Cogeneration An Energy Efficient Technology to Support NETR’s Sustainability Initiatives
Putrajaya, 4th December 2024 – Malaysian Gas Association (MGA) successfully concluded its Cogeneration Workshop on 4th December 2024, which brought together the Ministry of Energy Transition and Water Transformation (PETRA), key industry players and Cogeneration (Cogen) end-users to discuss how Cogen can help Malaysia achieve its energy efficiency targets and reduce carbon emissions, in line with the National Energy Transition Roadmap (NETR).
Malaysia’s National Energy Transition Roadmap (NETR) proposed targets to achieve energy savings of 21% by 2040, with near-term goals of increasing energy efficiency thus reducing residential consumption by 15% and industrial consumption by 22%, Cogeneration technology emerges as a crucial enabler in achieving these ambitious goals. Cogeneration systems — which simultaneously produce electricity and useful heat from the same energy source can increase energy efficiency by more than 70%, substantially saving energy costs and contributing to long-term environmental sustainability.
“Cogeneration offers a proven solution to improve energy efficiency, reduce operational costs and support Malaysia’s sustainability aspirations,” said Abdul Aziz Othman, President of MGA.
“With efficiency gains of approximately 20%, Cogeneration enhances power reliability and offers flexibility in its integration with the power grid and cooling systems. This makes Cogen an ideal solution to help Malaysia meet its NETR Responsible Transition Pathway that is both sustainable and able to propel economic growth through the efficient use of energy.”
The workshop featured presentations from MGA’s Cogeneration Task Force, which highlighted the real-world benefits of Cogen technology, supported by experiences from end users across various industries. These case studies demonstrated that Cogeneration systems can significantly reduce utility costs, strengthen the power supply system and contribute to a reduction in carbon emissions. According to the U.S. Energy Information Administration (EIA), Cogeneration can lead to a reduction of 18.7% in CO2 emissions, translating to over 20,430 tons of CO2 saved per year.
“The impact of Cogeneration on both energy savings and environmental benefits is clear. We have seen firsthand, from one of the industries employing Cogen technology, how Cogen systems not only lower operational costs but also help companies reduce their carbon footprint. It’s a win-win solution for businesses and the environment. This workshop is a great platform for all stakeholders to discuss challenges we face and explore potential solutions.” said YBhg Dato’ Steven Aroki, a Council member and the Chairman of the Energy and Utilities Management Committee for the Federation of Malaysian Manufacturers (FMM).
In addition to energy efficiency, Cogeneration systems offer flexibility in their ability to synchronise with the national power grid and integrate with cooling systems, providing significant operational advantages for industries requiring continuous power and heat supply. This versatility makes Cogen an ideal solution for a wide range of sectors, including manufacturing, petrochemicals and commercial buildings.
“We are hopeful that the government will consider providing sales and tax incentives, or exemptions, for gas turbines and gas engines that use Cogeneration technology. Such incentives would further accelerate the adoption of Cogeneration and help Malaysia achieve its energy efficiency and sustainability targets. This workshop underscores the role of Cogeneration in Malaysia’s energy future. We look forward to continued engagement with PETRA and other government ministries, and we are optimistic that Cogen will play a central role in achieving the nation’s energy and environmental goals.” Abdul Aziz Othman concluded.
The workshop also included a roundtable discussion between industry stakeholders and PETRA representatives, allowing for direct dialogue on policy support, regulatory challenges and potential solutions to further promote cogeneration adoption. The engagement highlighted the importance of continued collaboration between the government and industry players to create a conducive environment for Cogen technology to thrive.
Looking forward, MGA is committed to driving the expansion of Cogeneration in Malaysia, supporting the country’s transition towards a low-carbon. MGA remains open to further collaboration with government agencies and other stakeholders to enhance policies, incentives and solutions that will enable greater use of Cogeneration technology in Malaysia.