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Business
Monday August 16, 2010
Higher supply of power for peninsula
By YAP LENG KUEN
lengkuen@thestar.com.my
Ministry plans plant-up of an = additional 2,000=20 MW
PUTRAJAYA: The Energy, Green Technology and Water Ministry is = planning for=20 the plant-up of an additional 2,000 MW of power, which is 400 MW higher = than the=20 amount originally sought from the Bakun dam.
=93As the economy picks up amid the bullish projections, it is safer = for=20 Peninsular Malaysia, in terms of industrialisation, to ensure that the = power=20 supplied exceeds the amount that was planned under the previous = submarine cable=20 transmission project from Bakun to the peninsula,=92=92 Minister Datuk = Seri Peter=20 Chin told StarBiz.
=93When we do the planning, we look at two things: to provide the = necessary=20 power to make up for the loss from Bakun and retire some of the old = plants in=20 the peninsula,=92=92 he said.
Chin was referring to the scrapped undersea cable project that was = supposed=20 to transmit 1,600 MW to the peninsula via two cables of 800 MW each.
![3D""=20](3D"http://biz.thestar.com.my/archives/2010/8/16/business/b_01chin.jpg=)
Datuk Seri Peter Chin Fah Kui =
=85 =91The=20
investment in cable transmission is tremendous and would reflect on the=20
tariffs.=92 =93The investment in cable transmission is tremendous and would = reflect on the=20 tariffs. It is convenient to transmit power from Bakun but if anything = goes=20 wrong with the cable, we will be cutting off 1,600 MW of power supply = for=20 Peninsular Malaysia,=92=92 he said.
The Energy Commission hopes to identify the power company that will = plant up=20 an additional 1,000 MW of electricity by the end of January next = year.
The commission is still in the consultative process, evaluating the = proposals=20 submitted by three bidders for existing sites =96 Tenaga Nasional Bhd=20 (Janamanjung), Malakoff Bhd (Tanjung Bin) and Jimah Power Sdn Bhd = (Jimah).
The winner of the bid has to ensure that the plant will be = operational by the=20 first quarter of 2015.
The second plant can be a greenfield project which probably would = take longer=20 to plan, as it involves site investigations and compliance with = environmental=20 requirements.
Electricity consumption per capita in Malaysia now stands at about = 3,412 kWh=20 a year, significantly higher than most developing countries, but still = below the=20 average in developed countries.
It is projected to more than double to 7,571 kWh per person in 2030, = higher=20 than that of the Asia Pacific Economic Cooperation region average of = 6,833 kWh=20 per person.
Chin said the decision to build a coal-fired plant, instead of using=20 hydropower from Bakun, did put the energy mix into some imbalance.
=93We can make up for that in other ways,=92=92 he said. =93With the = feed-in-tariff=20 (FIT) to be in place by next year, we anticipate more plant-ups with=20 photovoltaic installations and biomass technology.
=93It will take time to build up these renewable energy sources but = we hope=20 this trend will continue with people powering their homes with = photovoltaic=20 installations,=92=92 he said.
The Government is planning to implement a FIT policy to encourage = industries=20 and households to install solar panels and sell their excess power to = utility=20 companies.
The proposed feed-in-tariff is being drafted and is expected to be = passed=20 into law by parliament by the end of the year.
Once passed, the FIT could enable industries and households to sell = power to=20 the main grid during the day and buy it at night.
In Peninsular Malaysia, the excess power can be sold to Tenaga = Nasional Bhd,=20 while in Sarawak, it can be sold to Sarawak Energy Bhd.
Two meters have to be installed in households and industries that = adopt the=20 FIT system =96 one for power sold and the other for consumption.
According to reports in July, the rates for electricity generated = from=20 renewable energy resources to be purchased by utility companies would be = decided=20 once the policy had been passed into law.
However, for Sarawak, the purchase rates would be decided by Sarawak=20 Energy.
The FIT policy, which falls under the country=92s national renewable = energy=20 policy and action plan, aims to encourage the public to work alongside = the=20 Government to generate green and sustainable electricity.
=93Although prices are expensive, the world trend per kilowatt is = dropping very=20 fast,=92=92 Chin said.
Currently, a solar power panel that produces one kilowatt costs about = RM25,000. A household normally requires a two-kilowatt solar panel.
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