Renewable Energy potential for Energy Efficient resort

development in Malaysia
1, 2 1 1
Muhamad Syafiq Salehudin , Deo Karan Prasad and Paul Osmond
1
Faculty of Built Environment, University of New South Wales Sydney 2025, Australia
2
International Islamic University Malaysia, P.O. Box 10, 50728 Kuala Lumpur Malaysia
syafiqsalehudin@yahoo.com, d.prasad@unsw.edu.au, p.osmond@unsw.edu.au

ABSTRACT
Over the past decade, the Malaysian tourism industry has been developing and working
towards a more sustainable architecture and development. The tourism industry in Malaysia
ranks 9th in the international tourism market and tourism associated activities are expected to
escalate to yield profits of RM33.6 billion by 2015. The Government of Malaysia is therefore
committed to promote sustainable tourism and has been actively pursuing several inter-
related initiatives to overcome the existing barriers in sustainable tourism development. One
of the initiatives is to promote the utilization of renewable energy technologies. Among other
resources, the hospitality industry in Malaysia uses substantial amounts of energy for
providing comfort and services to the tourists, typically with an alarmingly low level of
energy efficiency. This paper focuses primarily on the use of energy in Malaysian tourism
accommodation facilities. It aims to provide an overview of the current tourism industry
situation and related environmental impacts in resort and hotel development. In order to
achieve sustainable tourism development and resource friendly energy solutions, Malaysia
needs to identify, develop and apply alternate sources of energy to sustain and fuel its tourism
growth engines.
Keyword : Solar, Sustainable Building, Wind, Resort Development

Introduction

The hospitality industry in Malaysia provides an important source of employment, wealth and
profits to the country. Even though Malaysia is a relatively new entrant into mass tourism
activities as compared to Thailand, Philippines and Indonesia, the industry has grown
positively over the years (Siti Nabihah 2010). Therefore, there is a need to ensure the industry
remains economically and environmentally sustainable.

While providing significant benefits to the local community and national economy, the
increasing number of international and domestic tourists simultaneously poses a range of
serious socio-cultural and environmental negative impacts to Malaysia (Abdullah 2008,
Ismail & Turner 2008, Marzuki 2011 & Kunasekaran 2011,). With an average 21 million
tourists every year (figure 1) (WTO 2009), resort and accommodation buildings in Malaysia
constitute a significant fraction of the total building stock. Wu et al (2010) in their research
reported that resort and accommodation buildings in many countries represent one of the
most energy intensive building types. Due to the pressure imposed on the energy supply,
resorts and hotel buildings also create significant threats to the environment through
greenhouse gas (GHG) emissions, waste management and pollution of water resources.

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 tourist arrivals (miilions)
30

25

20

15
tourist arrivals
10 (miilions)

Figure 1. Tourist arrivals in Malaysia (WTO, 2010)

Resort and accommodation development is an important part of the travel sector.

Internationally, the energy used in resort and accommodation buildings is still predominantly
fossil fuel based, despite the fact that many of these facilities are located in areas with ample
access to renewable energy resources (Bohdanowicz 2009). The accommodation industry is
typically geared towards providing high-level comfort, a broad spectrum of services and
entertainment for tourists. However due to commercial pressure, concerns towards
environmental and socio economic impacts have faded into neglect (Castelenai & Sala 2009).
In the research done by Bohdanowicz (2002), heating, air conditioning, ventilation and
cooling systems typically accounted for a major and frequently the largest proportion of the
energy in a resort (figure 2). Other sources of energy consumption in a typical resort include
catering, domestic hot water and lighting. The use of renewable energy resources and
technologies in resort and accommodation facilities will benefits the operator and is a crucial
step towards achieving energy efficiency resort development.

It has been frequently reported during international conferences that the tourism industry is
the one of the causes of the deterioration of the environment that affects climate change
(Abdul Rahman 2009). Since stopping tourism growth is a futile effort, two ways can be
adopted to reduce the increasing energy consumption for more sustainable tourism, and
reduce carbon dioxide emissions resulting from the operation of tourism facilities. One is by
reducing the use of fossil fuels and the other is to replace fossil fuels with alternative
renewable forms of energy that do not emit carbon dioxide. This research was intended to
shed some light on the energy and environment related issues in resort development. This
paper will also investigate the possibility of tourism expansion using renewable energy as an
alternative source of energy for resort development in Malaysia.

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 % of total energy consump6on in
typical resort
other
ligh6ng
8%
6%
hot water
13% hea6ng and air
cond
48%
catering
25%

Figure 2. Breakdown of the energy consumption in a typical resort (CADDET, 2000)

Renewable energy in Malaysia

As a developing country, the development process continues to affect the growth of energy
demand in Malaysia. Total primary energy supply has increased steadily over the past 20
years. In 2010 energy supply in Malaysia reached about 64 Mtoe which is more than a 200%
increase from 1990, as shown in Figure 3.

60000

50000

40000
hydropower
Kilo Tonnes oil 30000 coal and coke
equivalent
natural gas
20000
crude oil
10000

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Figure 3. Primary energy supply by fuel type in Malaysia (NEB 2010)

The renewable energy sector provides a potential factor to maintain economic

competitiveness and promote sustainable tourism development for the future of Malaysia.
Malaysian government strategies for achieving national energy objectives include the
diversification of energy sources, technology, maximizing use of indigenous energy and
minimizing negative environmental impact. Renewable energy and energy efficiency under

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the Malaysian economic transformation plan (2010) and tenth Malaysian plan (2010-2015)
focus on targeting renewable energy to be a significant contributor and for better utilization
of energy resources.

Renewable energy in Asia is on the rise. Renewable energy is defined as energy derived from
natural processes that do not involve the consumption of exhaustible resources such as fossil
fuels and uranium (Oh et al 2010), for instance biomass, geothermal, solar, wind and
hydropower. Utilisation of renewable energy in tourism development in Malaysia was
encouraged by the government of Malaysia. However, despite high growth, renewable energy
still represents only small portion of the total energy consumption in Malaysia.

Biomass

Biomass is considered one of renewable energy sources with the highest potential to
contribute to energy efficiency in Malaysia. Malaysia is one of the biggest producers of palm
oil, which can generate huge quantities of biomass. In the research done by Shuit et al (2009),
they stated that biomass from the palm oil industry appears to be a very promising alternative
source for electricity generation. For instance Sabah (one of the states in Malaysia) is one of
the highest palm oil producers with 1.4 million hectares of oil palm plantations producing
59.08 million ton of palm oil waste per year. If the palm oil waste is fully utilised to produce
electricity, a total of 64,909 Gwh of electricity can be generated using the palm oil waste each
year in Sabah. Lim and Koh (2010) conclude that the required feedstock for a 300 MW
biomass power plant is readily available and can be obtained on a sustainable basis in Sabah.

Wind

One of the serious contenders for energy conversion in Malaysia is wind. Wind power is the
conversion of wind energy such as using wind-mills for mechanical power, turbines to
convert wind energy to electricity or wind pumps for pumping water. The potential of wind
energy generation in Malaysia depends on the availability of the wind that varies with
location. This type of energy is considered as an environmentally friendly technology
because it creates only minor negative impact on the environment compared with other
alternatives. University Kebangsaan Malaysia in the early 1980s launched a ten year research
program on wind power technology (Ong et al 2011). The results show that the southern
region (Mersing in Johore) and east coast region of Malaysia (Kuala Terengganu) have the
greatest wind power potential for the country (Zaharim et al 2009 & Chiang 2003).

Solar

Malaysia is a tropical country gifted with abundant sunshine throughout the year. With plenty
of sunshine and an average of 12 hours of sunshine daily, the average solar energy received is
between 1400 and 1900 kWh/m annually (Ahmad et al 2011) with the highest solar radiation
estimated at 6.8 kWh/m in August and November. It is the most promising source of clean,
renewable energy and it has the greatest potential of any alternative power source to solve
Malaysian energy problems (Kadir & Rafeeu 2010). The climatic condition in Malaysia is
favourable for the development of photovoltaic technology (Hitam 2000). The eastern part of
Malaysia and the northern region of the country have the highest potential for solar energy
application because of their high level of solar radiation throughout the year.

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In July 2005, the Ministry of Energy and Communication Malaysia (MECM) launched the
Malaysian building integrated photovoltaic (MBIPV) project (Chua & Oh 2011). The
objective is to encourage BIPV applications within building designs that will reduce GHG
emissions from the countrys electricity sector. A study which has been conducted under the
MBIPV project shows that potential to produce electricity through solar PV systems in
tourism locations in Malaysia such as Kota Kinabalu, Penang, Melaka, Kuching, Kuantan and
Kota Bharu is among the highest worldwide (Chua & Oh 2011). Annual energy output for the
selected tourism locations in Malaysia varies about 1170 kWh/kWp to 1600 kWh for roof-top
systems while about 630kWh/kWp to 830kWh/kWp for facade systems (figure 4 and figure
5).

Annual Energy Output (kWh/kWp)

2000
1500
1000
500
0

kuching
perth

brussels

cologne
munich

edinburgh

los Angeles
brisbane

oDawa

copenhagen
helsinki
paris
berlin

dublin
rome

london
milan
barcelona
madrid

penang
kota bharu
wellington

kota kinabalu

Johor Bahru
Kuantan
melaka
houston
vancover
sydney

Annual Energy Output (kWh/kWp)

Figure 4. Annual energy output, roof-top systems (IEA-PVPS & MBIPV-PTM, 2007)

Annual Energy Output (kWh/kWp)

1000
800
600
400
200
0
Kuching
colonge
munich
perth

brussels

Wellington
Los Angeles

Penang
brisbane

oDawa

copenhagen
helsinki
paris
berlin

dublin
rome
milan
Barcelona

London
Madrid

Houston

Kota Bharu

Johore Bahru

Melaka
Kota Kinabalu

Kuantan
Edinburgh
vancover
sydney

Annual Energy Output (kWh/kWp)

Figure 5. Annual energy output, facade systems (IEA-PVPS & MBIPV-PTM, 2007)

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Current energy situation in Malaysian resort development (energy used in
hotels)

Most of the energy used in resort and accommodation development in Malaysia comes from
fossil fuels like coal, oil and gas (Darus 2008, Abdul Rahman 2004). However, over the years
these fossil fuels have gradually been depleted and supplies are becoming scarce. As fossil
fuels become an increasingly expensive commodity, the cost will affect the hospitality
industry, for example by increasing the price of accommodation, creating an unsustainable
tourism environment.

The change in the fuel mix from traditional energy sources (wind for ventilation and sun for
natural lighting) to fossil fuels in order to meet the increasing energy demand in the tourism
industry has led to a steep increase in the use of fossil fuels (Siti Nabihah 2010). With the
construction of energy intensive resorts, hotels and more commercial electrical appliances in
tourism locations, the consumption of energy by the Malaysian tourism industry has
increased significantly. Transportation and electricity used for tourism operations has
contributed the most to this steep increase of fossil fuel use in the industry (Darus et al 2009).

The energy consumption by each resort differs substantially. It depends on the type of
accommodation facilities and is affected by hotel size, classification/category (stars), the
number of rooms, tourist profiles (whether the guest is visiting for business or vacation),
location, climate zone, as well as by the types of entertainment, activities and services
provided to the guests (Bohdanowicz 2009).

In Malaysia most accommodation buildings have installed air-conditioning for tourist

comfort and this is used all year long. It forms a large part of the total electricity demand in
this tropical country. The literature suggests that rising temperature will inevitably increase
energy use for cooling (Wu et al 2010). This will contribute to climate change and global
warming because of the extra greenhouse gases emitted in transmission, distribution,
electricity generation and other related processes. Reducing energy consumption and making
use of alternative, renewable and clean energy is the only way out of this vicious circle (Lim
2010).

Tourism is made up of a large number of small operations, each of which consumes relatively
small amounts of resources which collectively generates a significant amount of negative
impacts on the environment. Overall, resource consumption and pollution are substantial,
however the small scale of typical operations makes individual businesses reluctant to follow
initiatives from the central government and local authorities to create an energy efficiency
environment, because the benefits are also perceived to be small (Koh & Yun 2010). While
tourism stakeholders agree that the hospitality industry is fragmented, many tourism
practitioners and researchers on the other hand believe the actual benefits reaped by small
individual business through implementation of energy efficiency initiatives or operational
environmental management may not necessarily be small (Neto 2003). For example the
Holiday Inn resort in Penang successfully reduced its yearly energy consumption by 31.2%
(EarthCheck 2010) by implementing efficiency initiatives. Not every accommodation facility
in Malaysia has the same saving potential, but it has demonstrates an achievable situation
other tourism facilities can target as a goal.

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Accessible potential of renewable energy as an alternative energy resource in
Malaysian resort development

With significant and growing energy consumption, there is a need for the resort and
accommodation industry to explore sustainable practices in order to reduce their reliance on
fossil fuels and decrease the negative impacts on the environment.

Lim and Koh (2010) stated that with Malaysia being the top palm oil producer in the world,
abundant biomass from the palm oil waste could generate electricity for the tourism industry.
As reported in the research done by University Malaysia Sabah (2010), tourism facilities
including resorts and accommodation buildings can utilize the renewable energy from
biomass because many tourist spots in Sabah are located near power plants using biomass.

Photovoltaic technology and wind energy conversion have great potential on Malaysian
resort islands especially off the east coast in the South China Sea (Darus et al 2009). Studies
done by University Kebangsan Malaysia in 2005 reported that the use of a 150kW wind
turbine in the Terumbu LayangLayang and hybrid solar energy in Kapas Island in
Terengganu was demonstrated with some success (Zaharim et al 2009).

In 2007, the Federal government of Malaysia, National Electric Board and state government
of Terengganu developed a renewable energy project in Pulau Perhentian (Perhentian Island)
(Ismail 2009). The project involved installation of two wind turbines, photovoltaic panels,
batteries and generator. The objective of the project is to provide clean and reliable sources of
energy for tourism facilities in Pulau Perhentian. In Malaysia, Pulau Perhentian is one of the
most popular resort islands for tourists from all over the world because of the long white
sandy beach and the coral garden. In Perhentian Island resort buildings constitute a majority
of the total building stock (Abdul Manan et al 2008).

The results from the study show that both wind turbines produce 18 kW and the photovoltaic
panels produce 39 kW, giving a total of 74kW produced from this project. The average daily
electricity requirement for resort building on the island is 71 kW. Therefore the energy
produced by the PV panels and wind turbines meet the load requirements for tourism
facilities on the island (Darus et al 2009).

Conclusion

The tourism industry in Malaysia is still heavily dependent on non-renewable fuels such as
coal, crude oil and natural gas as a source of energy. Increasing energy consumption is
expected to affect the tourism industry because these non-renewable fuels are gradually
depleting and contribute to significant negative impacts of tourism development such as
increasing greenhouse gas emissions.

Much research has shown that, based on environmental, technical and economic evaluations,
renewable energy options such as biomass, wind and solar are feasible for sustainable resort
development in Malaysia. At the moment the application of renewable energy systems
(biomass, wind and solar), does not aim to replace non-renewable energy in Malaysian resort
development, but to minimise the usage of fossil fuel as a source of electricity in resorts and
tourist accommodation facilities in Malaysia.

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The application of renewable energy technologies in Malaysian resort development will help
to promote sustainable development for the future of the tourism industry in Malaysia. It is
clear that the potential of renewable energy technologies can be further explored in Malaysia
where there are abundant resources (sunshine, wind and palm oil waste) to implement these
types of technologies.

Further research and development needs to be conducted to produce a comprehensive system

that can be used to replace non-renewable energy technology, where the alternatives can be
transformed to be more efficient and more cost effective.

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