Energy Auditing Program and Energy Rating 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 of the programme is provided by the GEF, UNDP, the Government of Malaysia and the private sector.


Component 2 of the MIEEIP, the Energy Auditing Program, aims to “promote energy auditing as an effective tool for energy management, to establish Sectoral Energy Audit Teams, and to conduct a continuing Energy Audit Program for industries” (van den Akker, 2008).     


Component 3 of the MIEEIP, the Energy Rating Program, aims to “provide information on energy-efficient equipment and energy rating programs to increase awareness and encourage the use of energy efficiency equipment in industry and set up an industrial equipment testing facility to label equipment” (van den Akker, 2008).


The main objective of the audits carried out by the MIEEIP was to identify energy saving measures for companies within eight targeted industrial sectors. From each sector - wood, pulp and paper, iron and steel, cement, rubber, glass, ceramic and food - the project identified replicable measures that demonstrate energy efficiency applications with currently available technologies. (EIB, n.d.)


In total, USD 1,006,754 was spent on Component 2, while there were no costs associated with the implementation of Component 3 (van den Akker, 2008).

Implementation

The implementation measures of Component 2 include (van den Akker, 2008)

  • "Promotion of energy auditing for an industrial energy management

  • Establishment of standardized energy auditing procedures, energy audit tools and energy management systems.

  • Conduct of energy audits for selected industrial sectors.

  • Evaluation of the results and impacts of the auditing program.

  • Development of sustainable follow-up programs for each industry association.

The implementation measures of Component 3 include (van den Akker, 2008):

  • Implementation of a comparative energy rating programme.
  • Proposed policy intervention needed, dissemination of information on energy -efficient equipment and energy-rating programmes to increase and encourage the use of energy efficient equipment.
  • Conduct of policy support studies.
  • Proposal for an equipment performance testing facility. 

The work carried out under the components has resulted in the production of a useful 56-page document titled “Industrial Energy Audit Guidelines - A Handbook for Energy Auditors” targeting, in particular, top management and maintenance personnel of industries to energy services companies (ESCOs), as well as academia and government agencies. The guidelines have the following benefits:

  • Offer a guide to efficient energy practices that can be implemented in the Malaysian industries;

  • Provide insights into the structure and systematic energy audit practices; and

  • Allow capacity-building of energy auditors and maintenance personnel.

The first edition of the guidelines was published in 2003 and was distributed free of charge to industries and other target groups. The second and more voluminous version is at the final stage of printing and will be available soon. (van den Akker, 2008)

Challenges

According to van den Akker (2008), industries were reluctant to participate in the project and have their sites audited at the beginning of the MIEEIP. During the course of the project’s implementation, through continuous promotions such as seminars, workshops, training courses, demonstration projects, newsletters, websites and direct consultations, an increasing number of industries were willing to participate.

Outcomes

The following outcomes of the two components have been identified (van den Akker, 2008):

  • “The mid-term evaluation as well as stakeholders interviewed has the opinion that the general standard of quality of the energy audit performance was high.

  • Among the achievements as in January 2008 were reductions in terms of energy consumptions, costs and CO2 emissions achieved by MIEEIP in all eight sectors from at total of 48 audited industrial companies up to 2007.

  • Since 2000, 76 factories have been visited and consulted and a total of 54 industries have been audited under the project, in the following sub-sectors: cement (3), ceramic (6), iron & steel (4), food (10), glass (3), pulp & paper (6), rubber (9), wood (7), oleo-chemical (2), plastics (2) and textile (2). MIEEIP has produced a useful 56-page document called “Industrial Energy Audit Guidelines – A Handbook for Energy Auditors”.”

The following showcase the energy savings achieved by implementing energy efficient measures following energy audits (EIB, n.d.):

  • HeveaBoard Bhd.: saves RM 720,000 on annual energy costs, saves 37,000 GJ in fossil fuels and decreases CO2 emissions by nearly 3,000 tonnes each year. Following an energy audit, HeveaBoard, a particleboard manufacturer, replaced its fuel oil fired thermal heater with a wood dust fired thermal oil heater. This allowed the company to capitalize on a cheap source of energy, namely the excessive wood waste left over from production. HeveaBoard also engaged the services of an Energy Service Company (ESCO) to install the system which guarantees results and payment based on energy savings achieved.

  • Pan-Century Edible Oils (PCEO) Sdn Bhd.: a manufacturer of oil refinery products and specialty products had monthly factory energy bills amounting to RM 2 million. A joint audit by the PCEO energy management team with the MIEEIP identified several potential energy cost saving measures, including steam management, cooling tower modification, energy use monitoring and targeting, and the replacement of standard motors with high efficiency motors. Within 1-2 years, steam consumption at PCEO was reduced by 10 percent. The company has attained total cost savings of RM 1 million from the combined four energy efficiency projects implemented.

  • Globalmas Sdn. Bhd.: a manufacturer of canned food based in Sarawak recorded an annual turnover of RM 4.3 million in 2002 and found ways to slash its operating costs. The company identified the best use of energy consumption during various plant processes by reanalysing electric, gas, fuel or steam resources. Globalmas discovered that with a total capital expenditure of RM 125,000, the factory could reduce its energy costs by nearly half and recover the investment within a period of 18 months.

  • Tritex Containers Sdn. Bhd.: a paper manufacturer has found a way to save costs now for future raw material costs. For 20 years, the company’s management thought large boilers were good value for its production process until an energy audit revealed that oversized boilers caused inefficient use of energy and money loss. Initial findings by the audit team also showed that the company had the potential for annual energy savings as high as RM 174,000 a year. With an initial investment of only RM 44,500, Tritex put in place a more efficient system that resulted in annual energy savings of RM 89,464.

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.


EIB (Energy Information Bureau), n.d. Cases on Energy Savings in Manufacturing. Available at: http://eib.org.my/index.php?page=article&item=98,107,109,110.