Energy Efficiency Must Come Before Green Technology Investments - SEDA Expert

GEORGE TOWN, Nov 12 (Bernama) -- The transition to sustainable energy involves more than increasing renewable energy (RE) capacity, as it must begin with energy efficiency, effective electricity consumption management and efforts to minimise wastage.

Sustainable Energy Development Authority (SEDA) Malaysia National Energy Awards (NEA) technical expert Mohd Najmi Abdullah Sani said organisations should first understand their energy consumption patterns, identify equipment with the highest energy usage and assess potential savings before investing in green technology.

He said factors such as management commitment, technical and financial feasibility, maintenance costs and system lifespan should also be considered to ensure that such investments deliver long-term benefits.

"Malaysia is now approaching 32 per cent of installed renewable energy capacity, equivalent to 14.9 gigawatts (GW), and aims to increase this to 35 per cent by 2030.

"This target covers various renewable energy sources, including solar, biogas, biomass and hydro, rather than relying solely on solar power. The National Energy Transition Roadmap (NETR) is also expected to play an important role in supporting efforts to achieve this target," he said.

He was speaking at the Energy Efficiency and Renewable Energy (RE) Forum, a seminar held under the strategic partnership between SEDA and Universiti Sains Malaysia (USM), at the Murad Mohd Noor Auditorium, SAINS@USM, yesterday.

Also present were USM Department of Development and Facilities Management (JPPF) Director Mohd Salmi Ismail and Penang Island City Council (MBPP) architect Wan Mahdzir Yason.

Mohd Najmi stressed that energy efficiency should be prioritised before organisations invest in technologies such as solar photovoltaic (PV) systems.

Additionally, he noted that sustainability initiatives must be tailored to an organisation's operational requirements and financial capabilities, while measurable key performance indicators (KPIs) should be established to evaluate the effectiveness of initiatives implemented.

These could include targets for reducing electricity consumption, achieving cost savings and lowering carbon emissions.

Meanwhile, Mohd Salmi said a large-scale solar project at USM, implemented through a third-party financing model, generated electricity cost savings of approximately RM5 million for the university in 2023.

He noted that since the project commenced operations on Jan 1, 2023, the annual electricity bill for USM’s main campus has decreased from about RM18 million to RM13 million, while peak electricity consumption has dropped from 10 megawatts (MW) to 7 MW.

The solar system also generates about one million kilowatt-hours of electricity monthly, meeting nearly one-third of the university's monthly energy requirements.

"USM began formulating energy-related policies as early as 2003 before developing a third-party financing model in 2019 to facilitate solar projects without placing significant pressure on the university's core budget.

"In 2020, USM conducted an open tender for its first solar project at the Engineering Campus and subsequently secured an 11 MW quota under the Net Energy Metering (NEM) programme by the end of that year," he said.

In a related development, Wan Mahdzir said the Pusat Komuniti Harapan (Community Hope Centre), also known as The Night Shelter and managed by MBPP, demonstrated how green building design could reduce energy consumption through the efficient use of natural resources.

The facility, converted from a heritage shophouse at a cost of RM4.4 million, is equipped with 38 solar panels, a rainwater harvesting system and natural ventilation features.

Data from its Internet of Things (IoT) monitoring system showed that solar energy had helped reduce its electricity bills by between 50 and 60 per cent, from approximately RM4,000–RM5,000 to about RM2,000 a month.

He said the savings were further supported by a building design that maximised natural ventilation, eliminating the need for air conditioning, as well as motion sensors to regulate lighting and fans in selected areas.

However, installing solar systems on heritage buildings requires careful consideration, as the nature of their roof structures and the need to preserve original architectural features can increase costs and complicate installation work.

Wan Mahdzir said sustainability should go beyond adopting technology to include passive design, adaptive reuse of existing buildings, water management and consideration of community needs.

Meanwhile, SEDA Malaysia Senior Assistant Director and NEA technical expert Ishamuddin Mazlan said the NEA, which recognises achievements in energy efficiency and green building practices, was open to entries from the industrial and commercial sectors, as well as higher education institutions, under their respective categories.

He said the competition categories were structured according to specific criteria, operational periods and organisational sizes to ensure a fair assessment.

SEDA also provides individual consultation sessions to help participating organisations prepare more accurate reports.

He added that the awards typically attracted about 150 entries annually, with national-level winner having the opportunity to represent Malaysia at the ASEAN level, subject to their reports and performance data meeting the required assessment standards.

-- BERNAMA