiency Motors (HEMs). In Malaysia (and other developing countries, for that matter) motor-rewinding is an industry of itself, and many people earn their living by doing motor-rewinding as a business8. There is therefore high potential for energy savings at the national level if the country moves towards encouraging more widespread use of HEMs, and the Government taking particular strategies to block or reduce to a minimum the import of cheap and low-quality electricity motors (that mostly come from China).” (van den Akker, 2008).

Challenges

van den Akker (2008) reports apparent difficulties of finding local equipment manufacturers who were willing to participate at the beginning of MIEEIP. There are few such manufacturers.

Outcomes

“MIEEIP managed to secure only three equipment manufacturers (Chun Khong Engineering Sdn Bhd, Massive Fan Industries Sdn Bhd and SSC (M) Sdn Bhd, for pumps, fans & blowers, motor rewinding, respectively) had benefited in improving their equipment efficiency and productivity” (van den Akker, 2008).

References

Van den Akker, J., 2008. Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP): Final Evaluation. Available at: www.undp.org.my/uploads/mieeip%20final%20evaluation%20report%20jan%202008.pdf.