ASEAN Smart Grid Congress 2

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1 ENERGY POLICY FOR MALAYSIA: SUSTAINABLE ENERGY & SMART GRID PERSPECTIVE Datin Badriyah binti Ab. Malik Deputy Secretary General (Energy and Green Technology) Ministry of Energy, Green Technology and Water 8 NOVEMBER 2016

2 National Petroleum Policy (1975) National Energy Policy (1979) National Depletion Policy (1980) Malaysia Energy Policies Efficient utilization of petroleum resources Ensuring the nation exercises majority control in the management and operation of the industry Supply Objective: Ensure adequate, secure & costeffective energy supply. Utilization Objective: Promote efficient utilization of energy and eliminate wasteful and non-productive usage Environmental Objective : Minimize negative impacts to the environment To prolong the life span of the nation s oil and gas reserves 2

3 Four-fuel Policy (1981) Five-fuel Policy (2001) National Renewable Energy (RE) Policy + Action Plan (2010) Malaysia Energy Policies Aimed at ensuring reliability and security of supply through diversification of fuel (oil, gas, hydro and coal) Encourage the utilization of renewable resources such as biomass, solar, mini hydro etc Efficient utilization of energy Outlines the major strategies to promote RE in the country Main highlight is the Feed-in-Tariff (FiT) mechanism. 3

4 S1 Under the 11th Malaysia Plan : Encouraging Sustainable Energy Use to Support Growth Strengthening stakeholder coordination & collaboration in the energy sector S2 S3 Ensuring the security of supply & reliability for the oil & gas subsector within a market-based approach Enabling the growth in the oil & gas subsector S5 S4 Managing supply diversity for security of electricity subsector Improving the sustainability, efficiency & reliability of the electricity subsector 4

5 Strategic Thrust 4 Pursuing green growth for sustainability and resilience 5

6 SUPPLY SIDE MANAGEMENT 6

7 Power Mix Peninsular Sarawak

8 Developing The Potential of Renewable Energy

9 Large Scale Solar LSS is implemented by the Energy Commission (EC) Quota allocation 1000 MW for (250 MW/year) o o 800 MW for Peninsular Malaysia 200 MW for Sabah

10 Net Energy Metering FiT for Solar PV to cease post 2017 due to limited RE Fund. NEM & LSS introduced to continue development of the solar PV market. Announced by YAB PM during Budget SEDA as implementing agency for NEM Quota allocation for NEM; 500 MW for (100 MW/year) o 450 MW for Peninsular Malaysia o 50 MW for Sabah

11 DEMAND SIDE MANAGEMENT 11

12 Efficient Management OVERVIEW OF of NEEAP Electrical Energy Regulation (EMEER) OF 2008 NEEAP Efficient Management of Electrical Energy Regulations (EMEER) 2008 has been gazeted on 15 th December 2008 Key Provisions: Applied to big energy users 3mil kwh/6months Requires appointment of Electrical Energy Manager Electrical Energy Management Policy Energy audit recommendations for electrical energy management Monitoring &nd keeping of records Periodical reporting

13 Overview National OVERVIEW Energy OF NEEAP Efficient Action Plan (NEEAP) OF NEEAP Strategic Thrust 1 : Implementation of Energy Efficiency Plan Equiment Programme Initiative 1. Promotion of 5-Star Rated Appliances 2. Minimum Energy Performance Standards (MEPS NATIONAL ENERGY EFFICIENCY ACTION PLAN (NEEAP) Strategic Thrust 2 : Strengthen Institutional Framework, Capacity Development & Training for Implementation of EE Initiatives Strategic Thrust 3 : Establishment of Sustainable Funding Mechanisms To Implement Energy Efficiency Initiatives NEEAP KEY INITIATIVES Industrial Programme Initiative 1. Energy Audits& Energy Management in Industries 2. Promotion of Co-generation Strategic Thrust 4 : Promotion of Private Sector Investment in Energy Efficiency Initiatives Buildings Programme Initiative 1. Energy Audits & Energy Management in Buildings 2. Energy Efficient Building Design 13

14 Energy OVERVIEW Efficiency OF NEEAPLabel OF NEEAP least energy efficient products are labelled with 1 Star the most efficient products are labelled 5 Stars. An Endorsement label will be issued by the Energy Commission labels would be affixed on energy efficient products by the manufacturers.

15 SMART GRID APPLICATIONS 15

16 Generation Transmission Distribution Consumer Usage Optimisation Ancillary Services The Principle of Smart Grid A smart grid is an electricity network that uses digital & other advanced technologies to monitor & manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users Smart grids co-ordinate the needs and capabilities of all generators, grid operators, end-users & electricity market stakeholders to operate all parts of the system as efficiently as possible, minimising costs and environmental impacts while maximising system reliability, resilience and stability. Enhanced DMA Loss DR/DSM TOU AMI Utilisation Outage Management Proactive Maintenance Analytics (Grid/Consumption/Asset) EV Charging Microgrid AMI Advanced Metering Infrastructure TOU Time of Use DR Demand Response DSM Demand Side Management DMA Distribution Monitoring and Automation EV Electric Vehicle

17 TNB-AAIBE Advanced Metering Infrastructure (AMI) Pilot Project small scale AMI demonstration project to test its benefits. Funding was obtained from the Malaysian Government (AAIBE/MESITA Fund) Implementation for 1,000 smart meters in Melaka and Putrajaya complete installation Efficient Business Operations Revenue Assurance Tools for customers to save energy bills (TOU) AMI Enhanced electricity supply reliability DR for economic operation Enhanced customer service 200 Smart Meters in Putrajaya 800 Smart Meters in Melaka

18 Overall project completion is 100% Main AMI features successfully delivered (Phase 1 & 2 ): 1000 smart meters installed (800 in Melaka, 200 in Putrajaya) 100% daily automated meter reading achieved 100% monthly automated billing process realised MDMS fully integrated with head-end and ecibs Web Portal successfully rolled out IHD installed Testing completed and ready for roll-out (Phase 3 & 4) Supply automation, tamper detection, outage notification, demand response Testing in progress (Phase 4) BCRM integration, Time of Use and Prepayment service Other Findings Outcome of Pilot Project High meter failure rates experienced RF Mesh, PLC and cellular technologies tested and suitable for Phase 1 & 2. Customers generally satisfied with smart meter installation. Initial project implementation teething problems on communications, IT systems resolved Opt-in versus Op-out and regulatory support will be key success factor for full roll-out.

19 TNB AMI DEPLOYMENT STRATEGY PILOT 1 st PHASE Pilot Smart Meter Project implemented Smart Meter roll-out for the in Melaka & Putrajaya (1000 smart state of Melaka meters) 2016 I Phase 1 Evaluation phase on technologies, customers, partners, processes and risks mitigation before embarking on the nationwide roll-out Phase thousand Next Step 2 nd PHASE Nationwide implementation million 2020 Complet e COMPLETE million Industrialised Process Established in Phase 1

20 Conclusion Smart grid is the new shift in the power sector as we are facing with pressure to manage carbon emission and climatic changes the need to accommodate more alternatives to fossil fuels & renewable energy into distribution system Smart grid will be sustainable electricity system & inevitable

21 Thank You Malaysia s Energy Outlook 21