COAL POLICY IN MALAYSIA
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1 APEC Clean Fossil Energy Technical And Policy Seminar Gold Coast, Australia COAL POLICY IN MALAYSIA Presented by Somasundram Ramasamy Senior Undersecretary (Electricity Policy) Ministry of Energy, Green Technology and Water, Malaysia February
2 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Stations in Malaysia Coal Supply And Demand Plans and Programmes 2
3 Introduction Malaysian Electricity Supply Industry (MESI): Fossil Fuels (Gas & Coal) account for 95% of Generation Mix Coal has been identified as part of our fuel mix strategy Coal has been introduced only in 1988 following the implementation of the Four Fuel Policy Currently there is no specific policy on coal in Malaysia Development of a Sustainable Energy Mix to ensure security of supply to meet national social-economic goals 3
4 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Stations in Malaysia Coal Supply And Demand Plans and Programmes 4
5 Fuel Management Policy & Fuel Requirement Fuel Management Policies National Energy Policy 1979 To ensure the provision of adequate, secure and cost effective energy supply National Depletion Policy 1980 To manage the finite national oil reserves Four-Fuel Policy 1980 To ensure reliability and security of supply through diversification of fuel Five-Fuel Policy 2001 A safe, cost-effective, secure energy supply through renewable, cogeneration, diversification, efficiency and incentives 5
6 Fuel Requirements & Fuel Management Policy Managing the Fuel Gas Prioritise the indigenous gas resources for local consumption Storage for substitute fuels Coal Secure long term contract with suppliers Multiple coal supplier countries Hydro Develop feasible and viable hydro projects Renewable Energy Introducing Fit-in Tariff (FiT) to support RE growth in Malaysia Prioritise RE to be dispatched into the grid Nuclear Studying the possibility of introducing nuclear power Energy Efficiency Increasing efforts on Demand Side Management Introduce specific law on efficient use of energy 6
7 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Stations in Malaysia Coal Supply And Demand Plans and Programmes 7
8 Malaysia s Electricity Profile As of Dec 2011 Pen. Malaysia INSTALLED CAPACITY (MW) TNB 7,096 IPPs 14,777 Total 21,873 PEAK DEMAND (MW) RESERVE MARGIN (%) 15,476 40% Total installed capacity is 24,257MW SESB 410 Sabah IPPs % Total 1,035 Sarawak SEB 1,349 Total 1,349 1,067 26% 3 major utility companies in Malaysia 8
9 Peninsular Malaysia s Electricity Profile Total installed capacity: 21,873MW (Dec 2011) 94.8% being generated by thermal energy and another 5.2% from hydro Total installed capacity for coal fired plant in Malaysia 7680MW (Peninsular & Sarawak) 9
10 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Plants in Malaysia Coal Supply And Demand Plans and Programmes 10
11 Coal Fired Power Plants in Malaysia Manjung 2,100 MW 6.0 mtpa Kapar 1,600 MW 4.0 mtpa Jimah 1,400 MW 3.6 mtpa Tg. Bin 2,100 MW 5.5 mtpa Sejingkat 210 MW 0.5 mtpa Mukah 270 MW 0.5 mtpa 11
12 Emission Control Parameters for New Coal Fired Plants 12
13 Flue Gas Emission Limits for New Coal Fired Power Plants 13
14 Major Components of New 1000 MW Power Plant 14
15 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Plants in Malaysia Coal Supply And Demand Plans and Programmes 15
16 Plant Coal Supply And Demand COAL DEMAND FOR POWER GENERATION IN PENINSULAR MALAYSIA UP TO 2020 (Million tonne per annum - Mtpa) Capacity (MW) Commissioning Year Max. Annual Consumption (Mtpa) TNB Kapar Ph TNB Kapar Ph TNB Janamanjung * / Tg. Bin IPP * / Jimah IPP Total *The New Projects are based on Clean Coal Technology using Super Critical Technology 16
17 Plant Coal Supply And Demand COAL DEMAND FOR POWER GENERATION IN EAST MALAYSIA UP TO 2020 (Million tonne per annum - Mtpa) Capacity (MW) Commissioning Year Annual Consumption (Mtpa) Sejingkat / Mukah Balingian * Total * Subject to Sarawak and Federal Governments Approval 17
18 COAL SUPPLY DIVERSIFICATION 2011/12 * Dependency on coal from Indonesia reduced from 84 % in 2008 to 65 % in
19 COAL TYPE RATIO (Peninsular) CURRENT Sub Bituminous 45 % Bituminous 55% FUTURE BY 2015 / 16 Sub Bituminous 56% Bituminous 44% 19
20 Outline Introduction Fuel Requirements and Fuel Management Policy Malaysia s Electricity Profile Coal Fired Power Plants in Malaysia Coal Supply And Demand Plans and Programmes 20
21 Plans And Programmes New coal plants must be of supercritical, high efficiency and clean coal technology 2 new units of 1000MW with supercritical technology are being build on a brown field site with COD in 2015 and 2016 Long term coal supply options are being scrutinized Fuel mix policy is being reviewed to ensure sustainable development of the industry 21
22 Malaysia have pledged to Copenhagen Commitment on carbon emission intensity reduction of 40% by 2020 Plans And Programmes Looking into potential international regulation on carbon emission in the future Development of new power plants are subjected to stringent Environmental Codes and Regulations Future generation options are to be incorporated with efficient plants such as supercritical / ultra supercritical boiler 22
23 THANK YOU 23
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