World Small Hydropower Development Report 2013

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1 World Small Hydropower Development Report MALAYSIA

2 Disclaimer Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) UNIDO and ICSHP All rights reserved This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as developed, industrialized and developing are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners. While every care has been taken to ensure that the content is useful and accurate, UNIDO and ICSHP and any contributing third parties shall have no legal liability or responsibility for the content or the accuracy of the information so provided, or for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. Copyright: Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint. Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from

3 3 Asia 3.4 South-Eastern Asia Malaysia Mohd Afzanizam Mohd Badrin, Malaysia Foresight Institute, Malaysia Key facts Population 29,179,952 1 Area 329,961 km 2 Climate Tropical; annual southwest (April to October) and northeast (October to February) monsoons Topography Coastal plains rising to hills and mountains. Rain pattern Annual mean rainfall for Peninsular Malaysia is 2,400 mm; Sabah 2,360 mm and Sarawak 3,830 mm. Electricity sector overview The Malaysian Government established the Energy Commission on 1 January 2002, under the Energy Commission Act It assumed all responsibilities of the Department of Electricity and Gas Supply which was dissolved on the same date. The main utilities are Tenaga National Berhad (TNB), the Sarawak Electricity Supply Company (SESCO) and Sabah Electricity Limited (SESB), each covering the region of Peninsular Malaysia, Sarawak and Sabah respectively and all having the Government as its main shareholder. In all three regions there are also independent power producers (IPPs) supplying some portion of the electricity to the utilities. 2 The use of distributed power generation technologies such as solar hybrid power generation or micro hydroelectricity to provide access to electricity is greatly viable in Malaysia. These solutions have been applied in approximately 17 per cent of the new connections from 2010 to The target is to supply five times as many houses with electricity as compared to the timeframe. In 2010, the total installed capacity of TNB and IPP in Peninsular Malaysia remains at 7,040 MW and 14,777 MW respectively. Total electricity generation in 2010 was 125,045 GWh, dominated by natural gas and coal: Others Oil Biomass Diesel Hydropower Coal Natural gas 0.12% 0.78% 1.01% 1.25% 5.11% 39.57% Figure 1 Electricity generation in Malaysia Source: Small Renewable Energy Programme % 0% 10% 20% 30% 40% 50% 60% Small hydropower sector overview and potential As of 2012, there are 58 mini-scale hydropower stations in Malaysia. TNB Energy Services Sdn Bhd (TNB-ES), a wholly owned subsidiary of Tenaga Nasional Berhad (TNB), has been operating and maintaining 30 mini hydro stations throughout the peninsular with a total installed capacity of approximately 16 MW. 5 Small hydropower has yet to be fully developed. With hilly topography from south to north, east to west and an abundant number of streams flowing to foothills, Malaysia has considerable small hydropower potential. SHP installed capacity SHP potential 87.7 MW Figure 2 Small hydropower capacities in Malaysia Source: Energy Commission of Malaysia 4, Raman MW A total of 149 sites with an estimated micro hydropower potential of 28.9 MW have been identified (figure 2). 6 There are some 150 river systems in Peninsular Malaysia and about 50 river systems in Sabah and Sarawak. It is also predicted that by the year 2020, most rivers and waterways will be fully utilized especially for the generation of electricity. Access to water and the use, control and diversion of water flows is subject to federal and state regulation. Other regulations apply to any physical alteration of a stream channel or bank that may affect water quality or wildlife habitat. Renewable energy policy The Energy Commission, also a government monitoring agency of national renewable energy development, has set a target of 5.5 per cent for electricity from renewable energies. This was made achievable through the establishment of the Sustainable Energy Development Authority, formed as a statutory body under the Sustainable Energy Development Authority Act 726 in In 2009, the authority developed the National Renewable Energy Policy and Action Plan aimed at harnessing renewable resources. The document outlines five objectives comprising elements of energy, industry and environment: 7 1. To increase renewable energy contribution in the national power generation mix. 2. To facilitate the growth of the renewable energy industry. 3. To ensure reasonable renewable energy generation costs. 1

4 4. To conserve the environment for future generations. 5. To enhance awareness on the role and importance of renewable energy. The 8 th ( ) and 9 th ( ) Malaysia Plans introduced several programmes such as the Small Renewable Energy Programme, the Biogen Full Scale Model demonstration project and the MBIPV programme. Mini-hydro (87.7 MW), biomass (using palm oil empty fruit bunches), biogas (from palm oil mills effluent) and municipal solid waste are among the most popular technologies for renewable energy in Malaysia Ministry of Energy, Green Technology and Water (2009). National Renewable Energy Policy and Action Plan. 8. Kellog, W., Nehrir, M.H., Venkataramanan, G. and Gerez, V. (1996). Optimal Unit Sizing for a Hybrid Wind/Photovotaic Generating System. Electric Power Systems Research, Vol 39, pp Borowy, B.S. and Salameh, Z.M. (1994). Optimum Photovoltaic Array Size for a Hybrid Wind/PV System, IEEE Transaction on Energy Conversion, Vol. 9, No. 3, pp Barriers to small hydropower development Bureaucracy issues and problems, institutional and regulatory complexity and inconsistency, i.e. with regards to land acquisition. Full small hydropower development is constrained by localized water shortages particularly during drought periods, pollution in more than half of Malaysia s rivers, and climate change effects. Cost of capital for small hydropower ishigher than those for conventional power plants. 9 Utilizing locally manufactured components combined with an appropriate operation strategy will alternatively reduce the project costs. 10 Access to finance at competitive rates is difficult. Financial institutions are unfamiliar with the small hydropower technology and therefore not as open as towards other technologies. Siltation and high sedimentation. Public perception that renewable energy, including small hydropower, is still experimental. Insufficient renewable energy policies. References 1. Central Intelligence Agency (2012). The World Factbook. Available from 2. Clean Energy Portal - Reegle (2012). Energy Profile Malaysia. Available from 3. Pemandu Lab Highlights (2010). Rural Basic Infrastructure. Available from uid=b7ca23df-7f4e-44bd-9ce6- baa2eef334fd&groupid= Energy Commission of Malaysia (2011). Small Renewable Energy Programme. 5. TNB Energy Services Sdn Bhd. (n.d.) Info Kit. 6. Nathan Raman, Department of Mechanical Engineering Universiti Tenaga Nasional (2010). Reconnaissance Study to Identify Micro Hydro Potential Sites in Malaysia. 2

5 United Nations Industrial Development Organization (UNIDO) Wagramer Straße 2, 1220 Vienna Austria International Center on Small Hydro Power (ICSHP) 136 Nanshan Road, Hangzhou, Zhejiang Province, China

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