EGNRET 42, Honolulu, USA
7 April 2014

APEC Peer Review on
Low Carbon Energy Policies (PRLCE)– Malaysia –Aishah Mohd Isa, Ph.D
Asia Pacific Energy Research Centre (APERC)
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Presentation Outline
Background of
APEC PRLCE
Overview ofMalaysia
PRLCE inMalaysia•Objectives of PRLCE•Mechanisms and Responsibilities of Stakeholders•Previous PRLCEs•Malaysia in brief•Malaysia energy indicators•Issues Covered2

Background of
APEC Peer Review on
Low Carbon Energy Policies (PRLCE)

3

PRLCE Objectives
Initiated by APEC Energy Ministers’ 2010 Fukui Declaration
•••

•

•

Share information on low carbon energy performance as well as on policies andmeasures for improving and promoting low carbon energy in respectiveeconomies;
Provide opportunities for learning from the experiences of other economies
and for broadening the network among low carbon policy experts;
Explore how low carbon goals on an overall and/or sectoral basis and actionplans could be effectively formulated in each economy under review, taking
into account the range of possible strategies that could be used, according to
the circumstance of each economy;Monitor progress on attaining low carbon energy goals on an overall and/or
sectoral basis and implementing action plans, if such goal and action plans havebeen already formulated at the time of the review; andProvide recommendations for voluntary implementation on how
implementation of action plans could be improved with a view to achieving low
carbon energy goals.
4Main Responsibilities and Stakeholders
Host Economy

APERC

Review Team

EWG

• Plan review
process• Prepare
Documents
for Review• Source andprovideddata• Assess thepreliminaryand the draft
final report• Prepare theguidelines for
PRLCE• Liaise withHost
Economy onlogistics andtechnicalpreparations• Lead theexpert
review team• Review thefinal reportwith Host
Economy• Conduct thereview• Presentfindings andrecommenda
tions in thepreliminary
report• Prepare thedraft final
report• Discuss andEndorse thedraft final
report• Report to
APEC Senior
Officials

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Previous PRLCE Exercises•21-25 May 2012•10 experts•45 Recommendations

THAILANDPHILIPPINES•19-23 November 2012
•9 experts•45 Recommendations•13-17 May 2013
•8 experts•51 Recommendations

INDONESIA
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Overview of Malaysia7Malaysia in brief
Economic Indicators (2012)

Area

329,847 km2

Population

29.34 million

Income per capita

USD 9 974

*Ministry of Finance 2013

Fossil Fuel Energy Resources (2011)

Renewable Energy Resources

Oil Reserves

5.858 bbl

Large hydro Potential

20 GW

Gas Reserves

89.98 Tscf

1300 MW

Coal Reserves

1.938 bil ton

Biomass and biogas from
Palm Oil Waste
Small-scale hydro500 MW

Solar Power

6500 MW*National Energy Balance 2011

Energy Commission(http://www.erc.or.th/ERCWeb/Upload/Document/11.0012.30%201Ahmad%20Fauzi%20Hasan%20(Malaysia).pdf)

8Malaysia energy indicators
Energy Indicators in per capita (2011)

TPESElectricity demand
CO2 emissions

24,560 toe/capita
3,706 kWh per capita
7.7 metric tons CO2/capita*National Energy Balance 2011 and Worldbank

Note that in 2011, NRE capacity is
9about 53 MW (<0.2% of total)

PRLCE in Malaysia
9-13 December 201310

PRLCE Process for Malaysia
Malaysia
accepted tohost PRLCEAPERC and Malaysia
formed PRLCE
Review Team

Malaysia submitted
backgroundinformation

EWG Members
endorsed
PRLCE Malaysia

3 October 2013

8 November 201313 November 201318-22 November
2013 at EWG46

Malaysia reviews
draft PRLCE
report

PRLCE Review
Team to complete
draft PRLCE report

PRLCE Review
Team visit toMalaysia

ON-GOING

3 March 20149-13 December 2013

Final Draft
Reportsigned-off byMalaysia
DUE: 28 March 2014
Postponed

PRLCE Malaysia
presentation at
EGNRET 42

PRLCE Malaysia
reportendorsement at
EWG 47

7 April 2014

19 May 2014

Focal agencies:
KeTTHA and SEDA
Focus areas:
FIT mechanism
and low-carbon
transport sector
11PRLCE Malaysia Review TeamAPERC

AUSTRALIAMr Takato Ojimi
JAPANMr Andrew Hirscher
NEW ZEALAND

Ms Yoko Ito
THAILANDAP Sumate Chaiprapat

CHINA

Mr Guo Xiqiang
CHINESE TAIPEIMs Elizabeth Yeaman
APERC

Dr Keng-Tung Wu
APERC

Dr Kazutomo Irie

Dr Aishah Mohd Isa

Topics covered in PRLCE Malaysia
Institutional Context

Overarchingareas

Renewable Energy Goals, Targets andStrategy
Energy Regulations
Sustainable Development

Renewable
EnergyResources
Low carbon sectors

Biomass and Biogas

Small Hydro and Solar
Low Carbon Power Supply
Low Carbon Transport
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Institutional Context: LCE Institutions in Malaysia

Low Carbon Power Sector
Ministry of Energy, GreenTechnology and Water (KeTTHA)
Energy Commission (EC)
Sustainable Energy Development
Authority (SEDA)
Sustainable Energy Development
Authority (SEDA)
Ministry for Rural and Regional
Development (KKLW)
Malaysia Palm Oil Board (MPOB)Green Technologyand Climate
ChangeLow Carbon
Transport Sector

Ministry ofEnergy, GreenTechnology andWater (KeTTHA)

Ministry ofTransport (MOT)

Malaysia GreenTechnology
Corporation(MGTC)
Ministry of Natural
Resources andEnvironment(NRE)Land Public
Transport
Commission(SPAD)
Malaysia PalmOil Board(MPOB)PRLCE Recommendations

Economic Planning Unit under thePrime Minister’s Department

State Authorities14Renewable Energy Goals, Targets andStrategy
PRLCE Recommendations

National Renewable Energy Policy and Action Plan(NREPAP 2010)15

Energy Regulation: Key LCE Policies in Malaysia

National Biofuel Policy 2006
National Green Technology Policy 2009
National Policy on Climate Change 2009
New Energy Policy 2010 / 10MP

PRLCE Recommendations

Five-Fuel Diversification Policy 2001 (8MP)

New Renewable Energy Policy and Action Plan 201116

Financial Incentives
Incentives for
End-Users

GreenTechnology
Financing
SchemeNationally
Appropriate
Mitigation
Actions(NAMAs)

PRLCE Recommendations

Sustainable Development

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Renewable Energy Resources
Small-scaleHydroSolar

Targets by2030• 410 MW biogascapacity• 1340 MW palm
biomass capacity

490 MW by 2030 854 MW by 2030

Guiding
Policies andStrategies• NREPAP (2010)• National BiofuelPolicy (2005)• National Biomass
Strategy 2020(2013)• NREPAP• NREPAP (2010)(2010)• Malaysia building• Ruralintegrated solar
electrification
PV Projectschemes(MBIPV)• Solar PV Rooftop
Programme

FinancialIncentives• FIT Scheme• GTFS• FIT Scheme

PRLCE Recommendations

Biomass and Biogas• FIT Scheme• Financing
packages frombanks18

Low Carbon Strategies for Power
Systems Sector• Rural electrification using hybrid
solar and small hydro• Rationalisation of electricity
tariffs• Improving efficiency in power
generation sector• TNB Smart Grid Initiative

Feed-in Tariff System• Renewable Energy Act2011
 RE Fund and FIT
mechanism• Sustainable Energy
Development Authority
Act 2011
 SEDA

PRLCE Recommendations

Low Carbon Power Supply:Power Systems and FIT Mechanism

19Low Carbon Transport Sector

Private Transport(Ministry of Transport)

Public Transport(Land Public Transport
Commission or SPAD)

National
BiofuelPolicyNational AutomotivePolicy

National Land Transport
Masterplan

BiofuelsHybridVehicles

Bus Rapid
TransitElectricVehicles

Klang Valley
Mass Rapid
Transit

PRLCE Recommendations

Transport Sector

20PRLCE Process for Malaysia
Malaysia
accepted tohost PRLCEEWG Members
endorsed
PRLCE Malaysia

APERC and Malaysia
formed PRLCE
Review Team

3 October 201318-22 November
2013 at EWG46

8 November 2013

Malaysia submitted
backgroundinformation
13 November 2013

Malaysia reviews
draft PRLCE
report

PRLCE Review
Team to complete
preliminary report

PRLCE Review
Team visit toMalaysia

ON-GOING

3 March 20149-13 December 2013

Final Draft
Reportsigned-off byMalaysia
DUE: 28 March 2014

Postponed

PRLCE Malaysia
presentation at
EGNRET 42

PRLCE Malaysia
reportendorsement at
EWG 47

7 April 2014

19 May 201421

PRLCE Malaysia
Summary and Conclusions• The PRLCE Review Team made 51 recommendations• PRLCE recommendations are tailored towards:• Overcoming existing, specific challenges in the currentsystem• Connecting remote resources• “First- and last- mile” interconnection for public transport• Providing proper signals to end-users and investors toencourage uptake of low-carbon energy supplies• Enhancing existing strategies that have been proven toincrease LCE uptake

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Thank you for yourkind attention!
http://aperc.ieej.or.jp/

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