ENERGY EFFICIENCY INDUSTRY & ITS POTENTIAL CAREER

OPPORTUNITIES: INDUSTRY PLAYERS’ PERSPECTIVE

By

ZAINI ABDUL WAHABEnergy Management System Consultant

UNIVERSITI MALAYSIA KUALA LUMPUR

INTERNATIONAL COLLEGE2nd March 2016

Career Talk For Undergraduates 2016

OUTLINE1. INTRODUCTION AND OVERVIEW OF ENERGY AND ENERGY

EFFICIENCY POTENTIALS

2. ENERGY SERVICE INDUSTRY & BUSINESS POTENTIALS IN ENERGY EFFICIENCY

3. OVERVIEW OF ENGINEERING SOLUTIONS FOR ENERGY SAVING PROJECTS IMPLEMENTATION

4. OVERVIEW OF POTENTIAL CAREERS IN ENERGY EFFICIENCY INDUSTRY

5. REGISTERED ELECTRICAL ENERGY MANAGERS IN MALAYSIA

6. CHALLENGES IN FUTURE CAREER MARKETS FOR GRADUATES

7. THE WAY FORWARD

ZAINI ABDUL WAHAB

CONSULTANT/ PRACTITIONER

REGULATOR/POLICY MAKER IN GOVERNMENT SERVICES

CONSULTANT/INDUSTRY PLAYER

1997-2004

2004-2012

2012-present

Certified Competent EnMS Expert, United Nation Industrial Development Organization

Registered Electrical Energy Manager, Energy Commission

Certified Trainer, HRDF

Registered ISO50001 Technical Auditor with Certification Bodies

Registered Consultant, Asian Development Bank

Member of Board of Judges, Asean Energy Awards 2011

Expert Facilitator for EE Policy Workshop, IEA 2012

EE Policy Studies & strategic implementation plan for national & state levels

Expert trainer & speaker for energy management training, seminars and conferences at local & international programs

EE Capacity Development Program Designs

EnMS development & implementation , energy audit & business case proposal preparation & presentation

REEM Coaching for qualified professionals/EE practitioners

AS A PROFESSIONAL SPEAKER AT LOCAL & INTERNATIONAL EVENTS

AS A TRAINER FOR CAPACITY BUILDING PROGRAMS

AS A PANELIST FOR LIVE SHOWS AT TV & RADIO STATIONS

In Printed & Online Media

A COLUMNIST IN GREEN PLUS MAGAZINE

NOW…

WHAT IS ENERGY EFFICIENCY(EE)?

Using the same/less amount of energy

to produce the better Output

Using less energy to accomplish

the same task/to enjoy the same comfort level

Process ( Equipment/Operations)INPUT OUTPUT

• Comfort level

• Production volume

• Quality• Safety

• Electricity• Fuel

THE BASIC APPROACH…

….but how Malaysia has been doing

it?

….we MUST CHANGE

THIS!

OVERVIEW OF ENERGY EFFICIENCY BUSINESS POTENTIALS

IN MALAYSIA AND REGIONAL MARKETS

ENERGY EXPOSURE BEYOND ELECTRICITY PRICE

• EE programs help manage energy risks - reducing exposure to the high costs of sourcing, transport & energy-intensive upstream products

GLOBAL EE POTENTIALS

EE potential used by sector in the New Policies Scenario 2/3 of the economic potential to improve EE remains untapped in

the period to 2035 Source:

IEA

EXAMPLES OF MONETARY BENEFITS FROM EE IMPLEMENTATION

EE BUSINESS NEWS& POTENTIALS

SEA: INVESTMENT POTENTIALS (US$MIL.)

The total market size = US$6.7 billionIndustrial = US$2.9 billion(44%)Commercial = US$3.7 billion(56%)source:

www.reexasia.com

Biggest potentials in the industrial sector

IMPACTS OF ENERGY EFFICIENCY POLICIES IN JAPAN

1,327

1,273

1,192

1,101 1,1011,059 1,059

1,000978

951

1,036

1,013

1,013

985

1,0491,091

1,051

1,0701,0771,037

1,0441,021

1,059

1,036

1,038

1,050

1,1311,142

1,345

1,405

1,467

1,5661,573

1,438

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

Fiscal Year

Pri

mar

y en

ergy

con

sum

ptio

n / G

DP

Ton oil eq. / Billion

yen

2nd Oil Crisis

1st Oil Crisis

Source: METI/General Energy Statistics

10 years

Improvement by 30%

10% improved for 20 years

Main Improvements:• Energy Management• Energy Efficient

Equipment• Efficient Processes

Technologies• R&D

ENERGY CONSUMPTION PERFORMANCE WITH NATIONAL ENERGY EFFICIENCY IMPLEMENTATION IN THAILAND

Through strong regulatory implementation framework, sustainable funding & holistic approach for focused sectors

 OVERVIEW OF ENERGY IN MALAYSIA

MALAYSIA’S OIL AND GAS RESERVES

CRUDE OIL : 5.46 billion barrels, NATURAL GAS : 88.00 trillion standard cubic feet RESERVE LIFE : Oil – 19 years, Gas - 36 years(source: PETRONAS (as at 1st January 2008)

The Prime Minister has announced in January 2015 that Malaysia is already a net importer of petroleum

ENERGY RELATED POLICIES IN MALAYSIA

There is a need to have a dedicated policy on energy efficiency at the national level &recommended by the study by government

Source: SEDA Malaysia

No clear national policy on energy efficiency yet

HOW PRIMARY ENERGY IS USED TO PRODUCE ELECTRICITY FOR CONSUMERS

• No matter the source, it takes a significant amount of energy to make electricity

• Globally, more than 35% of the primary energy consumed on a daily basis is being used to make electricity

Source: Exxon Mobil Energy Outlook 2012

source: National Energy Security Forum 2012

ELECTRICITY GENERATION MIX IN MALAYSIA: OIL TO GAS DEPENDENCY

moved from oil dependent to gas &coal dependent for electricity generation.

The dependency on coal from Indonesia reduced from 84% in 2008 to 65% in 2011.

Source: Energy Commission

The reserve margin for 2013 is 31%•an installed capacity of 21,749 MW•a peak demand of 16,562 MW•a minimum reserve margin of 25% would be required

WHY EE IS CRUCIAL FOR MALAYSIA?

Energy demand projected to increase from 2,000 PJ(2009) to 4,013 PJ(2030), average rate of 3.6% /year

Short term &long term measures that can be taken is through EE initiatives while working on looking for new energy sources (RE& alternative energy)

To balance and reduce the supply and demand gap

Source: EPU,2011

WE NEED TO

CREATE THE EE LINE!

TO QUANTIFY!

OVERVIEW OF ENGINEERING SOLUTIONS FOR ENERGY SAVING

PROJECTS IMPLEMENTATION

Energy Supply & Utilization

Asset Responsibility Period

Energy affects most of the life cycle of assetsEnergy costs affected by the fluctuating global primary energy market prices – mainly from fossil fuels – depleting resources

WHERE TO SAVE?...MANUFACTURING FACILITIES

Source: Energy Conservation Centre of Japan, 2011

Pumps (25% - 35%) Chiller (20% - 25%) AHU/FCU (25% - 35%) Cooling Tower(15% -

20%

WHERE TO SAVE?... AIR CONDITIONING SYSTEMS

ENERGY EFFICIENT LIGHTING TECHNOLOGIES

• Savings at 40-60% from lighting systems

Energy Saving Micro Ballast

and HP Fluorescent T8-28 watts

LED Fluorescent Tubes

LED Down Light

LED Ceiling Light High Performance LED Street Light

LED Spot/Flood Light

Adoption of effective energy management system technologies for energy performance records & monitoring

Basic data collection & reporting

Computerized management system with operational controls of key operating parameters

Key data gathering, energy performance tracking, measurement & reporting system

THE INTEGRATED AND INTELLIGENT ELECTRICITY

SYSTEM OF THE FUTURE

Source: IEA

CAREER POTENTIALS IN EE

INDUSTRY

Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings

UNEP - GEO-5 for BusinessImpacts of a Changing Environment on the Corporate Sector

Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company.

University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices

UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business

2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year. 70% inquiries focused on energy management and greenhouse gas emissions & more than ½ questions about sustainability reporting

THE CORPORATE TRENDS…Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year.

MORE TRAINED AND COMPETENT PERSONNEL IN SUSTAINABLITY ARE

REQUIRED

ENERGY EFFICIENCYEnergy Management

Energy Management SystemConsultancy/Advisory

Standard &CertificationPerformance Measurement &

VerificationEnMS ToolsHardware

(meters , sensors & etc)Software (Computerized EnMS)Energy Engineering

Energy Efficient technologiesTesting, Rating & Labeling

R&D, TQMManufacturing

Energy AuditingCapacity BuildingEducation & Awareness

Training & Development

Policy Policy research & development

Regulatory

Fiscal & FinancialInvestments & FundingAnalysis & Evaluation

POTENTIAL AREAS TO EXPLORE IN EE INDUSTRY

OPTIONS FOR CAREERS IN EE

Energy Auditors

Energy Efficient Technology

Application Experts

Measurement &Verification Specialists

Energy Efficient Equipment Inventors

Energy Efficient Facilities Designers

Energy Economists & Data Analysts

Policy & Regulatory Experts

Demand Side Management Specialists

Energy Managers

Energy Management Consultants

Documentation & Certification Specialists

ISO50001 EnMS(System/

Technical Auditors)

Expert Trainers

WHAT IS ENERGY

SERVICE?

SCOPES OF ENERGY SERVICE IN IMPLEMENTING EE PROJECTS

Built-in scopes:Project funding & financing options

Engineering & economic feasibility studies

Project design, engineering & permitting

Project construction

Project commissioning

Operations, spare parts & maintenance

Performance measurements, verification & monitoring

Energy performance reporting

Value added/additional scopesConsultancy &

AdvisoryRegulatory

ComplianceStandards &

Ratings

WHAT IS AN ENERGY SERVICE

COMPANY(ESCO)?

ESCOs must demonstrate the technical & managerial competencies to design & implement projects involving multiple technologies & energy efficiency solutions at building/industrial facilities

Develop, implement turnkey & comprehensive EE projects

ESCOs offer energy performance-based contracts

Returns of investments by ESCOs are from the actual energy savings achieved by the projects as the main element their business

No upfront costs/investments required by the facilities owner

ESCO INDUSTRY SIZE ESTIMATES BY SELECTED COUNTRY

Source: Lawrence Berkeley National Laboratory , National Association of Energy Service Companies, USA September 2013

ESCO ORGANIZATION WORKFORCE BY JOB CATEGORY

Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010

JOBS CREATED IN EE SERVICES SECTOR:COMMERCIAL & INSTITUTIONAL

Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010

JOBS CREATED IN ENERGY SERVICE INDUSTRY: INDUSTRIAL

Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010

JOBS CREATED IN EE SERVICES SECTOR:RESIDENTIAL

Source: Ernest Orlando Lawrence ,Berkeley National Laboratory,2010

THE IMPLEMENTATION OF EFFICIENT MANAGEMENT OF

ELECTRICAL ENERGY REGULATIONS 2008(EMEER 2008) IN MALAYSIA

under Electricity Supply Act 1990 effective from 15 December 2008

The legal requirement to have registered electrical energy managers at affected installations

KEY PLAYERS & ROLES IN EMEER 2008

EMEER 2008

SUPPORT MEASURES• Technical assistance ,

advisory & guidelines• Education &

awareness• Incentives/rewards/

recognitionsENFORCEMENT• Monitoring for

compliance• Impact study &

review implementation for improvement

• Comply• Develop &

implement EEM Program

• Build in-house capacity

• Implement saving measures

• Compliance• Perform functions

& duties(Reg. 16)• Expert advice &

assistance in EEM & energy saving measures

• Continuous professional development

REGISTERED ELECTRICAL ENERGY MANAGER

(REEM)

The only competency certificate for energy efficiency practitioners recognized by the Malaysian law

Regulation 11: Registered Electrical Energy Manager Of Installation• No person shall engage in, be employed or hold himself out as a registered electrical energy manager for the purposes of these Regulations unless the person has been registered by the Commission

REGULATION 12: QUALIFICATION REQUIREMENTS

A Malaysian citizen aged 23 years and above who –

(i) holds a certificate of registration as a Professional Engineer under the Registration of Engineers Act 1967 [Act 138] and possesses at least six months working experience in the efficient management of electrical energy at an installation; or

(ii) holds a degree in Science, Engineering, Architecture or its equivalent and possesses at least one year working experience in the efficient management of electrical energy at an installation; or

(iii) holds a Certificate of Competency issued by the Commission as an Electrical Services Engineer or a Competent Electrical Engineer and possesses at least nine months working experience in the efficient management of electrical energy at an installation; and

(Minimum mandatory requirements)

REGULATION 16 :FUNCTIONS AND DUTIES OF ELECTRICAL

ENERGY MANAGER• To AUDIT and analyse the total electrical energy

consumption or generation

• To ADVISE in developing and implementing measures to ensure efficient management of electrical energy at the installation

• To MONITOR effective implementation of the measures

• To supervise the keeping of RECORDS on efficient management of electrical energy at the installation and verify its accuracy; and

• To ENSURE the timely submission of information and reports under the regulations.

POSSIBLE VALUE ADDED REEMS’ ROLES: EE & ENMS EXPERT CONSULTANCY & ADVISORY

SERVICES

POSSIBLE VALUE ADDED REEMS’ ROLES: ISO50001 CONSULTANT & AUDITOR

KEY SUCCESS FACTOR AS A REEM

Specialization & resourcefulness

Having strong grasps on the key concepts & elements in energy management system

Knowing other experts or players in the market & their specialties

Well defined scope of services and deliverables

Availability of strong & reliable technical supports

With a company with a strong financial standing

Projects reference or track records

Possess excellent & effective communication skills

Having added & relevant qualifications and competencies

Visibility to the market

FUTURE CHALLENGES:POTENTIAL TRENDS AND

MAJOR FACTORS IN SHAPING CAREER

MARKETS

GLOBALIZED CAREER MARKETS

Will you participate or just looking?

BRAIN DRAIN

THE WAY FORWARD…HIGH INCOME ECONOMY

ASEAN ECONOMIC COMMUNITYBUT MALAYSIANS MUST BE GOOD AND SKILLFUL ENOUGH TO COMPETE WITH OTHERS!

THE INFLUX OF FOREIGN WORKERS: WAKE-UP CALL OR OPPORTUNITIES

OR THREATS?

TRANS PACIFIC PARTNERSHIP AGREEMENT(TPPA)

BUT MALAYSIANS MUST BE GOOD AND SKILLFUL ENOUGH TO COMPETE WITH OTHERS!

SO,WHAT DO YOU

NEED TO DO ABOUT IT?

CHOICES OF YOUR FUTURE CAREER

The higher the level of your skills, the higher

the potential rewards/remunerations

CONCLUSION AND THE WAY FORWARD FOR ENERGY EFFICIENCY

INDUSTRY

11TH MALAYSIA PLAN(2015-2020):ENHANCING DEMAND SIDE MANAGEMENT

FORMULATING A COMPREHENSIVE DEMAND SIDE

MASTER PLAN

EXPANDING DEMAND SIDE MANAGEMENT

MEASURES

Industries Buildings Households

ElectricalEnergy

Transport Energy

Thermal Energy

FOR ENERGY EFFICIENCYINDUSTRY DEVELOPMENT IN MALAYSIA

Strong Governan

ce & regulator

y framewor

k

Financing &

business friendly

mechanisms

Accountable &

competent

implementing

agency

Information,

Education &

Awareness

R&D & Commerciali

zation

INDUSTRY GROWTH

Policy Targets

Policy Introduction

Focused Sectors +Industry Players

+ Consumers

Industry players just need the basic & right “infrastructure” & supports.We can take it from there!

CREATED • Business & job opportunities• More experts/workers from

energy efficiency industry• New source of economic growth

• More Direct Domestic Investments

THE FINAL MESSAGEWHAT ROLES YOU WOULD LIKE TO PLAY FOR ENERGY EFFICIENCY FOR YOUR OWN FUTURE AND FOR MALAYSIA?

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THANK YOU!My communication points on Energy Efficiencyzaini@cnsgroup.com.my0192152700