Energy Conservation in Malaysian Homes: Challenges and Solutions

This essay discusses energy conservation in the Malaysian residential sector, highlighting the increasing energy demands and carbon emissions. It covers the need for energy conservation due to factors like population growth, urbanization, and inefficient systems. The essay examines various measures undertaken by the Malaysian government, including tiered electricity tariffs, rebates, and the promotion of renewable energy sources. It also addresses the role of public awareness, energy regulations, and technological advancements in enhancing energy efficiency. Furthermore, the essay touches upon global initiatives for energy conservation in the residential sector, emphasizing the financial and societal benefits of reducing energy wastage and promoting sustainable development through efficient resource management and investments in future technologies. Desklib provides this and other solved assignments for students.

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

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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.
Important Measures Undertaken for Energy Conservation
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.

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Tiered Electric Tariffs
Tiered electric tariffs were introduced in 3rd Malaysian Plan (1976-1980). There were
different rates for various tiers. A considerable amount of subsidy 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.
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).
RM20 Subsidy
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

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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.
SAVE Programme
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

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scheme. On the other hand, residential electrical consumption has been reduced by 158.1
GWh, resulting in savings of RM34.4 million (KEETHA, 2014).
Suria 1000 Programme
This programme was planned to make use of renewable resources of energy. The
programme enabled a resident 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 & Services Tax
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

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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.
National Energy Efficiency Action Plan (NEEMP)
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

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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 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.
LED Distribution Programme
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