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Production and consumption

Traditionally, energy production in Malaysia has been based around oil and
natural gas. Malaysia currently has 13GW of electrical generation capacity.

Power generation capacity connected to the Malaysian National Grid is


19,023 MW, with a maximum demand of 13,340 MW as of July 2007 according
to Suruhanjaya Tenaga

Total electricity generation for 2007 is 108,539 GW/h with a total consumption
of 97,113 GW/h or 3,570 kW/h per capita.

The generation fuel mix is 62.6% gas, 20.9% coal, 9.5% hydro and 7% from
other forms of fuel. The country as a whole consumes 514 thousand barrels
(23.6 million tonnes) of oil daily against a production of 755 thousand barrels
(34.2 million tonnes) per day.

Malaysia only has 33 years of natural gas reserves, and 19 years of oil
reserves, with demand for energy increasing the Malaysian government is
expanding into renewable energy sources.

Peninsular Malaysia historical electricity production and consumption data

Production capacity
Maximum
Year TNB Production IPP Production Total Production demand
capacity capacity capacity
2005 6346 11277 17623 12493
2006 6346 11977 18323 12990
2007 6346 13377 19723 13620
2008 6436 13377 19723 14007
2013 7040 14777 21817 14245

All figures are in Megawatts

Sabah historical electricity production and consumption data


Year Production capacity Maximum demand
2005 660 548
2006 708 594
2007 706 625
2008 812 673
2013 903 719

All figures are in Megawatts

Source: Suruhanjaya Tenaga (Energy Commission) Annual Report


“Availability of sub-station infrastructure”

- Tenaga Nasional Berhad (TNB) manages all sub-station infrastructure


throughout Malaysia
- These have the classifications of “ Transmission Main Intake”(Pencawang
Masuk Utama, PMU) and “Main Distribution Sub-Station” (Pencawang
Pembahagian Utama, PPU)
- The Malaysian national grid operates at 132kV, then steps down to 32kV
and to 11kV
- Depending on the location of Power Plants, TNB allows injection of
generated electricity to 32kV and 11kV sub-stations

“Connection Process”

- TNB will perform a Power System Study (PSS) to determine the suitability of a
sub-station to receive injection of generated electricity
- The PSS will provide information on quantum of injectable electricity,
methodology of connection between Power Plant and sub-station, listing of
required equipment and such
- Upon satisfaction of PSS by TNB and owner of Power Plant, the PSS is
presented in application to apply for Feed-in-Tariff (FiT) from the
“ Sustainable Energy Development Authorit “ (SEDA) and for the “ Renewable
Energy Power Purchase Agreement “ (REPPA) from TNB
- TNB adheres to British Standards when building, maintaining and operating
their infrastructure

Renewable energy policy

With increasing demand and the drive to reduce dependency on fossil fuels,
The Malaysian government ( signatory on the Paris agreement) , are seeking
to intensify the development of renewable energy, particularly biomass, as
the 'fifth fuel' resource under the country's Fuel Diversification Policy.

The policy, which was set out in 2001, had a target of renewable energy
providing 5% of electricity generation by 2005, which has just been increased
to 30% by 2035. This will be equal to adding approximately 900 megawatt
(MW) of new installed capacity.

The governing body is “SEDA” - formed under the Sustainable Energy


Development Authority Act of 2011. One of the key roles of the SEDA is to
administer and manage the implementation of the Feed-in Tariff(FiT)
mechanism, including a Renewable Energy fund mandated under the
Renewable Energy Act of 2011. The Renewable Energy fund was created to
support the FiT scheme.
As such, through SEDA’s FiT Programs, ie Transparent and efficient processes,
FiT Rates and Power Purchase Agreements encouragement for investment
into renewable energy programs is delivered. The RE Program allows
renewable projects with up to 10 MW of capacity to sell their electricity
output to TNB, under 21-year licence agreements / 16 year license for
biomass and biogas.

In 2005 there were 28 approved biomass projects (palm oil waste to energy )
involving the installation of 194 MW of grid-connected capacity. These sites
were issued PPA’s at .21 MYR per Kwh / the 2018 prevailing biomass PPA rate
is now .3685 per Kwh.

- There have been no PPA contract defaults and the demand for RE based
energy has continued to rise.

- The PPA now embeds an escalation of 10% allowing the IPP to sell up to 10%
more extra power ( under contract ) to the central power generator

DEMAND AND SUPPLY