Name

: Your name

Batch

: EMTC Session ?

Topic Selected

: Topic ?

Detail description of Topic ?: Proposal to ????

The
organization
that
you
are
appointed
as
an
energy
manager

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Your Company

Industries (M) Sdn. Bhd.

This proposal prepared for

BOARD OF DIRECTOR
Your Company Industries (M) Sdn. Bhd.

PROPOSAL ON YOUR TOPIC HERE

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TABLE OF CONTENTS
1

EXECUTIVE SUMMARY

OBJECTIVES

INTRODUCTION
3.1

Company background

3.2

The Benefit for getting 3-Star Energy Management Gold Standard

3.3

Overview of Certified Energy Management Standard

3.4

Overview of the Sustainable Energy Management System (SEMS)

EVALUATION OF ENERGY MANAGEMENT STATUS

SUSTAINABLE ENERGY MANAGEMENTS SYSTEM (SEMS)

5.1

Energy Policy

5.2

Energy Management Team

5.3

Motivation and Training practices

5.4

Information system

5.5

Marketing

5.6

Investment for energy conservation projects

ENERGY REVIEW
6.1

Energy Accounting Centre (EAC)

6.2

Internal Assessment Program

6.3

Energy Audit

6.4

Summary Steps and Milestone Planning

CONCLUSION

APPENDIX
8.1

Appendix 1 - Energy Policy

8.2

Appendix 2 - Certificate Electrical Energy Manager

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1.0

EXECUTIVE SUMMARY

Under the Electricity Supply Act 1990, government of Malaysia has endorsed the Efficient
Management of Electrical Energy Regulations 2008. In this regulation stated that any installation
which receives electrical energy from a licensee or supply authority with total electrical energy
consumption equal to or exceeding 3,000,000 kWh as measured at one metering point or more
over any period not exceeding six consecutive months are required to assign or designate a
registered electrical energy manager and to submit all the required information pertaining to
efficient electrical energy management matters to Energy Commission of Malaysia
(Suruhanjaya Tenaga).

In view of the above development, I would please to inform the management that as a newly
appointed Electrical Energy Manager, we have complied with the regulations. I also develop
strategies and approach to develop Sustainable Energy Management System (SEMS) for the
organization.

Thus, the purpose of this proposal document is to get endorsement from the top management of
Your Company Industries (M) Sdn. Bhd. to go to another milestone phase from current Energy
Management System to 3-Star Energy Management Gold Standard (EMGS) certification.

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2.0

OBJECTIVES

The objectives of this proposal are:

To get endorsement from top management to apply for 3-Star Energy

Management Gold Standard (EMGS) Certification from ASEAN Energy
Management Scheme (AEMAS).

To get approval to appoint Green Tech Malaysia for compliance audit.

To get approval for budgetary purposes.

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3.0

INTRODUCTION

3.1 Company background

Your Company Industries (M) Sdn. Bhd. is established in 1990 and having major market shares
of products globally.

We have 17 major internationally reputed clients which has giving high priority concern on
environmental issues and very much supportive to the green & prevention global warming
initiatives.

We endeavor forward with current number of employees of four hundred seventy people with
total production capacity of one million products per month.

3.2 The Benefit for getting 3-Star Energy Management Gold Standard

We believed the company will be benefited for following reasons:

i.

It will give an opportunity to demonstrate our company commitment to sustainable

energy development and validate our company efforts.

ii.

Its endorsed by the European Union and 10 ASEAN Ministries of Energy.

iii.

It portrays our company as a leader in sustainable energy development.

iv.

Its certified our Energy Management System (EMS) is in compliance with international
standards.

v.

Its recognized by United Nations Environment Program (UNEP).

vi.

Improve the corporate image.

3.3 Overview of Certified Energy Management Standard

The Energy Committee has decided that our organization has to meet the 3-Star Energy
Management Gold Standard with ASEAN Energy Management Scheme (AEMAS) and make a
proposal to the top management for the best of the organization.

3.3.1

ASEAN Energy Management Scheme (AEMAS)

The AEMAS is an independent non profitable organization in line with other

international standard but add on additional requirements to demonstrate achievements
and performance in energy management.

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Criteria to meet the 3-Star Energy Management Gold Standard

i.

Professional Energy Manager (PEM) NOT Certified Energy Manager (CEM).

ii.

Motivation plan for the personnel involved in the Energy Management System.

iii.

Budget allocated for investment in energy efficiencies measures.

iv.

Procurement policies and internal investment criteria Energy Efficienciesfriendly.

v.

Proven Energy Efficiency Index (EEI) improves 5% lower within 2 consecutive

years.

Validity of certification is two (2) years from the time it was awarded. This certification
cannot be renewed and should be maintained within 3-Star EEI level requirement. If the
3-Star rating is not achieved within 2 years, the 3-Star certification rating is withdrawn.
Companies can re-apply for 1-Star certification rating again after 3 years (minimum)
from the date the certification was withdrawn.

3.4 Overview of the Sustainable Energy Management System (SEMS)

To meet the requirement of our clients and also has good concerns on environmental issues,
our company have successfully developed SEMS through an Electrical Energy Manager and
implemented the following:
3.4.1

Energy Policy

3.4.2

Energy Management Team

3.4.3

Motivation and training practices

3.4.4

Information system

3.4.5

Marketing

3.4.6

Investment criteria for energy conservation projects

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4.0

EVALUATION OF ENERGY MANAGEMENT STATUS

We have reviewed our current status on Energy Management Matrix with respect to our
previous status and convince the dramatically improvement has been noticed in a short period
of time. Were expected to certify to 3-Star Energy Management Gold Standard (EMGS)
Certification from the ASEAN Energy Management Scheme (AEMAS) in second week of
February 2015.

Table 1 : The Energy Management Matrix

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5.0

SUSTAINABLE ENERGY MANAGEMENT SYSTEM (SEMS)

5.1 Energy Policy

Our company through appointed energy manager has developed energy policy to be used
throughout the company. The energy policy is attached as appendix 1 in this document.

5.2 Energy Management Team

We have established the energy management team for our company which encompassed of the
company management team as described below:
1)

Chairman
Dario Cardone

2)

Secretary (Registered Energy Manager)

Your Name

3)

Production Manager (DGBB/ SABB)

Safinaz Binti Borhan

4)

Production Manager (Heat Treatment)

Chong Kok Hing

5)

Production Manager (SRB)

Danest A/L Nadarajah

6)

Human Resource Manager

Salim Bin Kamaruddin

7)

Material Flow Manager

Mohd Asraf Abdullah

8)

Engineering Manager
Leong Chee Ming

9)

Quality Manager
Dr. Amissa Azlan

10) Maintenance Manager

Chang Shea Speare
11) Utility Manager
Ahmad Muzahar

The energy management team organization chart is shown below:

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5.3 Motivation and Training practices

For the motivation and training practices, we have successfully conducted six training for
various levels of staff. The training course consist mixture of management and technical field.

The total participants are 101 employees attended the training from January 2014 to December
2014.

No

nd

Date

Training Description

Jul 2014

Energy Manager Training

th

15 Jul 2014

8 Oct 2014

9 Dec 2014

16 Dec 2014

nd

Sep 2014

th

th

th

Support

Participants

External Consultant

External Consultant

10

Compressed Air System Optimization

Training

In house

15

Electrical Energy Optimization

Training

In house

21

Basic Energy Management Training

External Consultant

30

Heat Treatment System Optimization

Training

External Consultant

22

Energy Management System for

Committee Member

Table 2 : Motivation and training for year 2014

5.4 Information system

In order to set the Energy Efficiency Index (EEI) target for year 2014, 2015 and to monitor the
EEI effectively, the set up the monthly monitoring profile for overall EEI for the total plant
electrical consumption will be essential.

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5.4.1

Energy Efficiency Index (EEI) for year 2013 & to date 2014

Electricity
- Total
TNB

Jan'13

Feb'13

Mar'13

Apr'13

May'13

Jun'13

Jul'13

3,152

3,058

2,891

3,158

3,246

Aug'13

Sep'13

Oct'13

Nov'13

Dec'13

2,685

2,990

3,395

3,416

Meter
(kWh)
Energy
Used (gWh)
Production
Volume
(1000 Pcs)
EEI (kWh/
pcs)
Average
2013 EEI
(Baseline)

2,557

2,648

2,692

784

826

980

995

1,054

1,040

1,035

811

892

864

893

896

3.26

3.21

3.21

3.07

2.74

3.04

3.14

3.32

3.01

3.46

3.80

3.81

3.26

Target 2014

3.09

Target 2015

2.94

From the trend graph above, we noticed that the EEI trend is going upwards and hence it is
necessary for us to have energy conservation initiative to bring down the EEI trend. We use the
year 2013 EEI average as baseline for 2014 target.

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5.4.2

Energy Efficiency Index (EEI) for year 2013

We have started number of activities on energy awareness and energy conservation in

year 2014, we notice that the EEI trend start to going down which is correlate to all the
actions implemented so far and the momentum has to be sustain with proposed
activities.

Electricity
- Total
TNB Meter

Jan'14

Feb'14

Mar'14

Apr'14

May'14

2,974

2,771

3,017

3,066

3,145

811

893

997

1,085

1,052

3.67

3.10

3.03

2.82

2.99

Jun'14

Jul'14

Aug'14

Sep'14

Oct'14

Nov'14

Dec'14

(kWh)
Energy Used
(gWh)
Production
Volume
(1000 Pcs)
EEI (kWh/
pcs)
Average
2013 EEI
(Baseline)

3.26

Target 2014

3.09

Target 2015

2.94

EEI 2014
Improvement

0.41

(0.16)

(0.23)

(0.44)

(0.27)

kWh Saving

1,208

(432)

(707)

(1,334)

(849)

Total saving from January 2014 to May 2014 = 801,423 kWh X RM 0.3647 = RM146,398

5.5 Marketing

To improve the awareness on Energy Management Program, the Energy Management

Committee have initiated following activities:

1)

Energy Campaign Day

Energy Campaign Day was carried out for our employees, clients, neighborhood factories and
contractors. Opening ceremony was officially inaugurated by Minister of Energy, Green
Technology and Water on 14th February 2014.

2)

Corporate Social Responsibility Program

Provided recycled green bags for school children and employees on 14th February 2014
(Quantity: 1,000)

3)

Energy Conservation Day

Distributed 6,000 pcs of pamphlet on importance of energy conservation on 14th February 2014.

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The awareness program was very successful and also all the employees were appreciated the
knowledge they were gained during campaign program. Energy Efficiency Index has been
improved substantially after the Energy Campaign Day.

5.6 Investment for energy conservation projects

Our Energy Committee is fully aware that if there is no monitoring then there is no management
the importance of maintenance and replacement of old inefficient equipment.

To make the Energy Management Program meaningful, we have invested in the following
equipment as a part of the program.

Purchased monitoring and measuring equipment as below:

a.

b.

c.

Power meter 25pcs

Total Cost

: RM120,000

Status

: Completed

Replacement of all compressor air filters 4 pcs

Total Cost

: RM10,000

Status

: Completed

Replacement of old/inefficient motor to high efficiency motor 10 units

Total Cost

: RM100,000

Status

: Completed

With the result from above equipment, we have convinced the management the sustainability of
the program with new initiative.

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6.0

ENERGY REVIEW

6.1 Energy Accounting Centre (EAC)

The Energy Accounting Centre (EAC) has been established in various departments in our plant.

Shown below are the EACs which have been assessed in our internal assessment program in
the month of 3rd January to 27th February 2014.

6.2 Internal Assessment Program

On 3rd January 2014, we have conducted the assessment for Energy Manager Role and
Responsibility, Energy Manager Working Procedure (EM-WP), Energy Management Committee
on the Policies and Energy Efficiency Index (EEI).
On 6th January 2014, we have conducted our assessment to Energy Accounting Centre -1
(EAC-1) for Administration and Functional Area and Energy Accounting Centre -2 (EAC-2) for
Air Compressor A, B, Chiller 1 and Cooling Tower 1.
On 17th January 2014, we have performed the assessment to Energy Accounting Centre -2
(EAC-2) for Warehouse Area and Energy Accounting Centre -4 (EAC-4) for Air Compressor C,
D, Chiller 2, Cooling Tower 2 and 3.

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Finally on 12th February 2014, we have completed the assessment for Energy Accounting
Centre -5 (EAC-5) for production machines, Energy Accounting Centre -7 (EAC-7) for Centralize
Service System and Energy Accounting Centre -8 (EAC-8) for Heat Treatment Plant.

Based on the internal assessment, we found that most of the information available and system
are in order.

Audit Scope

Audit Criteria

Audit Period

Energy
Manager

Role & Responsibility, EM -WP

2nd January 2014

EM Committee

Policies, EEI

2nd January 2014

EAC-1-2

EAC working procedures

6th January 2014

EAC-3-4

EAC working procedures

17th January 2014

EAC-5-7

EAC working procedures

12th February 2014

Table 3 : Internal assessment program conducted for 2014

6.3 Energy Audit

An internal audit on Overall Energy Management System was held on 13th June 2014. From the
internal audit findings, we detected that seven nos of Opportunity for Improvement (OFI) from
various EACs. All these OFI can be rectified and targeted actions will be completed by end of
December 2014. Below is the summary table on the Opportunity for Improvement (OFI)
findings.

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OFI LOG SHEET

OFI No

Summary of nonconformity

Assessed
Department

Expected
Completion
Date

Completed
Date

Remarks

001

Training is conducted on
energy management
system on Chiller
Optimization but the
effectiveness of the
training is not analyzed

EAC-1,WP-3
(Human
Resource)

20 Jun 14

18 Jun 14

The effectiveness of the

training has been analyzed

002

Energy power meter is

faulty and daily EEI data
is not recorded for
production machine

EAC-5,WP-5
(Electrical)

27 Jun 14

25 Jun 14

Replaced the faulty power

meter and recording
started

003

Saving on energy
conservation measures
for high efficiency
motors are not
calculated after
implementation

EAC-5,WP-6
(Electrical)

30 Jun 14

Pending

Saving calculation is in
progress

004

Criteria on energy
efficiency not stated in
the procurement
procedure

EAC-1,WP-8
(Purchasing)

31 Jul 14

Pending

Drafting the criteria is in

progress

005

Heat Treatment heating

element is not recorded
with power meter

EAC-8,WP-5
(Utility)

31 Jul 14

Pending

Planned to replace the

faulty power meter

006

Energy Manager
certificate expired

EAC-1,WP-1
(Management)

31 Jul 13

pending

Renewal on going

007

Professional Energy
Manager Certificate
registration

pending

Planned to submit 2
papers describing
organization energy
management best practice

EAC-1,WP-2
(Management)

3 Jan 15

Table 4 : The internal audit finding

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6.4 Summary Steps and Milestone Planning

After all the internal audit findings are closed and corrective measures are implemented, we are
proposing to engage Green Tech Malaysia to conduct compliance audit to our site to close the
gap if any. After one month from the date of compliance audit by Green Tech Malaysia, we will
apply to AEMAS for 3-Star EMGS certification. Below are the summary steps and milestone to
achieve certified energy management standard.

No

Activities

Status

Remarks

Certified Energy Manager

Available

Sustainable energy management system in

placed

Successfully carried out

Additional motivation and awareness training on

energy management system

Completed

Budget allocated for energy efficiency measures

Completed

External compliance audit by Green Tech

Malaysia

Overall EEI evident improves 5% over 2 years

Pending
Management
approval

Pending and need approval

from top management for
audit fees of RM20,000

Pending

Target to reach the level by

Dec 2015 with 2014 is in tract
saving 5% as the baseline
reference year 2013

Professional Energy Manager Certificate

Pending

Planned to submit 2 papers

describing organization energy
management best practice to
AEMAS

Application for AEMAS 3-Star certification

Pending

Submission eventually after

completion of item 6 and 7

Table 5: Step to achieve 3-Star EMGS Certification

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Table 6: Roadmap for 3-Star EMGS Certification

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7.0

CONCLUSION

After all the efforts done, were hoping to get the endorsement from the top management to
apply for 3-Star Energy Management Gold Standard (EMGS) Certification from the ASEAN
Energy Management Scheme (AEMAS). We believed we are ready and on the right track for
the road map towards 3-Star Energy Management Gold Standard Certification.

Prepared by :

Your Name
(Registered Energy Manager of Your Company Industries (M) Sdn. Bhd.)

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APPENDIX 1

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APPENDIX 2