THE NEW ENERGY POLICY

National Energy Security 2012

Sime Darby Convention Centre
28 February 2011
 Outline of Presentation

1 Malaysia Energy Resources

2 Energy Policies

3 New Energy Policy, 2010

4 Progress Under 10th Malaysia Plan

5 Way Forward

6 Vision for the Future

2
Malaysia’s Energy Resources

Reserve Production Reserve Life

2010
15.00 Billion boe 974.0 kboe/day
Gas 39 years
(89.9 TSCF)

5.9 657.2 kboe/day 25 years

Oil (Billion bbl)

Gas Reserves Oil Reserves

Sarawak
Sarawak 1.5
42.9
Sabah
2.0
Peninsular
Peninsular
Sabah 35.1
2.4
11.9

Total : 89.9 Trillion cubic feet Total : 5.9 Billion barrels

As at 1 January 2011 As at 1 January 2011

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Malaysia’s Energy Resources

Reserve Production
2010
1.938 2.38 million
Coal Trillion tonnes tonnes

Coal Reserves
Peninsular
, 1%
Sabah,
19%
Sarawak,
80%

Installed Capacity

Installed Major: 2,091 MW

Hydro Mini: 22 MW Total : 1.938 Trillion tonnes
As at 1 January 2011

Installed Public: 120.1 MW

RE Private: 644.63 MW

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 Current Energy Situation, 2010
Primary Energy Supply Final Energy Demand

Coal & Hydro Natural Agriculture, Natural

Coke 2% Gas 3% Electricity Gas
19% 47% Non-Energy 21% 15%
Use, 9%

Petroleum Residential & Coal &

Products Commercial, Coke
3% 19% 5%

Industrial,
30%

Crude Oil Petroleum

29% Transport,
40% Products
59%

Total : 78,320 ktoe Total : 41,610 ktoe

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 Trends Of GDP and Energy, 1990 - 2010
Trends in GDP, Primary Energy Supply and
Final Energy Demand

100,000 600,000

FED 500,000
80,000
PES
400,000
GDP
60,000

300,000

40,000
200,000

20,000
100,000

0 0
1992

1993
1990

1991

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010
FED - Final Energy Demand (ktoe)
PES – Primary Energy Supply (ktoe)
GDP – Gross Domestic Product (RM million)
Source: National Energy Balance, KeTTHA
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 Energy Demand-Supply Balance
Energy
Increasing Energy
Demand

EE Initiatives
Net
Exporter
Demand-Supply Gap

Net
Importer New Energy Sources

Declining Energy
Reserves

2025 Year
2019
 Energy demand is projected to increase from 2,000 PJ in 2009 to 4,013 PJ in 2030
 Average rate of 3.6% p.a.
Malaysia is projected to be a net energy importer by 2019
 Energy Policies

Petroleum
Development Act, 1974
New Energy Policy
& 10th Malaysia
Plan, 2010
National Petroleum
Policy, 1975
National RE
Policy & Action
Plan, 2010
National Energy
National Green Policy, 1979
Technology
Policy, 2009
National Depletion
Policy, 1980
Fifth Fuel
Policy, 2000 Four-Fuel
Diversification Policy,
1981 8
 The New Energy Policy addresses
economic efficiency, security of supply &
social and environmental objectives

5 PILLARS
1 2 3 4 5
Energy Energy Energy Change
Pricing Supply Efficiency Governance Management
•Resource • Diversify •Market •Integrated •Integrated
Allocation Supply Competitive •Regulatory •Sequenced
•Economic •Alternative •Low-carbon consistency •Gradual
Developm Sources Economy •Market
ent path • Social
•New disciplines Assistance
•EE & RE Entrants
Uptake

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Progress Under 10th Malaysia Plan

10
1
Energy Pricing Adoption of market-based energy pricing

June
GasPrice
Gas Price Revision
Revision
2011

Gas prices set by Government to increase by

RM3/mmbtu every 6 month

Achieve Market Price by 2016

Dec Itemised Billing

2011
Itemising subsidy amount in consumer utility bills
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Energy Initiatives to Secure and Manage Reliable Energy Supply
Supply

Oil & Gas Sector

LNG Regasification Terminals (RGT)

2012 RGT in Malacca (~ 500 mmscfd)
2015 RGT in Sabah(~100 mmscfd)
2016 RGT in Tanjung Pengerang, Johor (~500 mmscfd)
20XX RGT ??

Refinery and Petrochemical Development

2016 RAPID in Johor

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2
Energy Third Party Access for Gas Sector
Supply

SUBSIDISED INSUFFICIENT
PRICE SUPPLY

SINGLE INEFFICIENT
OPERATOR MARKET

3RD PARTY ACCESS

EFFICIENT
MARKET MARKET PRICE

SUFFICIENT MULTIPLE
SUPPLY OPERATOR
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2
Energy Electricity Sector
Supply

Power Generation Plants

2013 300MW Kimanis Gas Power Plant

2013 100MW SPR Gas Power Plant (Kimanis)

2015 1000MW Coal Power Plant (Janamanjung)

2016 1000MW Coal Power Plant (Tg. Bin)

2017 622MW Hydro Plant

Other Initiatives

Feed-in-Tariff for RE Sources

Studies on alternative energy sources

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3
Energy
Efficiency Measures to encourage efficient use of energy

• RM40million was disbursed for Sustainability Achieve Via

SAVE
Energy Efficiency (SAVE) Programme to SEDA
EE Lab
• A total of RM 45 million was allocated to SIRIM for EE
EE Act
Testing Lab
– RM15.21 million has been disbursed
• KeTTHA is undertaking the task in drawing the EE
Masterplan and Act

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4
Governance
Improved governance of energy sector to raise
productivity & efficiency

New Entities

MPRC Various entities established to address separate element of the

energy industry
MNPC – Malaysia Electricity Supply Industry (MESI)
MyPower – Renewable Energy & Feed-in-Tariff
SEDA – Alternative energy sources etc.

Stronger Governance

Enhancement/Amendments of Acts
• Gas Supply Act 1993
Labs & Workshops conducted to address mechanism for effective
coordination between entities

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 Way
Forward
Efforts to raise productivity & efficiency

Enhancement

• Gradual & phased implementation

• Assess appropriate timeline for market price of all energy
sources
• “Market price” that reflect efficient cost of supply,
incentive for investment & transparency
• Address the issue
– “Aging” infrastructure
– Energy efficient vehicle
– Social safety net

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Vision for the Future

Efficient use of energy

Diversified & responsive energy

supply

Efficient resource allocation

High value economic development

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