Energy Management Gold Standard

for Successful
Energy Management Program
Presented by
Ir Al-Khairi Mohd Daud
P.Eng, MIEM, PEM, REEM, MIAM, MMSQH
Country Expert AEMAS EMGS

20th May 2015

Shah Alam Convention Centre, SACC

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Energy

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What is Energy

ENERGY

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What is Energy

ENERGY

WORK

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What is Energy

ENERGY
WORK

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What is Energy

WORK WORK

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Efficiency

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Effectiveness

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Malaysia Electricity Demand

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Energy Supply Mix

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 26th October 2010

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 Malay Mail Online
Government ‘no option’ but to raise power
rates, PM says
• By Syed Jaymal Zahiid May 16, 2014
• Prime Minister Datuk Seri Najib Razak today said Putrajaya had no choice but to raise electricity tariffs as subsidising
Tenaga Nasional Berhad (TNB) using public funds would hamper development spending. He is seen here giving a speech
at the opening of the Taiping Umno building, May 8, 2014. — Bernama picKUALA LUMPUR, May 16 — Driven by the
high cost of fossil fuel, Putrajaya had no choice but to raise electricity tariffs despite knowing the move will shoot up the
prices of basic goods and services, Prime Minister Datuk Seri Najib Razak said today.

• Najib said refusal to increase tariffs would result in the government having to subsidise the country’s sole power
company Tenaga Nasional Berhad (TNB) using public funds and this would hamper development spending.

• “It's not that we want to raise (the) tariff. The cost of fossil fuel is rising so we have to raise it.

• “What options do we have? If not, we would have to use public fund(s) to subsidise TNB. The reality is, we have no
options,” he told TNB staff at the government linked company’s anniversary here.

• Najib, who is also finance minister, said it would be the duty for TNB staff to explain to consumers the rationale behind
the move to raise power tariff.

• Power tariffs rose by an average of 15 per cent effective January 1, after Putrajaya announced on December 2 last year
that it had approved the increase by utility firm Tenaga Nasional Berhad (TNB).

• Despite the increase, Energy, Green technology and Water Minister Datuk Seri Dr Maximus Ongkili said the government
would still have to spend RM14 billion on subsidies and rebates.

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 Kadar Tarif Elektrik
Tarif C2 – Voltan Unit 1 Julai 1 Mac 1 Jun I Jan
Median Tarif Komersil 2008 – 2009 – 2011 – 2014 -
Biasa 28 31 May 31 Dec kini
Februari 2011 2013
2009
Untuk setiap kW RM/k 36.60 35.60 38.60 45.1
Maximum Demand W
setiap bulan
Untuk setiap kWh Sen/k 29.60 28.80 31.20 36.5
semasa peak period Wh
Untuk setiap kWh Sen/k 18.20 17.70 19.20 22.4
semasa off-peak period Wh
Cas minima bulanan RM 600 600 600 600
ialah

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 Rate Increase
by 23% in 5
years.
In 2015
another 6%
GST and 1.6%
Renewable
energy

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2. WHY ENERGY EFFICIENCY?

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GOVERNMENT DRIVES

• Legal requirement
– Efficient Management of Electrical Energy
Regulations 2008
– MEPS
• Sustainable Development Policy and
Government drives
• Business driver
– Going Green
– Reduction of cost
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3. HOW TO DEVELOP ENERGY
MANAGEMENT PROGRAM?

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Key Steps
• Convince your Top Executives of the
benefits of SEMP
• Saving
• Recognition - Certification
• Remind them of the regulatory
requirements
• Appoint competent Energy Manager to
champion the initiative
• Follow the EMGS requirements
• Set up Performance Indicators
• Monitor and continuously improve
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 ASEAN Energy Management Scheme

ASEAN ENERGY MANAGEMENT SCHEME

4. ENERGY MANAGEMENT GOLD

STANDARD

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RECOGNITION LAUNCHED BY YB MINISTER
OF ENERGY, GREEN
TECHNOLOGY AND WATER -
19TH JULY 2011

• GreenTech Malaysia has been appointed by Asean Centre for

Energy (ACE) as Certification Body for Malaysia
• GreenTech Malaysia has been recognized
• by Energy Commission (ST) to support Continuous
Development Program (CPD) for Registered Electrical
Energy Manager (REEM)
• Institution of Engineer Malaysia under their Continuing
Professional Development (CPD) for engineers
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 Energy Management Gold Standard

“System of certification based on

excellence in energy management”

Training and
Certification of
certification of Energy
companies
Managers • Based on ISO 50001 with
• Training curriculum focused additional requirements
EXCLUSIVELY on • Three levels of certification to
managerial aspects: how to progressively drive towards EnMgt
establish and manage and best practices
EnMgt system
• Two levels of certification:
Certified EnMgr and
Professional EnMgr GreenTech MALAYSIA
What is Sustainable Energy Management

• Process of managing the energy consumption in the

organization to assure that energy has been
efficiently used.
• Covers all aspects of energy consumption, technical
and non-technical

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Principle for Energy Management Gold Standard

• Comply with organizational objective/goal

• Involve all staff in the organization
• Develop organization and staff knowledge
• Create the continuous improvement process
• Integrate with standard working procedures

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Non Sustainable Energy Management

Energy cost cycle of the energy conservation programme without

sustainable energy management system

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Sustainable Energy Management

Energy cost cycle of the energy conservation programme with

sustainable energy management system

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Energy Management Gold Standard Roadmap

Evaluation Energy Management Matrix

Energy Policy
Energy Committee
Organization
Preparation Set up EM Component
Awareness Training

Implementation Detailed Energy Audit

of Energy Select Energy Target & Plan
Conservation
Measures Set up SIT
Technical Training

System Accreditation Scheme

Integration Integrate to ISO14000/ TPM
Procedural Training

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5. CERTIFICATION

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 End-User Certification process

Corporate energy policy  

Energy Management system in place and  
documented

Trained and certified energy manager  

Motivation  
Budget management  
Demonstration of budget spending 
Demonstration of EE measures 
implementation
Verified improvement of EEI 

Energy Management System in Real EE improvement; Energy

place, budget allocated Management System is
sustainable

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Energy Management Gold Standard Logo
First-time
certification

Sustainable Energy Management

Gold Standard

Certification
demonstrating
sustainability in EnMgt
Certification renewal
system (continuous
showing improvement
improvement of Energy
in EEI
Efficiency Index (EEI) over
3 years or maintaining of
good EEI over 3 years)
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 European Union

AEMAS Structure Partly Funded by

Accreditation
Body
Accredit certification bodies
to certify companies &
energy professionals

Certification
National Support
Bodies
Network (NSN)
Indonesia Vietnam Philippine Malaysia
Thailand
Certify Companies and
Certify Energy Managers

Certified Company Training cert CEM cert PEM cert

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Role of GreenTech Malaysia

• Certification Body for AEMAS in Malaysia

• Promote the adoption of Sustainable Energy
Management through AEMAS
• Train and qualify AEMAS Auditor and
Energy Manager
• Certify Energy Manager & Profesional
Energy Manager
• Certify Energy End-User who adopt AEMAS
system
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Sample of
Certificate

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Certification of Energy
Managers
• Empowers industries with in-house capabilities to establish and manage
the EnMgt system
• Enhances the professional standing of Energy Managers
• Training curriculum based on 220-page Energy Management Workbook:

- Role of the energy manager

- How to define the energy policy
- How to appraise the energy management performance
- How to set up and manage: energy baseline, EEI, Energy Accounting Centers, Energy
Management Committee, Energy Management Working Procedures, Investment
Appraisal for Energy Efficiency Projects, Human Resource Development in Energy
Management System, Documentation in Energy Management System
- How to establish Energy Target & Plan, including organizing Energy Audit & Analysis,
Measurement & Verification
- How to integrate the Energy Management System into Business Practice (working
,monitoring and reporting procedures, other management standards, …)
- Project management and investment
- Energy Management performance review

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Category of Energy Professional

There are two categories of energy managers;

• Certified Energy Manager (CEM)

• Professional Energy Manager (PEM)

The purpose of having two categories of energy

managers is to assist and encourage professionals in
the energy management career development.

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Roadmap for Energy Professional
Registered
Electrical Energy Registered
Manager (REEM) Electrical
Certified Energy
Manager – CEM – Energy

Qualification Assessment
Manager
New candidates (REEM)
with minimum

Training and Test

qualification

(Compulsory)
Application &
Submit 2 IEMP
3 years Interview
New candidates
with: Professional
Energy Manager –
Pre-Qualification PEM
Experience

- Certification as
energy professional
by countries’
scheme

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AEMAS ACHIEVEMENT IN MALAYSIA
Certification Quantity

1. Energy Management Gold Universiti Teknologi Malaysia

Standard – 3 Star
2. Energy Management Gold Puncak Niaga SSP2
Standard – 1Star Attorney Chamber
BHEUU
Politeknik Merlimau
Telekom R& D Sdn Bhd
3.Certified Energy Managers 789 – Trained
666 - Certified
4. Professional Energy 2
Managers
5. REEM 198/550
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6. SUCCESS STORIES

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Energy Management Stories

• Story 1: UTM
• Story 2: Puncak Niaga

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Story 1:

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 Electrical usage trend at UTMJB
Less RM800K
2004 –2011 (in RM) or 3.9%
from 2009
Increasing Trend averaging
20 15% yearly from 2003 to $18.99
RM Millions

2009 $18.26
$17.60
18
$16.49
16
$14.15
14 $13.16
$11.90
12
$10.04
10

2004 2005 2006 2007 2008 2009 2010 2011

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 The Winning Move
SUCCESS
FACTORS

Start by
Building People!
Jan 2011:
Training for 30 Energy
Managers

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 SEMP METHODOLOGY
A. Building Housekeeping & Best Practices
(ie Electrical Tariff Review, TNB OPTR Scheme, Retime of centralised a/c
system operation, EAC Electrical Bill statement system, Operation&
Maintenance Policy)
B. SETTING UP C. ENERGY AUDIT &
D. OTHERS
SUSTAINABLE ENERGY RECOMMENDATION
MANAGEMENT SYSTEM FOR IMPROVEMENT
• Development of energy • Energy saving and
policy • Overall energy survey policy posters
• Development of an energy • Establish building energy
balances and existing
• Working manuals
management committee
• Establishment of energy equipment details booklet
accounting center (EAC) & • Evaluating systems • ‘Energy Manager’ in-
appointmnt of Headof EAC performance house workshop
• Establishment of Energy • Setting the practical utility • Providing Energy
Efficiency Index for benchmark targets and Awareness seminar
overall organization and building benchmarking • Installation of electrical
each EAC • Recommendations for meters
• Establishment of overall improvement via UTM
& EAC working procedure Transformation Projects
• Establishment of • Economic analysis
reporting and monitoring
system
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 ENERGY MANAGEMENT
before SEMP
MATRIX
implementation
current status as of Dec 2013 (after 3
years)
Energy Policy Organization Motivation Information System Marketing Investment

Energy policy, action Formal and informal Positive discrimination

Energy management has Comprehensive system Marketing the value of
plan and regular channels of in favor of ‘green’
been fully integrated into sets targets, monitors energy efficiency and
review, have communication schemes with detailed
management structure. consumption, identified the performance of
4 commitment of top regularly exploited investment appraisal of
Clear delegation of faults, quantifies energy management
management as part by energy manager all new build and
responsibility for energy savings and provides both within and outside
of an environmental and energy staff at refurbishment
consumption budget tracking the organization
strategy all levels opportunities
M & T reports for
Energy manager Energy committee
Formal energy policy, individual premises
accountable to energy used as main Programme of staff Some payback criteria
but no active based on sub-metering,
3 committee representing all channel together awareness and regular employed as for all
commitment from but savings not
users, chaired by a member with direct contact publicity campaigns other investment
top management reported effectively to
of the managing board with major users
users
Contact with major Monitoring and
Energy manager in post
Un adopted energy users through ad- targeting reports based
reporting to ad-hoc Investment using short
policy set by energy hoc committee on supply meter data. Some ad-hoc staff
2 committee, but line term payback criteria
manager or senior chaired by senior Energy unit has ad-hoc awareness training
management and authority only
department manager department involvement in budget
are unclear
manager setting
Cost reporting based on
Energy management is the
Informal contacts invoice data. Engineer Informal contacts used
An unwritten set of part-time responsibility of Only low cost measures
1 between engineer complies reports for to promote energy
guidelines someone with only limited taken
and a few users internal use within efficiency
authority or influence
technical department

No energy management or
No information system. No investment in
any formal delegation of No contact with No promotion of energy
0 No explicit policy No accounting for increasing energy
responsibility for energy users efficiency
energy consumption efficiency in premises
consumption

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 UTM SEMP key activities
 Change operation hours of centralised air-conditioned from 7:00am-5:00pm to
7:30am to 4:30pm
 Increase PTJ awareness on their electricity energy usage when receiving
monthly electric bill statement and after Energy Saving Campaign organized in
faculties, colleges, offices, UTM security guards and UTM Cleaners
 Controlling the usage of the centralized air-conditions (AC) system during
weekends. All SPACE program and weekend classes are only conducted in
rooms with split unit AC
 Retrofit energy saving lamps T5 of 60,000 units.
 50% reduction of 60,000 lamps x 20 Watt =1200 kW/h @ RM10K/month
 Maximum Demand reduced from 15.5 MW to 13.5 MW or 2.5 MW saving
 Maximum Demand charges reduced 2.5 MW of RM30.3/kW @ RM75K/month
 Switched to a tariff with an Off-peak Tariff Rider (OPTR), starting 19 July, 2011
a special tariff allowing UTM to enjoy a 20% discount of energy usage from
10:00 pm – 8:00 am
 Technical and System Energy Audits done by in-house team
 Training of 30 Certified Energy Managers in January 2011 and another training
for 12 more Certified Energy Manager in December 2013 ( the only organization
that have this much certified energy manager by AEMAS/Greentech
 More organized and structured SEMP at faculties, colleges & offices

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 UTM highlighted as the exemplary Energy
Management Institution - In Green Purchasing
Asia Magazine

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 AWARDS RECEIVED 2011-2014
July 2011 Sep 2012 Jan Oct 2014
Oct 2010 2013
1-Star Asean 3-Star
Start Energy Energy 2-Star
Managemen AEMAS Award AEMAS AEMAS
t System EMGS 2012 EMGS EMGS

ENERGY SAVING RM6.6 MILLION FOR 2010-2013

2011 2012 2013
2010
RM 1.1 RM 2.2 RM 2.5
RM800,000
million million million

ENERGY SAVING 21,070,758 kWh FOR 2010-

2013
2011 2012
2010 2013
4,555,37 6,087,44
2,207,888 8,220,048
9 3
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The only organization to get 3 STAR
ASEAN Energy Management Gold Standard
Award for the achievement of energy
saving
29 January 2013 @ Marriot Hotel, Putrajaya

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Story 2: SSP2

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 112,677,246 kWH 56,364,438 KWH
67% 33%

SSP2 Load Apportioning Based

on Energy Audit 2011
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 • Top Management
Support • Whole Organization
• Recognition

• Effective Team
Team • Specific Target

• Proper process
Procedure • Performance Efficiency

• CEM/REEM
Competencies • Reliability

Energy Management Strategy

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 Energy Energy Energy
Efficiency Utilization Awareness
Refurbishment of low Utilization of peak & off
Awarenes program
efficient pumps peak period

Share info & knowledge

Replacement of Utilization of refurbed
extract from website on
conventional bulb with high performance
new developement on
energy saving types pumps
energy technology

Continuous study on
On-Line Condition Base
Installation of power the performance of
Monitoring for
meters existing
pumpsets
mechine/equipment

Sustainable Improvement Teams

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Energy Efficiency Team
Project implemented
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Energy Utilization Team
Control Parameters
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Awareness Team
Energy Corner
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Staff and Contractors
Commitment to SEMP
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Rewarding the team:
Visit To Greentech Malaysia
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Intake Plant Treatment Plant

Intake Plant Annualize

Treatment Plant Annualize
Energy Consumption
44
Energy Consumption
Millions

1,110

x 100000
1,108
43 1,106
1,104
1,102
42
1,100
1,098

41 1,096
1,094
1,092
40
1,090
Jan Feb Mar Apr May Jun
Jan Feb Mar Apr May Jun

SSP2 Annualize Consumption

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Baseline 2014 Performance
Intake Plant Baseline Intake Plant Equation
3,800
Equation 2013

Thousands
3,800 3,700
Thousands

3,750
3,600
3,700
3,650 3,500

KWH
3,600
KWH

3,400
3,550
3,500 3,300

3,450 3,200
3,400
3,100
3,350
28.000 29.000 30.000 31.000 32.000 33.000
28.00 29.00 30.00 31.00 32.00 33.00 34.00
Thousands
Thousands
y = 127.2x - 42430
y = 54.08x + 2E+06 MLD
MLD R² = 0.939
R² = 0.367

Period Intake Plant (KWH) Treatment Plant

(KWH)
Jan – June 2013 21,623,283 55,047,771
Jan – June 2014 21,155,935 54,984,654
Saving 467,348 64,117

SSP2 Intake Plant

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Senior Management support is the key to
the programme success

Develop the ownership of the programme

Developing Team Work requires clear roles

and responsibilities

Staff support and competencies

development is the key.

The challenges

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CONCLUSION

• Organization can’t afford not to be efficient

to remain competitive
• EMGS provides the system, trainings and
certification for Energy Professionals
• EMGS has proved that savings are
achievable and significant
• EMGS ensures sustainability in efficiency
culture

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 More information

How to register?

http://mepa.my/events/

Official website

http://www.aemas.org/

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THANK YOU

Faqeh Management
Suite 1208, Amcorp Tower,
18, Persiaran Barat, 46050, Petaling Jaya
019 2174647
www.faqeh.com, [email protected], [email protected]

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