The electricity networks extend throughout the Sultanate, providing power to almost the entire population. According to figures from the Department of Statistics, the country had electricity coverage of 99.7% in 2008, with 0.3% accounted for by remote communities, most of which have their own generators.The three main grids are operated by two utilities, the governmental Department of Electrical Services, and the Berakas Power Company Private Limited (BPC). BPC supplies around 40% of the total generation in Brunei.BD is launching prepaid cards, ‘powercard’, for electricity usage top-up at homes and business in October 2011. Following the introduction of the prepaid cards, all post-paid electronic meters in private households will be replaced to pre-paid meters free of charge. In addition, the electricity tariff has been reviewed in order to encourage the public to conserve electricity as well as to benefit the lower income groups.
BD implements five-year economic development plans known as the National Development Plans. Currently, the ninth National Development Plan (2007–2012) is in force. In line with this plan, the economy has also launched a long-term development plan, the Brunei Vision 2035. The plan states that the economy’s major goal for the next three decades is economic diversification, along with strengthening of the oil and gas sector. The latter is to be achieved by expanding the sector’s oil and gas reserves through ongoing exploration, both in existing areas, and in new deep-sea locations.BD’s energy policy is centred on its oil and gas industry. In 1981, the Oil Conservation Policy was introduced when oil production peaked at 239,000 barrels per day (bbl/d) in 1980. The policy aimed to prolong the life of the economy’s oil reserves. As a result, oil production gradually declined to around 150 bbl/d in 1989. In November 1990, the government reviewed the policy and removed the production ceiling, resulting in production of 219 bbl/d by 2006.In 2000, the Brunei Natural Gas Policy (Production and Utilisation) was introduced. The policy aimed to maintain gas production at 2000 rates in order to adequately satisfy export obligations. It aimed to open new areas for exploration and development, and encourage increased exploration by new and existing operators. Under the policy, priority is always given to domestic utilisation of gas, especially for electricity generation.The Brunei National Petroleum Company Order, introduced in January 2002, empowers the Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI) to act as the economy’s oil company. Among others, PetroleumBRUNEI is given designated Areas for which the company has the right to negotiate, conclude and administer petroleum sharing agreements.The Energy Efficiency and Conservation (EE&C) goals submitted to the 5th East Asia Summit Energy Ministers Meeting, held on 20 September 2011 in BD, state that the country uses Energy Intensity (TPES/GDP) as the EE Indicator, and aims at 25% improvement by 2030 from 2005 level. The action plans to achieve the EE&C goals above are mostly formulated in 2010, including the voluntary basis EE 5-star labelling for commercial and residential sectors, the establishment of “Energy Club” in secondary schools, the declaration of “Energy Day” (24 May) to inculcate EE&C culture, and National EEC Initiative Award Competition. The enhancement of supply side management in power sectors has been added in 2011 in order to increase efficiency and reduce use of energy, with a specific goal of more than 45% of efficiency through combined cycle and co-generation. The Energy Labelling and Standards for electrical products to the national market through the Energy Labelling and Standards Task Force (ELSTF), which was established in September 2008 in the Energy Division, is one of BD’s EE&C Initiatives. The Energy Labelling Scheme was launched as a voluntary basis scheme on 26 May 2008 preliminary for single-phase non-deducted room air conditioners and will be extended to other appliances in the later stage. BD, as a member of the Association of Southeast Asian Nations (ASEAN), has signed the ASEAN Petroleum Security Agreement. Under the agreement, the country has agreed to cooperate closely on energy security relating to oil supply with other member states. The ASEAN Plan of Action on Energy Cooperation of 2010-2015 and a number of activities and programmes under the umbrella of the ASEAN Ministers on Energy Meeting (AMEM) are central to the drive towards achieving among others the region’s energy security, efficiency and conservation. For example, Brunei Darussalam is working with other ASEAN members on the Trans-ASEAN Gas Pipeline project and the ASEAN Power Grid project to promote and enhance energy security through energy market integration in the region. During the 29th AMEM, held in BD, ASEAN and the IEA signed a Memorandum of Understanding on Cooperation on Energy.In August 2007, BD ratified the United Nation Framework Convention on Climate Change (UNFCCC) and subsequently ratified its Kyoto Protocol on 20th August 2009.
Solar energyBrunei has considerable potential for solar energy, and photovoltaics/solar thermal technologies have been the most investigated renewable energy application in the country. Average daily insolation is in the region of 400 to 500 W/m2, with peaks of over 1000 W/m2. A solar diesel hybrid electric power system with a 2.4kW solar array and an 80kVA diesel generator was installed in 2000 at Ulu Belalong National Park in the Temburong district, as an initial foray into solar technology. Despite the potential of the photovoltaics technology, the technology will be used as an alternative or add up power resource by the Government to the national grid or as an individual system for only small scale applications, rather than for much needed air-conditioning, which requires a large and costly photovoltaics system for individual users. Solar thermal energy could be used for low and medium temperature applications such as solar water heaters, but not for high temperature applications as the direct component of solar radiation to be concentrated is not available throughout the day (Malik 2011: 435). Wind energyMeasurements taken by the Department of Physics at the University of Brunei Darussalam indicate annual average wind speeds of 5 m/s in coastal regions, suggesting the potential for power generation from wind energy in the country. The first wind turbine to be installed in the country will be at the Ministry of Development, and further studies are being conducted in order to ascertain the potential for further wind energy utilisation. The calculation based on the offshore wind data, theoretical possible annual potential offshore wind power is 372 MW (Malik 2011: 430).HydropowerWhile the high rainfall in BD provides a potential for the generation of hydropower, the running water in the rivers does not have a sufficient head which could be utilised to produce hydropower without building a storage dam. However, because of the small size of the country, it is difficult to find a location to build a dam. Measurements taken by the Department of Electrical Services (DES) indicate that the Temburong Basin has an estimated hydro-electric potential of 300 GWh per year, equivalent to 70-80 MW of installed hydropower capacity. The negative environmental impacts in the construction of hydropower installations are a barrier to further studies of this resource.Ocean energyOcean power is another option to be studied. The potential for power generation from tidal energy has also been investigated in the country. Whilst it is theoretically possible to generate approximately 335 kW of tidal energy annually, it may not be economically viable owing to the location of the country. Ocean thermal energy conversion is not possible due to the small temperature gradient between the top and bottom layers of the ocean. The potential of wave energy depends on the month, with December providing the maximum power. Provided that approximately 269km of the coastline in BD could produce 15-126 GW of wave energy, the annual theoretical potential of the wave energy in BD is 66 x 1010 W. Biomass energyBrunei has considerable forest resources, with an average of 382 tonnes of wood potential per hectare across the country. The proper cultivation of rainforest for energy production has been identified as a priority for increasing the utilisation of renewable energy sources in the country, provided that an integrated total system design was used to prevent undue damage to the nation's forest resources. In addition, with the increasing population and the six landfill sites in BD, the country should be able to produce landfill gas for power generation as a by-product of the decomposition of solid waste.Geothermal energyWhilst the potential for geothermal energy utilisation has been proposed in Brunei, no dedicated study has yet been conducted into the theoretical and economically viable potentials for geothermal power generation.