AESIEAP CEO Conference 2013

Transcription

1 AESIEAP CEO Conference 2013 Green and Smart Energy in TNB: Development & Perspective Loo Kok Seng Senior General Manager Corporate Planning & Sustainability Department TENAGA NASIONAL BERHAD 28 th October 2013, Seoul Korea

2 Presentation Outline Background Energy Mix and Challenges Green Initiative & Development Smart Energy Perspective & Development Closure

3 Major Electricity Utilities in Malaysia PENINSULAR MALAYSIA Tenaga Nasional Bhd (TNB) 21,749MW* 1,237MW Sabah Electricity Sdn Bhd SESB) (A 83% TNB Subsidiary) 1,141MW* BRUNEI SABAH 695MW SARAWAK * Includes IPPs SINGAPORE Sarawak Electricity Board (SEB) 6% 5 % INSTALLED CAPACITY TNB : 52.7% IPP: 47.3% TNB FY 09 FY 10 FY 11 FY 12 1HFY 13 9% TNB -Peninsula Installed Capacity (MW) 11,530 11,530 11,530 11,462 11,462 33% 58% 43% Total units sold (GWh) 87,780 95,197 97, ,132 52,129 Total customers (million) % GENERATION MIX TNB : 48.0% IPP: 52.0% Total employees 29,149 30,535 31,935 33,568 34,353 Total assets (RM billion) Gas Coal Hydro & Others Oil & Distillate Peak Demand Peninsular Malaysia (2013): 16,562 MW, Installed capacity: 21,749 MW & Reserve Margin: 31.3 % 3

4 Presentation Outline Background Energy Mix and Challenges Green Initiative & Development Smart Energy Perspective & Development Closure

5 Seeking a close to optimal and sustainable balance is a major challenge FOUR major elements creating a set of complexity, requiring a delicate balance to achieve a close to optimal equilibrium state for sustainability, security and stability ENERGY SECURITY COMPETITIVE COST SUSTAINABILITY SAFETY ASPECTS increasing demand growth & depleting energy resource pose fuel security issues Cost efficiency of generation choices e.g. solar is green but at higher cost Climate change & sustainability goals, often conflicting with costcompetitiveness and energy security Safety & regulatory aspects of fuel of choice 5

6 Major Challenges from Utility Perspective towards Sustainable Future Escalating electricity demand due to high GDP growth averaging 4-5% p.a. High dependency on fossil fuels (more than 90% from gas and coal) Increasing cost of supply Reduction of CO 2 emission & low carbon economy Increasing pressure on energy security Require significant resources to meet demand Reliance on 100% imported coal -issue on energy security Rationalisingenergy subsidies and recovery of higher cost of supply Commitment to reduce up to 40% in emission intensity of GDP in year 2020 compared to 2005 levels Availability and reliability of energy resources Provides opportunity for harnessing the benefits of green options and smart energy 6

7 Fuel supply security: Indigenous Crude oil & Natural Gas Reserve are fast depleting Proven Oil Reserves at the End of 2012 World Asia Pacific Malaysia thousand mill barrels 41.5 thousand mill barrels 3.7 thousand mill barrels Proven Oil Natural Reserves Gas Reserves at the End at of the 2012 End of 2012 World Asia Pacific Malaysia trillion cubic metres 15.5 trillion cubic metres 1.3 trillion cubic metres Source: BP Statistical Bulletin 2013: Malaysia gas production in 2012 is 65.2 billion cubic metres per year 7

8 The Evolution of Capacity & Generation Mix from Dominant Oil to Sustainable Energy Mix 8

9 Future Green & Smart Energy Options for Power Sectors 2020 and beyond Proliferation of Renewable Energy EE & DSM/DR an alternative supply option More Distributed Generation /Net 2012 Predominantly fossil-fuel generation Specific Generation Sites/Hub Energy Efficiency 9

10 ASEAN Power Grid Generation Option 10 Existing Interconnection Peninsular Malaysia Singapore (1986, 2 x 200 MW) Peninsular Malaysia Thailand HVAC Bukit Ketri Sadao (1981, 85 MW) HVDC Gurun KhlongNgae (2001, 300 MW) Potential Interconnection Peninsular Malaysia Sarawak (~2022) Peninsular Malaysia Sumatera (~2018) Peninsular Malaysia Thailand (2015, 2nd 300MW HVDC) Sarawak and Sumatera interconnections are viable options to increase energy security The Singapore & Thailand interconnections enhanced system security for all parties Note: HAPUA Head of ASEAN Power Utilities and Authorities, Incepted under AMEM 10

11 Presentation Outline Background Energy Mix and Challenges Green Initiatives & Development Smart Energy Perspective & Development Closure

12 National Energy Policies and Development Plan National Energy Policy (1979) National Depletion Policy (1980) National Fuel Policy (1981) National Fuel Policy (2001) National Green Technology Policy (2009) 8 th Malaysia Plan ( ) RE as the fifth fuel Target: 5% RE in energy mix 9 th Malaysia Plan ( ) Target: 300 MW grid-connected RE in Pen. Malaysia Target: 50 MW grid-connected RE in Sabah 10 th Malaysia Plan ( ) New RE Policy and Action Plan Target: 985 MW of RE by 2015 (~5.5% of energy mix) Source: Ministry of Energy, Green Technology and Water, Energy Commission 12

13 Renewable Energy (RE) And Green Initiatives (10th M sia Plan) < th Malaysia Plan ( ) Target: 985 MW RE by 2015 (5.5% of generation mix) Malaysia s Voluntary Pledge in COP15 in 2009 voluntary reduction of up to 40% in terms of carbon emission intensity of GDP by year 2020 compared to 2005 levels..conditional on receiving the transfer of technology and finance of adequate and effective levels from Annex 1 countries Fiscal incentives: Pioneer Status Investment Tax Allowance Import duties and sales tax exemption Green Technology Financing Scheme (GTFS) with RM1.5 billion fund to provide soft loans National RE Policy to enhance utilisation of indigenous RE resources to contribute towards national electricity supply security and sustainable socio-economic development RE Act passed in Apr 2011 Feed-in-Tariff(FiT) from Dec 2011 (about RM300 mil p.a.) RE Fund Sustainable Energy Development Authority (SEDA) established in SEDA is to manage the implementation of the FiTmechanism which is mandated under the Renewable Energy Act 2011 [Act 725] Eco-labelling scheme and standards (i.e. Efficiency Star Rating, Low Carbon Footprint Product, Green Building Index) Electrical Appliance Save Programme (~RM50 mil -rebate programmefor new & efficient air conditioner & refrigerator) Phasing out of incandescent light bulbs by 2014 Improving solid waste management including energy generation from solid waste Clean Air Action Plan Gradual removal of gas subsidy Guidelines for green townshipsacross the country 13

14 Renewable Energy Status in Malaysia Installed Capacity (MW) of Plants in Progress Year Biogas Small Hydro Biomass ( Solid Waste ) Biomass Biogas ( Landfill / Sewage ) Solar PV Total Cumulative Installed Capacity (MW) of Commissioned RE Installations Year Biogas Biogas ( Landfill / Sewage ) Biomass Biomass (Solid Waste ) Small Hydro Solar PV Total Cumulative Power Generation (MWh) of Commissioned RE Installations Year Biogas Biogas ( Landfill / Sewage ) Biomass Biomass ( Solid Waste ) Small Hydro Solar PV Total Source: Sustainable Energy Development Authority of Malaysia (SEDA Malaysia), 28 th August 2013) TNB (Utility) is the agent for FIT collection for Peninsular Malaysia (1% of electricity bill) 14

15 Renewable Energy Projected Growth for Malaysia Year Biogas Biomass Solid Waste Small Hydro Solar PV Total Assumptions: TECHNICAL POTENTIAL Biomass(EFB, agriculture): 1,340 MW will be reached by 2024 Biogas(POME, agriculture, farm): 410 MW will be reached by Mini-hydro(notexceeding30MW):490MWwillbereachedby2020. Solar PV(grid-connected): unlimited. Source: Sustainable Energy Development Authority (SEDA) website, 2013, 15

16 Power sector contributes for a significant share of the total CO2 emissions in Malaysia % of the total CO 2 emissions in 2005 ~11% ~12% ~21% ~24% ~32% 2020 projection (BAU scenario) 1 ~47% highly dependent on fossil fuels for electricity generation Others Palm Oil Transport Oil&Gas Power % of generation mix (Peninsular Malaysia) 4% 23% 37% 63 % 79% 72% 58% 31% F Hydro Coal Gas Oil Agriculture 3% Waste 12% Land Use Change and Forestry 13% Industrial Processes 6% Energy 66% Total: Mt CO 2 eq 2 Source: 1. KhazanahAnalysis National Communication 2, 2011: Green House Emission for the year

17 Estimated National RE Resources & Potential Solar Biomass Biogas Mini-Hydro Solid Waste Potential ~6,500 MW Yearly average irradiance 1,400 1,900 kwh/m 2 Status 166 MW by 2014 (FiT) MBIPV Projects (SURIA 1000, demo/showc ase projects etc.) Potential ~1,340 MW by 2030 Status ~70 MW under development as of June 2013 Biogen Project, palm oil waste (EFB), woodchips, paddy husks etc. Potential ~410 MW by 2028 Status 16.3 MW under development as of June 2013 Palm Oil Mill Effluent (POME), livestock, agro, industrial waste Potential ~490 MW by 2020 Status 28.3 MW under construction as of June 2013 Run-of-river scheme with minimum impounding Potential ~360 MW by 2022 ~21,000 tonnesof waste collected every day in M sia Status 11.1 MW (FiT approvals) by 2014 Others: Wind, geothermal, ocean-thermal, tidal wave etc. Source: Ministry of Energy, Green Technology and Water, Energy Commission, (2010); SEDA website

18 TNB (Utility) Sustainability Projects Renewable Energy (RE) Energy Efficiency (EE) Smart Grid (SG) Demand Side Management (DSM) Off-grid installations Solar Hybrid Stations (SHS) Feed in Tariff (FiT) Biomass JV with Felda-In progress Biogas JV with SimeDarby Plantations -In progress Mini-hydro JV with Amcorp Power (in progress) Solar Farm (JV)- under study Roof-top PV for offices Energy audits and consultancy at TNB and private buildings Carbon foot print studies at Generation and Transmission sides Pilot EV charging terminal Thermal Energy Storage (TES); BangsarEnergy Systemcompleted, Kuala Lumpur International Airport 2 (KLIA2) in progress SG Pilot project (Smart Meter, AMI, ICT Integration, DR) Formulation of Smart Grid Maturity Model (SGMM) SG Realisation Plan SG testbed SG Specific Site Feasibility Studies DSM Study & Enhanced TOU formulation Energy awareness programmes Development of training and capacity building centres Source: TNB GREENER Committee, June

19 Potential Indigenous Energy Resources Including Low Carbon Energy Resources On-going High Efficiency Coal-fired Supercritical Boiler Project - Janamanjung (1000MW) & future coal power plants Currently TNB is developing Hydro projects; HuluTerengganu (250 MW) and UluJelai(372 MW) to be commissioned in 2015/16 Potential zero carbon emission hydro electric projects proposed totaling to 765 MW (post 2020) i.e. Chenderoh, Tembat, Sg. Pelus, Nenggiri, Telom& Tekai TNB JV Development on RE i.eproject on 10MW Biomass Plant Jengka; other Biogas and Solar projects; Operations of Mini Hydro Plant total 23.5 MW 19

20 TNB s Commitment To National Carbon Reduction Program TNB successfully implemented numerous RE/Carbon Reduction projects valued RENEWABLE ENERGY Turnkey EPC Contractor: Solar Hybrid Project under Ministry of Education Solar Hybrid project for POS Kemar under Ministry R&RD Operation & Maintenance (Long-term Service Agreement): 42 Solar Hybrid Stations & 28 Mini Hydro Stations ENERGY EFFICIENCY Built, operate, maintain District Cooling Project - > 10 major projects Energy Efficiency Audit and Solution: More than 20 major commercial buildings Power Quality Services and Consultancy: More than 100 major customers CONSULTANCY Power System Study for RE plant interconnection to TNB grid Interconnection Facility (IF) consultant District Cooling Study for area development 20

21 Capacity Building & Competency Development On Green Energy Collaborative Training and Capacity Building among staff via: Sustainability Development modules at TNB Institute -ILSAS R&D on Carbon Emission Reduction projects TNB Research Centre for Renewable Energy (CRE) at Universiti Tenaga Nasional(UNITEN) Institute of Energy Policy and Research (IEPRe) at UNITEN. TNBR Solar Research Centre 21

22 Presentation Outline Background Energy Mix and Challenges Green Initiative & Development Smart Energy Perspective & Development Closure

23 Future smart transformation of the electricity supply industry via Green & Smart Energy Current Future Key changes Generation Fluctuating capacity factor Decentralised & Distributed generation Hydro electric Coal power plant Gas power plant Wind energy Energy Storage Solar energy New energy sources - seamless integration with conventional sources Transmission Sustainable & renewable energy sources Generation mix migration Flexible and fluid infrastructure Distribution Energy flows to user Energy bi-directional flow Metering Conventional meter Smart Meters Retail Two way flow of communication and data Smart Grid infra include smart meters facilitate multi direction flow of data and energy New offering and revenue stream Prosumer consumer consume & produce Customers access to more information to manage its demand and cost Increase reliability & efficiency for utility 23

24 TNB Smart Grid (SG) Project Implementation Stages (1) PHASE 1 PHASE 2 PHASE 3 ACTIVITY 1 SMART GRID PILOT PROJECT Implementation DA/DMS 1. Security Assessment 2. Loss optimization 3. Fault location, isolation & restoration 4. Automatic feeder reconfiguration AMI 1. Install 1000 Smart Meters at Pilot Sites 2. Proof of Concept 3. Metering Data Management System ICT Infrastructure and System Integration 1. Integration of data information systems e.g. AMI & ecibs, MFFA, CGIS, T OMS, SCADA Demand Response CGIS, Online Condition Monitoring Completed at 2 pilot sites Secured GovtFunding 24

25 TNB Smart Grid (SG) Project Implementation Stages (2) PHASE 1 PHASE 2 PHASE 3 ACTIVITY 2 TNB Smart Grid Maturity Model TNB Smart Grid Realisation Plan ( Precinct ) INITIATIVES FOR LONG TERM SMART GRID DEVELOPMENT & REALISATION 1. Smart Grid Information Centre 2. Test Bed for Future Smart grid Applications 3. RE & EV 4. Intelligent Microgrid 5. Smart Meter/AMI project CFT 6. Customer & Stakeholder Engagement 7. Promotes DSM, DR and EE incl. ETOU 8. Specific site JV feasibility site 9. Enhance operation & asset management with SG 25

26 Smart Grid Promotes DR, DSM & EE Changing customer energy consumption behaviors Energy Demand Enable peak load reduction Peak load reduction Consumption Behaviors Information on Energy Usage Customer awareness of their load (consumption) profile Incentivise Off Peak consumption Hours of the day 26

27 TNB SG A Journey & Enabler to A Greener Economy Smart Grid a crucial initiative to achieve sustainable growth: Fulfillment of our CO 2 emission pledge Enhanced electricity supply reliability Enhanced efficiency of GTD & consumption Integrating Renewable (balancing generation & demand) DSM and Demand Response (peak avoidance) Loss prevention TNB is implementing smart grid pilot projects 3+2 sites 3 phases of implementation Target completion by 2015 Specific site SG Feasibility Studies (JV) TNB Smart Grid Realisation Plan ( ) SMART GRID VALUE ADD SERVICES DSM, DR, Automatic Load management & peak shaving Optimising demand & supply (generation) & new biz/process Enhanced efficiency in GTD & utilisation automated loss prevention and enhanced service at distribution /customer end Enhance Reliability via automatic outage prevention and restoration 27

28 Presentation Outline Background Energy Mix and Challenges Green Initiative & Development Smart Energy Perspective & Development Closure

29 Closure Malaysia Electricity Supply Industry (MESI) is confronted with major challenges due to the constantly changing scenario interspersed with numerous uncertainties and complexities intermitently. This inlcude increasing demand & national economic transformation plan, depleting indigenous energy resources in particular gas, fluctuating/escalating fuel prices, environmental concern and higher expectations from the customers & stakeholders in addition to the requirement of low carbon economy. TNB is committed towards the national green objectives and a sustainable ESI. This include implementing projects/initiatives to meet continuous demand growth via new generation capacity, diversified fuel mix & fuel supply, enhanced pricing mechanism and related reticulation (T&D) infrastructures that are more efficient. The Green & Smart Energy (sustainable) related technologies being introduced includere,ee,dsm&dr,smartgridetc. The Green and Smart Energy development will require more fiscal & government support and public-private partnership in moving towards greater RE based generation and more efficient options such as EE, DSM, DR,Smart Grid etc. This is to spur efficient utilisation of scarce energy resources and a greener economy.

30 THANK YOU www. tnb.com.my