Energy Use Benchmarking 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.


Under Component 1 of the MIEEIP, the Energy Use Benchmarking Program, a collaborative effort with the National Productivity Corporation (NPC) developed an online e-benchmarking community, which is hosted by the latter. Energy-use benchmarks were established for eight industrial sectors through energy audits and voluntary participation by industries and industrial associations. (EIB, 2006) The objective of Component 1 was to establish and develop energy-use benchmarks for various industrial sub-sectors to be used as guidelines for industries in their energy efficiency efforts (van den Akker, 2008).


By 2007, USD 118,472 had been spent on this component (van den Akker, 2008).

Implementation
The following activities were initiated under Component 1 (van den Akker, 2008):
  • System for energy benchmarking in place.
  • Energy consumption benchmarks for Malaysian industries.
  • Industrial energy-use database.
  • Dissemination of industry energy use benchmarks.
Challenges

van den Akker (2008) highlights the following challenges for the project implementation:

  • “The usefulness of the e-benchmarking is limited by level of refinement, diversity and disaggregation of the database.

  • The interest from the industrial community is limited by its appearance, accessibility and its level of user-friendliness.

  • The wide disparity of range of the energy use index (EUI) makes it difficult for the E-Benchmarking to demonstrate the credibility of the figures mentioned. For example, the cement sector shows EUI ranging from 0.1-1.2. Apparently, the large range suggests that within cement, the various sub-sectors (e.g. cement production, processing cement products are substantially different, hence we are comparing apples and pears;

  • Care must be exercised on the reliability and validity of data submitted. Some kind of arrangement, such as preliminary energy audit, could be made on random basis to check the validity of the data provided;

  • Some companies are not interested to provide data, because they do not view the tools as being useful to them or simply because of confidentiality issues.”

Outcomes

According to van den Akker (2008), Component 1 has fostered the following outcomes:

  • The e-benchmarking has resulted in the establishment of a database comprising over 1,500 industries based on from data sourced from the Department of Statistics (DOS) (van den Akker, 2008).
  • The auditing of three cement companies revealed that the sector held the potential for 45 percent energy savings, of which 17 percent were achievable without any investments. Among the applied e-benchmarking measures were: recovering heat from kiln flue gas, reducing leakage and insulating pre-heaters and installing variable speed drives for fans and pumps (EIB, 2006). 
  • The auditing of eleven rubber factories revealed average annual potential savings of up to 40 percent by implementing effective measures. In total, three tyre factories took part in a benchmark exercise to determine their SEC outputs (EIB, 2006).
  • Energy efficiency and conservation guidelines for electrical equipment have been developed. Eight types of electrical equipment are included in these guidelines, namely: transformers, motors, chillers, cooling towers, fans and blowers, pumps and air compressors and lighting. Industries apply these guidelines to adopt energy efficiency practices and to manage and improve their energy utilization and environmental management (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.


EIB (Energy Information Bureau), 2006. Benchmarks in Manufacturing Sector. Available at: http://eib.org.my/print.php?page=article&item=98,107,109,156.