Wednesday, July 1, 2009

Target to make hydropower in the fuel mix to 30% for power generation

KUALA LUMPUR: The Energy, Green Technology and Water Ministry is considering the possibility of increasing the share of hydropower in the fuel mix to 30% for power generation by 2030.

Gas and coal currently collectively account for about 90% of the fuel mix in Peninsular Malaysia for power generation while hydropower contributes 8%. “Steps are being taken to tap the vast hydro potential from Sarawak for export to Peninsular Malaysia, especially for the period after 2015,” said Energy, Green Technology and Water Minister Datuk Peter Chin said in his keynote address at the launch of the ABB Executive Forum yesterday.

His speech was read by the ministry’s deputy secretary-general (energy) Loo Took Gee. Themed Challenges and Opportunities of the New Economic Realities and the Energy Sector, the forum was organised by ABB Malaysia to provide industry professional with a deeper understanding of the changing economic landscape, its impact on the Malaysian economy and opportunities for turning challenges into sustained long-term growth.

Chin said the transfer of electricity from the Bakun hydroelectric project in Sarawak to Peninsular Malaysia represented the first major step taken to increase the share of green energy in the fuel mix.

From left: ABB regional manager for South Asia and country manager of ABB Malaysia Sdn Bhd Sim Boon Kiat and Energy, Green Technology and Water ministry deputy secretary-general (energy) Loo Took Gee launching the ABB Executive Forum on 'Challenges and Opportunities of the New Economic Realities and the Energy Sector' on Tuesday.

On the Renewable Energy Action Plan, he said the ministry was in the midst of finalising the plan, which would feature the introduction of the feed-in-tariff (FIT) to spur demand for electricity from renewable energy.

Renewable energy includes biomass, biogas, solar, mini-hydro and municipal waste. The plan would spell out the way forward to increase the share of renewable energy in the fuel mix of the country. Loo told a press conference the ministry was currently getting the Cabinet’s clearance on this action plan.

A FIT is a premium rate paid for electricity fed into the national grid from a designated renewable electricity generation source, like a rooftop solar photovoltaic system.

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