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Malaysia

Official Name:
Federation of Malaysia

National Designated Entity

Type of organisation:
Government/Ministry
Name:
Mr. Ahmad Farid bin Mohammed
Phone:
+60 3 8885 8615
Emails:
farid@mestecc.gov.my

Energy profile

Malaysia (2012)

Type: 
Energy profile
Energy profile
Extent of network

97% of people were connected to electricity in Malaysia in 2000. In some areas with small power demand, the Malaysian government sees it as uneconomical to use coal for power generation. Therefore, alternative sources of energy, such as photovoltaic and diesel battery hybrid electricity generation systems, have been implemented under the Rural Electrification Programme. Currently, there are eight villages benefiting from this programme, with power generation ratings from 10 kW to 100 kW.Malaysia has three discrete power grid systems covering the Peninsular Malaysia, Sabah and Sarawak. The Peninsular grid is the largest, accounting for 78.7% of the total installed generation capacity. Roughly 11,000 km of 500, 275 and 135 kV transmission lines exist, with distribution lines of 33, 22, 11 and 6.6 kV serving the majority of Peninsula Malaysia. Sabah and Sarawak have their own transmission and distribution networks. Interconnection between these three networks has been considered.

Renewable energy potential

Wind energyAlthough the potential for wind energy utilisation in the country has traditionally been recognised as low, studies have shown that offshore sites exhibit exploitable conditions for power generation, with average annual wind speeds of 4.1 m/s being recorded in the eastern Peninsula region of the country. Utilisation in the country is currently at the pilot project stage, with an estimated installed capacity of 0.2 MW (off-grid).HydropowerHydropower potential is assessed at 29,000 MW and 85% of potential sites are located in East Malaysia. The role of hydropower in the generation fuel mix will be more prominent after 2010. Though most of the potential sites in Peninsular Malaysia have already been developed, there is still some untapped potential in the states of Pahang, Kelantan and Perak. However, the Bakun Hydroelectric Project, which is currently under development, has the greatest potential. The Bakun project will add 2,400 MW to hydro-electric generation capacity. The government has also approved the Peninsular Malaysia – Sarawak interconnection link via submarine cable to channel the power generated from the Bakun project, although as previously stated this project is currently postponed. The government is also studying the possibility of developing more hydropower at the Rejang Basin in Sarawak. The capacity of hydropower in 2009 was 23.8 MW of grid-connected mini-hydro.  Solar energySolar PV potential is estimated at 6,500 MW. Despite the abundant resource, with an average daily insolation of 4.5 kWh/m2/day across the majority of the country, solar PV applications in Malaysia are limited to mainly stand-alone PV systems, especially for rural electrification where the systems receive a significant subsidy. Currently, roughly 1 MW of grid-connected solar PV systems are installed in the country, with a further 6.1 MW of grid-connected PV.Biomass energyThe RE focus is on biomass, especially from palm oil and wood wastes. Being the largest palm oil producer in the world, the Malaysian economy has abundant sources of palm oil biomass. In 2004, Malaysia had 381 palm oil mills in operation, with potential to generate 2,098MW of electricity. Potential biomass and biogas from palm oil mill waste is estimated to be 1,300 MW and 400 MW from municipal solid waste. In 2009, the economy produced 32 MW of grid-connected biomass energy with a further 447 MW of off-grid biomass energy. Other sources of biomass waste include wood waste, rice husk and municipal solid waste.  Technical biomass potential in the country has been estimated to be as high as 29,000 MW.Geothermal energyThe potential for geothermal power generation exists in the country, particularly at the Tawau geothermal field, which is estimated to have a potential of 67 MW. The location on Sabah has been observed as having temperatures of 220 to 236 degrees Celsius, a measurement which is very encouraging. RM1.5 million has been allocated for research into the site, and plans for its development have been included in the 10th Malaysian Plan.The target of contribution towards the total electricity generation mix from RE is 10% by 2010, after which this ratio is envisaged to be maintained. 

Energy framework

Malaysia is continuously encouraging the development of renewable energy in the economy through policy and various strategies. The Five-Fuel Policy has made renewable energy one of the components in the fuel mix for power generation after oil, coal, gas, and hydro.  The Small Renewable Energy Power Program was launched, encouraging production of renewable energy by small power generators and allowing the sale of generated electricity to utilities. The Ninth Malaysia Plan specified a target for electricity grid-connected renewable energy generation—300 MW in Peninsular Malaysia and 50 MW in Sabah.The Tenth Malaysia Plan 2011-2015 emphasises on green technology including short term goals vested in National Green Technology Policy and new renewable energy act and feed-in tariff mechanism to be launched. It details on the strategy to restructure the energy subsidies the country has been providing on natural gas and electricity used by the industry sector as well as the discounted energy pricing mechanism for selected industrial users. The 10th MP also includes a plan to improve public transport into an energy efficiency transport mode to ease the traffic congestions and to address the high usage of private cars for passenger transport which is making the country’s level of energy use by the transport sector higher than the world average. In the 10th MP, the new energy target to achieve is of 985 MW by 2015 contributing to 5.5% of Malaysia’s total electricity generation mix. In order to achieve its target, the National Renewable Energy Policy 2010 has been launched.  Malaysia’s energy sector is guided by the National Energy Policy, formulated in 1979. It has the following objectives:ensuring the provision of adequate, secure and cost-effective energy supplies by developing indigenous energy resources, both non-renewable and renewable,using least-cost options,diversifying supply sources;promoting the efficient utilisation of energy and the elimination of wasteful and non-productive patterns of energy consumption; andensuring that factors pertaining to environmental protection are taken into consideration in the production and use of energy.The National Depletion Policy was formulated in 1980 to prolong and preserve the economy’s energy resources, particularly oil and gas resources. Under this policy, total annual production of crude oil should not exceed 3% of oil originally in place, which currently limits oil production to around 680 thousand barrels per day (bbl/D). In 1981, the Four-Fuel Policy was introduced to reduce the economy’s over-dependence on oil and to aim for an optimal fuel mix of oil, gas, hydro-electric and coal for use in electricity generation. As a result, oil’s domination of the generation fuel mix has been significantly reduced and replaced with gas and coal. In 2002, the Four-Fuel Policy was expanded to incorporate renewable energy as the fifth fuel after oil, gas, coal and hydro-electric.National Bio-fuel Policy 2006 is launched in support of the Fifth Fuel Policy and it is aimed to reduce the country’s dependency on depleting fossil fuels, and promoting the demand for palm oil as a source of RE. Five key thrusts include: transport, industry, technologies, export and cleaner environment.  The government is formulating various strategies to promote RE, including an action plan to assist RE project developers, especially Small Renewable Energy Plan (SREP) projects. SREP was launched in the 8th Malaysia Plan in 2001 and designated as sub-10 MW and within grid-connection distance. The plan included:in the short term (up to 2010), a review of the obstacles faced by prospective RE developers. Measures to remove the obstacles and to stimulate the RE program, particularly the SREP, will be proposed;a review of the Renewable Energy Power Purchase Agreement (REPPA) to recommend how the terms and conditions can be simplified and differentiating between larger projects and smaller and rural projects;in the longer term (beyond 2010), new targets for RE utilisation by the type of RE source and by region;economic support through fiscal and financial incentives improvement.SREP was targeted to contribute 5% (600MW) of the country’s electricity demand by 2005 but despite various fiscal incentives, only 2 plants of 12 MW total capacity have been commissioned. Major challenges have been securing project funding and fuel supply security issues. A new SREP target of 350 MW of electricity generation from RE such as biomass, biogas, municipal waste, solar and mini-hydro as alternatives to fossil fuel was set in the 9th Malaysia Plan. Though it gained momentum with concerns about increasing oil prices, higher feed-in tariff and Clean development Mechanism (CDM), RE contribution towards the country’s total energy mix through grid-connected power generation from SREP only achieved 56.7 MW by the end of the 9th MP.To enhance Malaysia’s EE, the Efficient Management of Electrical Energy Regulations 2008 was gazetted on 15th December 2008. The regulations required users with a total electricity consumption of 3 million kWh or more over six consecutive months to appoint electrical energy managers, and to implement efficient electrical energy management.Renewable Energy Fund under Feed-in Tariff (Fit) collects 1% of bills from consumers who utilise electricity more than the set minimum point; and the collected fund will then be used to equalise the price between non-renewable and renewable sources of energy.Renewable Energy Business Fund (REBF)’s objective is to mainly for BioGen implementation programmes to support the financial need for Full Scale Model Biomass Power Project. The REBF is expected to act as a successful model in financing RE Project in Malaysia in order to give better perspective to other developers ad financial institutions towards developing and financing the same mechanism of RE project in the country.In August 2009, the Malaysian Government launched the National Green Technology Policy. One objective of the policy is to provide a path towards sustainable development. The policy is built on four pillars: energy -seek to attain energy independence and promote efficient use; environment- conserve and minimise the impact on the environment; economy -enhance economic development through the use of technology; and society- improve the quality of life for all.The policy covers four key areas:      Energy. Application of green technology in power generation and in energy supply-side management including cogeneration by the industrial and commercial sectors, in all energy-use sectors, and in demand-side management.     Buildings. Adoption of green technology in the construction, management, maintenance and demolition of buildings.     Water and waste management. Use of green technology in the management and use of water resources, wastewater treatment, solid waste and sanitary landfill.     Transport. Incorporation of green technology in transportation infrastructure and vehicles, in particular biofuels and public road transport.To promote the development of green technology activities, the Malaysian Government has established a MYR 1.5 billion fund. The fund will provide soft loans to companies that supply and use green technology.To expand the use of green technology, including energy-efficient technology, in buildings, the government launched the Green Building Index (GBI) on 21st May 2009. In line with this effort, the government is providing the following incentives:     Building owners obtaining GBI certificates from 24th October 2009 until 31st December 2014 are given income tax exemption equivalent to the additional capital expenditure in obtaining such certificates,     Buyers purchasing buildings with GBI certificates from developers are given stamp duty exemption on the instruments of transfer of ownership. The exemption amount is equivalent to the additional cost incurred in obtaining the GBI certificates. This exemption is given to buyers who execute sales and purchase agreements from 24th October 2009 until 31st December 2014.Renewable Energy and Energy Efficiency Scheme offers wide range of financing facilities for RE and EE projects especially on biomass, biodiesel, mini-hydro, solar, MSW and energy efficiency.The Ministry of Energy, Green Technology and Water introduced the Renewable Energy Policy and Action Plan in 2010 to overcome the main hurdles to renewable energy development in Malaysia, such as market failure, policy inconsistencies, mixed signals to investors and the lack of a robust and long term orientation. The policy seeks to enhance the use of indigenous renewable energy sources to contribute in electricity supply security and independence, increase the share of renewable energy in the national electricity mix, support the expansion of a local renewable energy manufacturing sector, ensure reasonable renewable energy generation costs and protect the environment. In order to reach these objectives the Action Plan shall provide for the introduction of a feed-in tariff, implement fiscal incentives and measures to reduce the transaction cost of financing, attract skilled workers in the sector and initiate a long term research and development programme. It also established generation targets to 2050 when renewable energy should make 24% of the total energy mix, from 1% in 2011 and 9% in 2020, therefore avoiding 30,503,589 tonnes of CO2 emissions.In April 2011, Malaysia launched a Renewable Energy Feed-in Tariff system and annual installed capacity caps to 2030. Electricity consumers pay an additional fee on their electricity bills to distribution licensees, the FIT-ALL. Licensees are then required to allocate 1% of their total revenue to the Renewable Energy Fund administered by SEDA Malaysia and dedicated to financing the FIT. About 56% of the utility customers who consume less than 200 kWh/month will be exempted from contributing to the RE Fund. To benefit from tariffs, renewable developers need to conclude a RE Power Purchase Agreement with Distribution Levels (eg. TNB, SESB, tec, public power utilities). Households already falling under the Small Renewable Energy Programme (SREP) can convert previous support into a Feed-in tariff.FITs are ranging over a 21 year period for PV and mini hydro and 16 year period for biomass and biogas. In April 2010, RE Act and Act for Fit Implementing Agency has been approved by the Cabinet.Sustainability Achieved Via Energy efficiency rebate programme (SAVE) was introduced in 2011: rebated are given to encourage the purchase of energy efficient equipments to initiate market development of energy efficient appliances. The anticipated savings from SAVE is 127.3 GWh.UNDP-GEF Biomass Power Generation and Demonstration (BioGen) Project was launched in 2002 to demonstrate biomass and biogas grid-connected power generation projects. With this project, 13 MW (export 10 MW) and 500 kW power plants will be grid-connected in July 2009; and ~447 MW off-grid electricity is produced by private palm oil millers.UNDP-GEF Malaysia Building Integrated Photovoltaic (MBIPV) Project was implemented between 2005 and 2010 to reduce unit cost of solar PV technology by 20% and increase capacity by 330% via PV application in buildings. With this project, ~0.4 MW of cumulative grid-connected PV installations are carried out, and PV system unit cost has dropped by 16% on average.Other energy efficiency programmes are: Energy Efficiency Showcase Models; Auditing and Retrofitting Existing Buildings into Energy Efficiency Building, Green Building Certification (Green Building Index, GRI), Electrical Equipments Labelling Programme, introduced in 2005, and Energy Efficiency Campaign, including the compilation of handbook on energy efficiency practice in the household in 2008.The Energy Efficiency and Conservation (EE&C) goals submitted to the 5th East Asia Summit Energy Ministers Meeting, held on 20 September 2011 in Brunel Darussalam, state that Malaysia uses Final Energy Demand as the EE Indicator, and aims at 8.6% reduction from business as usual by 2020.

Source
Static Source:
  • Eco Ltd

    Type: 
    Organisation
    Knowledge partner
    Country of registration:
    United Kingdom
    Relation to CTCN:
    Network Member
    Knowledge Partner

    Eco is a boutique management consultancy specialized in the design and formulation of climate change mitigation and adaptation projects. Operating since 2000, Eco has worked with a wide range of international clients such as the AfDB, IFC, World Bank, UNDP, UNIDO, EBRD, GIZ and the European Union.

    Eco has designed over 250 projects in 82 countries across Africa, Eastern Europe and Asia. We have assessed markets and designed financial, technology and other strategies and then formulated projects.

  • Okapi Environmental Consulting Incorporated

    Type: 
    Organisation
    Country of registration:
    Canada
    Relation to CTCN:
    Network Member

    Okapi Environmental Consulting Incorporated (OECI) is a private sector organization established in 2011 with the mission to provide quality technical and policy advice on sustainable development. Okapi's work includes project design, management and evaluation, strategic planning, capacity development, resource mobilization, scientific and technical advisory services, technology transfer. Okapi's experience extends in climate-affected sectors such as agriculture, sustainable land and water management, coastal zone management, infrastructure and others.

  • Sustainable Capital Advisors

    Type: 
    Organisation
    Country of registration:
    United States
    Relation to CTCN:
    Network Member
    Sector(s) of expertise:

    SCA provides strategy consulting and financial advisory services to public and private sector organizations seeking to implement sustainable infrastructure projects. Our client engagements involve a diversity of technologies located in countries across the world. Our job is to assist clients "sift through the noise" and develop practical and replicable solutions based on the realities of the financial and energy markets. 

  • International Water Management Institute

    Type: 
    Organisation
    Knowledge partner
    Country of registration:
    Sri Lanka
    Relation to CTCN:
    Network Member
    Knowledge Partner
    Sector(s) of expertise:

    IWMI’s Mission is to provide evidence-based solutions to sustainably manage water and land resources for food security, people’s livelihoods and the environment. IWMI’s Vision is ‘a water-secure world’. IWMI targets water and land management challenges faced by poor communities in the developing countries, and through this contributes towards the achievement of the United Nations Millennium Development Goals (MDGs) of reducing poverty and hunger, and maintaining a sustainable environment. 

  • STENUM GmbH

    Type: 
    Organisation
    Country of registration:
    Austria
    Relation to CTCN:
    Network Member
    Sector(s) of expertise:

    STENUM has worked for UNIDO, UNEP and IFC in training their Resource Efficient and Cleaner Production Centers and supporting them in the implementation of various activities (education of national experts, consultancy of companies in waster reduction, water minimization, chemicals management and energy efficiency). STENUM has elaborated several manuals and training materials (UNIDO train the trainer toolkit, UNEP PRESME toolkit).

  • Ecofys a Navigant company

    Type: 
    Organisation
    Country of registration:
    Netherlands
    Relation to CTCN:
    Network Member
    Sector(s) of expertise:

    Ecofys, a Navigant company, is an international energy and climate consultancy focused on sustainable energy for everyone. Founded in 1984, the company is a trusted advisor to governments, corporations, NGOs, and energy providers worldwide. The team delivers powerful results in the energy and climate transition sectors. Working across the entire energy value chain, Ecofys develops innovative solutions and strategies to support its clients in enabling the energy transition and working through the challenges of climate change.

  • Ecosoluzioni Snc

    Type: 
    Organisation
    Knowledge partner
    Country of registration:
    Italy
    Relation to CTCN:
    Network Member
    Knowledge Partner

    Research and consulting on policy & market uptake actions in sustainable energy, clean tech, agriculture, waste mngt. and environment. Since 2000, wide-ranging technical assistance experience in climate change adaptation & mitigation related services, including: tech. assessments, business coaching, feasibility analysis, policy/market analysis, policy planning, M & E, partnership facilitation, finance structuring, agro-energy value chains, natural resources management, technology transfer. 

  • SNV Netherlands Development Organization

    Type: 
    Organisation
    Country of registration:
    Netherlands
    Relation to CTCN:
    Network Member

    SNV is a not-for-profit international development organisation founded in the Netherlands 50 years ago. SNV helps people overcome poverty in 38 of the poorest countries in Asia, Africa and Latin America by enabling access to thetools, knowledge and connections they need to increase their incomes and gain access to basic services. SNV works in three key sectors - Agriculture, Renewable Energy and WASH - and in the cross cutting themes of lnclusive Business, REDD+ and Climate Smart Agriculture.

  • Roedl & Partner

    Type: 
    Organisation
    Knowledge partner
    Country of registration:
    Germany
    Relation to CTCN:
    Network Member
    Knowledge Partner
    Sector(s) of expertise:

    Roedl & Partner is a globally active professional services firm with approximately 4,000 employees and physical presence in 78 countries, including developing countries. One focus area of Roedl & Partner is public Management Consulting, which covers the energy sector. Roedl & Partner's interdisciplinary Renewable Energy team offers comprehensive business, legal, regulatory, and management consulting services to renewable energy sector clients worldwide. Roedl & Partner manages the Geothermal Risk Mitigation Fund (East Africa).

  • Integra Government Services International LLC

    Type: 
    Organisation
    Country of registration:
    United States
    Relation to CTCN:
    Network Member
    Sector(s) of expertise:

    Integra designs, implements, and evaluates international development activities, with a focus on creating opportunities for the poor, expanding access to public infrastructure, promoting social and ecological resilience and strengthening donor programs. Integra has a proven record of innovative approaches yielding lasting results. Integra is a partner of NASA in deploying state-of-the-art Earth Observation technology for REDD+ MRV, while working to build on-the-ground socio-ecological resilience.