The Effects of: Peak Load Generation on Average Electricity Tariff. And Peak Load Reduction By Solar PV on Gas Subsidy

Transcription

1 The Effects of: Peak Load Generation on Average Electricity Tariff. And Peak Load Reduction By Solar PV on Gas Subsidy

2 Components of Existing Electricity Tariff Structure

3 Based on Gas price of RM15.20/MMBtu, the Electricity Generation Cost of (refer to TNB Prai Sdn Bhd Tariff) RM0.347/kWh. Gas Generated Electricity Cost (RM/kWh) Plant Operation Cost (20%) Piped Regulated Gas Cost (80%) Capacity Factor RM Under LNG RGT Market Rate, RM41.68/MMBtu Plant Operation Cost (Fixed) (RM/kWh) LNG RGT Market Rate - Gas Cost (Varied) (RM/kWh) Actual Gas Generated Electricity Cost (RM/kWh) Capacity Factor Estimation of Peak load Generation Cost Using Gas and LNG

4 Gas Turbine Capacity Factor (0.85) Gas Turbine Capacity Factor (0.60) RM15.20/ RM41.68/ MMBtu MMBtu Transmission Cost Distribution Cost (RM/kWh) RM0.347 / kwh RM /kwh RM /kwh RM /kwh RM0.949 /kwh RM /kwh RM RM RM SAVING Total Cost RM0.602/ RM For Every kwh reduced on Peak Load Generation, will Save and cents! which will benefit both the consumers and the government. between Peak Load Shave (PLS) Saving

5 Data From ST Forecast Sales & Generation Estimated Gas Cost Saving of RM 63.7 Billion over 15 years for Electricity Generation (based on average of RM /Kwhr) (based on LNG RGT market price at RM41.68/ MMBtu Vs Piped Gas regulated price at RM15.20/MMBtu) Reduction in Gas Subsidy in Electricity Energy Generation

6 Effects of NEM on Utility Business

7 180, ,000 Loss of revenues are compensated by Power Grid Charge(PGC) paid by NEM customers, reduced gas consumptions and lower export tariffs paid by utility to NEM customers. Estimated PGC ( ) 29GWh ---RM1.45bil 140, ,000 Sales(GWh) 100,000 Generation (GWh) PV Generation (GWh) 80,000 Sales - PV Generation 60,000 40,000 20, Will NEM affect Power Utility Business??

8 IMPACTS OF NET ENERGY METERING (NEM) ON NATIONAL ECONOMY

9 ITA Incentive (RM) Billion GST - 6% (RM) 453 Million Billion Billion Corporate Tax (RM) 92 Million 349 Million 859 Million Gas Subsidy Saving (RM) Billion Billion Billion Jobs Creation 12,852 47,720 76,854 Solar Energy Contribution 1.12% 4.76% 12.22% CO2 emission reduction mill. metric tonne mill. Metric tonne mill. Metric tonne (assume metric ton per MWhr - refer to 2012 MGTC figure) Summary OF COST/BENEFITS OF NEM ( ) TO NATIONAL ECONOMY (CO2 emission reduction not included)

10 It Has Been Shown that the Proposed NEM Will: Benefit all major stakeholders the Rakyat, The Government and the Industry. For the Rakyat, it can now generate own electricity efficiently and sustainably, for the Government, it will increase net revenues via corporate tax and GST, at the same time huge subsidy reduction, and, for the Industry, it will create vibrant economy and huge employment opportunities For the Power Utilities will reduce dependence on gas for peak generation and reduction of Transmission and Distribution Costs. Will help the Government and country reduce carbon footprints and CO2 emission in electricity generation sectors. CONCLUDING REMARKS

11 MPIA Proposed Cumulative PV capacities Targets as Follows : 2020: 1,356 MWp (1.03% based on total national electricity generation), 2025: 6,393 MWp ( 4.41%) 2030: 17,075 MWp (11.40%) The Proposed Cumulative PV Capacity Targets be Accepted by JPPPET and Incorporated in National Energy Mix by ST. NEM policy to be implemented on January 2016 CONCLUDING REMARKS (Contd.)

12 MPIA also proposes that: Solar PV Financial Package for Residential, Commercial & Industrial rooftop solar PV installation Extension of ITA till 2020 Personal Tax Relief RM40k over 5 years and RM8k/year Fully Import Duty Exemption for Solar PV System related equipment inclusive of Energy Storage Battery CONCLUDING REMARKS (Contd.)

13 NEM Cumulative (MWp) Total PV Cumulative (MWp) (FIT + NEM + RPS + Building Code) 00 0 Forecast Total Solar PV installation ( )

14 0 1 FIT NEM (SEDA: 1000MW by 2020; MPIA Proposal) Year 2 3 USS RPS (SEDA: 1000MW (5% of yearly peak by 2020) demand increase) 4 BAU Scenario Building Code BAU Scenario FIT Cumulative NEM Cumulative (MWp) Total PV Cumulative (MWp) Forecast Total Solar PV installation ( )

15 THANK YOU!