Energy Efficiency – 1 The Malaysian Context

As Malaysia (and the world) is currently facing
an energy crunch, engineers will be increasingly asked about their expertise or knowledge on energy efficiency and green technology and its application in building, factory and process design and facility management. Having being active in many national forums on energy in Malaysia, I will attempt to present some perspective (with specific focus for the design and consulting engineers) on energy and energy efficiency in a series of articles in this blog post.

This introductory article give a brief overview of Energy Efficiency (E.E.) and energy markets in Malaysia. Hopefully with a background perspective on the issue at hand, readers can embark on the design and technical aspect of E.E.

Liberalisation of Energy Markets (Electricity)
Energy became a serious issue of interest to the Government during the 1990s in tandem with the then trend of 'privatisation' and 'liberalisation'. Hot on the heels of "Thatcherism" (from the 1980s) 'deregulation' and 'liberalisation' were twin pillars of the new economic energy sweeping the country up to the end of the 20th century (though 'liberalisation' can be viewed as the 'poor' twin). By the early 2000s, the generation end of the electricity market was liberalised (albeit partially) with the establishment of Independent Power Producers (IPP). However the California energy crisis of 2000 marked a transition in the public debate over 'privatisation' and 'liberalisation'. For a refresher on the California crisis, go à here (sfgate.com) and à here (ucsusa.org).
While in Malaysia, we were still debating and getting confused over the merits of liberalisation and deregulation ('liberalisation' does not mean deregulation and 'liberalised markets' in fact require stronger regulations to ensure fair market practice), Singapore was (by 2003) further down the road of liberalisation with the freeing of the retail and generation end of the electricity market and the establishment of power pools and exchange. System transmission (of electricity, also termed the system operator) however still remain under the control of one government corporatised entity. TNB which has all along been resisting this trend of breaking their monolithic structure managed to hold their position and currently 'liberalisation' of the energy market in Malaysia is in stasis.

Overview of Energy Markets
An overview of energy markets in Malaysia can be reviewed from the diagrams above.
Figure 1 – Total Energy Production, Consumption & Intensity of Usage (Source: http://www.eia.doe.gov/)
The gap between production and consumption represents the amount exported. Energy intensity is an economic indicator measuring the energy required to produce a unit of GDP (in US$ corrected by US$2000 for inflation). For a full explaination of energy intensity go here à
wikipedia.
Figure 2 – Oil Production, Consumption and Proven Reserves (Source: http://www.eia.doe.gov)
The gap between production and consumption represents the amount exported.
Figure 3 – Gas Production, Consumption and Proven Reserves (Source: http://www.eia.doe.gov)
The gap between production and consumption represents the amount exported.
Figure 4 – Energy Used in Malaysia (Source: http://www.eia.doe.gov)
The gap between generation and consumption represents the loss (transmission loss, idling etc.)

All the datas summarised in the charts can be obtained --> here. From the graphs above, we can conclude as follows:
(1) Malaysia as a resource rich country is a nett energy exporting country. As to whether this is a 'curse' (go here --> wiki and here--> "Encyclopedia of Earth") OR a blessing (context here --> slate and here --> aftenposten). can be balance by reading these reports here --> standford.edu and here --> dai.com.
(2) Since about 2003, the gap between production and consumption has narrowed and with no new major finds expected, Malaysia will be a nett energy importer in about 15 to 20 years (charts 1, 2 & 3).
(3) Chart 3 on natural gas affirms the importance of natural gas to the national economy. Malaysia is touted as one of the largest exporter of LNG in the world accounting for about 25% of Asia/Oceania and 3% of world total.

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