Gap Analysis on Access to Energy for the Poor Malaysia

1
Gap Analysis on Access to Energy for the
PoorMalaysia

• Asfaazam Kasbani
• 27-28 March 2006

2
Introduction

• Malaysia has been successful in achieving the MDG
  goal of virtually eradicating extreme poverty
• However, poverty is still predominantly a rural
  phenomenon, especially in states of Sabah,
  Sarawak, Kelantan, Kedah, Perlis and Terengganu.
• Malaysia now Poverty Incidence 5.1
• Rural electrification programmes come closest in
  linking energy poverty
• As electrification progresses, poverty tends to
  decrease.

3
Poverty Eradication

• New Economic Policy 1971-1990 (NEP), National
  Develoment Policy 1991 2000 (NDP) and the
  National Vision Policy 2001-2010 (NVP),
• The main strategy for poverty eradication was
  providing employment opportunities, providing
  amenities and implementing programme to inculcate
  positive values among the poor.
• encouraged to be involved in modern farming and
  non-farm or off-farm activities.
• Integrated approach to eradicate poverty ? rural
  development (roads, water, electricity)

4
Grid Systems in Malaysia Rural Electrification
Rate
99
79
80
5
Malaysia Plans Rural Electrification funding
6
Final Energy Demand by Fuel Types (Residential),
1990-2000
41.27
lt1.5 total
USD6.70
7
Rapid assessment and gap analysis Process
adopted

• Consultants
• Prof Chamhuri (UKM) Norasikin
  (Malaysia Energy Center),
• Aug Dec 2005
• Constraints/limitations in the study
• - scattered data / absence of database
• - research based on secondary/available
  data
• -- Limited experts with both energy
  poverty knowledge
• - Nature of report (neither energy nor
  poverty report)
• Key stakeholders consulted
• Economic Planning Unit (EPU)
• Ministry of Rural Regional Develoment
  (MRRD)
• Ministry of Energy, Water and
  Communications
• TNB, UNDP, Dept of Statistics
• Data sourcing and analyses
• 5-year Malaysia Plan reports, MidTerm
  Review Reports, DOS,
• Housing Census, HDR, World Energy
  Assessment,
• National Energy Balance

8
Challenges in Energy / Poverty

• Institutions
• Projects are centrally oriented (federal based)
  and
• lacks demand based approach
• communications among various agencies ? too
  sectoral
• Absence of institution in energy poverty linkage
• Policy
• energy projects are often implemented top-down
• rather than based on the needs of the
  community
• Tendency to push energy technologies rather
  than addressing
• the poverty and gender issues
• Absence of policy for energy for rural domestic
  use (cooking)
• Absence on policy of small-scale RE (lt1MW).
• Although RE is already a policy, it is
  mostly commercially implemented
• and doesnt benefit the rurals.

9
Challenges in Energy / Poverty (cont..)

• Financial and Fiscal
• No incentive fiscal/finance for energy for the
  rural
• Various funds set-up (SMI funds esp) but focus
• was not given to the enterpreneurs
  supplying energy
• to the rural
• Knowledge
• Capacity to maintain the system (i.e PV
  installations)
• Lack of interest among small scale RE developers
  as
• rural energy is considered not a lucrative
  business
• Depending on locations, there are still untapped
  RE technologies
• (i.e. microhydro)

10
Meeting the challenges

• Set-up Interagencies committee on energy poverty
  (in federal)
• Establish an energy poverty one-stop center (or
  enhance current existing institution)
• Delegate the provision of new energy projects to
  the local / sub-local authority (instead of
  centrally coordinated) as they close to the
  communities
• Incentive fiscal finance is given to rural
  energy developers (super small scale)
  communities who uses energy (i.e. petrol subsidy
  for generators and gas subsidy)

11
Meeting the challenges (cont)

• Foster competitive bidding for rural energy and
  complement by measures to protect public interest
• Cross subsidization of poor households by
  richer consumers
• Encourage more community-based projects in energy
  (i.e. microhydro LongLawen)
• Diversify RE technologies to be used to suit
  local conditions
• Training and awareness programme on the use of
  technologies by the community.

12
Way forward

• Key indicators for monitoring energy poverty
  concerns
• - still electrification rate vs poverty
  incidence
• ? by region / sub regions
• ? by rural industries
• ? by gender
• ? By fuel type
• - domestic energy consumption (by types)
  vs poverty incidence
• - impacts to socio-economic activities
  (including education health)
• Best Practices
• - Establishment of Malaysian Electricity
  Supply Industry Trust Account (MESITA)
• - Microhydro Projects in Long Lawen
  (Sarawak) Kg Terian (Sabah)

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Thank You !!