INGENIEUR
liquidity, resulting in smaller projects. The EPC
projects in the construction sector are small
in number and small in technology, and the
contractual energy management projects of
public institutions are rare. The reason is that
the property rights and use rights of commercial
buildings and complex property management
models make it difficult for energy-saving service
companies to carry out EPC projects in the
commercial field especially in public buildings.
Even if the Government has explicitly encouraged
the public sector to adopt EPCs to carry out
energy-saving initiatives, the Government’s fiscal
budget system has become an obstacle to the
promotion of contract energy management. The
current budget aims to pay the energy cost only.
It cannot pay the energy-saving benefits of ESCOs
implementing EPC projects.
In the initial stage of the development of
Malaysia’s energy-saving service industry, the
energy-saving benefit-sharing business model has
played an important role in the rapid start of the
industry. However, as more and more “low-cost
energy-saving measures” are implemented and
the liquidity of energy-saving service companies
are occupied with projects, the benefit-sharing
6
48
VOL
2019
VOL 78
55 APRIL-JUNE
JUNE 2013
model with ESCOs as the main body of financing
may be sustainable for the EPC market. This is also
a potential opportunity to actively look for other
financing models and contractual mechanisms.
This requires new policies to support innovation
in business models and financing mechanisms,
as well as extending the EPC to areas that are
not currently covered. Malaysia’s energy-saving
service market will continue to expand.
Therefore, there is a need to set targets
for building energy-efficiency retrofits. The
interest in building energy efficiency and green
buildings has increased, driving more buildings
to obtain “green” certification, increasing overall
energy efficiency. The online monitoring system
for energy consumption in the industrial and
construction sectors will also help to understand
energy use, tap energy-saving potential, identify
opportunities for energy savings and help energy-
using units to benchmark energy efficiency levels.
National and local Governments encouraging the
adoption of EPC mechanisms in the public sector
will further expand Malaysia’s energy service
market. The rising price of energy markets, the
establishment of total energy control targets, and
the establishment of carbon and other polluting