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cover story
@green | July-August, 2020
Solar Thermal
Market Analysis
The MAEESTA’s Solar Thermal Market
Analysis for Malaysian Industries presents
itself as a comprehensive document with
all necessary elements to accelerate solar
thermal deployment in the country.
It would entail adopting a defined pathway,
which would involve developing an exhaustive
list of activities, setting clear-cut goals and
mapping of relevant stakeholders.
The market analysis critically analyses the
current ecosystem for solar thermal in Malaysia
and identifies focus areas to support rapid
uptake of solar thermal amongst industries,
hotels and hospitals.
At the same time, the market analysis
represents a consolidated viewpoint coming
from numerous suppliers, government
stakeholders, end beneficiaries, external
consultants, multilateral/bilateral organisations,
etc.
Hence in no way, it ignores the interest
of any party, building on the lines of a
consultative approach. The extensive
workshops, discussions, meetings and
surveys conducted provided an appropriate
pathway to reach the target audiences and
cater to their demands.
Achieving this market analysis’s vision will
require a competent, long-term and balanced
policy effort on the part of overnment agencies
to allow for optimal technology progress, cost
reduction and ramp-up for mass industrial
deployment.
There is a need to build up internal
capacities across the entire supply chain
- financial institutions/banks, suppliers,
system integrators, public and private sector
institutions (education/R&D universities).
On similar lines, another prominent issue,
which requires tackling, is the careful gathering
of data, with a view of creating a database/
knowledge portal for the better structural
design of policies and installations to be used
for the programme rollout.
Support mechanisms in the form of
rebates, capital subsidies and other financial
incentives are necessary at initial stages for any
technology to mature and develop a market.
The market analysis brings an emphasis on
all these issues and much more by segregating
them into five major focus areas - financing,
policy and regulatory, technology and R&D,
testing, certification and standardisation and
awareness and capacity building.
Each recommendation in the market
analysis follows a typical structure whereby
first, the challenge is identified within each
category and then supported by action points/
suggestive measures considering Malaysia’s
local landscape, along with best practices in
the specific field internationally.
The market analysis does not bring forth the
‘responsibility’ of every stakeholder. However,
it provides likely contenders for the role,
considering the nature of activities performed
in the past.
Additionally, the market analysis provides a
well-defined plan for realising the potential by
establishing year-wise targets until Y2025. The
planning also takes into account the capacities
required and the likely impact from these
installations.
Solar thermal tubes.
Participants of the MAEESTA capacity building programme visiting a successful
solar thermal project in Malacca.
DEFINING PATHWAY: The
Market Analysis provides a well
defined plan for the deployment
of solar thermal technology in
Malaysia.
sub-sectors, an area which SIRIM has been championing
for more than 30 years.
This accumulated years of experience gained through
International and National projects; ASEAN-EC Cogeneration,
DANIDA, JETRO, UNIDO and UNDP has empowered
SIRIM engineers to undertake EE for the commercial and
industrial sectors.
In terms of usage of solar energy, SIRIM’s solar energy
R&D activities cover both solar photovoltaic and solar
thermal. Solar heat was used in agriculture or industrial
drying and for heating water in hospitals. The expertise and
experience that SIRIM developed has motivated SIRIM to
lead the UNIDO MAEESTA project.
Which companies are involved in the demo projects
and have installed the solar thermal systems?
To establish Malaysia’s first industrial-scale solar thermal
plant, SIRIM and UNIDO MAEESTA joined forces to
implement the solar thermal system at PPNJ Poultry and
Meat Sdn Bhd. It serves to provide a platform for sharing
of experience and knowledge in solar thermal technology
in the country.
UNIDO commissioned the initial feasibility study works
of the project at PPNJ Poultry and Meat Sdn Bhd, which
involved energy audit and energy optimisation. The solar
thermal system design, installation and commissioning
were implemented by SIRIM Industrial Research and
funded by the SIRIM-SME Development Programme.
The project was commissioned in January 2017. Two
other SIRIM-UNIDO collaboration projects are MIWA
Manufacturing Sdn Bhd (Jelly Drink) and NB Poultry Sdn
Bhd. The solar thermal system at MIWA was installed in
2019 and for NB Poultry, is expected to complete installation
by the end of this year.
Is SIRIM planning to undertake similar projects in
the future? If yes, what are the steps taken?
Yes, SIRIM will continue promoting the application of solar
technology to Malaysian industries and conduct training
to enhance further the national capabilities in thermal
energy efficiency measures and solar thermal technology
and design.
Malaysia’s National Energy Balance reported that total
final energy consumption for Malaysia in 2016 was 57,216
Ktoe. From this total energy consumption, 28 per cent was
by the industrial sector. In an industry, approximately
67 per cent of this total energy from fossil fuel is usually
used for the heating requirement while the balance is for
electricity.
There is a lot of opportunities for SIRIM to encourage
industries to utilise solar thermal technology to provide
heat for their processes.
In doing this, it will reduce the company’s operating
expenditure and also contribute to the government’s pledge
of a 45 per cent reduction in GHG emission by the year
2030 compared to 2005 levels.
For the record, SIRIM has so far implemented six solar
thermal projects in the food & beverage, poultry processing
and hospitality sectors, excluding those for drying
purposes.
They were for PPNJ Poultry and Meat Sdn Bhd,
Syarikat Ameen Sdn Bhd (Cordial), Muslim Kitchen Sdn
Bhd (Frozen Food), De Baron Resort Langkawi, MIWA
Manufacturing Sdn Bhd (Jelly Drink) and Ever Delicious
Food Industries Sdn Bhd.
SIRIM had also conducted training on solar thermal
technology for national and international participants in
2019 under the WAITRO programme.
SIRIM certainly will continue its endeavour in
undertaking research and development, adopting best
practices and international standards and conducting
capacity-building to develop the workforce in thermal
energy efficiency and solar thermal technology and design.
— @green