An Overview Of The Malaysian Energy Sector Environmental Sciences Essay

Natural resources such as the air current and Sun are efficaciously utilize to bring forth energy. Since these types of resources are theoretically infinite, it offers attractive force to be utilised and developed extensively. In 2008, approximately 19 % of primary energy for the universe ‘s ingestion is sourced from renewable resources. Large hydropower constitutes the highest per centum followed by biomass. Modern engineerings like air current, solar, geothermic and other engineerings produce really less of the universe ‘s demand. Figure 2.1 and 2.2 high spots the present renewable energy scenario [ 7 ] . Malaysia is a state that rich with renewable beginnings of energy, such as biomass, biogas, solar, and mini-hydro. Renewable energy is expected to play a larger function in the close hereafter in the position of the depletion of non-renewable fuels militias and growing in energy demand. The Malaysia Government is beef uping the function of the renewable energy as the fifth fuel in energy mix. However, the part of renewable energy to the entire electricity coevals mix is really low. As of December 2009, renewable energy merely contribute & lt ; 1 % ( 55.5 MW ) of the electricity coevals for the national grid. Malayan authorities has approved the Renewable Energy and Action Plan in April 2010 and will implement in 10 Malaysia Plan and beyond. In 2003, the entire electricity generated in the state was 83,300 GWh of which 72.8 % was contributed by gas, 16.3 % coal, 6.2 % hydropower, 4.0 % oil merchandises and 0.7 % by biomass and other fuels. Out of the 78,900 GWh produced by the public-service corporations and IPPs, 45,450 GWh or 57.6 % was contributed by IPPs ( Statistic of Electricity Supply Industry in Malaysia, 2004 ) . At the terminal of 2003, the sum installed coevals capacity of the public-service corporations and IPPs in the state was 18,800 MW with a works mix of 58.2 % gas turbine and combined rhythm, 19.3 % coal, 11.3 % hydropower, 7.5 % oil, 3.4 % Diesel and the staying others. The state ‘s electricity production from 2005 to 2009 is shown in Table 2.1. The entire supply of energy in Malaysia increased from 2000 to 2005 and go oning addition in 2010. The chief beginnings of supply were rough oil and crude oil merchandises, and natural gas. The portion of petroleum oil and crude oil merchandises declined while that of coal and coke increased, reflecting reduced dependance on a individual beginning of supply in maintaining with the Fuel Diversification Policy. In 2010, all of the chief signifiers of energy supply had experienced growing in response to spread outing demand but, consistent with the Fuel Diversification Policy, the portion of crude oil merchandises was declined to 61.9 % while that of natural gas was increased to 15.8 % in 2010. However, although rough oil and crude oil merchandises is still lend the greatest proportion of the entire supply, a farther addition in the usage of coal and coke had allowed some decrease in the one-year growing rate of the oil supply, while the parts by natural gas and hydro had remained about the same. The security, dependability, quality and cost effectual supply of energy had been enhanced through an optimum energy mix preponderantly from domestic beginnings. The monetary value of rough oil in international markets is expected to stay high so that farther efforts will be made to cut down dependance on crude oil merchandises and to use their expeditiously. Between 2000 and 2005, the beginnings of fuel for power coevals were farther diversified with the increased usage of coal, consistent with the scheme to guarantee security and dependability of electricity supply every bit good as to cut down the high dependance on gas. Altogether, between 2000 and 2005, a sum of 6,420 MW of new coevals capacity was installed. Attempts were undertaken to cut down the high dependance on natural gas in the coevals mix by increasing the usage of coal. As a consequence, the portion of coal in the entire coevals mix increased from 8.8 per centum in 2000 to 21.8 per cent in 2005 whereas that of natural gas declined from 77.0 per centum to 70.2 per cent. During this period the electricity transmittal system was further expanded with the completion of new transmittal undertakings associating coevals workss to the chief grids every bit good as supplying connexions to new industrial and commercial countries. Execution of the rural electrification programmed ( which now stands at 92.2 % ) benefited abodes in Sabah and Sarawak in peculiar. Peak demand for electricity was grown at an mean rate of 7.8 % per annum and reached 20,087 MW in 2010. Enterprises are being taken to further heighten the efficiency and viability of the public-service corporation companies and the independent power manufacturers enabling a decrease in the modesty border while bettering the security, dependability, quality and cost effectivity of supply to clients. The fuel mix for power coevals will chiefly consist coal and natural gas, with coal playing an progressively of import function. New coal based independent power manufacturer workss utilizing electrostatic p recipitators and a fuel gas desulphurization procedure will enable coal-based production to run into environmental criterions. In add-on, as portion of attempts to advance the optimum use of municipal waste for electricity coevals, a pilot undertaking on waste-to-energy is being implemented in Peninsular Malaysia. When Malaysia formulated its first energy policy, concern over efficient use of energy and the demand for energy development to take history of environmental issues were cardinal. These concerns were driven by the oil crises of 1973 and 1978 and the implicit in issue was the demand to guarantee equal and dependable supplies of energy. The Energy Policy of 1979, the National Depletion Policy of 1980 and the Four Fuel Diversification Policy of 1981, have provided the model for the development of energy supply. The chief push of the energy policy works within a model of three wide policy aims ; supply, use and environment aims. These policy aims are instrumental in steering the preparation of the Malaysia five twelvemonth development programs. Since so the focal point in the energy sector has shifted to the sustainable development of non-renewable resources and the variegation of energy beginnings. The Four Fuel Diversification Policy identified the state ‘s preferable energy mix as oil, natural gas, coal and hydro power. In 2001, Government articulated the Five Fuel Policy, adding renewable resources and associating this to sustainability and efficiency.2.1.3 Status of Renewable Energy Utilization2.1.3.1 Biomass EnergyBiomass is all the Earth ‘s life affair, dwelling of stuffs produced by photosynthesis or organic byproducts from a waste watercourse. Therefore it is a signifier of stored solar energy. It includes a broad assortment of organic wastes and residues, typically from the agricultural sector, forestry, nutrient processing sector, carnal manures, sewerage and municipal solid wastes. In photosynthesis, turning workss organize energy and O by capturing sunshine, H2O and C dioxide from its milieus. The energy may so be released either by burning of the solid fuel or by transition into liquid fuels such as methyl alcohol and ethyl alcohol or biogas which chiefly consists of methane and C dioxide. This sort of utile energy produced from biomass is called bio energy. Biomass is an appealing energy beginning because it does non bring forth CO2 emanations merely because when it is converted into utile energy, it will breathe the CO2 it originally absorbed during photosynthesis. Biomass power workss exist in over 50 states around the universe and are no uncertainty a major energy supplier for many states throughout the universe. It accounts to about a 3rd of entire primary energy ingestion in the development states. Even for industrialised states, the energy part from biomass can be important. The states that derive the larger proportion of entire primary energy from combustible renewable and waste are Finland ( 20 % ) , Austria ( 7 % ) and Germany ( 5 % ) [ 8 ] .2.1.3.2 Solar EnergyEnergy that can be straight generated from the Sun is fundamentally divided into two classs ; solar thermal and solar photovoltaic ( PV ) . In solar thermal, it can be in a signifier of active solar warming where the energy from the Sun is collected with either flat-plate or evacuated tube aggregators and is used for domestic hot H2O or swimming pool warming. Alternatively, it can be inactive solar warming that uses air to go around collected energy in edifices to cut down the en ergy required for warming of habitable infinites. For bring forthing electricity straight from the sunshine, there are two chief ways ; solar thermic electricity and solar PV cells [ 9 ] . Solar thermic electricity dressed ores sunlight utilizing a system of aggregators. The concentrated sunshine so heats the H2O to sufficiently high temperatures to turn a steam turbine and hence generate electricity. Solar PV cells use a particular surface that emits negatrons when exposed to visible radiation. The traveling negatrons produce a DC current that can be passed through an inverter to bring forth jumping current.2.1.3.3 Wind EnergyWind power is the transition of air current energy into utile signifier, such as electricity, utilizing air current turbines. Most modern air current power is generated in the signifier of electricity by change overing the rotary motion of turbine blades into electrical currents by agencies of an electrical generator. Wind power is used in big graduated table air current farms for national electrical grids eve ry bit good as in little single turbines for supplying electricity to rural abodes or grid-isolated locations. Wind engineering is the fastest turning engineering in the universe, turning at over 32 % on mean yearly [ 8 ] . At the terminal of 2009, planetary installed capacity was 157,899 MW of which Asia acquires 24.6 % . China leads the list with entire installed capacity of 25,104 MW to day of the month. India runs 2nd with 10,926 MW followed by Japan with 2,056 MW and Taiwan sits in 4th with coevals of 436 MW [ 10 ] .2.1.3.4 HydropowerHydroelectricity is a well-established engineering, and the first renewable engineering to be developed. It is already a major subscriber to universe energy supplies, and provides one sixth of the universes one-year electrical end product and over 90 % of electricity from renewable [ 7 ] . Hydroelectricity eliminates the fuel gas emanations from fossil fuel burning, including pollutants such as S dioxide, azotic oxide, C monoxide, dust, and quicksilver in the coal. Hydroelectricity besides avoids the jeopardies of coal excavation and the indirect wellness effects of coal-burning. Compared to atomic power, hydroelectricity generates no atomic waste, has none of the dangers associated with U excavation, nor atomic leaks. Unlike U, hydroelectricity is besides a renewable energy beginning. Compared to weave farms, hydroelectricity power workss have a more predictable burden factor. If the undertaking has a storage reservoir, it can be dispatched to bring forth power when needed. Hydroelectric power workss can be easy regulated to follow fluctuations in power demand. Unlike fossil-fuelled burning turbines, building of a hydroelectric works requires a long lead-time for site surveies, hydrological surveies, and environmental impact appraisal. Hydrological data up to 50 old ages or more is normally required to find the best sites and runing governments for a big hydroelectric works. Unlike workss operated by fuel, such as dodo or atomic energy, the figure of sites that can be economically developed for hydroelectric production is limited ; in many countries the most cost effectual sites have already been exploited.2.2 Future Developments2.2.1 Energy GrowthThe Malayan economic system coming out of the recent economic downswing ( 1997- 2000 ) in the ASEAN part, coupled with a positive mentality of the Malayan economic system in the medium term, means that future demand for electricity is expected to increase significantly. In the following old ages, the demand is forecasted to turn at an mean rate of 6-8 % per annum. Furthermore, Malaysia ‘s pe ak demand is forecast to 21052 MW in 2010 for the Peninsular entirely [ 18 ] . In the twelvemonth 2010 it was anticipated that the fuel mix in Peninsular Malaysia were 58 % oil and gas, 33 % coal and the remainder hydro and other renewable beginnings of energy [ 18 ] . This was non come without an environmental cost since the focal point is on coal and gas to provide the future demand for power. Extra coal and gas-fired generators ( 10 GW in entire ) will breathe an extra 31 million metric tons CO2 ( coal ) and about 8 million metric tons CO2 ( gas ) per twelvemonth. The entire electricity demand growing in Malaysia was about 5.8 % in 2002/2003. The growing in electricity demand was driven more or less every bit among residential, commercial and industrial sectors. In footings of demand, about all sectors exhibited growing in their ingestion of energy in 2003, with industrial demand driven by a growing in the fabrication and building sectors. Supply growing was driven by three major factors: Commissioning of new power workss, ensuing in an addition of installed capacity Greater imports of coal for power workss Completion of the State Petroleum Company ‘s ( PETRONAS ) Liquid Natural Gas works ( MLNG3 ) , built in Bintulu to back up higher demand for LNG.2.2.2 Malaysia ‘s Energy PoliciesEnergy has contributed significantly towards the rapid growing of the Malayan economic system. Today, approximately 80 % of Malaysia ‘s entire population lives in Peninsular Malaysia, the hub of the state ‘s economic activities. As Malaysia progresses towards going a developed state, energy ingestion will correspondingly addition. In run intoing increasing energy demand, concerted attempts have been undertaken to guarantee greater security and sustainability of energy supply. Consumption of energy nevertheless produces some unwanted impacts on the environment and clime. Hence, sustainable usage of energy is being given attending in Malaysia. Malaysia energy policy came in the 70 ‘s, a clip of lifting petroleum oil monetary values and find of new oil beginnings in the Peninsular Malaysia. A Petroleum Development Act ( PDA ) was enacted in 1974 and followed by the National Petroleum Policy in 1975. However, a more comprehensive national policy on energy came in 1979. This National Energy Policy contains three principal policy aims to steer future energy policy sector development. They are as follows: Energy Supply: Assurance of equal energy supply through the decrease of the dependance on oil, and through the development and use of alternate beginnings of energy. Energy Use: Promotion and encouragement of the efficient usage of energy and the riddance of uneconomical and non-productive forms of energy ingestion. Environmental Conservation: Minimization of environmental debasement in recognizing the supply and use aims. In relation to the dependability and security of energy supply, Four-Fuel Diversification Policy was introduced in 1981, concentrating on four chief beginnings of fuel, viz. oil, hydro, gas and coal which was besides aimed to cut down the dependence on oil in the energy ingestion, peculiarly in the power sector. This policy is so expended in the twelvemonth 2005 to include renewable energy ( RE ) as the fifth fuel to supplement energy supply from conventional energy resources.2.3 Renewable Energy Programs and Incentives2.3.1 Small Renewable Energy Power ( SREP )To ease the execution of RE undertakings, a SREP was implemented on 11th May 2001 by the authorities to promote and escalate the use of renewable energy in power coevals. A SREP undertaking can be more than 10 MW in size, but the maximal capacity that will be allowed for power export to the distribution grid must non be more than 10 MW. Under SREP, the use of all types of RE, including biomass, biogas, municipal waste, solar, mini-hydro and air current, are allowed. As in 2010, 43 undertakings with mark capacity of 286.15MW have been approved by the authorities utilizing assorted types of renewable energy ( Fig 2.3 ) , with the most approaching from biomass and mini hydro. However, merely ten 10 undertakings are presently in operation with a entire capacity of 56.7MW. Figure 2.3: Status and Potential SREP Projects in Malaysia Under SREP, the old Renewable Energy Power Purchase Agreement ( REPPA ) selling monetary value agreed upon by the National Power Utility ( TNB ) for all RE grid connected undertakings, ranged from 14-17 cent/kWh ( US4.6 cents/kWh ) . However, the electricity duty of 17 cent/kWh ( US5. 6 cents/kWh ) seems non to supply high adequate rate of return to pull investors or undertaking developers given the size of the undertaking under SREP. Consequently, the Government has increased the electricity duty for biomass and biogas undertakings to 19 cent/kWh ( US6.2 cents/kWh ) in September 2006 and later the monetary value has been adjusted to 21 cent/kWh ( US6.9 cents/kWh ) effectual August 2007. However, the monetary value for other RE resources such as Hydro and Solar remain at 17 cent/kWh. The addition in duty is expected to escalate farther the SREP undertaking development.2.3.1.1 Progress SREP ProjectSeveral RE undertakings approved between the old ages 2007 to 2008 hold made important a dvancement. These undertakings will provide a sum of 65.75 MW when they are connected to the electricity grid by the terminal of 2010. It is deserving observing that these undertakings have progressed over a period during which alterations were made to the cardinal elements of the SREP Program – viz. an addition in the monetary value of electricity sold to the public-service corporation by RE manufacturers, and the standardisation of REPPA to cut down the dialogue clip period ( or the demand to flush negotiate ) for RE capacity below 2 MW. These alterations addressed the two factors that were found by the 2006 survey to hold impeded the execution of SREP approved undertakings.2.3.2 Biomass Power Generation & A ; Demonstration Project ( BioGen )Biomass Power Generation and Demonstration ( BioGen ) Undertaking was so introduced in October 2002 with the ultimate aim to advance and show biomass and biogas grid-connected power coevals undertakings and cut down the growing rate of GHG emanations from fossil fuel by using extra oil thenar biomass residues. BioGen facilitates development of the grid-connected biomass-fuelled little power systems, disseminates awareness information in palm oil industry, provides edifice and proficient aid in policy preparation, and fiscal installation aid through favourable bank loans and revenue enhancement freedom among others. Some of BioGen important undertakings include the first 14MW ( export 10 MW ) power works in Tawau, Sabah which uses oil thenar residues ( empty fruit clump, fibre and shell ) that successfully mitigate 40,000 50,000 dozenss of CO2 in 2004 and more late, a 46.2MW and 500 kW power workss are grid connected and commissioned in April 2009 and a sum of 700MW off-grid electricity has been produced by private thenar oil Millers.2.3.2.1 Progress BioGen ProjectTo day of the month, merely two all-out theoretical account undertakings have been implemented and scheduled for committee in early 2009 ( some 7 old age s after the beginning of the BioGen FSM Demonstration Project ) , viz. : MHES Asia ‘s 13 MW IPP running on biomass utilizing EFB as fuel FELDA Serting 500 kW power works utilizing biogas from palm oil factory wastewaters ( POME )2.3.3 Malaysia Building Integrated Photovoltaic Project ( MBIPV )The MBIPV undertaking caters for the successful execution of GC-BIPV ( Grid Connected-BIPV ) installings in Malaysia under the UNDP/GEF supported Malaysia Building Integrated Photovoltaic ( MBIPV ) Technology undertaking. The undertaking period coincides with the 9th Malaysia Plan period 2006 to 2010. The undertaking includes the development of appropriate, proactive and incorporate programs and policies that will make contributing environment for widespread acceptance of BIPV beyond the 9th Malaysia Plan period to work solar PV energy in Malaysia. The Undertaking aims to develop the model for a national BIPV plan for the tenth Malayan Plan ( 2011-2015 ) and beyond, supported with suited and customized mechanisms for local conditions to speed up the market development and heighten the development of the PV industry in the country.A2.3.4 SURIA 1000Suria 1000, a national plan to promote the acceptance of solar energy, was introduced during the gap ceremonial of the International Energy Conference for Sustainable Asia on 27th November 2006. One of the major enterprises under the UNDP-supported Malaysia Building Integrated Photovoltaic ( BIPV ) Project, Suria 1000 targets the installing of solar cells at places and offices.