have new energy policy
AS energy is a vital resource for economic development, its utilisation has and will continue to be one of the defining issues of this century.
Malaysia’s energy policy, formulated a long time ago with its focus on ensuring long-term reliability and security of energy supply, has withstood the test of time. But it is time for a revisit since our economy has undergone fundamental structural changes while the energy scene (especially oil prices) has changed significantly.
The following are some of the aspects to note.
> How do we continue to meet our increasing energy needs given that per capita energy consumption is on the rise? This is a worldwide phenomenon. As our economy develops, our standard of living also rises. It is inevitable that with affluence and new lifestyles, the average person will start consuming more energy units than before with the purchase of modern electrical appliances and vehicles.
> How best can we protect our environment through the increased use of energy? The electricity, industrial and transportation sectors account for a significant portion of carbon emissions. The “dirty” industries among them need to be identified and given adequate time to clean up their act as they seem to be conducting their operations in the “business as usual” manner with no sense of urgency in effecting changes. The situation is made worse by the fact that there is currently no carbon-reduction target imposed by the Natural Resources and Environment Ministry on each sector.
> Mindful that oil and gas are depleting assets, how do we accelerate efforts to conserve our limited energy resources?
Given the above hard-hitting issues, it is time to broaden the current energy policy by taking into account the following elements:
> A major institutional revamp by placing all energy agencies including Petronas under one roof;
> Strict adherence to market-based energy pricing (removal of energy subsidies was one of the best things we did);
> Programmes to change our energy-intensive lifestyles;
> Further liberalisation of the electricity sector especially at the distribution/retail level to facilitate more competitive prices for consumers;
> Strategising Malaysia as a regional energy hub;
> Reducing our dependence on petrol in the transport sector. Now that subsidies have been removed, old vehicles (beyond 10/15 years) should be banned or kept off the road;
> Deepening of the energy-related environmental issues to incorporate global warming issues, enduse energy efficiency, emission standards for each sector and the nuclear energy option. An allowable emission standard for each sector needs to be developed. Business entities that go beyond this allowable emission standard will incur a penalty. In this way, power plants and manufacturing firms will be encouraged to replace old, inefficient plants and equipment;
> Publish data and information on a regular basis on Malaysia’s progress in combating the effects of climate change; and
> Execution of “thinking-out-ofthe-box” projects. For example, planning and building transport-smart cities centred on projects that will minimise travelling to and from the workplace and mass transit will be the preferred transport choice for the majority of the population. With the extensive use of the Internet, virtual offices should be established on a pilot basis where employees go to office every alternate day. The Government should take the lead in implementing such as scheme in selected agencies/departments where contact with the public is at a minimum.
On renewable energy, one way of showing strong government commitment and support is for the Federal, state and local authorities to purchase green electricity from utilities at a slightly higher price for its own use.
Indeed, the above are tough measures and actions, and certainly need deeper scrutiny and analysis before implementation. But half of the battle will be won if we can agree that it is time for the Government to develop a new integrated and comprehensive energy policy that will take us safely to the end of this century.