Rural Electrification in East Malaysia - Achieving optimal power generation system and sustainability of rural electrification projects Tian Shen Liang Master of Science Thesis KTH School of Industrial Engineering and Management Energy Technology EGI-2016-069 SE-100 44 STOCKHOLM Master of Science Thesis EGI-2016-069 Rural Electrification in East Malaysia - Achieving optimal power generation system and sustainability of rural electrification projects Tian Shen Liang Approved Examiner Supervisor 26/1/2016 Viktoria Martin Viktoria Martin Commissioner Contact person Tian Shen Liang 1 Abstrakt Syftet med detta projekt är att föreslå förbättringar till en icke-statlig organisation i Malaysia, Lightup Borneo, för utformning av ett optimalt elproduktionssystem som kontinuerligt kan leverera el. Dessutom diskuteras hur hållbarhet kan uppnås i elektrifieringsprojekt på landsbyggden. Projektet har sträckt sig över sex månader, och inkluderar resultat från faktainsamling, fältarbete, samt en datorsstödd fallstudieanalys med hjälp av mjukvaran Homer. Statliga program för elektrifiering har undersökts, och verkar som referenser för genomförande av projektets mål. Kampung Mantapok valdes som föremål för fallstudien. Det system som för närvarande är installerat i denna by består endast av en 10 kW mikrovattenkraftverk med en enkel kontrollmodul. Byns totala elbehov är 53.72 kWh/d, med dagliga toppbelastningar kl 11 samt 17. Ett antal systemkonfigurationer, baserade på faktorförsök har utvärderas med HOMER. En systemkonfiguration bestående av en 10 kW mikrogenerator för vattenkraft, en 3 kW inverter samt två 280 Ah batterier valdes. I denna utformning erhölls det lägsta COE och NPC – RM 0.181 (US$ 0.045) respektive RM 46,230 (US$ 11,558). Denna konfiguration tillgodoser 100% av elbehovet på årsbasis. Systemkostnaden ökar då flödesuttaget från floden minskar. COE minskar när ellasten, kapacitetbrist och batteriets livstid ökar. Lika viktiga som systemkostnaden är bybornas tillfredsställelse och tillit till systemet för eltillförsel. Det nuvarande systemet har en 5%-ig kapacitetsbrist på årsbasis och visar sämre flexibilitet vad gäller att hantera varierande flöden och en framtida behovstillväxt. Därför är förbättringar i det nuvarande systemet motiverade. Investeringskostnaderna för förbättringar utgör 19% av investeringskostnaden för nuvarande system, men 11 ton koldioxid kan sparas genom minskat behov av diesel, och COE och NPC minskar med 73%. För att uppnå hållbarhet i elektrifieringsprojekt på landsbygden föreslås fyra rekommendationer: integrering av utvecklingsprogram, upprättande av samhällsorganisation per by, samt förbättrat utbyte av kunskap och kommunikation. Projektets resultat är användbara för Lightup Borneos kommande projekt, livscykelanalys av system för elproduktion och studie av samhällsbaserade elproduktion, och om energireform i Malaysia. 2 Abstract The objectives of this project are to propose improvements to one of the civil society organisations, Lightup Borneo, helping it to attain an optimal power generation system capable of supplying reliable and continuous electricity, as well as to achieve sustainability of rural electrification projects. The project spans six months; methodology includes desk research, field research, case study and simulation using HOMER. The review of government programmes provided references for accomplishing the project objectives. Kampung Mantapok was chosen as the subject of case study. Current system installed at this village only consists of 10 kW micro-hydropower system. Total electricity demand of the village is 53.72 kWh/d, with two daily peak load occurring at 11 am and 5 pm. Eight system configurations were derived based on two-level full factorial design and evaluated with HOMER. A system configuration consisting of 10 kW micro-hydro generator, 3 kW inverter and two units of 280 Ah battery was selected. Its COE and NPC are the lowest – RM 0.181 (US$ 0.045) and RM 46,230 (US$ 11,558) respectively. It has 0 % of annual capacity shortage and unmet load. When system cost increases, when river discharge reduces. COE reduces when electricity load, capacity shortage and battery lifetime increase. Villagers’ level of satisfaction and confidence, assuming to be inversely proportional to capacity shortage and unmet load, are equally important as the system cost. Current system has 5 % of capacity shortage and lower resiliency, indicating incapability of handling load growth and variations of river discharge. Improvements for current system are justified given the above facts. The upfront cost for improvements is 19 % of the capital cost of current system. The improved system also outweighs diesel-fuelled system by saving 11 tons of carbon dioxide emission and having 73 % lower COE and NPC. In order to achieve sustainability of rural electrification projects, four recommendations were proposed, namely integration of development programmes, establishment of community organizations, enhancing knowledge sharing and communication. Project findings are useful for Lightup Borneo’s upcoming projects, life-cycle analysis of power generation system and study of community-based electricity generation, as well as energy policy reform in Malaysia. 3 Acknowledgement I would like to thank my master thesis supervisor, Dr. Viktoria Martin, Director of Study for Energy Technology Department at KTH, for her support and guidance during the course of my thesis research. Secondly, I would like to express my utmost gratitude to the founder and coordinator of Lightup Borneo, Mr. Ong Boon Keong, for his valuable assistance during my field research and my stay in East Malaysia. Lastly I would like to extend my heartfelt thanks to those villagers for their assistance during the surveys and interviews. This thesis would not be completed without these information. 4 Contents Abstrakt ................................................................................................................................................................................ 1 Abstract ................................................................................................................................................................................ 3 Acknowledgement .............................................................................................................................................................. 4 List of Figures ...................................................................................................................................................................... 7 List of Tables ....................................................................................................................................................................... 8 1 Introduction ................................................................................................................................................................ 9 1.1 Objectives ........................................................................................................................................................ 10 1.2 Methodology ................................................................................................................................................... 10 1.3 Project Scope ................................................................................................................................................... 12 1.4 Limitations ....................................................................................................................................................... 13 1.5 Report Organisation ....................................................................................................................................... 13 2 Profile of East Malaysia .......................................................................................................................................... 14 2.1 A Brief History of Malaysia and East Malaysia .......................................................................................... 14 2.2 Sarawak and Sabah – Two East Malaysia States ........................................................................................ 14 2.2.1 Geography and Climate ........................................................................................................................ 14 2.2.2 Demography ........................................................................................................................................... 15 2.2.3 Economy ................................................................................................................................................. 15 2.2.4 Infrastructure ......................................................................................................................................... 16 2.3 Development of Electricity Industry in East Malaysia ............................................................................. 16 2.4 Generation Capacity, Transmission and Distribution .............................................................................. 17 3 Rural Electrification in East Malaysia ................................................................................................................... 21 3.1 Concept of Rural Electrification .................................................................................................................. 21 3.2 Benefits of Rural Electrification ..................................................................................................................