energy

Title: Introduction

BDE 40203ENERGY MANAGEMENT & CONSERVATIONTitle: Introduction

Presentation Outline:Overview on EnergyCurrent Energy ScenariosEnergy Policies & Legislation

BDE 40203ENERGY MANAGEMENT & CONSERVATION

What is energy? Energy is defined as the ability to do work in physics

Here, energy is considered as the resources having the ability to do work


Forms of EnergyKINETIC Energy is energy in motion (e.g. moving automobile, falling water, light from sun)

POTENTIAL Energy is stored energy (e.g. water behind a dam or a litre of oil). Energy has a basic identity but can change form- potential energy in oil changes to kinetic energy (steam) heat, when oil is burned in a boiler furnace.

When steam strikes the blades of a turbine, part of the heat in the steam becomes the kinetic energy of the moving turbine.

The turbine then turns an electric generator, converting some of its kinetic energy into another form of kinetic energy, electricity.

This electric energy, transmitted to a factory, may be converted to mechanical energy to drive a machine, or to light energy or heat energy.

BDE 40203ENERGY MANAGEMENT & CONSERVATIONSources Of Energy Five primary sources of energy : Solar, Geothermal, Chemical, Tidal And Nuclear

Chemical &nuclear : potential forms of energy

Solar, geothermal & tidal: kinetic forms of energy Coal, oil and gas (Fossil fuels)

Chemical process that converts these potential energy sources into usable form

When the carbon atoms in these fuels are burned the stored energy within is released

Provide the world with most of its energy.

BDE 40203ENERGY MANAGEMENT & CONSERVATIONSummary Of The Sources Of Energy

BDE 40203ENERGY MANAGEMENT & CONSERVATIONMalaysias Oil And Gas Reserves Five primary sources of energy : Solar, Geothermal, Chemical, Tidal And Nuclear

Chemical &nuclear : potential forms of energy

Solar, geothermal & tidal: kinetic forms of energy Coal, oil and gas (Fossil fuels)

Chemical process that converts these potential energy sources into usable form

When the carbon atoms in these fuels are burned the stored energy within is released

Provide the world with most of its energy.


Malaysias Oil And Gas Reserves

CRUDE OIL : 5.46 billion barrels NATURAL GAS : 88.00 trillion standard cubic feet RESERVE LIFE : Oil 19 years, Gas - 36 years source: PETRONAS (as at 1st January 2008)


Oil & Gas Resources Total resources addition has been shrinking despite increased in exploration activities More wells but less quantity extracted from each well


Classification of Energy Primary & Secondary energy Commercial & Non commercial energy Renewable & Non-renewable energy


Primary and Secondary Energy


Commercial And Non-commercial Energy Commercial energy Available at market price Electricity, coal, oil, and natural gas

Non-commercial energy Not available in market for a price Firewood, cattle dung and agricultural wastes, solar energy, animal power, wind energy


Renewable & Non-Renewable Energy

RenewableNon-Renewable


Renewable Energy : Solar The energy from the sun is radiant wave energy Most of the radiant energy received by the earth is reflected back into space Only a portion entering into the atmosphere is absorbed by the air, sea and wind, increasing their energy. Energy from wind, water, waves or wood is also a form of solar energy Solar energy is the source for the motion of winds and waves. The suns heat evaporates water and the winds carry it. It falls as rain and snow, and replenishes the rivers and their reservoirs with water which is used to produce hydroelectric power.


Sunlight provides energy for the growth of woody plants and other plant material (biomass) which is thus a source of stored solar energy. The suns energy can also be indirectly tapped by using the temperature gradient of oceans at different depths, or solar ponds Technical viability of new and renewable energy sources has been established The main difficulty is in making them commercially viable Renewable Energy : Solar


Geothermal and Nuclear Geothermal energy comes from within the earth the heat of geothermal energy can mined for use tides are very high a kind of hydroelectric plant can be built to harness their energy.

Nuclear energy is a form of potential energy stored in the nucleus of an atom. Present-day nuclear reactors are based on fission reactions In this process a heavy atom is split into two lighter ones, releasing energy Scientist are currently working to develop nuclear reactor based on fission reactions, in which two lighter nuclei will be combined to form a heavier one, releasing energy in the process. About four decades ago it was thought that nuclear fuel could substitute for oil and gas Environmental and safety considerations did not permit its growth at the expected rate.


Geothermal and Nuclear Today, the world uses each of these four energy sources to a limited extent and reliance is most heavily on the fifth source : chemical energy from fossil fuels

BDE 40203ENERGY MANAGEMENT & CONSERVATIONFuels Types: Liquid, solid and gaseous fuels The main industrial energy requirements are electricity & fuels - purchased from the utility

Tips on Selection of Fuels: availability storage handling pollution landed cost of fuel

BDE 40203ENERGY MANAGEMENT & CONSERVATIONFuel Properties

BDE 40203ENERGY MANAGEMENT & CONSERVATIONConversion Figures Electricity 1 kWh = 0.0036 GJ

Heavy fuel oil = 36,000 MJ/m3 (Gross calorific value) (36,000 kJ/litre)

Coal = 28 GJ/ton(Gross calorific value)

Power Generation Mix In Malaysia: Oil To Gas Dependency

Source: Energy Commission

BDE 40203ENERGY MANAGEMENT & CONSERVATIONElectricity Generation Fuel Mix in Malaysia

Source: Energy Commission

BDE 40203ENERGY MANAGEMENT & CONSERVATIONHow primary energy is used to produce electricity for consumers Source: Exxon Mobil Energy Outlook 2012

No matter the source, it takes a significant amount of energy to make electricity Globally, more than 35% of the primary energy consumed on a daily basis is being used to make electricity

BDE 40203ENERGY MANAGEMENT & CONSERVATIONExample of energy flow and electric power consumption

BDE 40203ENERGY MANAGEMENT & CONSERVATIONStructure Of Electricity Supply Industry in Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATIONUNDERSTANDING ENERGY COSTS


Key Components In Energy Bills Energy Cost (Fuel price) fluctuating according to market price Fixed and variable costs


Fuel Pricing Structure

Selling Price = Market Price + Other variable costs + Fixed Cost + PROFIT


Movement Of Oil Prices: Crude Oil Prices (Dollar)

Source: www.wtrg.com

BDE 40203ENERGY MANAGEMENT & CONSERVATION29

Movement Of Natural Gas Prices


Movement Of MFO and Natural Gas Prices

BDE 40203ENERGY MANAGEMENT & CONSERVATION31Purchased Energy (Based On Invoices)

BDE 40203ENERGY MANAGEMENT & CONSERVATION32Purchased Energy (expressed in common units)

BDE 40203ENERGY MANAGEMENT & CONSERVATION33Cost Of Energy

BDE 40203ENERGY MANAGEMENT & CONSERVATION34Cost For Various Types Of Energy


BDE 40203ENERGY MANAGEMENT & CONSERVATION36Energy Used Annually

BDE 40203ENERGY MANAGEMENT & CONSERVATION37MAIN FUNCTIONS OF THE ENERGY COMMISSION [under Energy Commission Act 2001) Advise Minister on all matters concerning energy supply activities Implement, enforce and review energy supply laws (Electricity Supply Act 1990, Gas Supply Act 1993 and regulations) Promote efficiency, economy and safety in electricity and piped gas supply industries Promote competition and prevent misuse of monopoly power in electricity and piped gas supply industries Promote renewable energy and conservation of non- renewable energy Promote research and development of new techniques relating to supply and use of electricity and piped gas Promote self-regulation

BDE 40203ENERGY MANAGEMENT & CONSERVATION38FRAMEWORK FOR ELECTRICITY SUPPLY INDUSTRY REGULATION

BDE 40203ENERGY MANAGEMENT & CONSERVATION39ENERGY SCENARIO SUPPLY AND DEMAND SITUATION

BDE 40203ENERGY MANAGEMENT & CONSERVATION40Malaysias Oil And Gas Reserves

CRUDE OIL : 5.954 billion barrels NATURAL GAS : 92.122 trillion standard cubic feet

(source: National Energy Balance 2012 - as at 1st January 2012)


DECLINING OIL AND GAS PRODUCTIONTotal resources addition has been shrinking despite increased in exploration activities

Reserve life: Oil 22 years Gas - 28 years

BDE 40203ENERGY MANAGEMENT & CONSERVATION42TREND IN GDP, PRIMARY ENERGY SUPPLY AND FINAL ENERGY DEMAND

source: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATION43COMMERCIAL ENERGY SUPPLYsource: Preliminary Results - National Energy Balance 2010 Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATION44FINAL USE OF COMMERCIAL ENERGYsource: (i)Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATION45FINAL ENERGY USE BY SECTORSsource: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATION46HIGH DEPENDENCE ON GAS IN ELECTRICITY GENERATION

BDE 40203ENERGY MANAGEMENT & CONSERVATION47FUEL MIX IN ELECTRICITY GENERATION (%)

BDE 40203ENERGY MANAGEMENT & CONSERVATION48FINAL ENERGY INTENSITYsource: Preliminary Results - National Energy Balance 2012 Malaysia

BDE 40203ENERGY MANAGEMENT & CONSERVATION49COAL CONSUMPTION BY SECTORSsource: NEB 2012

BDE 40203ENERGY MANAGEMENT & CONSERVATION50NATURAL GAS CONSUMPTION BY SECTORSsource: NEB 2012

BDE 40203ENERGY MANAGEMENT & CONSERVATION51ELECTRICITY CONSUMPTION BY SECTORSsource: NEB 2012

Note (*): From 2006 until 2009 data were collected directly from train operators (**): Effective from 1st June 2006, TNB has introduced Specific Agriculture Tariff; previously agriculture was under the Commercial Tariff

BDE 40203ENERGY MANAGEMENT & CONSERVATION52FINAL CONSUMPTION OF PETROLEUM PRODUCTS(2010)source: NEB 2012


ENERGY SUPPLY & DEMAND PROJECTIONS

BDE 40203ENERGY MANAGEMENT & CONSERVATION54NATIONAL ENERGY DEMAND

Demand results : Energy demand final unitsScenario : BAU

BDE 40203ENERGY MANAGEMENT & CONSERVATION55PRIMARY ENERGY SUPPLY BY FUEL

BDE 40203ENERGY MANAGEMENT & CONSERVATION56FINAL ENERGY DEMAND BY FUEL

source: APERC 2006

BDE 40203ENERGY MANAGEMENT & CONSERVATION57FINAL ENERGY DEMAND BY SECTORSsource: APERC 2006

BDE 40203ENERGY MANAGEMENT & CONSERVATION58NET IMPORT/EXPORTsource: APERC 2006

BDE 40203ENERGY MANAGEMENT & CONSERVATION59FACTS ON SUBSIDIES


60SUBSIDIES IN 2009 Total subsidies given = RM74bil Average RM12,900 for each Malaysian RM42bil-social services (including education & healthcare) RM23.5bil-fuel & energy RM4.8bil-infrastructure(including toll)

From rationalization plan-would be able to save RM103 bil in 5 years source: PEMANDU, 27th May 2010 Fuel & LPG 2004-2009 : RM5bil-RM15bil per annum

To soar to RM200bil between 2010 and 2020 Malaysians consumed 400 litres per capita (2004-2009) Twice than Singapore (250ltrs per capita in 2007), Thailand and Indonesia India and China 50ltrs per capita in 2007)

Blanket subsidy on fuels 71% going to middle-high income groups 43% - Middle(RM2500-5000/month) 28%High(more than RM5000/month)

RM1.71bil spent for LPGs subsidy RM397mil (30%) used by households

BDE 40203ENERGY MANAGEMENT & CONSERVATION61Subsidies for Fuels


energy

Documents