IEEJ : May 2011

TRAINING AND DIALOGUEPROGRAMS OF JICA
ENERGY POLICYCOUNTRY PRESENTATION: MALAYSIA

May 2011
1

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Outline1Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7Conclusion
2

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Malaysia’s Key Indicators
Year

2010

Population

28.9 million

GDP (PPP)USD219 billion

GDP Growth

7.2%

Per capita incomeArea

USD8,100

329,847 sq kmEnergy Resources (2008)
Oil

5.4 bblGas

88.01 Tscf

Coal

1.938 bil ton

Hydro23 GW

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Malaysia’s Energy Profile

4

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IEEJ : May 2011

Outline1

Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7

Conclusion
5

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IEEJ : May 2011

Energy Policies
National Petroleum Policy (1975)

National Energy Policy (1979)

Malaysia’sEnergy
Framework

National Depletion Policy (1980)

The Four-Fuel/Diversification Policy (1981)

The Five-Fuel Policy (2001)

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Energy Policies
NationalPetroleum
Policy (1975)

Efficient utilization of petroleum resources

NationalEnergy
Policy (1979)

Supply Objective: Ensure adequate, secure andcost-effective energy supply.

Ensuring the nation exercises majority control inthe management and operation of the industry

Utilization Objective: Promote efficient utilizationof energy and eliminate wasteful andnon-productive usage
Environmental Objective : Minimize negative
impacts to the environment.
7

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Energy Policies
NationalDepletion
Policy (1980)
Four-fuel /Diversification
Policy (1981)

Five-fuelPolicy (2001)

Formulated to prolong the life span of thenation’s oil and gas reserves

Aimed at ensuring reliability and securityof supply through diversification of fuel(oil, gas, hydro and coal)

Encourage the utilization of renewable resources
such as biomass, solar, mini hydro etc
Efficient utilization of energy
8

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IEEJ : May 2011

Outline1Introduction : Key Data of Malaysia2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7

Conclusion
9

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IEEJ : May 2011

Snapshot of Malaysia’s Electricity Profile
Peninsular
Malaysia

Sabah

Sarawak

Installed Capacity (MW)21,873

1,167

1,343

Peak Demand (MW)15,072773

1,067

Consumption (GWh) 2009

83,411

3,855

4,540

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Snapshot of Malaysia’s Electricity Profile
Projected Fuel Mix for Pen. Malaysia
200000180000160000

RENuclearHydro

Coal

7.3%

Gas

140000

5.9%
3.9%
3.5%
4.3%

120000100000

17.8%

4.6%

40.6%

5.2%

28.9%
39.3%

80000

40.2%

60000

40000

54.2%

53.0%

49.6%

41.3%

20000

Historical Data on Malaysia Fuel Mix

110

2010

2015

2020

2030

Contact : report@tky.ieej.or.jp

IEEJ : May 2011

Outline1

Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7

Conclusion
12

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Challenges
Price Volatility
Depleting Resources

Optimizing Resources
Subsidies
Industry Structure
Realized regional cooperation
13

Contact : report@tky.ieej.or.jp

IEEJ : May 2011

Outline1Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7

Conclusion
14

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IEEJ : May 2011

Moving Forward
Gas• Prioritise the indigenous gas sources for local consumption

Coal• Secured long term contract with supplier• Multiple coal supplier countries

Hydro• Developed feasible and viable hydro projects• Replace heavy dependent gas fired plant esp. as peaking plant

Renewable Energy• Introduction of Feed-in Tariff by 3rd Quarter 2011

Energy Efficiency• Developing a master plan for the whole nation
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Regional Cooperation
To Realize ASEAN Power Grid (APG)• Establish Electricity Open Market among ASEAN countries for resource
optimization

To Realize Trans-ASEAN Gas Pipeline (TAGP)• Gas exports among ASEAN countries

Close cooperation among APEC members• Biofuels• Regional Energy Market Study16Contact : report@tky.ieej.or.jp

IEEJ : May 2011

Outline1

Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7Conclusion
17

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IEEJ : May 2011

Subject Interest
Coal Power Plant• Technology on Plant’s Efficiency such as supercritical and ultra super critical• Better Efficiency helps in mitigating CO2 emissions and protect environment

Electricity Market• Two basic types of market: Vertical (mostly monopoly) and Horizontal (mostlymultiple companies)• Benefit analysis on both type : economic scale vs. competitive

Nuclear Power• Awareness and acceptance• Malaysia is still studying nuclear power as an option

Smart Grid
• Implementation, cost etc.
• Malaysia have some pilot projects on smart grid18

Contact : report@tky.ieej.or.jp

IEEJ : May 2011

Outline1

Introduction : Key Data of Malaysia

2

Energy Policies

3Electricity Sector in Malaysia

4

Challenges in Meeting Future Energy Demand

5

Moving Forward: Fuel Management

6

Subject Interest

7

Conclusion
19

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IEEJ : May 2011

Conclusion
1

Malaysia’s effort on fuel diversification started from1980s. However, fuel diversification is a dynamicprocess

2

Diversification of fuel mix is important to enhanceenergy security

3

Volatility of energy prices and meeting future demand
are two major challenges that every country are facing

20

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IEEJ : May 2011

THANK YOU

21

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