Electric Energy Scenario in Malaysia

Ahmed Mohammed 1071119357

Abstract Due to the development of life style and the industrial sector in Malaysia, the demand for electric energy has been rapidly increasing. This rapid increase in demand must be fulfilled by supplying more energy. Energy sources are limited to environmental and economic constraints. This paper is to investigate the existing energy sources and to discuss the future energy paths that the country could take.

Energy Demand and Installed Capacity The trend of energy demand is in rapid increase in Malaysia with an average of 2,533GWh per year. In 2010 demand was at 16,943MW and it is expect to increase by at least 30% by the year 2020 which is approximately 22026MW. To face the increase in demand, the installed capacity of generation has been reinforced accordingly this can be observed clearly in Figure 1.

Figure 1 : on the right we see the increase in demand while on the left is the increase of installed capacity.

According to demand projections, the installed capacity of generation should be reinforced in the near future to keep the energy balance.

Existing Energy Mix Fossil fuels are dominating the current energy generation industry in Malaysia but it is no longer representing the best possible answer to the future and that is due to many reasons, one of which is the environmental impact caused by plants using these fuels. Although Malaysia is blessed with oil and gas resources but crude oil and natural gas are no longer seen as a feasible solution for the energy problem and that is because these sources are fast-depleting and not sustainable. Coal has always been considered a good alternative to oil and gas because of its availability and cost-effectiveness but coal-fired power plants have its impacts on the environment. Hydroelectric power has been supplying the grid for years but the capacity of these plants is low and it also affects the natural habitat.
Coal & Coal 6% Natura l Gas 28% Hydro power 5% Coal & Coal 15% Hydro power 3%

Crude Oil 38% Natur al Gas 44%

Crude Oil 61%

Figure 2 : Primary energy supply share in Malaysia in years 1990 and 2008 from left to right.

The energy mix in Malaysia consists of four major resources: 1- Natural Gas The natural gas became the main energy contributor in Malaysia in past ten years. The production of natural gas has been increasing steadily every year as well. Malaysian natural gas discovered reserve reached 88,887 Trillion Standard Cubic Feet associated and non-associated. Although the reserve of natural gas is high but it can not be fully utilized for power generation because it requires more refineries and liquefaction complexes. The global demand of natural gas doubled from 1998 to 2012 and it is expect to double by the year 2017 which makes natural gas an important commodity with high economic value.

2- Crude Oil As seen in Figure 2, the dependence on crude oil for power generation has inclined. Crude oil is not preferable anymore due to its high price and depleting reserves. Since Malaysia adopted the energy diversification strategy in 1981 the dependence on crude oil decreased. The production of crude oil and its products has declined sharply as well.

Figure 3: To the right, crude oil production. To the left, Crude oil reserve.

3- Coal Although coal is the cheapest and the most available fossil fuel but its share in power generation did not exceed 15% by the end of 2008. A huge reserve of coal is in Sarawak which is up to 80% of the total coal reserve in Malaysia. Coal-fired plants have their limitations. For instance, the transportation of coal can be expensive especially that most of the reserve is located Sarawak where the power demand is less. The CO2 emission is another concern with regard to coal-fired power plants. 4- Hydro Power With a 3% share of the total power generation share, the hydroelectric utilization is still not living its full potential which has been estimated to be 29,000MW. It is the only sustainable renewable energy source that is being used in a commercial scale.. The largest hydroelectric dam project in Malaysia is the Bakun hydropower project having a capacity of 2400 MW. Hydroelectric dams are multipurpose projects, they are utilized to generate electricity, to control floods and for agricultural purposes.

Some environmental activists complain that hydroelectric dams ruin the natural scenery and threaten the natural habitat of the wild life when not appropriately located.

Renewable and Green Sources Renewable sources come from the nature without the usage of fossil fuels, renewable energy is also known as sustainable sources, and these sources do not deplete nor harm the environment. Hydro power is a renewable energy source which has been discussed previously in this paper, other renewable sources are biomass energy, solar energy, wind energy and mini hydro power. Biomass Biogas Solar MunicipalWaste Mini-hydro Total 2,400 410 6,500 400 500 10,210

Table 1 : Renewable Energy Resource Potential in Malaysia (in MW)

1- Biomass As seen in table 1, biomass energy carries a great potential of 2400MW for Malaysia. Biomass is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel. In Malaysia, most of biomass energy can be generated from wood, empty fruit branches, agricultural corps and residues and animal waste. Biodiesel is a concept that has been in the energy market for few years now, the idea of biodiesel is to use vegetable oil in a blend to produce a fuel. Malaysia is rich with palm trees where palm oil can be extracted. Deriving fuel from vegetable oils is still a debate between skeptics and environment enthusiasts and such technologies are still under research.

2- Solar Energy One of the most promising renewable sources and it has raised a great deal of interest globally for 40 years. The obstacles preventing this sector from expanding are the high cost of photovoltaic systems which converts sun energy to electric energy. Malaysian solar reserve was estimated in 2007 to be four times the fossil fuels resources. Malaysias tropical weather with the constant high temperature is considered a great environment to utilize the sun energy. More research and development is required to equip this sector with more cost-effective systems.

3- Wind Energy Electricity can be generated using the potential energy of the wind movement. Nowadays a new concept has been introduced to this industry Small-Wind turbines. Small-wind turbines have smaller power output than larger ones. Wind energy requires regularity of wind which determined by the location where the turbine is installed. Malaysia can be a great potential in wind energy. According to a UKM study, Wind energy can carry a lot of promise to the energy industry in Malaysia.

4- Mini Hydro Power Generating electricity by small scale hydro plants has been adopted by China and Japan in the past decade and it showed a great result. In Malaysia mini hydro is still in the early stages and the projected potential is 500MW per year.

Nuclear Energy as an Alternative The traditional argument about nuclear power plant is the matters of safety and nuclear waste. But on the other hand nuclear power plants produces huge power output at low running costs and can be a great source to cover the base demand. The cost of erection of a nuclear plant is high but it does pay off on the long run.

Conclusion Electric power is the nerve of growing economies and industry. Malaysia is facing an increase in energy demand. The major energy sources in Malaysia are non-renewable and limited. The dilemma of energy can be solved by relaying on renewable energy sources to produce energy. Biomass and hydro power are the two sources with the highest potential. Nuclear energy can be considered if well-implemented and safety measures along with waste management solutions were taken into consideration.

References C.T. Sun, Electricity demand, economic growth, and sustainable energy resources in Malaysia (http://christopherteh.com/blog/2012/05/electricity-demand/)
Malaysia Energy Information Hub. (http://meih.st.gov.my)

H.C. Ong *, T.M.I. Mahlia, H.H. Masjuki, A review on energy scenario and sustainable energy in Malaysia U.S. energy information administration (http://www.eia.gov/todayinenergy/detail.cfm?id=5810) John Roach, Vegetable OilThe New Fuel? , National Geographic. Schneider Electrics white paper on energy efficiency.