Reasons for Wastage of Energy in Malaysian Residential Sector
Question:
Discuss about the Energy Policies And Strategies For The Residential.
Energy production and distribution has become one of the most important focuses of governments all over the world. However, at present apart from these two core activities, energy efficiency and conservation issues are influencing the policies of the organizations all over the world. Thus finding energy conservation solutions and reducing waste is becoming a problem for all sectors. This essay discusses about the problem of energy conservation in residential sector of Malaysia. Energy conservation has become a major point of discussion after energy crisis, continuous depletion of natural resources, concerns about climate change and increasing global temperatures. Inefficient systems and lack of awareness among the consumers leads to high wastage and financial losses in residential sector (Thumann, 2010). Also covered in this essay are various reasons for wastage of energy and need of energy conservation in Malaysian residential sector. Conservation of energy in residential sector is a dominant issue because of substantial increase in energy requirements by residents of Malaysian. There has been a considerable amount of increase in carbon di oxide emissions on account of consumption of electricity by Malaysian residential sector. This essay also presents solutions for the problems in field of energy conservation and measures for increasing energy efficiency. Increasing public awareness, appropriate energy regulations, improved solutions for buildings and better efficiency of the domestic equipment are some o the ways by which energy efficiency measures can be adopted in residential sector. The view of various policies and measures adopted by authorities has also been presented in this essay. National energy efficiency plan (NEEMP), energy rebate programme, bill rebates and sustainable development policies are various strategic measures taken by the government to answer the problems related to energy conservation. Also covered in this essay is how phasing out of old technologies and role of renewable resources can help in maximizing gains out of the limited resources. In the later part, there is also a discussion on global initiatives in the field of energy conservation in residential sector. It is rightly said that energy conserved is equivalent energy produced. Financial savings realised from eliminating problems related to energy conservation and reducing wastage can be utilised for better societal purposes (Dincer & Zamfirescu, 2011). Revenue saved by these measures can be invested in development of new future technologies.
Energy consumption has been continuously increasing all over the world with particularly highest increase noticed in Asian countries. This fact is also true for Malaysia. So energy conservation is important in the context of Malaysian residential sector as country as residential sector does not have any mandatory energy efficiency standards. Recommended energy consumption for non-residential sector is 135kWh/m2/year (Zaid & Graham, 2017). However, there is no such consumption standard for residential sector. Therefore, energy conservation of residential sector is an important concern for the government. The practice of subsidizing electricity in Malaysia for residential sector enhances over-consumption and disturbs the balance of electricity markets. There have many reasons in past for inefficient systems in Malaysia. Some of these factors are inadequate plans for efficient energy, lack of regulatory structure for efficient systems, lack of leadership in energy efficiency programs, inconsistency in maintaining efforts for conservation and absence of funding (APEC, 2011).
Need for Energy Conservation in Malaysian Residential Sector
Most of the residential buildings in Malaysia do not have energy efficient structures. Faulty designs in homes consist of single pane windows, daylight around window or door frame, older electrical appliances, improper insulation and deterioration of outside walls by weather. Loose microwave seals and keeping a refrigerator near heating appliances also causes energy wastage. Electrical consumption in households is difficult to control. Application of rules on them is not an easy process. Conservation is affected by household behaviour. Demographics, socio-economic status and attitude affect the behaviour. Among these socio economic factor such as education, gender and income play a dominant role. Energy generation in Malaysia is largely from traditional sources of energy. These traditional sources are mostly inefficient. Households are also very large emitters of carbon-dioxide (Azlina et. Al, 2015). Therefore problem of energy conservation is a serious one and often under looked by the authorities. Savings realised from energy conservation can be utilised for marginal sections of the society and environmental protection.
There have been number of measures taken for increasing efficiency and enhancing energy conservation in residential sector in Malaysia. In 1970’s tiered electricity tariffs were introduced. These tariffs included cost after subsidy of power. Rebate on bills of electricity was also introduced in 2008. In this program, rebate could be utilised after fulfilling certain conditions. All consumers getting monthly bill above RM20 paid their bills in full. More recently in 2012, SAVE programme was launched. SAVE stands for sustainability achieved by energy efficiency rebate programme. This programme aimed at phasing out inefficient domestic appliances and replacing them with efficient ones. Although initial investment in these appliances is substantial but savings by energy conservation are also considerable. Financial incentives were provided in form of rebates for purchase of efficient appliances. Rebate was provided for refrigerators and air-conditioners. Suria 1000 programme was launched in 2007. This was based on promotion of renewable resources under Fuel Policy. Consumers were given rebates on photovoltaic systems (PV) by the process of bidding. In 2011, a new mission named Feed in Tariff (FIT) was introduced to make PVs more efficient. This enabled assured access to grid and better price for the consumers. In 2015, Goods & Service Tax (GST) was introduced on electricity consumptions by households. Under GST, 6% tax was levied above 300KWh usage. This resulted in changing consumer behaviour towards energy conservation and proper utilisation of electricity (Bekhet & Ivy-Yap, 2014).
To take a holistic approach towards reducing energy wastage and increasing efficiency, National Energy Efficiency Master Plan (NEEMP) 2010-2015 was undertaken to increase efforts across all sections of society. This plan aimed at promoting appliances with 5 star ratings and minimum energy performance standards (MEPS). A scheme for distributing LED bulbs in Melaka state of Malaysia for residents at subsidized prices and replacing CFLs was also launched in 2017. All these measures which introduced by the authorities for energy conservation brought about a decent change in consumption pattern and consumer behaviour. Results from more recent and holistic programmes will take some more time in showing.
Solutions for Energy Conservation in Malaysian Residential Sector
Conservation of energy has become a dominant point of discussion across the globe. With the growth in global population and development of urban infrastructure, energy consumption by residential sector is increasing day by day (Gellings, 2009). Resources are continuously being utilised for providing energy and electricity to residential sector in Malaysia. Large inefficient systems are causing massive losses to the exchequer. In context of Malaysia, there has been 210% increase in energy demand from 1990 to 2009. Residential sector contributed almost one-half of the total greenhouse emissions in Malaysia. The substantial growth in carbon emissions will lead this country towards unsustainable development. Meeting energy efficiency standards on global stage is also an important consideration for developing countries like Malaysia. Controlling energy wastage and conservation of resources related to residential sector is becoming important. Majority of problems related to environment and bio-diversity in Malaysia are caused by absence of appropriate measures for development and administration of resources ( Zaid et. al, 2013).
Energy conservation by residential sector is difficult to regulate in developing countries. Large number of people are first time movers towards quality lifestyle. In search of quality life style, they are first time buyers of energy consuming devices and homes. Due to large price differential, inefficient systems are built and consumed by common people. Though there have been minimum energy standards for certain appliances, country has not made any mandatory standards for designing and constructing residential buildings in 10th Malaysian plan. Absence of standards, leads to large wastage of energy and decreased efficiency. For a country like Malaysia, money and resources saved by conserving energy can be utilised for other societal purposes. Economic savings can be used to help and alleviate lower sections of the society.
There has been rapid rise in residential sector in Malaysia. With rapid growth of Malaysian economy and rising industrialization, urban residential centres are increasing at rapid pace. Malaysian public-sector employees receive a monthly house allowance. In 2015, government announced increase in this allowances Minimum house allowance was raised to RM 300. The employees living in quarters were not receiving the allowance. However, after this announcement they were also entitled for this allowance. This will lead increase in disposable income and more residential buildings (Ging, 2015). Therefore, need for energy conservation in residential buildings is becoming an important consideration and any measures taken must be planned judiciously.
Measures taken by any nation for conservation of energy in residential are becoming an important consideration for authorities. Measures must be planned and implemented taking into consideration all pros and cons. Benefits realised from these measures must outweigh costs associated with these initiatives. Cost-benefit analysis of these initiatives must be carried before final implementation (Karam & Morgan, 2014). Malaysia has also taken several measures for this purpose. Some of these initiatives are discussed below.
Tiered electric tariffs were introduced in 3rd Malaysian Plan (1976-1980). There were different rates for various tiers. A considerable amount of management was provided for tariffs in the lowest tier. This resulted in rates of electricity falling considerably below the actual cost in first tier. In the every subsequent higher tier, subsidy was reduced. As a result prices in these categories increased substantially as compared to first tier. Therefore, as consumption by a consumer increased, average price per unit became higher. This resulted in consumers judiciously consuming the power. This method of promoting electric conservation also prevents over consumption by the customers. Tiered electric tariffs were based on the principle that as energy prices increases, consumers try to promote energy efficiency and conservation.
Policies and Measures Adopted by Authorities for Energy Conservation in Malaysian Residential Sector
Although the idea of tiered tariffs has been tried by governments around the world, but as income levels and prosperity increased, consumers are not deterred from excess electrical consumption. Leading a quality life with all modern day facilities takes precedence over the costs associated with it. As a result consumers continue to increase their consumption and purchase new energy consuming appliances (Sioshansi, 2013).
This plan was introduced by Tenaga Nasional Berhad (TNB) on 1st October, 2008. Residential customers were entitled for a rebate under this scheme. Under, these scheme customers who were billed below or equal to RM20 were eligible to receive the rebate. Customer who became eligible for subsidy was not required to pay the bill. Customer was billed the full amount if the usage exceeded RM20 in a month (Tenage Nasional, 2018). This scheme of the board was planned with the aim of increasing the energy efficiency and creating awareness among the customers. Around 11.95 million per month was provided as a rebate by the board in the first year after the introduction of the offer. In 2008, 1.05 million customers received benefits from the board. In 2012, board spent around RM146 million on exemptions. In the same year around, number of customers benefiting from this scheme (The Star Online, 2013) reached 1.1 million.
Although this scheme promotes energy conservation and judicious use of resources by households, there is considerable amount being spent by the government for providing the subsidy. This subsidy can also be used in number of other beneficial ways. Funds of a government should be aimed at creating long term solutions for the masses. Financial resources should be provided to the households for creating systems that promote energy efficiency for years and there is no regular burden on the government. Similar to tiered tariffs, as the income levels of the individuals rise, they are not deterred from consuming more electricity for better quality lifestyle.
Sustainability achieved via energy efficiency (SAVE) is a programme aimed at enhancing energy efficiency and is promoted by Ministry of Energy, Green, Technology and Water. This programme was for domestic consumers and launched in 2012. Under, this scheme a rebate was provided to the households for purchase of refrigerators and air conditioners of 5 star rating. The rebate was provided to all the customers around Malaysia for air conditioners. On the other hand, peninsular Malaysian customers were eligible for this rebate on refrigerators if they were using 200 to 400 Kwh of electricity per month on an average for last 6 months. All customers in Sabah and Sarawak region were provided this rebate on refrigerators. Government has a target to save 127.3GWh of energy by 2020 by investing R50 million in this programme (AWER, 2012).
The programme was successful in reducing consumption and carbon emissions. Till 2014 there has 167,568,689 tonnes reduction in carbon di oxide emissions because of this scheme. On the other hand, residential electrical consumption has been reduced by 158.1 GWh, resulting in savings of RM34.4 million (KEETHA, 2014).
Global Initiatives in the Field of Energy Conservation in Residential Sector
This programme was planned to make use of renewable resources of energy. The programme enabled a management to generate electricity by using Building Integrated Photovoltaic System (BIPV). They were also able to connect BIPV to the grid. The aim of this programme was to install 1MW of Photovoltaic systems for domestic and commercial use. The process involves bidding and consumers can receive discounts in excess of 75%. Energy commission will provide discounts under this programme. There were nine calls for bidding from 2006 to 2009. Discounts in every subsequent call decreased from the previous call. The programme encouraged solar energy usage and was supported by United Nations.
Such programmes are really advantageous in promoting energy efficiency. Another advantage of PV systems is that they do not require any land for installation, which in normally unaffordable in urban area. Such systems also do not cause any harm to the environment and help in reducing carbon di oxide emissions. However, PV systems were expensive and there was a lack of understanding among residents. PV modules were required to be imported. Technology and expertise required for development was expensive (Renewable Energy World, 2007).
Goods and Services Tax was introduced in Malaysia from 1st April 2015. GST replaced the existing sales and service tax. It is a multi-stage tax that is collected on supplies of goods and services. Domestic consumers of electricity are currently paying GST if their consumption exceeds 300KWh with billing period consisting of 28 days. There is no GST on initial 300KWh of power consumption. Rate for GST was decided at 6%. Charges for new connection and even testing of meter were subject to GST (Tensaga Nasional, 2018).
Though GST was introduced to make tax system of Malaysia more efficient, it resulted in rise in prices of certain goods. Tax imposed on domestic customers was aimed at increasing government revenues and improving energy efficiency by charging an additional amount for consumption above a pre-defined limit.
Energy intensity ratios can be used to analyse efficiency standards of a country. Energy efficiency ratio of Malaysia has always been above 1.0 since 2000. A value above 1.0 is an indication of existence of inefficient systems and lack of energy conservation. To overcome, this challenge, a National Energy Efficiency Action Plan (NEEMP) 2010-2015 was devised. The plan required multiple actions. It created a project team for promoting energy efficiency and implementing the procedures. It also aimed creating capacity. Research for development of better processes and systems was also a major initiative under this plan. Government agencies and departments took the responsibility of the plan and were major initiators of various schemes under this project. This plan was not aimed at particular consumer but took a holistic approach for energy conservation
For residential sector, this plan aimed at improving the quality of life of residents. There were numerous steps taken for improving the energy efficiency in Malaysian residential sector under this plan. Rating and labelling of appliances was one such initiative. Majority of consumers only consider purchase cost of a commodity but fail to calculate the charges for regular operation and maintenance. This fact is true for domestic appliances. That is why rating of appliances was introduced under this plan. Rating systems were introduced for air-conditioner, refrigerators and fans. Refrigerators are owned by most of the households in Malaysia, this made a case for huge financial savings. New consumers were also given a subsidy for purchasing efficient appliances. A customer now became more aware of benefits of these highly rated appliances. New purchases more often than not were of 5 star rated appliances. Similar management to the refrigerator, air-conditioner was also promoted in a similar manner. It is not unusual for a normal home to have 3-4 air conditioners. These 5 star rated air-conditioners are 10% more efficient than traditional air conditioners. Energy conservation in homes can be improved immensely by promoting 5 star rated air-conditioners. There are on average 3-4 fans in a household in Malaysia. Similar to air-conditioners, 5 star rated fans increase energy efficiency by atleast 10% as compared to traditional fans (Keetha ,2014).
Another initiative under this plan was to phase out incandescent light bulb and replace them with Compact Fluorescent bulb (CFL). Incandescent bulb last about 1000 hours, whereas CFL has a life of 6000 hours. Energy efficiency and extra life of CFL compensate for the high price paid for it.
In Sep 2017, Malaysian state Maleka adopted a scheme for distribution LEDs at affordable prices to its residents. Each household in the region will be provided with 10 LED bulbs of high quality. They will be distributed at a price which is almost one-half in comparison to international market price ($3-4). A bulb of LED will cost RM 10 to the residents. 18W CFLs will be replaced by 1 million 9W LEDs. Carbon di oxide emissions in the state of Maleka will be reduced by almost 19000 tonnes a year. The scheme will also generate savings of around 10.22 million RM annually. All these LED bulbs will under warranty and can be replaced for any malfunctioning (The True Picture, 2017).
Energy conservation measures in residential sector have been going on for decades in Malaysia. These initiatives have brought about a considerable amount of savings and major decrease in carbon di oxide emissions. Problem of energy conservation has remained because of continuously growing consumption of power and increasing population. Adoption for better technology from other parts of the world and use of renewable resources can bring about a dramatic change in these measures and immensely improve energy efficiency.
Renewable energy has played a very important role in energy conservation and improving efficiency across management all sectors. Renewable sources of energy are replenishable, help in preserving the quality of environment and reduce dependence of fossil fuel for energy generation ( Twidell & Weir, 2015). Renewable energy can also be utilised by residential sector. This is particularly true in context of a country like Malaysia where urbanization and improving lifestyle is leading to considerable increase in energy consumption.
Number of technologies and process can be applied on a mass scale in Malaysian households for utilising renewable energy resources. For a country like Malaysia where climate is generally hot and humid all round year, solar energy can play an important role in residential sector. Solar water heaters are effective and require low maintenance because majority of their parts are stationary. Solar water heaters collect heat from the sun and then transfer this heat to water. Transferred heat is then absorbed by the water. Heated water can be stored in insulated tanks until required. These heaters can be installed on terrace. Similar to water heaters, solar ventilation preheating systems also need low maintenance and can have energy efficiency levels of 80%. They can be placed on south facing walls of the houses and utilised in buildings where utility rates are high for heating. Another renewable source of energy which is mostly underutilised is geothermal energy. It makes use of the heat from shallow ground and rocks that are found under the surface of the earth. Geothermal heat pumps are used for extraction of heat. Top 3 meters of surface of the earth has a temperature of 10°-16° C. Residents can use geothermal pumps to extract this heat for cooling and heating their homes This technology can particularly helpful in large bungalows and big housing societies ( Hayter & Kandt, 2011). Bioenergy is generated from organic wastes and plants. Wastes from municipalities and industries are sources for energy generation. Agricultural residue is also being utilised as an energy source. Wood pellets are produced by pellet mills in forest areas which are dense and less polluting. These wood pellets can be utilised by households for heating their homes. Stoves and other residential appliances also make use of these wood pellets (Bioenergy Day, 2018).
Therefore, there are multiple sources for energy generation using renewable sources. Malaysian government can invest and promote these technologies for improving climatic conditions; and minimize the use of traditional sources of energy.
Countries all over the world are making efforts for improving existing systems and developing new capabilities for enhancing energy efficiency in households. Malaysia can also learn from other nations to save its resources and develop better standards. Incessant use of fossil fuels leads climate changes such as floods, droughts and global warming. These changes are affecting lifestyle and health of individuals ( Spalding, 2010).
Households can significantly increase energy efficiency by employing smart technologies. Singapore is planning to adopt smart home technology, which consists of various devices and sensors installed in homes. Communication is possible between these devices. These devices can be controlled remotely. This can lead to increased efficiency by examining the consumption patterns and making necessary amendments to lifestyle. Smart home technology also helps in enhancing the lifestyle of people and improves safety of their homes. Most commonly used devices in smart homes are smart meters and devices for automation. Smart fans have a capability that makes them function only when temperature and humidity reaches predefined levels (Bhati, Hansen & Chan, 2017).
In-home displays (IHDs) have capabilities to provide data regarding energy consumption on real time basis through app or display screens. By this consumers are able to get a feedback about their energy usage. This can help in identifying devices that are not energy efficient. Past empirical studies have proven that feedback can motivate individuals in changing their lifestyle patterns for increasing energy savings. Smart meters too have capacity of measuring energy consumption and can also administer the grid. Although smart meters do not directly save electricity, but they measure domestic power usage at pre defined intervals such every 15 minutes or hourly. They can also be used for verify savings resulting from various projects undertaken for energy conservation. Smart thermostats can regulate temperature and humidity conditions of a room on the basis of artificial intelligence and machine learning capabilities. They can also be monitored and managed via app (IEA, 2017).
Smart home technology is still in early phase of development and lot of experiments are going for improving affordability of these appliances. Malaysian residential sector can also make use of these technologies for better energy efficiency standards. But it will take financial support from government and incentives in form rebates to deploy these devices in homes
Conclusion
This essay discusses the problem of energy conservation in residential sector of Malaysia. With increasing population and rapid growth of Malaysian economy, consumption of energy by residential sector has substantially increased. Rising incomes is also contributing towards urbanization. Also coved in the discussion are various reasons for energy wastage and need for energy conservation in Malaysian residential sector. Overconsumption by residents, inefficient systems and use of traditional sources of energy are some of reasons for energy wastage in residential sector. There are no mandatory guidelines for residential buildings for maintaining energy efficiency. Large dependence of fossil fuel for energy generation has led to substantial rise in carbon di oxide emissions. This will lead Malaysia towards unsustainable development and will deteriorate environmental conditions. Financial savings generated from reducing energy wastage and employing efficient systems can be utilised for development of better technologies. Malaysian government has planned and implemented various programmes for conservation of energy. Tiered electric tariffs, SAVE programme, Suria 1000, RM20 scheme, GST on electricity bills, LED distribution programme and National Energy Efficiency Action Plan (NEEMP) have been undertaken by the Malaysian government of for energy conservation in residential sector. These programmes have discussed in detail in this essay. National Energy Efficiency Action Plan takes a holistic approach towards energy conservation. This plan called for mandatory labelling of devices such refrigerators, air-conditioners and electric fans. This programme aimed at phasing out incandescent light bulbs and replacing them with Compact Fluorescent bulbs (CFLs). LED distribution has also undertaken by Maleka state of Malaysia. SAVE programme promotes energy efficient domestic appliances. On the other hand, tiered electric tariffs, RM20 scheme and GST on electric bills are aimed at deterring overconsumption.
This essay also discusses the role of renewable energy in reducing energy wastage and improving efficiency in Malaysian residential sector. Solar water heaters, bioenergy and solar ventilation preheating systems can be utilised by residents for their daily energy requirements. Numbers of new technologies are currently being used in other coutries and are also under development for improving energy efficiency in homes. Smart homes use smart meters, smart fans, in-home displays and smart thermostats for reducing wastage of energy and monitoring consumption patterns. Malaysian residential sector can also use renewable energy and adopt new technologies for improving energy efficiency. Therefore it will take considerable amount of effort and planning by Malaysian government to reduce energy wastage and improve efficiency in domestic sector. It will also require support of residents in implementing new measures and enhancing energy efficiency standards.
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