Strategic Review

Minister-Industry Dialogue: Energy Efficiency and Sustainability

Part 1: Sector Perspectives

Dr Maximus Johnity Ongkili
Ministry of Energy, Green Technology and Water (KeTTHA)

Welcome to the Minister-Industry Dialogue on Energy Efficiency and Sustainability. Our panel includes representatives from the public, private, regulatory and international advisory sectors and, in addition to hearing from them, discussion will incorporate interaction with industry leaders from the audience in an effort to construct a more dynamic conversation.

The dialogue will cover a number of factors that shape the energy ecosystem, including policy, the role of the private sector and how to develop energy-saving behaviour through demand-side management. Many associated challenges are cross sectoral and involve multiple industries, so it is important to discuss practical ways in which efforts between the public and private sector can be aligned.

Part of the government’s mission, in this regard, is to identify and implement a strategy that prioritises corporate and consumer incentives to stimulate a behavioural response that enhances energy efficiency.

As for the dialogue session, I will begin with Zaini on the key policymaking aspects, before moving on to panellists for a sector-by-sector perspective. I will then take questions from the floor.

Dr Zaini Ujang

In October 2017, the Malaysian Government, through KeTTHA, launched the Green Technology Master Plan (GTMP), which includes two energy-related components. The first is renewable energy in the national installed energy mix, which is relatively straightforward to measure and compare. As such, the GTMP objective is to boost total installed capacity of renewable energy sources gradually to 30 per cent by 2030. The second component is energy efficiency, which is more challenging to benchmark due to the lack of a historic baseline. However, the GTMP seeks to remedy this by establishing the targets of 10- and 15-per-cent reductions in electricity intensity by 2025 and 2030, respectively.

Achievement of the GTMP targets will be a challenge and require collaboration between all energy stakeholders, including consumers, retailers and providers who oversee demand-side management. This collaboration should be viewed as the new normal as Malaysia moves towards an era of sustainable energy in which close relationships between stakeholders will become increasingly important.

Before the conversation moves on to sector specifics, I would like to make a more general point to help frame the debate. I contend that a sustainable energy scenario is founded on the consolidation of three interrelated pillars: first, sustainable supply, which relates to the incorporation of renewable energy sources into the national energy mix; second, sustainable demand, which will be the subject of debate during this dialogue session; and third, sustainable pricing, which considers the developmental realities of Malaysia, as well as sustainable financing via regular funding initiatives. Identifying practical ways in which to combine these three components according to the Malaysian context is the critical task facing policymakers and stakeholders. We will, no doubt, cover the key issues during the discussion.