BRIGHTER SOLUTIONS FOR GREEN ENERGY KEYNOTE SPEECH BY: IR. MOHD AZHAR ABDUL RAHMAN MANAGING DIRECTOR TNB ENERGY SERVICES SDN. BHD. TENAGA NASIONAL BERHAD SEPTEMBER 2014
CONTENT BACKGROUND MALAYSIA S PERSPECTIVE - NATIONAL POLICY ON GREEN TECHNOLOGY TNB S PERSPECTIVE -RENEWABLE ENERGY & ENERGY EFFICIENCY CHALLENGES AND CONCLUSION 2
BACKGROUND 1. The world needs to reduce its dependency on fossil fuels (nonrenewable energy) as it is fast depleting and due to the harmful impact to the environment; 2. Sustainable energy and efficient utilization of energy is the focal attention in Malaysia: Renewable Energy (RE) was introduced as Fifth Fuel in the nation s energy supply mix. Establishment of National Green Technology Policy to ensure sustainable development and conserve the environment 10th Malaysia Plan (2011-2015) outlines the National RE Policy and Action Plan. Introduction of new rate for Feed-in-Tariff, revision 2014. 3. TNB is fully supportive of the need to strengthen the commitment and focus required to implement RE in Malaysia and aspires to become primary driver by the year 2015. 3
NATIONAL ENERGY POLICIES & DEVELOPMENT PLAN 8 th Malaysia Plan (2001-2005) RE as the fifth fuel Target: 5% RE in energy mix 9 th Malaysia Plan (2006-2010) Target: 300 MW grid-connected RE in Pen. Malaysia Target: 50 MW grid-connected RE in Sabah 10 th Malaysia Plan (2011-2015) 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
NATIONAL ENERGY POLICIES & DEVELOPMENT PLAN National RE Policy & Action Plan Approved by Cabinet on 2 nd April 2010 Legal Instrument Implemented in Peninsular Malaysia since 1 st December 2011 with the enforcement of RE Act 2011 Implementation of FiT in Sabah & Labuan will be enforced in 2 nd quarter 2014. 5
RENEWABLE ENERGY PLANNING Year Biomass (MW) Biogas (MW) Mini Hydro (MW) Solar PV (MW) Solid Waste (MW) Total RE, Grid Connected (MW) 2011 110 20 60 9 20 219 2015 330 100 290 65 200 985 2020 800 240 490 190 360 2080 2025 1190 350 490 455 380 2865 2030 1340 410 490 1370 390 4000 Achievement so far, Year Biomass & Solid Waste (MW) Biogas (MW) Mini Hydro (MW) Solar PV (MW) Total RE, Grid Connected (MW) Sept 2014 52.30 11.74 11.70 123.39 199.13 1,479,602 tonnes Co2 reduction & 11,283 job opportunities created. 6
TENAGA NASIONAL BERHAD Statutory body established in 1949 responsible for the Generation, Transmission, and Distribution and Retail of electricity in Peninsular Malaysia and the state of Sabah Employee strength (TNB Group) as at August 31, 2013: 29,269 Number of customers (including SESB) as at August 31, 2013: 8.4 million Source: TNB Annual Report 2013
TNB FAMILY GENERATION ENERGY VENTURES * TNBES with many other support departments & units. TNB TRANSMISSION UNITEN & TNB RESEARCH DISTRIBUTION Our commitment towards environmental protection coordinated approach across the Organization
INDUSTRY OVERVIEW IN PENINSULAR MALAYSIA TNB Generation Division TNB (Thermal, Hydro) 9,110 1 MW KEV 2 2,420 MW IPPs (Thermal (Gas) and Coal) 10,287 MW TNB Transmission Division Total Overhead Lines Length 19,328 circuit-km Total Underground Cable Length 811 circuit-km Total Transformer Capacity 82,130 MVA Total Number of Substations - 391 TNB Distribution Division Co-generators (KLIA & KLCC) Bulk Suppliers (e.g. Bandar Utama, Sunway Pyramid, Genting Utilities, KL Sentral (Wirazone)) Customers (Total 8.4 million 3 ) Domestic 82.5% Commercial 16.4% Industrial 0.35% Public Lighting 0.7% Agriculture & mining <0.05% Notes: 1. Includes Janamanjung (100% TNB holding) 2. KEV (60% TNB holding) 3. As at 31 st Dec 2011 Generation Transmission Distribution & Retail Customers
RENEWABLE ENERGY Solar Biomass Biogas Mini Hydro
DRIVERS OF RE DEVELOPMENT Climate Change Energy Security RE Development Sustainability Rural Development
OUR EXPERIENCE IN RENEWABLE ENERGY PROJECTS Solar Biomass Biogas Mini-Hydro Potential ~6,500 MW (for 40% buildings) Yearly average irradiance 1,400 1,900 kwh/m 2 Status More than 5 MW REPPA, BELB AND Fit Projects Potential ~1,340 MW by 2030 Status Biomass Project, palm oil waste (EFB), other waste e.g. woodchips, paddy husks etc. Potential ~410 MW by 2028 Status Palm Oil Mill Effluent (POME), livestock, agro, industrial waste Potential ~490 MW by 2020 Status O&M 20 stations to date Run-of-river scheme with minimum impounding Renewable Energy is moving forward towards achieving the target of 5.5% by 2015
TRACK RECORD Major Projects / Services Description Scope No of projects/total capacity Building Integrated Photovoltaic (BIPV) at TNB Head Offices Bangsar & Dua Sentral Solar Hybrid System (Since 2001) Mini Hydro Stations (Since 2005) Power Quality, Energy Efficiency & Consultancy Design & Built Maintenance & Monitoring O&M Design & Built Maintenance & Monitoring O&M O&M Rehabilitation works PQ Monitoring System (PQMS) PQ Audit Energy Audit 2 Projects >70 Projects (>5,000 kw) 35 Stations PQMS for TNBD PQ Audit > 60 customers EE Audit > 10 13
SOLAR HYBRID PROJECT & BUILDING INTEGRATED PHOTOVOLTAIC (BIPV)
SOLAR HYBRID SYSTEM IN RURAL AREA Project in Kemar is equipped with solar generating capacity of 850kW and is part of the Rural Electrification Project (BELB) to indigenous settlements Supply electricity to approximately 3100 local residents as well as clinics, schools, houses of worship, police stations, kindergarten Kemar Project was fully commissioned by end of this month, October 2012. Special Features: 1. Optimum solution for alternative 24 hours electricity supply (or as required by customer) 2. Developed based on > 10years of track record, continuous R&D and first-hand experience in system design and O&M 3. Optimization in system O&M via remote monitoring facilities 4. Expandable system to meet future development and demand growth 5. Cost effective and competitive 15
BUILDING INTEGRATED PHOTOVOLTAIC (BIPV) This project is part of TNB s approach to prosper the growth of RE within our boundary. Space covered by solar car parks rooftop and office rooftop. Solar energy collected approximately 150kW. 16
AWARDS AND RECOGNITION FOR SOLAR PROJECTS Continuous improvement building trust and credibility Recognition by Ministry, State Government & Local Authorities Solar Hybrid Project Pulau Kapas, Terengganu (2 nd Runner-Up) Solar Hybrid Project Pulau Banggi, Sabah (1 st Runner-Up) Solar Hybrid Project Ladang Mutiara, Johor (2 nd Runner-Up) Solar Hybrid Project SK Telanok, Cameron Highland, Pahang (1st Runner-Up) 2009 2010 2011 2012 2014
BIOMASS PROJECT WITH FELDA PLANTATION INDUSTRY
FTJ BIOPOWER PROJECT TNB together with Felda Palm Industries is working on developing a biomass plant with 10MW capacity in vicinity of Jengka 9, Pahang Malaysia. A large capacity biomass power plant requires EFB supply from many palm oil mills. Most of palm mills location are scattered at far distances between them in the plantation. For a typical 10 MW net biomass power plant, it requires about 250,000 metric ton of EFB which involves about 5 to 7 palm oil mills to ensure sufficient supply through the project life. In process of project expansion to include 2MW biogas plant within site vicinity.
BIOGAS PROJECT WITH SIME DARBY PLANTATION
BIOGAS POWER GENERATION FROM POME TNB is working closely with Sime Darby Plantation, private miller in Malaysian to harness potential in utilizing residues from the palm oil mills. The palm oil mill effluent, POME will be used as fuel in the Anaerobic digestion process to produce biogas. Expected start of the project development with Sime Darby Plantation to develop biogas plant at two selected sites with capacity of 2MW each by early 2015.
JANA LANDFILL PROJECT
BIOGAS PLANT FROM LANDFILL EFFLUENT The plant's developer was the Jana Landfill Sdn Bhd, a joint venture between TNB subsidiary TNB-ES and Worldwide Landfills Sdn Bhd, which is the company that operates the landfill. Located 40 kilometers outside of Malaysia's capital, Kuala Lumpur, the Jana landfill is one of the city's main municipal storage waste sites. The landfill's gas is being used to generate 2.096 megawatts of electricity began operation in February 2004
MINI HYDRO
HYDRO POWER It has four major advantages: it is renewable; it produces negligible amounts of greenhouse gases; it stores large amounts of electricity at low cost; and it can be adjusted to meet consumer demand. TNB operates three major schemes in the peninsular with an installed capacity of 1,911 MW Sungai Perak hydroelectric scheme Terengganu hydroelectric scheme Cameron Highlands hydroelectric scheme Maintain and operate Mini Hydro Stations all over peninsular Malaysia 1249 MW 400 MW 262 MW 10MW (20 Stations)
ENERGY EFFICIENCY
ENERGY EFFICIENCY To achieve an acceptable level of energy efficiency in buildings by taking the initiatives: Aircond Temperature keep at 24 Deg. C Change the bulb T8 to T5 type Promote and use more LED if possible To improve the energy utilization efficiency in the operation of existing buildings To promote EE design in any new buildings
ENERGY EFFICIENCY SERVICES ENGINEERING & CONSULTANCY Energy Efficiency Audit: Commercial buildings & TNB buildings Power Quality Services and Consultancy for TNB Prime Customers Power System Study for Distributed Generation interconnection Consultancy Works related to Interconnection & Renewable Energy TNBES offers customized services in energy efficiency, mitigate power quality problem and recommend solutions that translates into energy cost savings to the owner.
CHALLENGES & BENEFITS OF RENEWABLE ENERGY
CHALLENGES Reliability Transmission and Distribution Integrating Renewables On the Power Grid High Capital Cost
Reliability CHALLENGES Supply of electricity must be made available around the clock to provide power to consumers whenever they demand it. Solar - variable Not always available and require dispatchable back up generation such as Genset or hydropower. Biomass short of fuel supply Clustered location of POMs has better advantages to ensure sufficient supply within a certain radius. EFB Re-Processing Schedule - need to be timely.
CHALLENGES Transmission and Distribution Distance between power plant and local distribution substation (between 11 to 33kV) Transmission loss Cost for interconnection /km basis Local load (MW) demand Limiting factor of max. power plant size
CHALLENGES Integrating Renewables on the Power Grid Balance between demand and supply Ensure reliability System stability and safety
CHALLENGES High capital cost Cost of building renewable facilities has decreased over the years, yet some remains relatively costly Technology on learning curve Exclusivity of the design Construction cost has increased considerably due to raw materials price increase and other factors To help minimize the costs: Improvement in R&D needed Commercialization of these technologies
BENEFITS Benefits to Country and State Partially relieving the Government of the financial, administrative and risk burden associated with such an infrastructure project. Promoting competition in the electricity supply industry in order to improve efficiency and increase productivity. Stimulating private entrepreneurship and investment to accelerate economic growth. Technology transfer to local manufacturers on design and manufacture of power plant components, especially to local Bumiputera. Create permanent jobs. Create hundreds of temporary jobs during peak of construction. Substantial capital investments in the state. This will invariably promote economic activities and social benefits in the state through the multiplier effect. 35
BENEFITS Benefits to Country and State The power plant will support future generation mix and power demand EFB is viewed as the renewable energy source. CO2 emission could be reduced. This will open the possibility to sell Carbon Credit for better environmental condition as a whole. The abundant supply of a reliable stable source of electricity at Jengka 9, will draw industry and hence, revenues to Pahang and nearby areas. At least 30 per cent of the power project could be in local content. Develop and encourage the Bumiputera Vendor Programme formulated by PUNB and MOF for power plant components and thereby promoting SMI in accordance with the Government policy. 36
BENEFITS Benefits to TNB It will assist TNB in their continued efforts to reliably and economically supply long-term power to industries and other consumers. The biomass power plant will ensure compliance with the Government s Five Fuel Diversification Policy. It will allow reduction in TNB capital expenditures for power generation, Reduce dependency on fossil fuel and; Allowing TNB to focus even more on system transmission and distribution needs. Increase TNB s exposure in the Biomass Power Industry Reasonable rate of return Long-term secured revenue stream 37
WAY FORWARD TNB to be primary driver of Green Energy in Malaysia RE to be integrated in future generation capacity planning Continuous efforts for energy efficiency initiatives to existing power plants Intensify human capital development to support growth of green technology Continue to support REPPA through R&D initiatives and supervisory to further reduce the development costs
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