Danish energy efficiency achievements in Melaka

Danish Energy Efficiency Partners Sdn Bhd. (DEEP) has received the prestigious Melaka Green Awards 2016 and a milestone has been reached in January 2016 as the retrofitting of three out of planned nine buildings in the state of Melaka has been completed.

Deep was awarded the Melaka Green Awards for 2016 under the International Collaboration Category in recognition of thier energy efficiency retrofitting initiatives to promote green practices in the state of Melaka. The Chief Minister of Melaka, YAB Datuk Seri Ir. Haji Idris bin Haji Haron presented the award.

The Chief Minister of Melaka, federal ministry officials, DEEP and the Embassy of Denmark in Kuala Lumpur celebrated the completed retrofitting of the first three state-owned buildings with a 35% saving of energy consumption.

16 January 2016 also marked the launch of phase 2, which includes another six buildings.

Deep is highly committed to support the Malaysian State of Melaka in achieving energy cost savings in state-owned buildings by installing and financing energy efficient technologies and services. In the process, they work very closely with their stakeholders in Melaka at every stage of design, procurement, installation and monitoring of the energy saving in the selected buildings. The programme initiated by Deep will be a showcase for large-scale adoption and implementation of energy efficiency in existing buildings by a City or a State.

In celebrating the completion of phase 1 Denmark’s Ambassador Nicolai Ruge told the audience how they had just visited the Putra Specialist Hospital and been briefed about the hospital’s energy efficiency retrofitting project.

“It is my first time to see first-hand the various energy efficiency components put in place and also learn of the 45% savings in electricity bill which the hospital expects from this exercise. This is certainly very encouraging for other buildings to follow suit.”

“Melaka has come a long way since embarking on your green journey in early 2010. You are one of the first states in Malaysia to have a formalised green city action plan and also to set up the Melaka Green Technology Corporation – also known as MGTC – to spearhead these plans. Denmark is very fortunate to have played a part in some of the initiatives in the years following on that,” continued the Ambassador.

The ambassador then looked back how it had all started, with the establishing of Deep and its concept to provide an integrated system solution for increased energy efficiency in the building sector. The concept comprises the full project cycle for the implementation of energy- and water efficiency in buildings, from the initial audits, through design, finance, procurement, installation and monitoring.

“This is where Deep differs, in offering the total one-stop-shop facility from audit to retrofit designing, recommendation and procurement of equipment as well as provide advance finance of the capital expenditure for the project. For the customer, all you will need is to pay Deep, not from extra budget, but from the savings of your electricity bills. This means you will even have additional ‘income’ even after the payment. Indeed a win-win concept for all.”

”For today’s event, it is very timely to congratulate this public-private partnership between state of Melaka and Deep for the success of retrofitting the 3 buildings, which also include your office, Chief Minister, and to take this further by formalizing Phase 2 of the project for the next six buildings.

He also said the embassy looked forward to working closely with Deep to encourage more states and industries to learn and take on the offer for positive energy savings.

They are in earnest discussion with Songkla, Thailand.

Deep’s Managing Director Morten Sondergaard, in his speech, pointed to the benefits of renewables and energy efficiency. Studies show that such investments generate far more jobs than oil and coal.

“A ringgit, a dollar or a Danish crown invested in Energy Efficiency (EE) buys seven times more energy solution than a similar invested in nuclear power or fossil fuel.”

He furthermore pointed to that at international level buildings consume 40% of the world’s energy consumption, while producing 50% of carbon dioxide emissions.

“Compared too many other topics energy efficiency is an easy topic to discuss and promote, because everyone agrees that energy savings and improving energy productivity is a good thing. It’s also something everyone can take action on. Governments, policy makers, companies, and individuals can all take steps to use energy more responsibly and efficiently.”

“But – it’s much more complicated to implement and realize the savings; hence, the basis for the formation of Deep and as a measure of success, we are here today at completion of Phase 1 of the project and looking forward towards not only to Phase 2 which already is under preparations, but also Phase 3 which will be the outstanding state buildings in Melaka – more than 60 buildings.”

Morten encourage looking at this in a holistic way: “Many EE measures are the small and tiresome solutions that add up to big energy savings. This is what we have to do.“

“And the reason for the creation of Deep and its model is this: “The benefits from taking these kinds of actions are often spread over time, while the cost is upfront. In other cases, both the costs and benefits are so low they lead to inaction. This is exactly the dilemma DEEP has managed to overcome – taking care of entire solutions.”

“A major challenge we are facing is financing and investment. We must admit that despite all of our progress and efforts, current levels of investment in energy efficiency are too low in relation to the national policy objectives.”

The Deep model, including financial capabilities, can make retrofit projects easier to capitalize, less risky for building owners and lenders and mutually beneficial for owners and tenants.

 

 

 

Read more: Danish Energy Efficiency Partners out to retrofit Southeast Asia

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