IMPLEMENTATION OF MOTOR
ENERGY EFFICIENCY PROGRAM IN
MALAYSIA
UNIDO Experts Group Meeting
March 21, 2007
ENERGY RATING PROGRAM
The Energy Rating program was
one of the components of the
Malaysian Industrial Energy
Efficiency Project (MIEEIP) to
implement energy rating for
industrial equipment.
2002 STUDY
Under this component, the
Malaysia Energy Centre (PTM)
conducted a study in 2002 on the
development of the national
rating program for industrial
equipment.
STANDARDS AND LABELING
The study revealed that minimum
energy efficiency standards and the
implementation of the standards and
labeling
program
for
industrial
equipment and machinery can be
used as a cost-effective option to
improve overall energy efficiency and
shall be promoted aggressively.
WORKING GROUP
The first equipment identified for
the labeling program was the
electric
motors
and
a
public/private
partnership
committee
called
the
Subworking group on Motors was
set-up in the Energy Commission
which is the electrical regulatory
body in Malaysia.
The Working Group agreed to
adopt the similar scheme
implemented by the European
Committee of Manufacturers
of EU Electrical Machinery
and
Power
Electronics
(CEMEP).
MOTOR CLASSIFICATION
According to CEMEP motors are
classified as:
1 – High-Efficiency Motor
 EFF 2 – Improved-Efficiency
Motor
 EFF 3 – Standard Motor.
 EFF
HEEMA
In order to obtain the commitment of
the manufacturers, dealers and
suppliers of motors a voluntary
agreement titled
“ High Efficiency Electric Motor
Agreement (HEEMA)”
was signed in December 2003. Eight
companies were signatories to the
HEEMA.
AGREEMENT
COMMITTMENT
“We the signatories of the High
Efficiency Motor Agreement hereby
affirm our industry support to
increase the market share of the high
efficiency motors so as to contribute
towards the national energy efficiency
goals of saving energy, reducing
pollution
and
improving
the
environment”
PHASE OUT OF MOTORS
The signatories agreed to
phase out motors EFF 2 and
below by the year 2008.
OFFICIAL LAUNCH
On May 2005,the official launch
for the HEEMA campaign was
held in Kuala Lumpur attended by
more than 200 participants
comprising industry leaders and
users, consultants and engineers,
motor suppliers as well as users
from the public sector
SEMINARS
 Immediately
after the launch, the
first of the User and Consultant
seminars were conducted.
 The User seminar focused on the
practical situations and financial
benefits of HEMs in relation to
industrial users.
 The Consultant seminar was
more technical in order to assist
them in presenting the viability of
HEMs.
Over the 6 month period of the
campaign, seminars were held in
various cities of the country. This
campaign was conducted with
close cooperation of the HEEMA
signatories and the support of
DANIDA
The seminars were planned to address the
lack of awareness of HEMs and were
conducted in the major industrial areas of
the country. The seminars were tailored
specifically for two different segments of
the industries: the industrial users or motor
purchasers and the consultants or
engineers
who
help
with
motor
specifications, designing and installation.
Different approaches were taken
as industrial users require more
general information whilst the
professionals
need
technical
data; but both approaches serve
to assist in identifying ideal
scenarios for using HEMs, and
present the economic benefits,
government incentives as well as
global and regional trends of
HEMs.
Supported by timely press
releases and publications in
the local mass media, the
campaign
achieved
its
objective
to
drive
up
awareness and interest in
HEMs.
ACTIVITIES TO PROMOTE HEM IN 2005
1. Media briefing
Prior to launch
2. Campaign launch
Covered by printed and electronic media
3. Consultant seminars
4 seminars in Peninsular Malaysia
4. User seminars
7 seminars in East Malaysia
5. Exhibition
Metaltech and Elenex Exhibition at PWTC
6. Press releases
English, Malay and Chinese newspapers
7. Trade journals
TEEAM, FMM, PTM and Oil & Gas Directory
8. Business magazine
Malaysian Business
9. Website
Promoting HEM
10. Workshops
Specifications and Tax Incentives
11. Contest
Prizes to suppliers and users
LOCATION OF HEM SEMINARS
Location
Kuala Lumpur
User
Seminars
Consultant
Seminars
1
1
Petaling Jaya
Shah Alam
1
1
Penang
1
Seberang Jaya
1
Ipoh
1
Johor Bahru
1
Kuantan
1
Kota Kinabalu
1
Total Seminars
7*
4
858
225
Seminar
Participants
 Registered: 1,388
1
 Attended: 1,083
*Originally planned 6 user seminars but
increased to 7 due to good response
Assessment of the 2005 HEM Campaign
9th February 2006
PARTICIPANTS’ AWARENESS OF HEM PRIOR TO THE SEMINARS
Consultants
and Suppliers
39%
23%
Industry Users
75%
8%
0%
92%
20%
40%
Aware
From seminar survey forms
Only a minority of the
participants were
aware of HEM prior to
attending the seminars
77%
25%
Government
Academics
61%
60%
80%
Not Aware
100%
PARTICIPANTS’ RESPONSE TOWARDS THE SEMINAR
Consultants
and Suppliers
93%
Industry Users
91%
Government
Users
75%
Academics
92%
0%
20%
40%
 Overall positive towards
the seminars
 Seminars were
informative and well
presented
 Suggested more
seminars to create
greater impact
60%
Positive Response
From seminar survey forms
80%
100%
CONVINCED ABOUT BENEFITS OF HEM AFTER THE SEMINARS
Industry Users
84%
Government
Users
82%
0%
From seminar survey forms
20%
40%
60%
Convinced
 Most of the participants
were convinced about
HEM
80%
100%
 Most of the participants
from the industries
mentioned would consider
future purchase of HEM
Unit of Motor Sales
Thousands
HEEMA MEMBERS’ TOTAL SALES VERSUS MARKET SIZE
116
120
110
107
110
100
90
36.2
42.8
37.3
80
70
60
50
40
70.8
72.9
72.9
2003
2004
2005
30
20
10
0
Others
Source: HEEMA members and other suppliers
HEEMA
 Total sales of motors
increased from 3% in 2004
to 5% in 2005.
 HEEMA members’ share of
the total motor market
increased from 34% in 2003
to 37% in 2005.
ENQUIRIES FOR HEM FROM POTENTIAL CUSTOMERS
Average Increase in Enquiries for HEM
30%
20%
 HEEMA member mentioned
experiencing an increase
in enquiries for HEM during
the campaign.
10%
 Some HEEMA members
mentioned enquiries
increased by as much as
25-30% in 2005.
During
Campaign
Before
Campaign
17%
5%
0%
2004
Note: Based on general perception from HEEMA members
2005
 However, many members
mentioned enquiries
declined after the
campaign.
Unit of Motor Sales
Thousands
HEEMA MEMBERS’ TOTAL MOTOR SALES
50
Before
Campaign
During
Campaign
2.2
45
40
0.5
0.5
35
30
25
23.6
27.3
32.5
20
15
10
5
12.2
9.6
8.1
2004
2005
0
2003
EFF3
Source: HEEMA members
EFF2
HEM
 Sales of HEM among
HEEMA members increased
by 4-folds in 2005.
 Many HEEMA members
took advantage of the
campaign to promote their
range of HEM motors.
 Major buyers for HEM and
EFF2 motors are medium to
large size companies while
EFF3 motors remain popular
among smaller industries.
PROPORTION OF MOTOR SALES AMONG HEEMA MEMBERS
1.3%
1.3%
100%
5.1%
 Proportion of HEM sold
among HEEMA members
increased from 1.3% in
2004 to 5.1% in 2005.
Proportion of Sales of Motors
90%
80%
70%
65.0%
73.0%
60%
75.9%
50%
40%
30%
20%
33.7%
25.7%
10%
19.0%
0%
2004
2003
EFF3
Source: HEEMA members
EFF2
2005
HEM
 Proportion of EEF2 sales
gradually replaced EFF3
motors from 2003 to 2005.
 Some HEEMA members
mentioned they have
either discontinued or
emphasising less on EEF3
motors.
TOTAL SALES OF MOTORS (HEEMA AND OTHERS)
Unit of Motor Sales
Thousands
From combined sales of HEEMA members and other suppliers
2.8
120
110
1.4
1.4
100
90
80
47.4
44.9
61.3
70
60
50
40
30
60.7
61.4
2003
2004
51.6
20
10
0
EFF3
Source: HEEMA members and other suppliers
EFF2
2005
HEM
 Total sales of HEM in
Malaysia increased 1,400
units in 2004 to 2,800 units
in 2005.
 HEEMA members share of
the HEM market increased
from 36% in 2004 to 79% in
2005.
PROPORTION OF TOTAL MOTOR SALES (HEEMA AND OTHERS)
From combined sales of HEEMA members and other suppliers
100%
1.3%
1.3%
42.0%
43.0%
2.4%
Proportion of Sales of Motors
90%
80%
53.0%
70%
60%
50%
40%
30%
56.7%
55.7%
44.6%
20%
10%
0%
2004
2003
EFF3
Source: HEEMA members and other suppliers
EFF2
2005
HEM
 Proportion of HEM sold
increased 2-fold from 2004
to 2005 but mainly from
HEEMA members.
 There was a significant shift
from EEF3 to EEF2 motors
from 2004 to 2005.
GOVERNMENT INCENTIVES
 Exemption
on import duty and sales tax
 Investment Tax Allowance on investment
in energy efficient equipment.
 Loan facilities for capital investments in
energy efficiency projects through the
Small
and
Medium
Industries
Development Corporation.
HEM PROMOTION IN 2006
In 2006 a series of seminars on
“Implementing Energy Efficiency
Initiatives” were carried out by
the Malaysia Energy Centre (PTM)
at 5 different locations in
Malaysia. A paper on “High
Efficiency
Technology”
was
included in the program.
HEM SEMINAR 2007
A seminar on HEM was held on
January 25, 2007, in collaboration
with the Copper Development
Centre, where speakers from
India and China were present to
share their country’s experience
in implementing HEM programs.
Thank You
Pusat Tenaga Malaysia
Level 8, SAPURA@MINES
No. 7, Jalan Tasik
The Mines Resort City
43300 Seri Kembangan
Selangor
Website: www.ptm.org.my
E-mail: [email protected]