02 RE in Malaysia

MEHB503 Renewable Energy

Outline

 Energy Scene
 CO2 Emission
 Energy Mix
Malaysia’s Energy Scene

 Increasing demand
as developing
 Major power plants -
fossil fueled
 Reserve margin
higher than average
 Malaysia’s Energy Mix

HYDRO; 4.9% OIL ; 0.5%

OIL ; 0.1%
OTHERS;
COAL; 22.5% OTHERS; 0.2% HYDRO; 3.4% 1.6%

COAL; 38.1%
GAS; 71.9% GAS; 56.8%

2005 2010

NUCLEAR; 5%
HYDRO / RE; 18%
 Moving away from gas intensive
GAS; 42%
COAL; 35%  Coal will play bigger role - cheap
 Return to larger hydro share

2030 (Forecasted)  Nuclear?

Malaysia’s CO2 Emissions
Malaysia’s Energy Scenario
Energy Demand by Sector

 Transportation & industrial sectors are major consumers of energy

 Power Generation Sector and GHG Emissions

•The power generation sector makes easy targets

•Visible, highly concentrated & heavily regulated
•Will be asked to contribute more than their fair share
•Electricity can be generated from a variety of sources, including many with low or no
carbon
•The power sector is likely to be asked to do more than its share by assisting other
sectors of the economy to reduce their GHG emissions
•Prime example: Transportation sector
•As substitute for IC engines in private cars (mass transit & EV’s)
•As substitute for medium-length flights (electric trains)

Renault ZOE

KTM-ETS
KL – Ipoh in < 2 hrs Japan Shinkansen trains
World record speed 581km/h
EliicaBattery Electric Car with 370
km/h top speed and 200 km range
Malaysia: Economy TARGET in 2020

2020 CO2
Annual GDP Growth emissions
Government
Target
6%
Increase
annually

With business as usual

on energy supply
Annual GDP Growth
and consumption!!!!
“I would also like to announce
here in Copenhagen that Malaysia
is adopting an indicator of a
voluntary reduction of up to 40% in
terms of emissions intensity of GDP
by the year 2020 compared to
2005 levels”.

By Prime Minister of Malaysia

Datuk Seri Najib Tun Razak
 Malaysia: Carbon Footprint TARGET in 2020

CO2 level in 2020

(forecast)
328 millions tonnes

CO2 level in 2005

Difference of 228
188 millions tonnes millions tonnes

40 %
Reduction
Government
Target CO2 level in 2020
100 millions tonnes

Total CO2 emission in Malaysia. (Ting 2010, EIA Data).

Examples of initiatives on low carbon power sector

U.S.A. White paper on a clean energy

standard (CES), March 21, 2011
80 percent of the nation’s electricity to New Zealand
come from clean energy technologies by ban the construction of new fossil-
2035 fired baseload generation, and aim for
a target of 90% renewable in
electricity by 2025

Province of Ontario, Canada

to phase out all coal-fired generation, EU
currently 20% of electricity generation 20% GHG emission reduction achievable by
mix, by 2014 2020, but revising it to 30% for 2020 to
achieve 80% renewable in 2050
Roadmap for moving to a competitive low carbon economy in 2050
Emission Projected to 2020
Khazanah Study: Opportunities and risks arising from climate change for Malaysia, 5 March 2010
 Development of the National Energy Policies
National
National
National Energy 4 Fuel Strategy 5 Fuel Strategy Renewable
Depletion Policy
Policy (1979) (1981) (2001) Energy Policy
(1980)
(2010)
• Toensure adequate, • Toprolong lifespan of • To pursue balance • RE is recognized as • Enhance utilisation of
secure and cost- Malaysia’s oil reserves utilisation of oil, gas, the fifth fuel in indigenous RE resources to
effective energy for future security and hydro and coal energy supply mix contribute towards national
supplies using both stability in fuel supply electricity supply security
non-renewable and and sustainable
renewable energy socioeconomic development.
sources
• Topromote efficient
utilisation of energy
• To
minimise negative
impacts on the
environment in the
energy supply chain

Source: Ministry of Energy, Green Technology and Water, Energy Commission

 Development of National Renewable Energy Policies

8th
Malaysia Plan (2001-2005)
RE as the fifth fuel
Target: 5% RE in energy mix (500 MW grid-connected)
Launching of Small Renewable Energy Program (2001)

9th
Malaysia Plan (2006-2010)
Target: 300 MW grid-connected RE in Pen. Malaysia
Target: 50 MW grid-connected RE in Sabah

10th
Malaysia Plan (2011-2015)
New RE Policy and Action Plan
Target: 985 MW of RE by 2015 (~5.5% of energy mix)
Renewable Energy Act (2011) & SEDA (Act 2011)

VISION: Enhancing the utilization of indigenous renewable energy resources to contribute

towards National electricity supply security and sustainable socio-economic development
Source: Ministry of Energy, Green Technology and Water, Energy Commission
LOW CARBON ECONOMY (LCE)

Low Carbon Economy (LCE) is a concept that refers to

an economy which has minimal output of greenhouse
gas (GHG) emissions into the biosphere, but specifically
refers to greenhouse gas of carbon dioxide.

Asia Pacific Forum on Low Carbon Economy, Beijing, China, 17 – 20 June 2009
LOW CARBON ECONOMY: MALAYSIA’S EXPERIENCES
by:
AHMAD KAMAL WASIS
Economic Planning Unit, Prime Minister’s Department
MALAYSIA
TNB Green Energy Policy Statement

“TNB is committed to support the national green

agenda and minimise the environmental
impact of our business by applying sustainable,
efficient operations and delivering green
energy through the application of appropriate
technologies and investments”.
April 2011
Renewable Energy Potential in Malaysia

Harnessing the potential of Renewable

Energy
• Biomass & biogas (3,700MW)
• Solar (6,500 MW)
• Mini hydro (500 MW)
• Solid waste (400 MW)
• Wind (limited)
Totalling to approximately 11,000 MW by 2030, that
can tap a portion of annual RM 300 mil Feed-in Tariff
MEGTW, 2010
Status of SREP Projects Approved by SCORE (August
2005)

Approved Grid-connected
No RE Type Energy Source %
Applications Capacity, MW
 EFB 22 165.9 52.5
 Wood Residues 1 6.6 2.1
1 Biomass  Rice Husk 2 12.0 3.8
 Municipal Solid Waste 1 5.0 1.6
 Mix Fuels 3 19.2 6.1

Landfill 5 10.0 3.2

2
Gas
3 Mini Hydro 26 97.4 30.8

4 Wind 0 0 0
60 316.1 100.0
TOTAL
Non-SREP Renewable Energy Power Generation Projects

•Mini Hydro: 13,643 kW, involving 44 sites

in Peninsular Malaysia, with unit
capacities in the range of 48 – 1,100 kW.
•Solar PV (Suria 1000 - MBIPV): 168.515
kW, involving 16 sites, with unit capacities
in the range of 3.06 – 92.01 kW.
•Solar PV (TNB Mini Grid): 1,231 kW,
involving 25 sites in Peninsular Malaysia
and Sabah, with unit capacities in the
range of 10 – 250 kW.
•Wind (TNB Mini Grid): 200 kW, one site at
Pulau Perhentian Kecil, Terengganu.
Grid-connected Power Generation Capacities from Renewable
Energy in Peninsular Malaysia (April 2008)

No Type Capacity, kW %
1 Mini-Hydro 22,443 33.6
2 Biogas (Landfill) 2,000 3.0
3 Biomass (Palm Oil Mill Solid Wastes) 35,750 53.5
4 Municipal Solid Waste 5,000 7.5
5 Solar PV (BIPV) 169 0.3
6 Solar PV (TNB Mini-Grid) 1,231 1.8
7 Wind (TNB Mini-Grid) 200 0.3
TOTAL 66,793 100.0
Challenges in Renewable Energy Power Generation

SREP (Period 2001 – 2010) has not been

successful for a number of reasons;
•Fuel security (especially with biomass – project
developers not able to secure long-term supply contracts with
biomass suppliers)

•Electricity sale price (17 – 21 Cent/kWh)

•Subsidy for Conventional Energy System –
disadvantage to SREP developers

•REPPA does not provide a robust cash flow for

Bankers to be comfortable
Renewable Energy Act, 2010 and Feed-in Tariff

Regulatory framework to achieve the government’s Renewable

Energy (RE) Policy vision
“Enhancing the utilization of indigenous renewable energy resources
to contribute towards National electricity supply security and
sustainable socio-economic development.”
Planned increase in renewable energy
Renewable Energy Feed-in Tariff rate, RM per capacity (MW)

Source kWh
Biogas (POME, landfill,
0.32 – 0.43
sewage, etc.)
Biomass
0.29 – 0.45
Small hydro
0.23 – 0.24
Solar PV
0.85 – 1.53
Source : KeTTHA
Installed RE capacity under Feed-in Tariff
Operational RE Plants (until Mar 2016)

Planned RE Capacity
Biogas from palm oil mill effluent (POME)

Solar farm on closed landfill site

 RE generation under FiT (until Mar 2016)

𝑎𝑛𝑛𝑢𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛 𝑀𝑊ℎ

𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟 = × 100%
𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑀𝑊 × 8760 ℎ
Sg Perting mini hydropower plant

Wind turbines – photovoltaic hybrid Biomass energy from empty fruit bunch (EFB) Apas Kiri geothermal site
Net Metering Act (2016?)*
• for RE generated outside of FiT scheme (e.g. exhausted
quota or above installed capacity limit)
• Historically used pre–RE Act 2010 (MBIPV, SREP) on a
‘case by case’ agreement
• Eventually replace FiT when grid parity is achieved