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Gap Analysis on Access to Energy for the Poor Malaysia

Malaysia. Gap Analysis on Access to Energy for the Poor Malaysia. Asfaazam Kasbani 27-28 March 2006. Introduction. Malaysia has been successful in achieving the MDG goal of virtually eradicating extreme poverty

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Gap Analysis on Access to Energy for the Poor Malaysia

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  1. Malaysia 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% <1.5% 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 (<1MW). Although RE is already a policy, it is mostly commercially implemented and doesn’t 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)

  13. Thank You !!

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