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

2 OBJECTIVES

3 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)

4 EVALUATION OF ENERGY MANAGEMENT STATUS

5 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

6 ENERGY REVIEW

6.1 Energy Accounting Centre (EAC)

6.2 Internal Assessment Program

6.3 Energy Audit

6.4 Summary Steps and Milestone Planning

7 CONCLUSION

8 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. It’s endorsed by the European Union and 10 ASEAN Ministries of Energy.

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

iv. It’s certified our Energy Management System (EMS) is in compliance with international

standards.

v. It’s 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 Efficiencies-

friendly”.

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. We’re 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 Date Training Description Support Participants

1 2nd Jul 2014 Energy Manager Training External Consultant 3

2 15th Jul 2014 Energy Management System for Committee Member

External Consultant 10

3 2nd Sep 2014 Compressed Air System Optimization Training

In house 15

4 8th Oct 2014 Electrical Energy Optimization Training

In house 21

5 9th Dec 2014 Basic Energy Management Training External Consultant 30

6 16th Dec 2014 Heat Treatment System Optimization Training

External Consultant 22

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

Meter

(kWh)

Jan'13

Feb'13

Mar'13

Apr'13

May'13

Jun'13

Jul'13

Aug'13

Sep'13

Oct'13

Nov'13

Dec'13

Energy Used (gWh)

2,557

2,648 3,152

3,058

2,891

3,158

3,246

2,692 2,685

2,990

3,395

3,416

Production Volume (1000 Pcs)

784

826

980

995

1,054

1,040

1,035

811

892

864

893

896

EEI (kWh/ pcs)

3.26

3.21

3.21

3.07

2.74

3.04

3.14

3.32

3.01

3.46

3.80

3.81

Average 2013 EEI (Baseline)

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

(kWh)

Jan'14 Feb'14 Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14 Oct'14 Nov'14 Dec'14

Energy Used (gWh) 2,974 2,771 3,017 3,066 3,145 Production Volume (1000 Pcs)

811 893 997 1,085 1,052

EEI (kWh/ pcs) 3.67 3.10 3.03 2.82 2.99 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 = 801,42 3 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. Power meter – 25pcs

Total Cost : RM120,000

Status : Completed

b. Replacement of all compressor air filters – 4 pcs

Total Cost : RM10,000

Status : Completed

c. 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 no’s 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 non-

conformity 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

EAC-1,WP-2 (Management)

3 Jan 15 pending

Planned to submit 2 papers describing organization energy management best practice

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

1 Certified Energy Manager √ Available

2 Sustainable energy management system in placed

√ Successfully carried out

3 Additional motivation and awareness training on energy management system

√ Completed

4 Budget allocated for energy efficiency measures √ Completed

5 External compliance audit by Green Tech Malaysia

Pending Management

approval

Pending and need approval from top management for audit fees of RM20,000

6 Overall EEI evident improves 5% over 2 years Pending

Target to reach the level by Dec 2015 with 2014 is in tract saving 5% as the baseline reference year 2013

7 Professional Energy Manager Certificate Pending

Planned to submit 2 papers describing organization energy management best practice to AEMAS

8 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, we’re 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