Sustainability report 2020

Respect for the environment

Treating Mother Earth the way she deserves to be treated.

Energy management

The year 2020 has been more challenging than the previous year but a steadfast one for Hektar REIT to pursue better energy optimisation of its properties. With rising costs in operation, the management has continued to implement and refine energy management measures to reduce the impact on operating costs and the environment. Hektar REIT has put in place various energy utilisation and optimisation initiatives since 2017 for all its shopping malls and demonstrated a significant reduction in energy usage in these four years up to 2020.

Some of the ongoing initiatives under the Energy Efficiency (EE) program are:

  • upgrading of ageing equipment including the deployment of LED lightings and de-lamping (reducing and relocation of redundant lightings);
  • implementation of monitoring programs by the in-house maintenance teams to optimize electricity consumption through the reduction of maximum demand, application of the Off-Peak Tariff Rider (OPTR) scheme and controlled use of chillers;
  • reconfiguration and fine-tuning of the ACMV equipment by setpoint adjustments, capacity capping and load balancing;
  • minimizing reliance on equipment with heavy consumption and shifting towards energy-efficient designs;
  • installation of demand control devices for Air Handling Units (AHUs) to further help optimize and regulate the consumption of energy;
  • installation of heat reflective sheets on roofs and glass window panels;
  • preventing the loss of cold air by taking appropriate measures such as upgrading and installing air curtains, push button door devices and sealing works; and
  • installation of inverter sensors and soft starters on electrical equipment that require a higher demand of electricity to operate.

From 2016 to 2020, Subang Parade’s average monthly electricity consumption, maximum demand and annual carbon emissions declined 49%, 43% and 49% respectively. Ultimately, Subang Parade’s average electricity billing per month in 2020 decreased by 52% to RM278,614 monthly compared to RM583,701 in 2016.

Subang Parade energy statistics (2016-2020)
Figure : Subang Parade Electric Usage Post Retrofit
  Monthly Consumption OPTR (kWh) Monthly Maximum Demand (kW) Monthly Electricity Cost (RM) Annual Carbon Emissions (CO2)
2016 1,278,417 3,134 583,701 10,647,206
2017 1,184,325 3,233 544,877 9,863,570
2018 846,096 2,462 422,291 7,854,735
2019 696,979 2,037 370,689 6,658,639
2020 649,353 1,786 278,614 5,423,398
Change (2016-2020) -49.3% -43.1% -52.3% -49.1%
Figure : Subang Parade Electric Usage Post Retrofit
Monthly Consumption OPTR
20161,278,417 kWh
20171,184,325 kWh
2018846,096 kWh
2019696,979 kWh
2020649,353 kWh
Change (2016-2020)-49.3%
Monthly Maximum Demand
20163,134 kW
20173,233 kW
20182,462 kW
20192,037 kW
20201,786 kW
Change (2016-2020)-43.1%
Monthly Electricity Cost
2016RM 583,701
2017RM 544,877
2018RM 422,291
2019RM 370,689
2020RM 278,614
Change (2016-2020)-52.3%
Annual Carbon Emissions (CO2)
201610,647,206
20179,863,570
20187,854,735
20196,658,639
20205,423,398
Change (2016-2020)-49.1%

In 2020, all our shopping malls also enjoyed considerable savings in electricity consumption due to the partial closure of our malls as a result of the Movement Control Order (MCO) imposed by the Government from mid-March to the end of April 2020 to combat the COVID-19 outbreak and flatten the curve of infection. During this time, only tenants offering essential services were allowed to operate with shorter business hours. In addition, the Government had also provided 15% discounts on electricity tariffs for the period March to September 2020 as part of the Government’s Economic Stimulus Package (PRIHATIN) which has also aided our efforts to save on electricity cost.

Similar energy saving initiatives have been applied to our other shopping centres and the management is continuously monitoring and analysing the efficiency of these initiatives. All centres showed positive savings and a general downward trend in accumulated electricity consumption. Overall, energy consumption declined across the portfolio by 19.1% in 2020 as compared to 2019. The detailed breakdown of the savings data on a mall by mall basis are as follows:

Centre 2019 Total (kWh) 2020 Total (kWh) Saving (kWh) Savings (%)
Subang Parade 9,594,083 7,792,239 1,801,844 18.8%
Mahkota Parade 9,408,426 7,442,313 1,966,113 20.9%
Wetex Parade 3,505,754 2,944,788 560,966 16.0%
Central Square 11,250,062 8,855,459 2,394,603 21.3%
Kulim Central 7,394,429 5,890,974 1,503,455 20.3%
Segamat Central 3,452,113 3,158,323 293,790 8.5%
Total 44,604,867 36,084,096 8,520,771 19.1%
Subang Parade
20199,594,083 kWh
20207,792,239 kWh
Savings1,801,844 kWh
(18.8%)
Mahkota Parade
20199,408,426 kWh
20207,442,313 kWh
Savings1,966,113 kWh
(20.9%)
Wetex Parade
20193,505,754 kWh
20202,944,788 kWh
Savings560,966 kWh
(16.0%)
Central Square
201911,250,062 kWh
20208,855,459 kWh
Savings2,394,603 kWh
(21.3%)
Kulim Central
20197,394,429 kWh
20205,890,974 kWh
Savings1,503,455 kWh
(20.3%)
Segamat Central
20193,452,113 kWh
20203,158,323 kWh
Savings293,790 kWh
(8.5%)
Total
201944,604,867 kWh
202036,084,096 kWh
Savings8,520,771 kWh
(19.1%)

Moving forward, Hektar REIT is now exploring opportunities in Renewable Energy programs where the management is actively looking at implementing the installation of Solar Photovoltaic (PV) panels across our portfolio of retail malls with a combined generation capacity of over 6,000 kWp in total. With these initiatives, Hektar REIT is continuing its pursuit in achieving a minimum 10% reduction in energy consumption across the investment portfolio by the year ending 2022.