Power to Grow. The Story of Sarawak Energy. Lau Kim Swee Chief Executive Office, Syarikat SESCO Berhad

Transcription

1 Power to Grow The Story of Sarawak Energy Sarawak Energy And Taiwan SmartGrid Exchange Symposium Lau Kim Swee Chief Executive Office, Syarikat SESCO Berhad

2 Where is Sarawak? Taiwan

3 Sarawak the Natural Home of Power Intensive Industries in ASEAN Sarawak is the largest State in Malaysia ( 12.4million ha) As one of four parties to the formation of Malaysia in 1963 alongside Malaya, Singapore and North Borneo Sarawak has been careful to retain our autonomy in the management of the State s electricity and hydropower resources. Located on the northwest coast of the Island of Borneo, which we share with Indonesian Kalimantan, Brunei and the Malaysian State of Sabah, in the center of the Asia Pacific, bordering the South China Sea. 27 distinct ethnic groups speaking over 40 different languages and dialects English used as the main language in commerce

4 What is Sarawak Energy? A fully integrated power utility and energy development company, wholly owned by the state of Sarawak Almost 4,600 employees serving a population of 2.6 million. Generates power through hydro, coal and gas Supplies almost 640,000 domestic, commercial and industrial (organic, bulk and export) customers through an extensive transmission and distribution network. Lowest tariffs

5 Generation Mix, Installed Capacity & Voltage Range Predominantly renewable hydropower Balance of thermal to maintain diversity and security of supply Alternative energy entering the mix 14% 61% 13% 897MW % 10% 14% 2% 0.04% Coal Diesel 74% 4,696MW % 14% 0.2% 5,383MW 2020 Generation Type Hydro Gas 65% Alternative Energy 15% 25% 0.5% 60% 7,891MW 2025 Voltage classes: Low Voltage: 230 volts, 415 volts Medium Voltage: 11kV, 33kV High Voltage: 132 kv, 275kV Extra-High Voltage (Coming): 500kV 5

6 Generation Mix in year MW

7 Lowest Tariffs in Malaysia & the Region sen/kwh Sarawak PLN Indonesia Sabah Vietnam West Malaysia EGAT Thailand Singapore Meralco Philippines Source: Malaysia Energy Statistic 2016 except - Vietnam based on KPMG Report PLN Indonesia based on PLN Annual Report 2015

8 Hydropower Development in Sarawak Bakun Hydroelectric Plant

9 HYDROPOWER POTENTIAL IDENTIFIED IN 1962 Followed up by various studies in 1980 s and 1990 s 50+ sites totaling 20,000MW Only 3 sites are utilized totaling 3,452MW (17%) Sarawak Landscape Captured by Professional Photographer SC Shekar

10 We subscribe to international standards and best practices in our works We are guided by IHA protocols in our assessment work to ensure the best interest for the local communities Sarawak Energy's hydropower projects are constructed in accordance with the guidelines of the International Commission on Large Dams(ICOLD).

11 Hydroelectric Plants (3,452MW) Batang Ai Murum Bakun 108 MW Installed Capacity Commissioned in MW Installed Capacity Commissioned in ,400MW Installed Capacity Commissioned in 2011

12 Baleh Hydrolectric Project Installed Capacity 1,285 MW Execution Period 8 9 years Date of Commission 2025 State Cabinet approved project commencement on 30 June 2016 Preliminary works have commenced Extension of distribution line from Kapit to Baleh costing RM100 million

13 Sarawak Hydropower Potential Hydropower potential in Sarawak was identified in 1962, followed up by various studies in 1980 s and 1990 s. There are more than 50 potential project sites, totalling 20,000 MW in capacity. To date, only 3 sites, 3,452MW are utilized (17%). Belaga 160 MW Limbang 1 45 MW Limbang MW Kota 2 10 MW Lawas 47 MW Trusan MW Pelagus 465 MW Linau 182 MW Baleh 1285 MW

14 Thermal Power Plants (1233MW) Biawak(Diesel) 114MW Sejingkat(Coal) 210 MW Bintulu(Gas) - 516MW Off grid (Diesel) 44MW Mukah(Coal) 270MW Miri(Gas) -79 MW

15 Balingian Coal Fired Power Plant (600MW in Year 2017) Cooling 130m 2 X 300MW with Circulating Fluidized Bed (CFB) Boiler 1st coal-fired plant with CFB in Malaysia & Largest in ASEAN of this capacity Target first power : End of 2017

16 Tanjung Kidurong CCGT Project Gross Capacity Execution Period 421MW 32 months Tg. Kidurong CCGT Power Plant Date of Commission 2019 Contract Award in October 2016 Commencement of construction: November 2016 Gas Supply Agreement with PETRONAS (20-year)

17 Financial and Operational Transformation

18 Rapid Transformation into a Modern Agile Corporation from Annual Revenue* increased by 2.7 times Number of Power Contracts Signed 14 Profit Before Tax* increased by 3 times Manpower increased by 51% Installed Capacity 4,628 MW increased by 3.5 times

19 Operational Excellence from SAIDI 125 decreased by 46% Carbon Intensity* decreased by 72% Rural Electrification Scheme 101,000 new customers Connected (state electricity coverage -93%) Power Theft 1.03% decreased from 7.73% SAIDI: System Average Interruption Duration Index measuring number of minutes a year the average customer (for distribution) is without power. RES: Rural Electrification Scheme *Figure for Carbon Intensity is based on data from 2010 to tco2/mwh Bakun Power Intake Murum Power Intake

20 Strong Transmission System & Connection to Indonesia

21 A Regional Vision

22 Grid System with the New 500kV Backbone Transmission New 500kV Transmission Line Existing 275kV Transmission Line RM 2.7 Billion State Infrastructure Project (2 nd Backbone) commenced in Oct 2013 Completion date of critical parts : 2017

23 Sarawak-West Kalimantan Interconnection Text Malaysia Sarikin Mambong Bengkayang 120~ km 275kV Interconnector West Kalimantan Slide 23

24 A Regional Vision for 2025: ASEAN s Power House LEGEND Transmission infrastructure connections outside of Sarawak

25 Interconnection Progress West Kalimantan Brunei Interconnection Progress Update Interconnected on 20 Jan 2016 Currently exporting MW to PLN; Increase to 230MW in Earliest 2019 Awaiting High Level agreement on Quantum, Take or Pay and Price. Sabah Sarawak Energy SESB Joint Interconnection Study completed. Moving towards interconnection in 2020/2021.

26 Proposed Borneo Grid LEGEND Pontianak 500kV Transmission Line 275kV Transmission Line 150kV Transmission Line 132kV Transmission Line Future Transmission Line Future Transmission Line Future HVDC Power Exchange Power Export Hydro Electric Power Plant West Malaysia Kuching Telukbatang Sibu Kalimantan Barat Batang Ai Bintulu Bandar Seri Begawan Miri Palangkaraya Bakun HEP Baleh HEP Kalimantan Tengah Murum HEP Kota Kinabalu Kalimantan Utara Kudat Kalimantan Timur Pahlawan Samarinda Balikpapan Tawau Tarakan Sandakan Lahad Datu North Kalimantan s potential hydropower project sites, with total capacity close to 12,000MW Kendawangan Banjarmasin Kalimantan Selantan Java

27 INTERCONNECTION INTERCONNECTION Progress within Borneo unlocks the next steps for the ASEAN Grid INTERCONNECTION Sarawak system Legend Sabah system INTERCONNECTION INTERCONNECTION Brunei system (Existing and planned) Kalimantan system

28 Smelting and Power Intensive Industries in SCORE

29 Sarawak Corridor of Renewable Energy (SCORE) Central Region of Sarawak > 70,000 sq.km Five growth nodes strategically selected to focus investment effort within the corridor Sarawak Energy s role more prominent in Samalaju Node

30 SCORE was developed to propel the economy to a new level of income and development. Principal objective of SCORE is to harness Sarawak s sustainable strategic advantage in the production of bulk electricity at globally competitive prices to attract investment to the State. 6 Objectives of SCORE 1 To create new sources of wealth 2 To move State s economy up to the value chain 3 To achieve higher per capita income 4 To enhance quality of life 5 To achieve balanced regional development 6 To eradicate poverty

31 Sarawak Corridor of Renewable Energy (SCORE) Sarawak Corridor of Renewable Energy Powering the Future of Sarawak SCORE is a comprehensive economic plan to transform Sarawak into a high income State by: harnessing Sarawak s abundant energy resources attracting and developing energy intensive industry Hydropower is the foundation of the SCORE agenda

32 SCORE Contributions Towards Development of Sarawak GDP/capita Ambition to increase GDP/Capita from 9,977 USD (2011) to 15,000 USD by 2020 Year Professionals Semi- Professionals Job Creation in SCORE New jobs created by the SCORE Industries and their value chains Support Staff General Workers Total By , , , , , 413 By , , , , , 895 Source: Utamas Strategic Manpower Study for SCORE

33 Building SCORE: Generation Development % gas 20% coal 60% hydro Installed Capacity (MW) % gas 40% coal 10% hydro 15% gas 10% coal 75% hydro Baleh Hydro Merit Pila Coal Samalaju CCGT Balingian Coal Tg Kiduring CCGT Murum Hydro Bakun Hydro 2000 Existing

34 Building SCORE: Possible Scenario up to 2030 LAWAS HEP (Planned) 38MW LEGEND MIRI POWER STATION - 78MW LIMBANG 1 HEP (Planned) 42MW TRUSAN HEP (Planned) 240MW SAMALAJU GAS POWER STATION (Planned) MW KIDORONG CC GAS POWER STATION (Planned) 400 MW LIMBANG 2 HEP (Planned) 140MW TANJUNG KIDURONG POWER STATION 190MW MAIN POWER STATION COAL POWER STATION SARAWAK POWER GENERATION 310MW MUKAH POWER GENERATION 248MW BARAM 1 HEP (Planned) 1200MW GAS POWER STATION FUTURE HYDRO POWER STATION HYDRO POWER STATION MUKAH WEST1 (Planned) 600MW BALINGIAN POWER STATION (under construction) 600MW BAKUN HEP 2400MW BELAGA HEP (Planned) 220MW BARAM 3 HEP (Planned) 295MW MURUM HEP -944MW SEJINGKAT POWER CORPORATION 210MW MERIT PILA COAL (Planned) 300MW PELAGUS HEP (Planned) 562MW BALEH HEP (Planned) 1295MW TUN ABDUL RAHMAN POWER STATION - 75MW BATANG AI POWER STATION 93MW Slide 34

35 Samalaju Industrial Park Samalaju Port Press Metal Sakura Ferroalloy Power Substation Tokuyama SIG Iwatani & Contech Solar Water Treatment Plant Sewage Treatment Plant Pertama Ferroalloys OM Materials SamalajuResort Hotel Samalaju Industry Park is a green field site launched in 2008 and has attracted RM 41 billion of investment to date since its inception. Main private investors are involved in energy intensive industries such as manganese processing, aluminium smelting and silicone substrate manufacturing. A constant supply of competitive priced power is required for these operators and their energy is sourced from Sarawak's hydroelectric dam. Over 3,000 MW has been committed to mainly SCORE and export customers through 15 PPA agreements. Source: Recoda

36 Major SCORE Customers (Continued) Press Metal Aluminium smelter Total power demand - over 1200MW OM Materials (Sarawak) Ferroalloys smelter Power demand - 300MW 36

37 Major SCORE Customers (Continued) Source: OM Materials Pertama Ferroalloys Ferroalloys smelter Power demand - 170MW Tokuyama Malaysia Polycrystalline silicone manufacturing Power demand - 180MW 37

38 Major SCORE Customers (Continued) Sakura Ferroalloys Silico-Manganese and High Carbon Ferro-Manganese producer Power demand - 75MW Pertama Ferroalloys Silico-Manganese and High Carbon Ferro-Manganese producer Power demand 270MW 38

39 Major SCORE Customers (Continued) Iwatani-SGI Power demand 1MW MPA Integrate Phosphate Complex Power demand 150MW 39

40 Samalaju Port By early 2017 Planned capacity 4 Handymax+ 1 Handysizeberth 18 million tonne per annum (9 Handymaxberths + 3 Handysize berths + 1 Liquid berth) 46 million tonne per annum 40

41 Investment Opportunities for Mineral Processing

42 Priority Industries for SCORE

43 Power Purchase Agreements for New Customers Sarawak offers abundant, reliable, renewable power at an internationally competitive price. It is an ideal destination for new smelters or mineral processing plants. The PPA s offered by Sarawak Energy for new customers are typically: available for loads greater than 5 MW; available for a term of up to 20 years; subject to annual indexation of ~2.5% for the life of the PPA; inclusive of transmission charges to the Samalaju Industrial Park; subject to appropriate take or pay commitments and security package (performance, payment and termination).

44 Sustainability Agenda

45 Our 4 Pillars of CSR Creating employment and economic opportunities for Sarawakians Supporting partners in Community Investment. Implementing projects in a sustainable way Engaging communities and promoting transparency

46 Supporting Partners in Community Investment Education & Young People Education & Young People Special Education Fund for communities in Murum Skills Training for Youth Culture & Heritage Supporting indigenous music Telang Usan Warisan Sape Workshop Sape Classic from Belaga Limbang & Sarawak Museum Restoration Murum Penan Batu Tungun Ritual Ceremony

47 Supporting Partners in Community Investment Community Development and Entrepreneurship Contemporary rattan products by Murum artisans Murum artisans participating in national level handicrafts exhibition, KL Documentary to showcase the progress of communities affected by HEPs - The Mat Weavers Tale HRH Princess Royal being briefed on Murum Penan handicrafts

48 Title Text Housing Condition Before Resettlement 48 Slide 48 Slide 48

49 Title Text Murum Resettlement Longhouse 49 Slide 49 Slide 49

50 Title Text HAS GIVEN WRITTEN CONSENT TO RESETTLEMENT Slide 50 Slide 50

51 Title Text Long Wat Longhouse External View Slide 51 Front & Back View of Ruai

52 Title Text Provision of Instrastructures Provision of Street Lightings Genset Room Slide 52 One Duty & One Standby Genset for each Village

53 Title Text Water Supply Works Water Filtration System Water Catchment Weir Slide 53 Water Storage Tank

54 Home Gardens

55 Title Text Integrated Multipurpose Hall, Chapel & Kindergarten Slide 55

56 Title Text School for Tegulang& Metalun Resettlements School in Session 56 Slide 56 Slide 56

57 Thank You