The Transition Strengthening the Future of Energy in Malaysia
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Energy Malaysia Towards a World-Class Energy Sector Volume 14 | 2018 www.st.gov.my Volume 14 Volume KDN: PP 18540/08/2014(033966) KDN: PP The Transition Strengthening the Future of Energy in Malaysia PROPELLING WITH ONE BUYER TO SUSTAINABILITY RULE THEM ALL MYR 8.00 Volume 14 www.st.gov.my Energy Malaysia looks into how Delve into the liberalisation the industry is aligning itself with of Single Buyer and its the Pledge of COP 21 to ensure impact on the energy a sustainable future. industry as a whole. S 19 ONTENT C FEATURES INNOVATION 02 14 19 Chairman’s Message Reshaping Electricity Chasing the Sun Supply Industry Solar power has not always been 04 Energy Malaysia examines how a reliable source of energy mainly Energy Matters various agencies and governing due to the unpredictability of the bodies strategise towards a more weather. However, everything’s The latest news and updates on efficient and reliable industry. about to change as new industry developments, government technology enables solar power to initiatives and innovations in the energy be gathered up in space! sector in Malaysia and worldwide. 16 Put A Ring(fence) On It The Single Buyer Department POWER PATH plays a key role in the management 22 COVER STORY of electricity procurement. Smart Grid Systems: Energy Malaysia highlights on the Creating New Opportunities impact of the liberalisation of the The implementation of the Smart Grid Single Buyer entity towards the System has created various new job nation and the industry. opportunities for the sector. 06 29 Looking Ahead into the Future In line with the various policies and initiatives implemented by the government, Energy Malaysia takes a look at what the future may hold for the energy industry in Malaysia. Editorial Board Advisor Ir Azhar Omar 40 Members Asma Aini Mohd Nadzri Ir Abdul Rahim Ibrahim Mohd Elmi Anas Ir Roslee Esman Ir Md Zakuan Ibrahim Editorial Committee Siti Suhaila Ahmad Zairulliati Mali Sueharti Mokhtar Syarizman Mansor FEATURES POWER PRACTicE Mohd Shafiz Amzary Abd Rahim 26 35 A Pledge Towards Governance Reform of © All rights reserved. Reproduction of all Sustainability Single Buyer and Grid or any part of this publication via electronic, In light of the Paris Agreement System Operator mechanical, recording or other medium is that was signed last year, we The Stakeholder Workshop on the strictly prohibited without written consent from the Energy Commission. take a look at Malaysia’s efforts Governance Reform of Single Buyer and in reducing 45% of its carbon Grid System Operator provides key insights ST Publication No: ST(P)10/04/2017 emissions by the year 2030. on the initiatives and reforms introduced within the two entities. 29 Gas What? COUNTRY FOCUS Conceptualised, Produced Energy Malaysia shines a 37 and Published for spotlight on the recently Backing Up implemented TPA system and its With Batteries SURUHANJAYA TENAGA role in liberalising the gas market. Australia (ENERGY COMMISSION) A case study on how the Land Down by VIEWS Under has recently installed the world’s 32 largest lithium-ion battery storage system The IBR Asia Group Sdn. Bhd. Advocating Reliable in a bid to combat power outages. (770255-U) & Quality Supply in 10-3A, Jalan PJU8/3, the Gas Industry ANALysis Damansara Perdana, The Chairman of Gas Malaysia, 47820 Petaling Jaya, Datuk Hasni Harun shares his 40 Selangor Darul Ehsan, Malaysia. experience and knowledge on the Transitioning Towards Tel: +603-7729 4886 ever-changing landscape of the Sustainable Energy Security Fax: +603-7729 4887 gas industry in Malaysia. An analysis on how Malaysia is Website: www.ibrasiagroup.com transitioning from oil-based energy generation to fossil fuel and gas. Printed by Percetakan Skyline Sdn. Bhd. (135134-V) ON-SITE 35 & 37, Jalan 12/32B, 44 Jalan Kepong, Highlights of events, forums, seminars, 52100 Kuala Lumpur, Malaysia. conferences and exhibitions organised or attended by the Energy Commission. Chairman’s Message Ushering in New Changes Malaysia’s energy supply industry is being programmed on an evolution in order to align itself with this national mission and has also interwoven such initiatives with the Economic Transformation Plan (ETP) and National Green Technology Master Plan. The aim of ETP in achieving liberalisation, however, is to warrant fair play among competitors whilst pushing the agenda on energy efficiency. In line with this proclaimed objective, the Malaysian energy supply industry has successfully completed Regulatory Period 1 under the Incentive-Based Regulation (IBR) framework and has just entered Regulatory Period 2 which has deliberately incorporated special elements to further enhance our green initiatives. Amongst others, we would highlight the provision for the introduction of automated metering interfaces which would facilitate the roll-out of smart meters to all consumer segments and a special allocation to cater for conversion to the LED fittings on a significant portion of street lighting. These examples would invariably encroach into the lifestyles of the general populations, which were previously exposed he nation is moving towards green energy only to indirect involvement. development in line with the pledge made at the T 2015 United Nations Climate Change Conference It is hoped that these initiatives would initiate (COP 21). The Energy Commission, in upholding this escalating awareness and willingness of the public pledge, is taking the relevant initiatives under the to participate in other such programmes. As a case National Green Technology Master Plan in educating in point, the recent roll-out of Transformasi Nasional the public at large to take the necessary steps to fulfil 2050 (TN50), the country’s long-term development their part in contributing to the overall cause. programme to transform Malaysia into a top 20 nations and a model state for the rest of the world The Energy Commission has taken on this challenge by 2050, also recorded a strong desire from the through our ability to balance the needs of different youngsters for an environmentally sustainable stakeholders, namely the government, energy industry nation. This augurs well with our objectives and we and consumers. The translation to reality however, must are truly encouraged to pursue on the objectives of always ensure a secure and reliable electricity supply our mission. at affordable prices, safeguarding public interest and nurturing economic development in an environmentally sustainable fashion as we endeavour to achieve the Dato’ Abdul Razak Abdul Majid targets expressed under the COP 21 framework. Energy Commission, Malaysia 2 SafeSafe And And Efficient Efficient UsageUsage OfOf Electricity Electricity TestTest the the automatic automatic circuit circuit breaker swit switchc hin inyour your home home today! today! Automatic circuit breaker switches found in the electrical distribution board in your home are to protect you and your family from the dangers of electric shock. Ensure that the automatic circuit breaker sensitivity does not exceed 100 mA or 0.1 A and is tested at least once a month to ensure that it always functions satisfactorily. A simple way to test the automatic circuit breaker is to press the test button (marked ‘T’). An automatic circuit breaker switch that works well will trip when the test button is pressed and you can restore the switch to its original position. If the automatic circuit breaker switch does not trip after the test button is pressed, you should immediately consult a Registered Electrical Contractor for inspection and replacement of the automatic circuit breaker switch. If you are using an electric water heater in the bathroom, make sure that the automatic circuit breaker switch with a sensitivity of not exceeding 10 mA or 0.01 A is installed in the water heater circuit. VALUE OUR LIVES. AVOID ACCIDENTS AND WASTAGE! PRACTISE EFFICIENT WAYS OF USING ELECTRICITY Switch off electricity when not in use. The more you waste, the more you pay. Use electrical appliances at moderate speed, temperature and load. Use natural lighting and ventilation to reduce the use of electrical appliances. Monitor the electricity consumption level at your premises. Energy Commission No. 12 Jalan Tun Hussein, Precinct 2, 62100, Putrajaya Toll Free Number: 1 800 2222 78 Telephone: 03 8870 8500 Fax: 03 8888 8637 Website: www.st.gov.my Latest Back Cover v2.indd 1 7/4/17 10:07:02 AM Project Takes the Newton Prize esearchers from Malaysia and the United Kingdom have won the R Newton Prize worth £112,000 (RM611,760) for developing a project that generates sustainable electricity from effluent waste processing. The team consisted of researchers from the University of Malaya and University of Cambridge who successfully developed an integrated microbial fuel cell prototype using tropical algae from wastewater. Their groundbreaking project will be able to contribute to the ongoing developments to meet the demands for sustainable energy and cleaner wastewater in rural areas such as Sabah and Sarawak. The Newton Prize recognises excellent research and innovation in support of economic development and social welfare in partnering countries. – The Malaysian Insight The Alternative Energy Dilemma n the turn of the century, the wind farm may not be price competitive. development of new technologies Though the cost of harnessing wind “With this Newton Prize, we O and the growing entry of new players energy has decreased significantly in the are going to see part of our have caused an increase in the alternative past decade, the technology still demands dream realised. We are going energy space. There is, without a doubt, a higher investment than fossil fuel- to come up with a working a need to switch from fossil fuels to powered generators. alternative energy sources. There is also prototype. After that, we hope universal consensus that the supply of Solar energy is another viable power source to get an industry partner fossil fuel is becoming limited as well as is as well.