©2018 Business France. All Rights Reserved 1August 2018
MALAYSIA ENERGY LANDSCAPE
August 2018
©2018 Business France. All Rights Reserved 2August 2018
MALAYSIAN ELECTRICITY MARKET
©2018 Business France. All Rights Reserved 3August 2018
Philippines
23 GW
64 GW
Indonesia
48 GW
ThailandVietnam
40 GW
Malaysia
36 GW
9 GW
Other ASEAN
(Brunei, Lao, Cambodia)
Installed Capacity (GW)
Coal 65
Gas 97
Hydro 45
Renewables 12
Oil 20
Nuclear 0
TOTAL ~239
14 GW
Singapore
Population (million)
Installed Cap. (kw/person)
FR 67 2.0
SG 5 2.8
MY 30 1.2
TH 67 0.7
VN 90 0.4
ID 250 0.3
PH 100 0.2
MM 54 0.1
Global average ~0.8kW/person
5 GW
Myanmar
Source: GE Power Marketing – MACA 2017
INSTALLED CAPACITY IN ASEAN
Low per capita installed base … Significant future addition requirements
©2018 Business France. All Rights Reserved 4August 2018
ELECTRICITY MARKET
Market Characteristics
3rd User Market in ASEAN
World Bank has globally ranked Malaysia at 8th place (right after Switzerland) interm of Getting Electricity rank within the Doing Business report.
Electricity demand is expected to grow by 3.5% per year over the next 10years, and 2.7% within 20 years. The average annual electric consumptionwithin the period of 2015-2020 is at 3.1%. In the medium-term, its energyautonomy will not be sufficient.
• Sources : TNB – Business France – Energy commission
Pop. (Millions) GDP per Capita(USD)
GDP 2016 GDP 2017
32.3 9 982 + 4.2 % + 5.9 %Tenaga Nasional Berhad (TNB)
(National electricity operator)
2017 : 47.4 b MYR (9.5 b EUR)
2016 : 44.5 b MYR (8.9 b EUR)
Electricity access :
• Peninsula : 99,8 %
• Sarawak : 91 %
• Sabah : 94,1 %
Electricity network:
• Peninsula : 21 469 km
• Sabah: 2 441 km
Number of Smart Meters :
8.5 M in 2021
MALAYSIA ELECTRIVITY KEY FIGURES
Key Figures
©2018 Business France. All Rights Reserved 5August 2018
SEB2 475,0
46%
Sarawak Hydro
1.7 45%
Sarawak 5.4 GW
Gas56%
Oil33%
Renewables7%
Hydro4%
Hydro71%
Gas12%
Coal9%
Oil7%
Unknown0%
Source: Operational Installed capacity data - Platt's UDI World Electric Power Plant Database June 2017
TNB53%
MMC21%
NUC13%
YTL 4%3% 1% 2%
Peninsular Malaysia 28.9 GWTNB
MMC
NUC
YTL
Tek Tenaga Perlis
Petronas
NUR
Sabah electricity
Lotte
Others
Sabah Electricity Sdn Bhd
27%
Ranhill Bhd23%
16%
7%
6%
4%
3%
2% 3%
Sabah 1.8 GWSabah Electricity SdnBhdRanhill Bhd
Petronas/YayasanSabahSepangar Bay PowerCorpSpr Energy (M) SdnBhdAvantha group
Eden Inc Bhd
Arl Power Sdn Bhd
Gas51%
Coal33%
Oil8%
Hydro8%
MALAYSIA POWER GENERATION
©2018 Business France. All Rights Reserved 6August 2018
GOUVERNMENTALINSTITUTIONS
International and Local Key PlayersUSA: General Electric, GE Power - Siemens
Japan: Mitsubishi
South Korea: Jin Technology, Solarpeace Corp.
Malaysia:
• Public: TNB, Sarawak Energy Berhad (SEB), Sabah Electricity Sdn Bhd (TNB 80%and Sabah State Government 20%).
• Private: 18 Independent Power Producer (IPP) in Malaysia: Malakoff, YTL, Ranhilletc.
Smart GridsSiemens, Solarpeace corp, IBM, Accenture etc.
TNB’s Smartmeters partners :
• Impianas Sdn Bhd• Shenzen Kaifa Co. Ltd (China)• Malaysian Intelligence Meters (JV with Shenzen Kaifa Co. Ltd)• Trilliant Smart Grid Communication Platform Asia Pacific
SOURCE : TNB – BUSINESS FRANCE – ENERGY COMIMSSION -2017
Energy Commission
National regulator
KeTTHA
Minister of Energy, Technology, Science, Climate Change and Environment
SEDA
“Feed In Tariffs” regulator
PEMANDU
In charge of Malaysia’s Economic Transformation Plan
MALAYSIA POWER GENERATION
©2018 Business France. All Rights Reserved 7August 2018
Also known as Suruhanjaya Tenaga (ST) in Malaysia.
Statutory body under the Ministry Of Energy, Green Technology and Water Malaysia.
Established in 2001 under the Energy Commission Act 2001.
Regulate the electricity supply industry and piped gas supply industry in the peninsula andSabah.
Custodian and focal point for Malaysia’s energy data.
ENERGY COMMISSION (ST MALAYSIA)
©2018 Business France. All Rights Reserved 8August 2018
Tariff Flow
Power consumers
TNB (T&D)
IPPs TNB (Gen)
Fluctuation due to fuel price, exchange rate etc.
Electricity Power Purchasing Agreement (PPA) with IPPs & Service Level
Agreement (SLAs) with TNB
Single Buyer TNB (Fuel)
1
2
Tariff adjustment to reflect uncontrollable fuel costs & other generation costs
a) CAPEX & OPEX b) Power purchase cost
charged by generatorsc) Return on regulated
asset
TNB
Fuel supply
Source: TNB Handbook, 2016
• Market regulation by KeTTHA and Energy Commission
• TNB plays a central role: Single Buyer, Generation, Transmission, System Operator and Customer Services
• Fuel-cost are pass through for generators (both TNB & IPPs are anaged by TNB Fuel division)
US$ 8 cents/kWh
US$ 9 cents/kWh
US$ 11 cents/kWh
Average Base Tariff by Sector
MALAYSIA ELECTRICITY TARIFF
©2018 Business France. All Rights Reserved 9August 2018
OPPORTUNITIES
SUSTAINABLE CONSUMPTIONThe average annual electric
consumption within the period of 2015-2020 is at 3.1%.
REDUCING CARBON FOOTPRINTMalaysia’s goal is to reduce its carbonfootprint by 45% between the year 2005 to2030 by integrating renewable energy into itsenergy mix.
“GRID TO THE FUTURE”TNB plans to invest 540 Million EUR in thisproject to improve the efficientcy andreliability of its network.
STRENTGH
Installation of 8.5 millions of Smart Metersby 2021 by TNB (on going project).
Public tendering: Large Solar Scale (ongoing project).
Combined Cycle Gas Turbine (CCGT)power plant in Alor Gajah (on goingproject).
Globally ranked at 8th place (right afterSwitzerland) in term of Getting Electricity rank
National electricity access penetration nearly100%.
National aim to integrate renewable energy intothe energy mix (17% by 2030).
SOURCES : TNB REPORTS 2017, ENERGY COMISSION
Electricity, Smart Gridand Renewable Energy
ELECTRICITY AND SMART GRIDS
TOP 5 COUNTRIES
1. CHINA
2. SINGAPORE
3. USA
4. GERMANY
5. JAPAN
Malaysia experienced its highest peak in terms of electricity consumption in April 2016. In addition to this exceptional event, averageelectricity consumption will increase over the period 2015-2020 and energy autonomy could be insufficient in the medium term.
In order to best meet this demand, many investments are made by the national operator TNB to modernize its equipment and increasethe efficiency and reliability of its electricity network.
This modernization programme requires the integration of smart grids. There are many opportunities from this initiative as the nationaloperator is inclined to work with international actors. Although the market is still highly dependent on fossil fuels, Malaysia is increasinglyinterested in integrating renewable energy into its energy mix and in particular in solar energy.
©2018 Business France. All Rights Reserved 10August 2018
©2018 Business France. All Rights Reserved 11August 2018
PROJECTS AND INITIATIVES
Malaysia has been actively puching for a bigger postion of renewable energy within its energy mix.
The Malaysian Government and its national operator TNB are putting electricity production as a priority throughthree development axes:
Improvement of energy efficiency
Development of solar energy production capacity
Strengthening the hydroelectric capacity
Below are some of the initatives / policy making decision taken by the country:
Hydroelectric
• The 11th Malaysian Plan plans to increase hydropower capacity from 6% to 24% by 2020.• The goal is for these initiatives is to achieve 15% of the electricity mix by 2020.
Biomass
• The 11th Malaysian Plan plans to push biomass renewable energy mix from 23% to 38% by 2020.
Solar
• Access to finance is strengthened (state and private participation).• The price of electricity is adapted to ensure project’s viability the project viable.
SOURCE : 11TH MALAYSIA PLAN (2016 – 2020)
©2018 Business France. All Rights Reserved 12August 2018
5%
91%
4%
Solar PV Hydro Biomass
31%
62%
4%2%
Source: GE Power Forecast
• Thermal generation remains the biggest … nearly 90% ofgeneration is still from thermal by 2026
• Increasing renewable generation … large GW addition & ~23%of IB in 2026. However, limited impact in overall generation(growth from 9% to 12% of total)
• Small portion of power transfer in the future … planned fromLaos via Thailand
2016 2026
6.3GW, ~18% of total IB 12.3GW, ~23% of total IB
50%46%
40%
42%REN 9%
REN 12%
-
50
100
150
200
250
2016 2026
Coal Gas Oil HYD
154TWh
222TWh
Renewable Energy Resources
Large hydro Potential 20 GW
Biomass and biogas from Palm Oil Waste 1300 MW
Small-scale hydro 500 MW
Solar Power 6500 MW
Source: GE Power Marketing – MACA 2017
Renewable Energy Capacity Mix Generation Mix
MALAYSIA RE AND GENERATION MIX
©2018 Business France. All Rights Reserved 13August 2018
ACTEURS INSTITUTIONNELS
RENEWABLE ENERGY KEY PLAYERS
National Operators
• Tenaga Nasional Berhad (TNB)
• Syarikat SESCO Berhad (SESCO)
• Sabah Electricity (SESB)
Public Agencies
• Minister of Energy, Technology, Science, Climate Change and Environment
• Dept. Of Envionment (DoE)
• SEDA
• Green Tech Malaysia
• Malaysian Industry-Government Group for High Technology (MIGHT)
• Agensi Innovasi Malaysia (AIM)
Associations/ Federations
• Malaysian Biodiesel Association
• Malaysian Palm Oil Board
Key Players
Solar
• TNB, Snowy Mountains Engineering Corporation (SMEC), Hitachi, Gading Kencana,MaxGreen Energy Sdn Bhd, Yingli Solar, Amcorp Properties Bhd, Green Innotech Sdn Bhd,ERS Energy Sdn Bhd, Phoenix Solar, AUO Sunpower Sdn Bhd, Jinko Solar, etc. Japan:Mitsubishi
Hydroelectric
• TNB, Sarawak Energy, Tokyo Electric Power Services Co (TEPSCO), Esajadi Sdn Bhd,Hokkaido Electric Power Co, etc.
Wind Power
• TNB
Biomass
• Sime Darby, FGV (Felda), Tradewinds, Wilmar, TH Plantations, Teck Guan, AIM,Global Green Synergy Sdn Bhd, MYBiomass Sdn Bhd, Palm Oil Industry Cluster(POIC), BiotechCorp, etc.
©2018 Business France. All Rights Reserved 14August 2018
SOURCE : 11TH MALAYSIA PLAN (2016 – 2020)
PROJECTS AND INITIATIVES
Identified Projects
Bakun Hydroelectric Project (Hydroelectric)
Upper Padas Hydroelectric Project (Hydroelectric)
Liwagu Hydro Power Project (Hydroelectric)
Berjaya Berhad Solar Plant (Solar)
Large Solar Scale - LSS (Solar)
• Package P1 (1MWac to 5.99MWac) in Peninsular Malaysia
• Package P2 (6MWac to 9.99MWac) in Peninsular Malaysia
• Package P3 (10MWac to 30MWac) in Peninsular Malaysia
• Package S1 (1MWac to 5.99MWac) in Sabah and Labuan
• Package S2 (6MWac to 10MWac) in Sabah and Labuan
©2018 Business France. All Rights Reserved 15August 2018
© 2018 - BUSINESS FRANCE
Toute reproduction, représentation ou diffusion, intégrale ou
partielle, par quelque procédé que ce soit, sur quelque support
que ce soit, papier ou électronique, effectuée sans l’autorisation
écrite expresse de Business France, est interdite et constitue
un délit de contrefaçon sanctionné par les articles L.335-2 et
L.335-3 du code de la propriété intellectuelle.
CLAUSE DE NON-RESPONSABILITÉ
Business France ne peut en aucun cas être tenu pour
responsable de l’utilisation et de l’interprétation de l’information
contenue dans cette publication dans un but autre que celui qui
est le sien, à savoir informer et non délivrer des conseils
personnalisés. Les coordonnées (nom des organismes,
adresses, téléphones, télécopies et adresses électroniques)
indiquées ainsi que les informations et données contenues
dans ce document ont été vérifiées avec le plus grand soin.
Business France ne saurait en aucun cas être tenu pour
responsable d’éventuels changements.
FOR FURTHER INFO
PLEASE CONTACT US
Business France - Kuala Lumpur
The Intermark, Level 31, IntegraTower, 348 jalan Tun Razak 50400 Kuala Lumpur
Tel: + 603 2053 5622
LAETITIA BOURASenior Trade [email protected]