The Effects of: Peak Load Generation on Average Electricity Tariff. And Peak Load Reduction By Solar PV on Gas Subsidy
Components of Existing Electricity Tariff Structure
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 RM0.347 0.0694 0.2776 0.85 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 0.0694 0.7612 0.8306 0.85 0.0694 1.078 1.1474 0.6 Estimation of Peak load Generation Cost Using Gas and LNG
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 RM0.8306 /kwh RM0.0366 /kwh RM0.0825 /kwh RM0.949 /kwh RM1.1474 /kwh RM0.0366 RM0.0825 RM1.2665 SAVING Total Cost RM0.602/ RM 0.9195 For Every kwh reduced on Peak Load Generation, will Save 60.20 and 91.95 cents! which will benefit both the consumers and the government. between Peak Load Shave (PLS) Saving
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 0.685 /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
Effects of NEM on Utility Business
180,000 160,000 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 (2026-2030) 29GWh ---RM1.45bil 140,000 120,000 Sales(GWh) 100,000 Generation (GWh) PV Generation (GWh) 80,000 Sales - PV Generation 60,000 40,000 20,000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Will NEM affect Power Utility Business??
IMPACTS OF NET ENERGY METERING (NEM) ON NATIONAL ECONOMY
2016-2020 2021-2025 2026-2030 ITA Incentive (RM) 1.775 Billion GST - 6% (RM) 453 Million 1.649 Billion 3.915 Billion Corporate Tax (RM) 92 Million 349 Million 859 Million Gas Subsidy Saving (RM) 2.336 Billion 14.174 Billion 47.278 Billion Jobs Creation 12,852 47,720 76,854 Solar Energy Contribution 1.12% 4.76% 12.22% CO2 emission reduction 2.476 mill. metric tonne 15.279 mill. Metric tonne 51.070 mill. Metric tonne (assume 0.741 metric ton per MWhr - refer to 2012 MGTC figure) Summary OF COST/BENEFITS OF NEM (2016-2030) TO NATIONAL ECONOMY (CO2 emission reduction not included)
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
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.)
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.)
200 20000 100 NEM Cumulative (MWp) Total PV Cumulative (MWp) 10000 (FIT + NEM + RPS + Building Code) 00 0 Forecast Total Solar PV installation (2012-2030)
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 1+2+3+4 BAU Scenario FIT Cumulative NEM Cumulative (MWp) 33.09 Total PV Cumulative (MWp) 2012 33.09 2013 107.05 140.14 140 2014 52.84 192.98 193 2015 66.04 259.02 259 2016 75 1 1 334.02 1 484 2017 46 195 195 380.02 345 725 599 1079 354 33 2018 254 100 2019 330 1 480 928 1558 2020 428 200 628 1356 2186 2021 557 2 28.4 885 1913 3072 2022 724 300 25.3 1099 2637 4171 2023 941 9.3 1000 3579 5172 2024 1224 27.3 1301 4802 6472 2025 1591 20.7 1661 6393 8134 2026 17 18.1 1818 8143 9952 2027 1925 16.9 1992 10067 11943 2028 2117 16.4 2184 12185 14127 2029 2329 16.5 2395 14513 16522 2030 2562 15.2 2627 17075 19149 Forecast Total Solar PV installation (2012-2030)
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