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The Malaysia-Europe Forum (MEF) is on a mission to engage European stakeholders and to promote knowledge sharing between Malaysia and European countries in the field of sustainability. In pursuit of this, the MEF will kick start its series of roundtables and host a roundtable in Vienna focusing on renewable energy on Tuesday 10th May 2011. It will be held back-to-back with The MEF-Vienna Spring Dialogue 2011, which will be held on Monday, 9th May 2011. The Vienna roundtable will serve as a platform for the exchange of ideas, debate and discussion between Malaysian and European stakeholders, as well as identify opportunities for collaboration between Malaysia and Europe, across business and academia. It will focus on the fact that only recently has a range of renewable energy sources started to become economically viable, driven by targeted subsidies and the assumption of a slow move towards pricing carbon into traditional generating models. However, many questions remain to be answered in relation to the future of energy generation, particularly around renewable energy sources and the technologies aimed at cleaning up existing sources. Perhaps the most sensitive question of all is the desirability of nuclear power and the fact that the zero-carbon energy source continues to generate more debate than power. Should you be interested in participating in future roundtables organised by the MEF, please contact Ms Natasha Zulkifli at the MEFs Kuala Lumpur Secretariat.
A Q U A R T E R LY P U B L I C AT I O N O F T H E M E F
QUARTER 2, 2011
KUALA LUMPUR SECRETARIAT Office Suite 19 - 9 - 6, Level 9 UOA Centre, 19 Jalan Pinang, 50450 Kuala Lumpur T: +603 2162 8545 F: +603 2162 8546 BERLIN SECRETARIAT Moosdorferstr. 7-9 12435 Berlin, Germany. T: +49 30 9362 4739 F: + 49 30 5369 9801 LONDON SECRETARIAT CHL Chambers, 50 Colney Hatch Lane, London N10 1EA, United Kingdom. T: +44 208 883 7706 F: +44 208 883 7706 www.malaysia-europeforum.com Contact person: Natasha Zulkifli Executive Director, Malaysia-Europe Forum [MEF] natasha@malaysia-europeforum.com For copies of our reports, kindly contact our secretariat.
Can you please elaborate on the Renewable Energy Bill and the Sustainable Energy Development Authority Bill currently being tabled in Parliament? How will this impact on the upcoming feed-in tariff? The Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) Bill and the Renewable Energy (RE) Bill are part of the main thrusts under the National Renewable Energy Policy and Action Plan in providing an effective legal framework to support the development of RE. The RE Bill was passed in Parliament on the 4th April 2011, and it contains important provisions describing the implementation of the feed-in tariff (FiT) system and the establishment of an RE Fund. The RE Bill also sets out the roles and responsibilities of both RE developers and the power utilities in the FiT system. The SEDA Bill underlines the role of SEDA Malaysia in the overall development of RE, managing the RE Fund and the FiT system. SEDA Malaysia will be the one-stop agency for RE development and will provide advice to the ministry in driving the RE agenda in Malaysia. The ministry is currently undertaking the preparatory work to establish SEDA Malaysia and this agency will be legally established after the SEDA Bill is approved by the House of Parliament. Both Bills are expected to be enforced in the second quarter of 2011. ... continue on page 2
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... continue from page 1 What are the expectations for IGEM 2011? I have to admit by any standards IGEM2010 was a runaway success. However I would like to remind you that creating success and maintaining success are two totally different dimensions. For IGEM2011, the general idea is that there should be an element of continuity from IGEM2010 but having said that, we also envision that IGEM2011 and future IGEMs will evolve into something that is niche or a premium brand. In other words, The Green Technology Hub for this part of the world. So in IGEM2011 you will see this progression towards that goal. In the world of KPIs, everything must be evaluated, measured and verified. In that sense if I were to quantify our targets, we are looking to generate MYR800 million worth of business. This is not back tracking, but something that is realistic. I know the first thing on your mind would be IGEM2010 did MYR1.2 billion, but then again after going into details, we noticed there were certain outliers in the whole equation which we would certainly welcome in IGEM2011 but having said that the evaluation part in coming out with MYR800million cannot be based on outliers. In terms of the numbers of visitors, we forecast there will be an You have been quoted as saying that the decision to set up two nuclear power plants will be made by the Cabinet, after a report has been submitted by the Malaysia Nuclear Power Corporation. Please elaborate on this. The decision to include nuclear as one of the options for generating electricity in Malaysia is a major step towards diversifying our fuel mix. It also marks an important milestone in Malaysias energy landscape as we depart from our traditional policy for meeting electricity demand growth. Admittedly this has not been an easy decision as we had to weigh various options and alternatives as well as benefit and cost issues before deciding to include nuclear as one of the fuels for generating electricity. Arriving at this decision is the first step towards strengthening energy security of the country. However, the final decision to build nuclear power plants will only be made after conducting all the necessary studies, ranging from the feasibility study and environmental impact study to social impact study etc. In addition to the various studies, we With the recent developments involving nuclear plants in Japan, I believe this will be an uphill task for us under the present climate. We will keep exploring all avenues and alternatives to ensure long-term energy security in the country. Can you share with us how the Energy Efficiency Masterplan, scheduled to be announced soon, will impact the average Malaysian? The National Energy Efficiency Master Plan (NEEMP) is a comprehensive plan to drive the country towards using energy resources efficiently. NEEMP consists of a National Energy Efficiency Policy and a long term Energy Efficiency Action Plan which spans 10 years from 2011 2020. This is the first phase of the NEEMP as the government is now initiating efforts for the second phase which will focus on energy efficiency in the transport sector. increase of 15% from IGEM2010, which equates to roughly 100,000 visitors. will also engage all the stakeholders involved while undertaking these studies.
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The NEEMP Phase 1 is on electrical and thermal energy, which mainly focuses on the main sectors: industrial, building and equipment. The plan is still in the finalisation stage and we will make the information public when it is approved by the government and we hope to announce it by Q3 of 2011. Once fully implemented, NEEMP is anticipated to save the country a substantial amount of energy and monetary savings as well as GHG avoidance. Do you think the Green Technology Financing Scheme (GTFS) has been effective in achieving its objectives? Is this only available to Malaysian companies or can foreign companies apply as well? The government remains committed in driving the Green Technology Agenda for the nation, a reflection of that among others, is the GTFS. I have to admit there have been a lot of reports in the mass media stating that the GTFS is not moving the way it should move. That is something that my ministry has taken upon itself to resolve. In relation to whether foreign companies can apply, as of now it is something that my officials are looking at, but having said that we still have certain fundamental issues that we would like to settle first.
technology in terms of products, appliances, equipment and systems through standards, rating and labeling programmes; 3. Increase foreign and domestic direct investments (FDIs and DDIs) in the green technology manufacturing and services sectors; and 4. Championing the expansion of local research institutes and institutions of higher learning to expand research, development and innovation activities of green technology towards commercialisation through appropriate mechanisms. Mid-term goals planned for the 11th Malaysia Plan (20162020): 1. Green technology certified products and services becoming the preferred choice in the procurement of products and services; 2. Green technology to have a larger local market share compared to other technologies; 3. Increased production of local green technology products; 4. Increased research, development and innovation of green technology by local universities and research institutions that are commercialised; 5. Expansion of local SMEs and SMIs on green technology into the global markets; and 6. Expansion of green technology applications into most economic sectors Long-term goals planned for the 12th Malaysia Plan (2021 2025) & beyond: 1. Inoculation of green technology into Malaysia culture; 2. Widespread adoption of green technology to reduce overall resource consumption while sustaining national economic growth; 3. Significant reduction in national energy consumption; 4. Improvement of Malaysias ranking in environmental ratings; 5. Malaysia to become a major producer of green technology in the global market; and 6. Expansion of international collaborations between local universities and research institutions with green technology industries. Has Malaysia got sufficient human capital to support its push to go green? Human capital is a real challenge that needs to be addressed
immediately. Although Malaysia attracted almost RM12 billion in investments in FDIs in 2010 from the solar photovoltaic industry, transfer of technology and know-how has been limited due to contentious profit sharing and technological know-how transfer issues. This is unfavourable for the development of local green technology and scientific R&D. As GreenTech Malaysia CEO, how do you balance your stakeholders expectations? Even though GreenTech Malaysia has a mandate, and is expected to play a major coordination and implementation role in progressing Malaysias green agenda, if the Malaysian government solely continues to focus on attracting FDIs, Malaysia will only be a manufacturing hub and we will not be able to become green. It is a tricky balance. Whilst changing behaviour and putting into place sound green technologies takes time and needs to be developed as organically as possible, rapid growth will have its negative impacts on the economy, people and nation. How will green industries contribute to the national GDP? Malaysia has announced plans to reduce carbon emissions by 40 percent by 2020, based on 2005 levels. Growing the supply and demand of green products and services will be vital to achieving these targets. It is estimated that increasing energy efficiency by 40 percent by 2020 would result in cost savings of RM295 billion and by building a vibrant green technology industry, this will bring with it the creation of a range of highly-skilled positions, as has been the case in other nations that have made similar investments. By taking a coordinated effort to jump-start a vibrant green technology industry in Malaysia, we can generate RM7.2 billion of additional GDP/ GNI (Gross National Income) in 2020 and create over 47,000 jobs. This incremental GDP / GNI is driven primarily by growth in revenue from renewable energy service providers, and it is clear to see that green technology is to be one of the new drivers for economic growth.
environment being built using solar panels and new building materials. Better designs, lighter material and nano-technology will all, also, be a part of the technologies focusing on reducing our carbon emissions. From these international green technological developments, there will be increased transfer of technology from nation to nation. It could be due to economic pressure or even political cooperation or collaborative research between universities of different countries. New businesses will also inevitably grow through increased investments as strategic thinking companies position themselves to take advantage of the next growth industry. What are your priorities in the short-term, medium-term and long-term? The short-term goals as outlined in the 10th Malaysia Plan (2011-2015) are: 1. Increase public awareness through advocacy programmes; 2. Ensure widespread availability and recognition of green