Energy Malaysia Towards a World-Class Energy Sector Volume 17 | 2018 www.st.gov.my Volume 17 Volume KDN: PP 18540/08/2014(033966) KDN: PP Exciting and Electrifying The Future of the Energy Sector A RENEWABLE ONLY THE BEST MYR 8.00 Volume 17 www.st.gov.my ENERGY OUTLOOK A look at how competitive bidding process A study on its potential and challenges for large-scale solar and combine cycle both globally and in Malaysia. plants strengthen Malaysia’s energy security. 33 Editorial Board Advisor Ir Azhar Omar 32 Abdul Razib Dawood Members Ir Abdul Rahim Ibrahim Asma Aini Mohd Nadzri Mohd Elmi Anas CONTENTS Ir Roslee Esman Ir Md Zakuan Ibrahim Shahrilnazim Shaari Marlinda Mohd Rosli Kamarul Ariffin Ibrahim Editorial Committee Siti Suhaila Ahmad 24 Zairulliati Mali Sueharti Mokhtar 02 FEATURE 20 ANALYSIS ANALYSIS Noor Hazwani Mohd Ghazali Chairman’s Message 10 How Clean Energy Affects 28 36 Syarizman Mansor The Stakeholders Speak Energy Supply Maintaining Gas The Future is… Mohd Shafiz Amzary Abd Rahim Energy Malaysia speaks to various The strategies by which renewable energy Installation Safety Renewable Energy 04 stakeholders from the industry to get could be used and the hurdles in its Energy Malaysia takes an in-depth Focusing on long-term economic and © All rights reserved. Reproduction of all Energy Matters their feedback on how to move the utilisation are examined by Energy Malaysia. look at Approval To Install (ATI) and environmental objectives, this feature or any part of this publication via electronic, mechanical, recording or other medium is The latest news and updates on Malaysian energy sector forward. Approval To Operate (ATO), the steps delves into how the transition towards industry developments, government strictly prohibited without written consent taken before approval is granted and renewable energy can impact from the Energy Commission. initiatives and innovations in the POWER PATH INNOVATION the vital statistics regarding both future development. Malaysian energy sector. 24 types of approvals. ST Publication No: ST(P)01/01/2019 14 Expanding the Gas Floating into New Horizons Supply Network VIEWS Certain natural gas sources are Abdul Hafiz Fikri Abdul Latif, a Project FEATURE 42 Conceptualised, Produced COVER STORY unreachable via conventional methods. Engineer with Gas Malaysia Berhad, 30 Looking Forward and Published for Energy Malaysia analyses how tells Energy Malaysia about his profession. Strengthening Supply To Reforms Floating LNGs could solve this issue. Energy Malaysia sheds some light Ir Bernard Sagaiyaraj, SURUHANJAYA TENAGA (ENERGY COMMISSION) on the bidding process in the energy General Manager of Bureau POWER PRACTICE Veritas’ Building and FEATURE sector, as and how competitive bidding by 27 Infrastructure Division and a 17 strengthens the sector. Launderettes Mandated to Registered Electrical Energy The IBR Asia Group Sdn. Bhd. Empowering Operate at Optimum Manager (REEM) shares (356247-V) the Energy Commission Safety Standard COUNTRY FOCUS his views on the changes to Unit No. 23A-8, Oval Damansara, Energy Malaysia looks at how the This seminar hosted by the Energy 33 Malaysia’s energy industry. No. 685 Jalan Damansara, Energy Commission is shaping up to Commission aims to increase Norway: Water at Work be a more effective regulator in the Taman Tun Dr. Ismail, launderette owners’ and its employees’ An in-depth look on Norway’s ON-SITE 60000 Kuala Lumpur, Malaysia. enforcement of codes, guidelines and understanding of safe gas practices. efficient use of natural power sources, 45 Tel: +603-7732 5886 regulations as well as safeguarding hydroelectricity and reveal of Norway’s Highlights of events, forums, Fax: +603-7731 5886 the interests of consumers. possible future as a country fully reliant seminars, conferences and Website: www.ibrasiagroup.com on just natural power sources. exhibitions organised or attended Printed by 06 by the Energy Commission. Percetakan Skyline Sdn. Bhd. Leading Malaysia’s (135134-V) Energy Change 35 & 37, Jalan 12/32B, The Minister of Energy, Science, Jalan Kepong, Technology, Environment and Climate L N G 52100 Kuala Lumpur, Malaysia. Change, Puan Yeo Bee Yin shares her thoughts and plans. 14 Chairman’s Message Gearing Towards a Sustainable Future the country away from exhaustible energy sources. Investing in renewable energy facilities will go a long way in terms of both environmental and economic progression. ThankDatuk Badriyah AbdY Malek o u In the coming years, renewable energy The Energy Commission would like to thank Datuk Badriyah Abd Malek will play a pivotal role in elevating the supply globally and regionally. for her services as the Deputy Secretary-General (Energy & Green With gross power generation projected Technology), Ministry of Energy, Science, Technology, Environment and to almost double on a global scale, Climate Change (MESTECC). renewable energy sources such as hydropower, wind, solar, bio energy, and geothermal will make up a bulk of the supply by 2050. Wind and solar power has been highlighted as important contributors of the future energy supply, which is why Malaysia needs to actively explore the high potential of solar energy. To explore this further, an analysis was ith transformative initiatives in place undertaken by us to identify high solar for the coming years, the energy growth areas and to determine the W sector is set to undergo major high renewable energy penetration changes and the Energy Commission is scenarios, their limitations and how at the forefront of expediting them. to overcome them. We have new targets to achieve, new Each success is a stepping stone benchmarks to pass, new expectations to to greater triumphs, not only for the meet, but they all come down to our core industry but to the country and its roles – to regulate, to promote and to advise. people. While we are working to further As a unified front of stakeholders and our reach, changes do not happen C o n g r a t ul a t ion s industry players, we are working towards overnight. Our aim is to continually making our vision for the future of this improve the sector’s performance whilst industry, a reality. ensuring affordability and sustainability. Puan Noor Afifah Abdul Razak Deputy Secretary-General (Energy & Green Technology) While the electricity sector development As we look to the future, this issue of will be driven by the implementation of the Energy Malaysia focuses on the latest We would also like to welcome Puan Noor Afifah Abdul Razak as the new Malaysia Electricity Supply Industry (MESI) developments, potential solutions to 2.0 reforms with the assistance of MyPower hurdles, projected growth areas in the Deputy Secretary-General (Energy & Green Technology), Ministry of Energy, 2.0, the renewable energy supply will also be industry, and other significant ways we Science, Technology, Environment and Climate Change (MESTECC). enhanced for long-term sustainability. can make major strides in achieving long-term targets. To transition smoothly and to meet future demands of the industry, renewable energy Datuk Ir Ahmad Fauzi Hasan will be a game changer in terms of leading Energy Commission, Malaysia 2 Energy Matters Malaysia Focuses on Government to Reactivate MyPower Renewable Energy alaysia’s Ministry of Energy, According to MIDF Research, n its drive to reform Malaysia’s Science, Technology, “This suggests in the near future, electricity industry, the government is M Environment and Climate sector opportunities could tilt heavily I reactivating the Malaysia Programme Change (MESTECC) is dedicated to towards RE project awards and a Enhanced Office for Power Electricity Reform revving up the country’s renewable dearth of future fossil fuel plants.” (MyPower) Corp agency. This was energy (RE) capacity, and this is announced by the Minister of Energy, expected to lead to a surge in RE It should be noted that Malaysia has Electricity Grid Science, Technology, Environment deals in the future. This was reported been moving towards RE Since 2015, and Climate Change Puan Yeo Bee by MIDF Research after attending as can be seen by the commissioning for Sabah Yin during a press conference at the MESTECC Minister Puan Yeo Bee of a number of Large Scale Solar (LSS) Conference of Electric Power Supply Yin’s first town hall session in July. projects. MIDF Research however Industry (CEPSI) 2018 at the KL opined that, despite the Minister flying abah’s electricity grid is set Convention Centre in September. During the session, Puan Yeo pointed the flag for RE, the more likely scenario to be enhanced, with the cost out that Malaysia’s reserve capacity of is for RE to complement rather than S being footed by the Federal As revealed by the Minister, MyPower 30 percent gives it enough of a buffer replace fossil fuels as Malaysia’s main government. This was announced Corp is to help implement the reforms to build up its RE capacity, without energy source. by the Minister of Energy, Science, set out in the Malaysia Electricity having to build more power plants. – Retail News Asia Technology, Environment and Supply Industry (MESI 2.0 initiatives, Climate Change Puan Yeo Bee Yin, and will be active for a total of 36 who also noted that the upgrade months. The agency will have a total of “Solar accounts for the bulk of Malaysia’s RE. However, will help increase the amount of 10 to 20 staff, each of them experts in there is the issue of getting RE sources to reach grid electricity supplied from then west the energy sector. parity for it to be cost competitive and gain a larger share coast of the State to its east coast. of generation mix without burdening end-consumers.” Puan Yeo further explained that In order to reinforce the grid, the goals of MESI 2.0 are three- – MIDF Research six projects have been earmarked fold – namely to boost efficiency so that distribution capacity will in the industry, to future-proof key be between 200 to 400 MW.