Energy review and policy in

Malaysia
INTRODUCTION
Energy consumptions in Malaysia
According to
the Asia Pacific Energy
Research Center
(APERC), among the
fossil fuels, coal is
expected to grow fastest
in Malaysia
in the coming years, with
forecasted
growth in demand 9.7
per cent between
2002 and 2030.
Majority of Malaysia's electricity generation capacity is natural gas-
fired, although gas shortages in Peninsular Malaysia and growing
electricity demand in recent years have encouraged the use of
other fuels such as coal, diesel, and hydroelectricity.

Coal, which accounted for 35 percent of total installed capacity in
2012 and 45 percent of electricity generation in 2011, has become
more competitive with gas in terms of price and has gained share
in power generation in Peninsula Malaysia in the past few years.

Malaysia does not have a large domestic resource of coal compared
with countries like Indonesia, although its coal demand is more
than 30 Mt/y.

Malaysia produced only 3 million short tons of coal in 2011, about
12 percent of its coal needs, and is limited in domestic coal
reserves.

Malaysia's coal imports, mainly from Indonesia, have doubled in
the last five years to about 24 million short tons to fuel greater
coal-fired generation.
Coal Power Plants in Malaysia

MALAYSIA COAL POLICY
Secure long term
contract with
suppliers
Multiple coal
supplier countries
COAL PRODUCTION
COAL CONSUMPTION

IMPORT/EXPORT
Tenaga Nasional Bhd (TNB), the sole coal
importer for the power sector and supplier for
the countrys independent power producers,
imported RM2.74 billion worth of coal in the
first-half of 2013 (1H13) amid a stable period in
supply and price, at US$74 (RM235.32) per
tonne in July.

MALAYSIA IMPORT
Coal exporter
Indonesia
Australia
South Africa
Russia
MALAYSIA CHALLENGE
Since coal consumption increasing every year, Malaysia are
hunger for coal for their electricity generation.
We know that Malaysia rely too much coal from Indonesia,
the worlds top coal exporter with over 300 metric tones
annually, which analysts note could trigger price rise or
even disturb future supply.
Any policy change in Jakarta, like the recent proposal to
ban exports of low-grade coal from 2014, mine operators
slashing production due to dull prices or geopolitical
instability, may trouble long-term buyers.
Any interruption in supply could affect the nations
economic growth. Therefore they need to find such a way to
withstand the production and supply for coal energy in long
term.
Strategies
There are plans to increase coal-fired capacity in Peninsular
Malaysia and Sarawak by 2020. Malaysia signed construction
contracts for the country's first use of supercritical coal
technology for two power plants located at Manjung and
Tanjung Bin on Peninsular Malaysia. The plants are scheduled
to add 2 GW of coal-fired capacity by 2016.

Malaysia issued bids for companies to build another 3 GW of
coal-fired capacity in two projects on Peninsular Malaysia by
2019. Sarawak intends to use the country's limited coal
production, located on Borneo Island, and coal imports, for
five new coal plants with a total capacity of 2.4 GW. The
first plant is scheduled to commence operations in 2016.
These plants are designed to fill some of the state's power
supply gaps as Sarawak expands the presence of heavy,
energy-intensive industries.

REFERENCES
1. http://www.egcfe.ewg.apec.org/publica
tions/proceedings/CFE/Austrailia_2012/
4C-1_Ramasamy.pdf
2. http://www.eia.gov/countries/cab.cfm?
fips=MY
3. http://meih.st.gov.my/statistics