Proceedings of ICEE 2009 3rd International Conference on Energy and Environment, 7-8 December 2009, Malacca, Malaysia

Implementation of Photovoltaics in Malaysia

Ir. Ali Askar Sher Mohamad, Dr. Jagadeesh Pasupuleti
Dept of Electrical Power College of Engineering, Uniten Kajang, Selangor, Malaysia AliAskar@uniten.edu.my
Abstract This paper aims to explore the viability of photovoltaic (PV) systems in Malaysia. The Malaysian Energy Center (PTM)s Suria1000 project highlights the problems associated with rooftop PV systems. TNBs offgrid PV projects also provide valuable lessons on standalone PV systems. PTMs Building Integrated Photovoltaic (BIPV) project shows grid-connected rooftop PV systems are viable. The annual energy output of these installations has been found to be in the top 50 % of similar installations Worldwide. The major obstacles to these systems are the high capital cost of the system and the absence of a feed-in tariff. TNBs experience with offgrid PV projects point to their viability as an attractive alternative to costly extension of the grid for small isolated loads. The major problem is the high maintenance cost of these installations. Simulation studies indicate that standalone PV systems with storage capacity and backup generator are cheaper than grid extension for small loads beyond a certain distance from the grid. Rooftop PV generation in the commercial areas of the city can also be an attractive alternative to upgrading the existing grid capacity. The study concludes that various PV system options need to be introduced into the country on an urgent basis to bring down capital and maintenance costs as well as provide learning opportunities to upgrade the technical competencies of its human resource. Keywords- photovoltaics, rooftop, grid, cost, obstacles

Prof Ir. Dr. Abd Halim Shamsuddin

Head, Center of Renewable Energy College of Engineering, Uniten Kajang, Selangor, Malaysia

demonstration projects were implemented by the Malaysian Energy Center (PTM) in selected cities. These projects consisted of grid-connected polycrystalline PV arrays on rooftops with a small capacity, usually less than 3kW. Metering was installed for monitoring and recording purposes only, not for sales to the utility. Some of the sites were used for application research like optimum angle of tilt by local researchers. These projects were without economic merit but were designed to introduce photovoltaic technology to the country. In 2006, PTM expanded its PV project scope exponentially by launching its Suria1000 project which is described below. Since 2002, the national power company, TNB, has begun implementing another group of experimental PV projects designed to provide electricity supply to remote islands and isolated communities where it is not practical to extend the grid. These projects mostly involve hybrid technology, incorporating photovoltaics with wind turbine or diesel generator sets. These are economically justifiable due to the huge cost of extending the grid for a small load. It is time to explore the possibilities of increasing PV generation for a tropical country like Malaysia with its high insolation levels. II. PTMS SURIA1000 PROJECT In 2006, PTM launched its BIPV Solar1000 project with a target to install 1000 roof-top, grid-connected PV systems with a total capacity of 790 kWp [1]. It started off with an initial offer of 75 % subsidy of installation costs by the government. The subsidy is now down to 42 % with 340 kWp of capacity still not taken up. With a current price of about RM 25,000 per kWp for PV module and accessories plus installation, a customer needs to fork out RM 72,500 for a 5 kWp roof-top installation with the balance subsidized by the government. The utilitys net billing policy results in a from the early days where there were many complaints of leaking roofs after installation. III. TNBS PV PROJECTS FOR ISOLATED COMMUNITIES

I.

INTRODUCTION

Photovoltaic technology was introduced in Malaysia in the 1990s with two main types of projects. Six showcase and minimum pay-back period of 28 years for a customer with an average monthly consumption of 1500 kWh. The major hurdle to popularization of roof-top PV is thus the capital cost and the absence of a feed-in tariff which will ensure a reasonable payback period. Other lessons learned from the project are the need for an online monitoring system for the installation as well as protection for utility workers against accidental PV export to the grid during a grid failure. Competencies of local vendors in installing the PV systems have begun to improve

The utility has implemented a few projects with limited capacity to meet the power needs of isolated villages and islands. Table 1 below shows the technical details of the installations while Table 2 compares the operating and maintenance costs with the revenue collected. This data was

978-1-4244-5145-6/09/$26.00 2009 IEEE

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obtained from the Customer Service and Marketing Dept of

TNB Distribution.

TABLE 1: PV System projects by TNB Station Kg Denai Kg Teluk Berhala, P.Aur Teluk Meriam, P.Aur Pulau Perhentian Tanah Abg 1. 2. 1. 2. 1. 2. 1. 2. 3. 1. 2. Generating System Generator 1 x 10 kW PV 10 kWp Generator 1 x 36 kW PV 10 kWp Generator 1 x 36 kW PV 10 kWp Wind turbine 2 x 100 kW Generator 2 x 200 kW & 1x 120 kW PV 100 kWp Generator 1 x 45 kW PV 20 kWp Inverter 1 x 10kVA 1 x 45kVA 1 x 45kVA 1 x 90kVA 1 x 125kVA 1 x 45kVA Battery 120x 816Ah 120x1296Ah 120x1296Ah 120x2000Ah 120x1700Ah Date commissioned 2002 9/12/2004 11/12/2004 Aug-07 24/08/07

TABLE 2: Operating expenditure and sales for TNB PV projects Station Kg Denai Kg Teluk Berhala, P.Aur Teluk Meriam, P.Aur Pulau Perhentian Tanah Abg Average monthly operating cost (RM) 1,000.00 5,300.00 1,500.00 42,436.00 3,800.00 Average monthly maintenance cost (RM) 12,080.00 15,000.00 15,000.00 32,262.00 11,581.00 Average monthly O & M cost (RM) 13,080 20,300 16,500 74,698 15,381 No of consumers 27 41 17 225 82 Average monthly sales (RM) 509.00 1,600.00 670.00 15,940.00 1,700.00 Percentage of sales over O & M costs 3.9 % 7.9 % 4.1 % 21.3 % 11.1 %

Operating cost here mostly consists of price of diesel for the gen-sets and its transport to the remote areas. The maintenance costs involve routine inspection and servicing of the following system components Solar panel, solar hybrid control panel and cabling functionality check and system test Generator lubrication, fuel, air and cooling systems, electrical/mechanical test, control module Battery check water level, voltage, current and temperature It is obvious that sales revenue cannot cover the operating costs of the systems. If maintenance costs are also taken into account, the sales pale into insignificance for most sites except the largest, Pulau Perhentian, where the sales can cover about 21 % of the O & M costs. There is no possibility, of course, of ever recovering the capital cost of the installations.

IV.

POTENTIAL FOR PV IN MALAYSIA SOLAR RADIATION LEVEL

Malaysias tropical climate has good potential for PV systems. The average daily insolation for most parts of the country is between 4.5 and 5.5 kWh/m2 as shown in Table 3 below [2]. The annual variation between maximum and minimum is about 25 %. Therefore the country has a steady solar radiation which is not seasonal in nature. The only problem is that the rainy and humid climate means almost half of the sunlight received is diffused, and not direct. Therefore collector systems are not suitable but flat plate systems tilted at an angle equal to the latitude would be effective [3]. Also, it can be seen from the table that PV systems would be most effective in the northern part of Peninsular Malaysia and Sarawak, where the insolation levels are higher. PTMs BIPV project has also yielded some interesting data about the annual energy output, kWh/kWp, of different project sites [4]. Fig 1 below shows the annual energy output for a number of cities. It can be seen that there is a definite correlation between

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insolation levels and annual energy output. Fig 2 gives a comparison between Malaysian sites and other cities throughout the World. It is clear that all Malaysian sites are in

the top 50 % with Kota Kinabalu having the highest annual energy output among all cities surveyed worldwide.

TABLE 3: Monthly Averaged Insolation Incident on Horizontal Surface, kWh/m2/day [2] Month Alor Setar Georgetown Kota Baru Kuala Lumpur Johor Baru Kota Kinabalu Kuching Jan 5.26 5.62 5.14 4.79 4.48 5.11 3.96 Feb 5.86 6.09 5.95 5.37 5.22 5.78 4.36 Mar 5.81 5.93 6.23 5.42 5.05 6.43 4.69 Apr 5.65 5.69 6.28 5.27 4.87 6.45 4.99 May 5.05 5.07 5.54 5.11 4.57 5.77 4.87 Jun 4.82 4.97 5.33 4.98 4.41 5.33 4.93 Jul 4.84 4.92 5.35 4.92 4.30 5.19 4.84 Aug 4.69 4.71 5.30 4.87 4.33 5.17 4.87 Sep 4.65 4.67 5.42 4.88 4.53 5.31 4.68 Oct 4.37 4.53 4.76 4.76 4.57 5.03 4.59 Nov 4.23 4.76 3.98 4.36 4.34 4.75 4.48 Dec 4.42 5.00 4.24 4.17 4.07 4.65 4.16 Annual Average 4.96 5.15 5.28 4.90 4.55 5.41 4.62

FIG 1: Annual Energy Output of Rooftop PV Installations Malaysia [4]

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FIG 2: Annual Energy Output of Rooftop PV Installations World [4]

V.

OPPORTUNITY FOR PV SYSTEMS IN MALAYSIA

The price of the PV modules and rest of the system at present does not warrant implementation of PV technology on economic considerations alone. However, it is only a matter of time when the plot of falling PV panel prices will intersect with the plot of rising electricity prices due to depletion of conventional fuels. The Energy Policy and System Analysis Project (EPSAP) study conducted jointly by ASEAN-AusAID in 2005 found that residential PV systems will become viable in the decade 2015-2020 if PV system prices continue to fall at the present rate [5]. It predicted an installed capacity of 160 MW by the year 2025 for such systems. Malaysia may also soon become one of the Annex countries under the Kyoto Protocol due to its fast developing status. It will then be obliged to show its commitment to reducing GHG emissions by a certain percentage. It is therefore critical to initiate some projects to provide a learning experience and improve competencies of the human resource in preparation for these developments. The following projects are worthy of consideration in order to provide a steep learning curve for Malaysian experts [6]. A. Small standalone systems These systems, ranging in capacity from 10 W to 10 kW, are suitable for small loads like compound lighting at locations remote from the existing grid. Small-scale systems can pay for themselves within two years if grid extension costs are taken into account. Although their capacity may be small, they provide a learning opportunity for engineers involved in their installation and operation.

B. PV systems to support local utility grids PV injection of 100 kW to 1 MW during peak demand periods in commercial areas can reduce the stress on the utility grid. When demand goes up in urban areas, the utility has to upgrade its distribution network capacity. If a new Main Distribution Substation (33/11 kV) is needed, it can easily cost up to RM10 million. Underground cables, costing in excess of RM 1 million per kilometer and other equipment can push the cost of a 10 MW injection to about RM 25 million. For that price, a 1 MW PV system can be considered since it will inject power during the day when the demand is highest in the commercial areas due to air-conditioning load. Although the price is much higher, there are many benefits to this alternative: Reduced problems of land acquisition and road digging in highly urban areas in the city center since the PV system can be installed on building or car park roof tops. TNB Distribution reports excessive delays in its urban projects due to problems in obtaining road digging and cable laying permits from the authorities. Highly reduced operation and maintenance costs Learning opportunity for utility engineers C. Rooftop PV systems for residential premises and shophouses Roof-top PV installations in the city center mean substantial savings for the utility since it can avoid upgrading distribution networks due to PV power injection at peak

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periods during the day when it is most needed. Suitable capacities for rooftop systems range from 1 to 10 kW. Utilities need to encourage this type of installation to understand their performance, reliability, personnel safety, effect on grid and other impacts. However, thus far only PTM has been involved with BIPV, with utility involvement limited only to net metering. With current PV system prices and the rate of subsidy offered by PTM, only very committed conservationists will take the offer to install BIPV which involves a pay-back period that will probably exceed their lifetime. Apart from a fair feed-in tariff, the government through the Ministry of Local Government and the City/Local Councils can make it obligatory for all new housing developments to incorporate rooftop grid-connected PV systems for all residential premises costing more than RM 500,000. The cost of the PV system can be limited to 10 % of the property price so that it does not overburden the buyers. Therefore, a house costing RM 500,000 will come equipped with a 2 kWp PV system, while a RM 1 million bungalow will have a 4 kWp system at current PV prices. The cost of installing the system will drop and it will be more aesthetically pleasing if it is incorporated in the initial design. Even if a conservative estimate of 3000 new houses costing more than RM 500,000 a year is used, about 9000 kWp of gridconnected rooftop PV will be introduced in the country, far higher than all the capacity achieved to date through PTMs efforts. All the government has to do is to introduce legislation which will affect only a small percentage of house buyers in the high income bracket.

D. PV systems for remote islands and villages For isolated communities, hybrid PV systems or PV systems in conjunction with an energy storage system and a back-up diesel generator are the answer to their electricity needs. Traditionally, utilities have shied away from remote power needs due to the huge costs involved and the meager returns. However, the utilities and the government have the responsibility of bringing electricity to these villages and now PV systems can provide a new low-cost approach to rural electrification. Just like in grid-connected systems, the operating and maintenance costs of PV systems for small loads in remote areas will definitely be higher than the returns as we saw in Table 2 above. However, if we consider only operating costs, as in Table 4 below, the sales revenue can cover almost half the costs for most installations. It should be remembered that the operating costs are essentially the price and transport of diesel for the back-up generator, the PV modules having a zero operating cost. The maintenance work on the TNB PV installations is actually very basic; the high costs given in Table 2 are due to the fact that the work is carried out by a special team from TNB headquarters and the cost includes their consolidated salaries and outstation travelling claims. As more off-grid PV systems come into operation, local operations crew can be trained to handle the basic tasks involved in the maintenance of the PV systems. These will lead to a drastic reduction of maintenance costs.

TABLE 4: Comparison of sales and operating expenses for TNB PV system projects Station Kg Denai Kg Teluk Berhala, P.Aur Teluk Meriam, P.Aur Pulau Perhentian Tanah Abg Average monthly operating cost (RM) 1,000.00 5,300.00 1,500.00 42,436.00 3,800.00 No of consumers 27 41 17 225 82 Average monthly sales (RM) 509.00 1,600.00 670.00 15,940.00 1,700.00 Percentage of sales over operating costs 51 % 30 % 45 % 38 % 45 %

From an economic viewpoint alone, it is preferable to construct standalone PV systems with storage and back-up generator for small loads away from the existing grid. It is not possible to extend the low voltage network beyond a few kilometers even for small loads due to drastic voltage drops. The only option is to extend the 11 kV grid or opt for a standalone system. To test the viability of a standalone system with the option of extending the 11 kV grid for a small load of 11.5 kW (similar to TNBs Kg Denai project), a simulation was performed using the NREL software, Homer. Current capital and O & M costs were used for the grid extension. For the PV system, capital costs were current while the O & M

costs were deduced using a scenario when such systems would be common. The solar resource used was typical for Malaysian weather. Fig 3 below shows that standalone systems become more economic for grid extensions beyond 2.7 km for such small loads. It is therefore in the interest of the utility to aggressively explore this type of standalone solutions for small isolated loads like remote villages and islands. As mentioned above, the maintenance costs will fall dramatically as these systems become commonplace and local utility operations personnel are trained to carry out the simple maintenance tasks.

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FIG 3: Grid extension vs standalone cost comparison

E. Scalable power plant Demonstration multi-megawatt power plants need to be built by the utility for their engineers to carry out plant design and test activities. Actually operating PV power plants will provide invaluable experience and increase the confidence level of utility engineers in construction and operation of these plants. Engineers will learn about the lead times required for construction, modular installations and speed of installation. They will also be exposed to problems associated with power quality, safety and reliability in the operation of these plants, as well as stability studies for grid-connection. The end result will be lower installation, operating and maintenance costs as well as technical competencies in operating grid-connected, power plant size PV systems.

tasks. They should also seriously consider rooftop PV injection as an alternative to upgrading the grid for demand increase in the commercial areas of the cities. Finally, the government and the utilities need to initiate demonstration PV power plants to afford learning opportunities to utility engineers.

REFERENCES
[1] [2] [3] [4] Suria1000. http://www.mbipv.net.my/suria.htm Atmospheric Science Data Center: NASA Surface Meteorology and Solar Energy. http://eosweb.larc.nasa.gov/cgi-bin/sse/grid H. Kelly, Introduction to Photovoltaic Technology, London: Earthscan Publications, 1993. H. Jensen, G. Lalchand and G. Mak, Compared assessment of selected environmental indicators of photovoltaic electricity in selected OECD cities and Malaysian cities, MBIPV Project, PTM 2006. AAECP Energy Policy and Systems Analysis Project, Greenhouse gas mitigation options with emphasis on energy efficiency and renewable energy strategies, Kuala Lumpur: 2005. K. Firor, R. Vigotti and J. Ianucci, Utility field experience with photovoltaic systems, London: Earthscan Publications, 1993.

VI.

CONCLUSION

There is a good potential for PV systems in Malaysia due to high levels of solar radiation throughout the year. A good start has been made by PTM in introducing BIPV systems through its Suria1000 project with a target of 1000 rooftop PV installations. The utility TNB has also experimented with PV or hybrid PV systems in a few power supply projects to isolated communities. Both groups of projects have brought to light several problems as well as the steps required to alleviate them. The government has a major role to play in coming up with policy initiatives like feed-in tariff, subsidies and legislation governing the mandatory installation of rooftop PV systems for certain classes of new houses. The utilities need to seriously increase their standalone PV installations while training local operations staff to handle routine maintenance

[5]

[6]

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