Energy Conservation in Malaysian Residential Sector

Running Head: ENERGY CONSERVATION 1
Energy Conservation in
Malaysian Residential Sector

ENERGY CONSERVATION 2
Contents
Introduction...........................................................................................................................................3
Background............................................................................................................................................4
Discussion..............................................................................................................................................6
Need of Energy Conservation in Malaysian Residential Sector..........................................................6
Important Measures Undertaken for Energy Conservation...............................................................7
Role of Renewable Energy in Residential Sector..............................................................................13
Global Initiatives for Energy Conservation in Residential Sector.....................................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................18

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Introduction
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

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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.
Background
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).
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

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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).

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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.
Discussion
Need of 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