analysis of renewable energy potential in malaysia

8/3/2019 Analysis of Renewable Energy Potential in Malaysia

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ANALYSIS OF RENEWABLE ENERGY POTENTIAL IN MALAYSIA

KYAIRUL AZMI BIN BAHAFUNSTUDENT ID: 3208993

POSTGRADUATE COURSEWORK STUDENTFACULTY OF ELECTRICAL ENGINEERTNG

AND TELECOMMUNICATIONS (EET)

UNIVERSITY OF NEW SOUTH WALES, AUSTRALIA

DECEMBER 2007


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ABSTRACT

Renewable energy is becoming a prominent resource for global electricity generation. Thetendency to lean towards renewable energy is because it does not run out with use over timeas compared with conventional hels. Another important factor is that it produces little or nogreenhouse gas and pollution to the environment. Malaysia, one of the developing countrieslocated in South East Asia is also in the process of utilizing its available resources anddiscover its potential. The objective of this report is to identiijl the potential renewable energyresources available in Malaysia and also its current implementation. It also covers the currentpolicy for renewable energy in Malaysia Various resources and published materials ininternational journals, conferences, information released by specific bodies under thegovernment and miscellaneous resources are used to determine this potential. From thisanalysis, it can be seen that for Malaysia, biomass has the most potential tobe utilized due toits abundance availability in the agricultural sector especially in the palm oil industry. Next inline is solar, which also has significant potential to contribute towards renewable electricitygeneration. Other types of renewable energy may also contribute towards the supplymix ofelectricity generation, albeit at a smaller scale. Policies also play an important role inencouraging the development of renewable energy. The government has mandated a number

of policies to incorporate renewable energy into the system. However, present policies are notenough to ensure its survival. It is essential for Malaysia to strike a balance in terms ofpolicies and in the meantime continue the development towards renewable energy utilizationto maintain a sustainable future.


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ACKNOWLEDGEMENT

Alhamdulillah, praise be to Allah, the Most Compassionate, the Most Merciful, for it is withHis permission I am able to complete this thesis for my postgraduate coursework.

My sincere thanks and appreciation to my supervisor, Mr. Ted Spooner who has assisted andguided me throughout the course of my project and providing insight into the details of myreport. I am deeply grateful for his help and guidance.

I would also like to thank Universiti Teknikal Malaysia Melaka (UTEM) for supporting andsponsoring my Masters Program here in UNSW.

My thanks also goes to my parents, Rokiah binti Ibrahim and Anaidin@Baharin bin MatJebah and my siblings, Sharnsul Azila and Faizul Azuan for their undying support andprayers for me.

Last but not least, I would like to thank Anis Niza binti Rarnani who has motivated andinspired me towards the completion of this report.


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CHAPTER 1.0 INTRODUCTION

Renewable energy can be generally defmed as sources of energy that does not run out with

use over time. They are found in abundance around us and they have been part of human'sdaily lives for so long that they used to be taken for granted. Other definitions of renewableenergy are "energy obtained f'rom the continuous or repetitive currents of energy recurring inthe natural environment" and "energy flows which are replenished at the same rate as theyare "used"" [I].

Mankind has been traditionally using renewable energy for thousands of years whether it issolar, water, wind or bioenergy. With the advent of time, the technology develops andexpands. But up until the 1 9 ~entury, the scale on which renewable resources areimplemented is relatively small, typically for individual use or for small communities in theagriculture or industrial field. In terms of the modern era, the attention and focus are on thepossibilities of utilizing renewable energy as part of the solution to produce and generateelectricity for mass usage. It was triggered by the devastating oil crises in 1973 and duringthe 1979-80 periods. Since the system in those days was very much dependent on fossil fuels,alternatives had to be found to reduce the dependency on them.

The key issue that motivates the drive towards exploring renewable technology issustainability. The present system rely mainly on fossil fuels, i.e. coal, natural gas and oilwhich are consumed far more than the amount it is produced. In 2004, the worldwide energyconsumption of the human race was 15 TW (= 1.5 x 1013W) with 86.5% from burning fossilfuels [2]. According to a study, at present, proven world coal reserves should last for about200 years, natural gas for around 60 years and oil for approximately 40 years [I]. However,according to the International Energy Agency's findings published in June 2006, world

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production of liquid fuels is expected to reach the peak at around 2014. For natural gas, peakproduction is anticipated at around 2030. The overall resource will then be in decliningpattern and by 2030 the demand will exceed production by 18%.Therefore, sustainability infossil fuels will be an issue in the long term. On the other hand, renewable sources provide ahealthy prospect for sustainability because they are resources that are almost unaffectedalthough used continuously and in large volumes.

Another aspect under sustainability is the environmental issues. Conventional electricity

generation produces carbon dioxide, which is released to the atmosphere. This contributes tothe greenhouse effect and the phenomena of global warming. Other emissions such as sulphurdioxide and nitrogen dioxide may also be produced, depending on the type of fossil fuel andmethod of burning [3]. Renewable energy helps in reducing this, playing a role in making theworld a healthier place for humans to live in.

The situation in Malaysia is no different. The government has also given serious attention inthe need to find and utilize renewable resources to add to the energy supplymix.Apart fiomthe apparent issues discussed, the country is also looking for ways to diversify the currentenergy resource. Although the implementation is going to be a long and tedious process, it isa worthwhileproject to undertake in the longrun.

The structure of this thesis is divided into 5 main chapters. The first chapter provide anintroduction about the project, the objectives and the scope of study. The second chaptergives a general overview about available renewable energy resources in the world andMalaysia's current energy supply status. The third chapter will analyze in detail the availablerenewable resources in Malaysia, its availability, its degree of implementation and future


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prospects in electricity generation. The fourth chapter reviews Malaysia's energy policy; howit reflects the usage of renewable energy and whether it has helped in the growth ofrenewable energy in Malaysia. Finally, the fifth chapter draws out the conclusion obtainedfrom this study and also highlights possible recommendations that can be made to addresssome of the issues.

1.1 Objectives

The objectives of this thesis are summarized as follows:

1. To identifl the potential renewable energy resources that is available in Malaysia.2. To analyze the current implementation of renewable energy systems in Malaysia and

its relation with the electricity generation sector.3. To study the effects of renewable systems in the present energy generation mix,

particularly in the electricity generation sector.4. To examine the W e rospects of power generation via renewable energy

development for the country.5. To evaluate the policies and incentives endorsed under the government that promotes

renewable energy use.

1.2 Scope of StudyThe main scope of this study focuses on the availability of renewable energy in terms ofenergy and electricity generation. The geographical scope of this study covers all areas inMalaysia, which includes the Peninsular Malaysia, Sabah and Sarawak.

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Description MalaysiaI I- I L I' ' ,P * - >

- , 1 C41_1@I L ? ' f f - - I , ' SPrU Ti.Y" SLA'VDS , . -

iKudala@5Kola - ,i;,.,..,,,Kl~;lMItlj ' ~-NIblnfJftccJ,r3,*>

4 - 't. IP.'BObrESI0 I v , 2 p l m / -C 1 % ?m-1 , 41 4 -

Figure 1.1:Map of Malaysia(Source: http://en.wikipediaorglwikilImage:My-map.png)

Malaysia is a country located in South East Asia, consisting of two distinct regions dividedby the South China Sea, namely Peninsular Malaysia (or West Malaysia) and MalaysianBorneo (or East Malaysia). Peninsular Malaysia consists of eleven states, with borderingcountries Thailand to the north, where they share a land boundary, and Singapore to thesouth, where both countries are separated by the Straits of Johor. While East Malaysia,comprising of two states, is situated at the northern part of Borneo, bordering Indonesia andsurrounding Brunei.

The country's total area is 329,847 km2 ith an estimate population of 27.356 million peopleand approximate amount of $12,800 per capita GDP 4]. It has three main races, Malays,Chinese and Indians and a minority of other races. Malays, the indigenous people of thecountry, is the largest race in the country, followed by the Chinese and Indians respectively.


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I country is the Malay language and English is regarded as the second language.h erms of the government, Malaysia practices federal constitutional monarchy, where thecountry is headed by the Yang di-Pertuan Agong and politically led by the Prime Minister.Malaysia, together with Indonesia, Singapore, Philippines and Brunei were the foundingmembers of ASEAN and also an active member in international organizations such as theUnited Nations (U.N) and the Organization of Islamic Conference (OIC).


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m R .0: GENERAL OVERVIEW

2.1 World's Energy ConsumptionRenewable energy effectively utilizes natural resources such as the sun and wind to produceenergy. Since these types of resources are theoretically infinite, it offers attraction to beutilized and developed extensively. At the present moment, about 8% of primary energy forthe world's consumption is sourced fiom renewable resources. Biomass constitutes thehighest percentage followed by hydro. Modern technologies like wind, solar, geothermal andother technologies produce less than 1% of the world's demand. Figure 2.1 and 2.2 highlightsthe present renewable energy scenario [5 ] .

t .- Oil 37% Coal 25% Gas 23%F- - - -Nuclear 6% Biomass 4% Hydro 3%

Figure 2.1:Global Power Usage(Source: Wikipedia)


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I9Large hydro Small hydro 5.1 2% Wind power4.58% Biomass de c58.23% 3.42%Geothermal elec Pho tovdtaic 0.42% Otherdecn 0.05%.iomass heat+0.72% 17.08%Solar h e a 6.83% n eothermal heat 1 iodiesel fuel Biodhanol fuel2.17% 1.21% 0.16%Figure 2.2: World Renewable Energy in 2005(Source: Wikipedia)

2.2 BiomassBiomass is all the earth's living matter, consisting of materials produced by photosynthesis ororganic by-products fiom a waste stream. Therefore it is a form of stored solar energy. Itincludes a wide variety of organic wastes and residues, typically from the agricultural sector,forestry, food processing sector, animal manures, sewage and municipal solid wastes. Inphotosynthesis, growing plants form energy and oxygen by capturing sunlight, water andcarbon dioxide from its surroundings. The energy may then be released either by combustionof the solid fuel or by conversion into liquid fuels such as methanol and ethanol or biogaswhich mainly consists of methane and carbon dioxide. This kind of useful energy producedfiom biomass is called bioenergy. Biomass is an appealing energy source because it does not


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produce C02 emissions simply because when it is converted into useful energy, it will emitthe CO;? t originally absorbed during photosynthesis.

Biomass is no doubt a major energy provider for many countries throughout the world. Itaccounts to about a third of total primary energy consumption in the developing countries.Even for industrialized countries, the energy contribution from biomass can be significant.Among the countries that derive a large proportion of total primary energy from combustiblerenewable and waste are Finland (18.7%), Sweden (16%), Austria (10%) and Denmark(9.7%) [6].

2.3 Solar

Energy that can be directly generated fiom the sun are basically divided into two categories;solar thermal and solar photovoltaics (PV). In solar thermal, it can be in a form of active solarheating where the energy from the sun is collected with either flat-plate or evacuated tubecollectors and is used for domestic hot water or swimming pool heating. Alternatively, it canbe passive solar heating that uses air to circulate collected energy in buildings to reduce theenergy required for heating of habitable spaces.

For generating electricity directly from the sunlight, there are two principal ways; solarthermal electricity and solar PV cells [7]. Solar thermal electricity concentrates sunlight usinga system of collectors. The concentrated sunlight then heats the water to sufficiently hightemperatures to turn a steam turbine and hence generate electricity. Solar PV cells use aspecial surface that emits electrons when exposed to light. The moving electrons produce aDC current that can be passed through an inverter to produce alternating current.

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2.4 Windrpower is used in large scale wind farms for national electrical grids as well as in smallindividual turbines for providing electricity to rural residences or grid-isolated locations.Wind technology is the fastest growing technology in the world, growing at over 25% onaverage annually [8].

At the end of 2006, global installed capacity was 73,904 MW of which Europe acquires 65%.Germany leads the list with total installed capacity of 21,283 MW to date. Spain runs secondwith 12,801 MW followed by United States with 11,603 MW. Denmark sits in fifth withgeneration of 3,140 MW but Denmark has the highest percentage of electricity generationcoming from wind turbines, with supplies over 20% of the country's energy needs [9].

wind power is the conversion of wind energy into useful form, such as electricity, using wind

turbines. Most modem wind power is generated in the form of electricity by converting therotation of turbine blades into electrical current by means of an electrical generator. Wind

2.5 Hydro

Hydroelectricity is a well-established technology, and the first renewable technology to bedeveloped. It is already a major contributor to world energy supplies, producing powerreliably and at competitive prices for about a century. It provides one sixth of the world'sannual electrical output and over 90% of electricity from renewables [lo].

Hydroelectricity eliminates the flue gas emissions from fossil fuel combustion, includingpollutants such as sulfur dioxide, nitric oxide, carbon monoxide, dust, and mercury in thecoal. Hydroelectricity also avoids the hazards of coal mining and the indirect health effects of


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I coal-burning. Compared to nuclear power, hydroelectricity generates no nuclear waste, hasnone of the dangers associated with uranium mining, nor nuclear leaks. Unlike uranium,I hydroelectricity is also a renewable energy source. Compared to wind f m s , hydroelectricityI power plants have a more predictable load factor. If the project has a storage reservoir, it canbe dispatched to generate power when needed. Hydroelectric plants can be easily regulated tofollow variations in power demand.

Unlike fossil-fuelled combustion turbines, construction of a hydroelectric plant requires along lead-time for site studies, hydrological studies, and environmental impact assessment.Hydrological data up to 50 years or more is usually required to determine the best sites andoperating regimes for a large hydroelectric plant. Unlike plants operated by fuel, such asfossil or nuclear energy, the number of sites that can be economically developed forhydroelectric production is limited; in many areas the most cost effective sites have alreadybeen exploited.

2.6 Energy Supply in MalaysiaMalaysia's electricity supply industry is served by three integrated utilities; Tenaga NasionalBerhad (TNB), Sabah Electricity Sdn Bhd (SESB) and Sarawak Electricity Supply Corp(SESCo). TNB provides service for the entire area of West Malaysia, while the other twosupplies the demand of their respective states in East Malaysia. These utilities supplies arealso significantly supported by independent power producers (IPP), dedicated powerproducers and co-generators.

For Peninsular Malaysia, the current total installed generation capacity is 17,623 MW, withTNB holding 8,417 MW (47.8%), IPP holding 6,787 MW (38.5%) and another 2,419 MW


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(13.7%) jointly owned by TNB and Malakoff (via Kapar Energy Ventures, KEV). The tablesbelow give the general information about the status of electricity generation in Malaysia [l 1 ,

--- - - - - ... . .~--- ~- -. ~. . -- - - . -Campuran Penjanaan (GWj) (Genera$onMix(GiVh))_-, .- . - . - . - _ - - ~ ~... . -- . .. . - - ~... ---(I) Hidro &d!o,J 5,971 4,992 4,444 4,032 4,656- ~. . - . .-.. ~ - . - . .- -(2) Gas(GaJ ; 23,223, 22,826, ' 1,636, 16,719 15,859

--.- ) --LL !(3) Ararqbatu(Cod 4,038 6,238 8,953 7,599 6,129,-,-- - - . -- ~ .- - -(4) t.linyak (Oil) 1,424 1,600 3,573 33f.l 185

- - ~- ~- ~ - - -- -~ --(5) Distilbte(Bs0'1:de) 29 235 - 13- . -- - -~ -- .

(6f Dlsel(LYesel)- - - ~~~ -- - ~ ~ .. ~

! (7j Lain-bin (Others}- .- -.Jurnl.7h (Total) 34,685 35.891 38,606 28,680 26.8r12. .... --..- .- - . -- . - ~- - -- ~~ -Table 2.1:Generation Mix of Energy in Malaysia [l 11

(I) Hidro(wm) 1,891 1,874 1.91 1,91 , 1,911-- --- .- - -. -- -

(2 Ga Tutine& Comb/ned Cyie 3,266 3,427 3,302- - -- -- - --(3) Aram$atu (Coal) 600 1,524 1,447. - -- -- ~-.(4) Cowenti& Thema' Oi!.Gas) 1,426 1,405 1,396

, .. - - . . . - - -- -- L(5) Disel (Diesel)

i f i Jumbh PenbnaanflctzIGeneration) 7,183 8,230 8,056 8,164 5,641

(9) Km PenjanaaniJen.'kL4.1)(Cat (3Generai;o~!}!sen/?rWh,J -- - - - - -. -- - -. - - - - .- - - -- - -a) Rnjanaan Serdiri(Own Ge,~eraiion} 10.60 10.89 11.25 10.20 9.3- . -- - --b) Tenaga Dihli (EnergyPurchi~sed}C) Kos Kwluruhan- (a) & @)(Ovefa/!' ost - (a}& (bJi

Table 2.2: Generation Capacity ofMalaysia [l 11


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I peninsular Malaysia1 yn Povier Generation Paka Terengganu Pa s~ r udang Johor 808 104 7 Aoril 1993

I Segan Energy Ventures Sdn Bhd Lumut. Perakpowertek Sdn Bhd Alor Gajah. MelakaPort Dickso n Sdn. Bhd. Tanjung Gemuk. Port Dickso nI pahlawan Power Sdn. Bhd Tanjung Keling. Me lakaGenting Sanyen Power Sdn Bhd Kuala Lmgat. SelangorSabah1.303 15 July 1993440 1 Disember 1993440 1 Disember 19933 3 26 May 1999720 1 July 1993

ARL Tenaga Sdn Bhd Melawa 50 14 June 1994Sewdong Power Sdn. Bhd.Pwertmn Resources Sdn. Bhd.Stratavest Sdn. Bhd .Sandakan Power corporation Sdn. Bhd

TawauKarambunaiSandakanSandakan

36 31 March 1995120 6 February 199764.4 1 October 199634 29 November 1997

Table 2.3 Independent Power Producers [12]


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CHAPTER 3.0: ANALYSIS OF RENEWABLE ENERGY IN MALAYSIA

3.1 Malaysia's Biomass

Biomass is one of the most important potential sources of renewable energy in Malaysia, dueto its enonnous output from oil palm residues and wood wastes. At present, biomass fuelsaccount for about 16% of the energy consumption in the country, of which 51% is from palmoil biomass and 22% h m wood waste [13]. Resources are also available from otheragricultural sources and agro-based industries. The basic biomass availability can besummarized as in Figure 3.1 below. Basically, there are 5 major categories of biomasssources in Malaysia; oil palm, wood, rice, sugarcane and municipal waste. Under eachcategories are listed the type of residues and wastes each one produces.

Figure 3.1:Biomass Resources in Malaysia(Source: Pusat Tenaga Malaysia)


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Table 3.1:Biomass Resource Potential

365MW and annual generation potential of 3197 GWh. Palm Oil Mill Effluent (POME) alsocan give significant contribution to the potential generation capacity with 177MW. agasse,which is the waste after sugarcane stalks arecrushed to extract their juice, and rice mills alsohave a modest generation capacity of 25MW and 30MW respectively.

Sector

Rice Mi lkWood IndustriesPalm Oil MillsBagassePOMETotal

1

1800Itg I

3 1 4 0 --c0.- 1200 -- - ibres at 28% M Cz!o S h e l l t 21% MC5 1000 -- - FB at 6S04 k1C

- EFS at 3S06MC

ij 200--n0 1 1 1 1 I m I I I 8 I I I 1 I I * I I I1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ~ 1 1o p Q " 9 2 8 s P 9 ~ o f O 9 2~ ! @ 6 ' ~ " 0 2 & 0 ~ 0 ~ ~ ~ 0 2 @,qssseeese ,@++++++++++Q+'

Year

(Source: MPOB, SIRIM, FRIM, Forestry Dept., & Ministry of Agriculture)Table 3.1 provides information about the quantity of wastes produced annually according tothe respective sectors. The palm oil mills provide the highest potential generating capacity at

Figure 3.2:Oil Palm Residues Potential Power Generation(Source: Biomass Resource Inventory Report, Biogen ProjectPTM)

Quan tity kton / yr

424

2 1 717980

30031 50072962

Potential AnnualGeneration(GWh)

26 3

59 8319721 8

15875863

PotentialCapacity(MW)30

6836525

177665


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The potential power generations of oil palm residues are depicted in the graph of Figure 3.2.comparisons are made between fibers, shells, and empty fruit bunches (EFB) at differentlevels of moisture content (MC). It can be seen that EFB with a low amount of moisture hasthe highest potential for power generation. The generation potential is expected to increase inthe future due to the expected expansion of the palm oil industry by 40% within the span of20 years [13].

Table 3.2: Potential Power Generation from O il Palm R esidues(Source: M alaysian Oil Palm Statistics 2002, 22nddition, MPOB)

Type ofIndustry

Oil palm

Table 3.2 show s the types of residues produced by the palm oil industry and their potentialgeneration capability using available data from year 2002. Empty fruit bunches (EFB) npalm oil mills is a fibrous material of purely biological origin. It contains neither chemicalnor mineral add itives and is generally available without any foreign elem ents such as gravel,nails, wood residues, waste etc. From the table, it can be seen that the residue generated isalmost 2 times the amount of fiber residue and almost 4 times the amoun t of shell. Yet it hasthe lowest potential electricity generation at 521 MW. The reason is because of its moisture

Production(ThousandTonne)

59,800

Residue

EFB a t6 5XMCF i h r

Shell

Tot al Soltd

POME(3.5m3 per ton ofCP0/65% of FFB)

ResidueproductRatio(36)

21.14

12.72

5.67

16,670.6

38,870

ResidueGenerated(ThousandTonne)12,641.7

7.606.6

3,390.7

220 2098

320

PotentialEnergyPJ

57

10 8

55

PotentialElectricityGcneration( MW)521

1032

545


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content. At 65%, the water content is too high. In average, for each kg of combustible matter,2 kg of water must be evaporated [14]. The combustion process will be cooled by theevaporation of water to an extent; therefore it is not possible to maintain good combustionquality unless the EFB s pretreated to reduce its moisture through another process before it is

I utilized for energy generation.

Shells in palm oil industries refer to the fractions after the nut has been removed during thecrushing process. They are also fibrous materials which are easily handled in bulk directlyfrom the product line to the end use. Its moisture content is low compared to other biomassresidues; therefore it has a slightly more electricity generation potential than EFB eventhough the amount of residue generated is much lower. Fiber has the largest potential

1m -. - - ---- -----.-- -- *--*A- --

loo - CI

8 0 - .- --C3L03-2=5 4 0 -n

20 -0 1

- N ~ ~ L 9 C P - D O 1 C Cr 3 0L& 0 c3

N r n W N r n N NYear

1

A Paddy Straw

Figure 3.3: Potential Power Generation from Paddy Residues(Source: Biomass Resource Inventory Report, BioGen Project PTM)


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I

increase expected fiom 2007 to 2010 but mainly the amount of residue will remain roughlythe same because the paddy production output in Malaysia has reached its peak productioncapacity and land use. The only advancement would be in the biotechnological aspect ofproduction. Due to its residue product ratio, paddy straws can potentially produce slightlymore power than rice husk. The total amount of residue generated according to data for year2000 is 1327 thousand tones, which is equivalent to about 156MW of electricity generation.

Table 3.3: Residue Product Ratio and Potential Power Generation h m addy Residues(Source: Biomass Resource Inventory Report, BioGen Project PTM)

Figure 3.3 and Table 3.3 depict the potential energy that can be harnessed fiom paddyresidues. Paddy residues consist of two parts; ricehusk and paddy straws. It can be seen thatthe graph is fairly flat with only minor fluctuations throughout1991 to 2007.There is a slight

Industry

Rlco

TOTAL

Year 2000(ThourmdTonne)

2.140

2,140

RR.2Mw

Rlco Husk

PaddyStraw

RddueCrrmatd(ThousandTonm)

47 1

856

1327

RestdueproductRatio

(XI

22

40

FwentblEn-(PJ)

7.536

8.769

16.305

PountialPowor(Mw)

72.07

83.86

155.93


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120 -

+ l p d & Vennerw 80

"""I"-- oudingwastet a,--m.- 40 -Q1.w0a 20- r - I *- -=-- I----

Year1993 IE1EI-I 1995 19% 1997 1998 1999 2CCO 220 2032

Annual Operatinghr = 61001PJ = 1OE15 = 277777.8MWh= 46 MWElectrical convemTSIonfficiency is 21%Figure 3.4: Wood Residues Potential Power Generation

(Source: Biomass Resource Inventory Report, BioGen Project PTM)

As mentioned earlier, wood residues also play a significant role in contributing towardsbiomass energy. Three types of residues and its power potential based on data available until2002 are illustrated in Figure 3.4. Plywood & Venner wastes and moulding waste has verylittle potential tobe commercialized. Only sawn timber waste has considerable capacity to beutilized. The potential plummeted fromabout 100MW in year 1997 to less than 50 MW in1998 due to environmental issues, where the amounts of trees cut were reduced inconjunction with the government's aspiration to preserve forests and slow down the processof lumbering.


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Composition of Solid MSW in MalaysiaCommercial1

Industrial

Municipal49% 2%

Malaysia has enjoyed tremendous growth in its economy over the past decade and thepopulation growth has also brought together an increase on the amount of waste generated. Astudy in 2003 estimated that the national average of waste amount produced is 0.5-0.8kglpersonjday but in the cities the figure has escalated to 1.7kg/permn/clay 1151. MSW, morecommonly known as trash or garbage is a waste type that predominately includes householdwaste and also a portion from the industrial and commercial sector. Figure 3.5 constitute, interms of percentage, the waste mix according to specific sectors. Domestic sector dominatesthe waste portion with almost 50%.

3.1.1 Municipal SolidWaste (MSW)

Figure 3.5: Composition of Municipal Solid Waste in Malaysia(Source: Biomass Resource Inventory Report, BioGen ProjectPTM)

MSW can be classified into five broad categories; biodegradable waste, recyclable material,inert waste, composite waste and hazardous waste [16]. These wastes are usually disposed atspecified landfills, but the rapid accumulation of waste and the limited availability of landfillsare causing a problem. In order to tackle the problem, solutions such as recycling are


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induced. Apart h m hat, another solution that is also beneficial in terms of energyis incineration. Burning MSW can generate energy and in the meantime reduce the

weight and volume of the waste amount by 75%and 90%respectively [ I 71.

Unfortunately, although there are preliminary studies done to assess the situation, no

ofMSW in Malaysia so that the appropriate technology for incineration can be adopted.!i

3.1.2 Biogas

conclusive studies have been published thus far. The major problem in evaluating thisproblem is the difficulty of identifjring specific amount of waste produced. In the agriculturaland industrial sector, companies rarely keep track of the waste they produce in detail.Furthermore, they are reluctant to share the knowledge openly as it might have implicationsfor them later on. Therefore, a more extensive research has to be done to assess the potential

Biogas typically refers to biofbel gas that mainly contains methane and carbon dioxide. It canbe obtained from wastes through anaerobic conditions. In Malaysia, one of the areas that canbe utilized to obtain biogas is in landfills. Landfill gas is produced from organic wastesdisposed on a landfill. The waste is covered and compressed mechanically. As conditionsbecome anaerobic the organic waste is broken down and landfill gas is produced.


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I ( --f , - I - -- -- --- - _ --. - \ - -Lm * * - * ,* : . -.-.-IFigure 3.6: TNB Jana Landfill Project

(Source: Tenaga Nasional Berhad, TNB)

I Figure 3.6 shows the Jana Landfill Project, the firstgrid-connected renewable energy projectI in Malaysia which was commissioned in April 2004. It has 2 MW of installed capacity andfueled by biogas captured h m he landfill area. A number of potential sites have beenidentified with projected capacity of approximately20 MW.

I 3.1.3 CogenerationCogeneration, also commonly referred to as Combined Heat & Power (CHP) is the combinedproduction of electricity and heat which is used in industrial and commercial processes. CHPprovides an efficient method to fulfill energy needs, as the heat that is usually wasted wouldbe captured and put to good use. Cogeneration offers a number of advantages in terms ofelectricity.Its major contribution would be assisting the main electricity utility to supply partof the demand of the grid. By achieving this, utility planning can be made easier, as the strainput on the grid can be reduced. This may lead to cost reduction and conservation of capitalinvestment, which can be reallocated to upgrade the current system to increase reliability and

quality of service.


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In line with the objective to utilize biomass to its optimum capability, the government alsoin a project dubbed BioGen, which stands for Biomass Generation& Cogeneration

project. Similar to the MBIPV program, this project is jointly funded by UNDP under the~ l o b a l nvironment Facility (GEF), the Malaysian government and private corporations. Itsmain targets are to reduce GHG emissions, to further utilize the waste residue obtained frompalm oil, and to promote growth in the power generation and cogeneration sector.

11 currently, under the Small Renewable Energy Program (SREP), 22 projects have beenapproved for palm oil wastes and 5 of them have already signed an agreement with the utilityto supply electricity. One project, TSH Resource, located in Kunak, Sabah have already beencommissioned. It has a generating capacity of 14MW of which 10 MW is sold to the utility(SESB).

The manufacturing sector in Malaysia is a major consumer of energy. Therefore, there ispotential to introduce cogeneration into this sector for self consumption andlor supplyelectricity to the national grid. Electricity intensive industries such as steel fabrication,electronics and textiles; and fuel intensive industries such as glass and ceramicsmanufacturing are sub-sectors that can utilize this option.

A number of case studies have been conducted by DANIDA on variousmanufacturing sub-sectors to determine the feasibility of cogeneration systems for futureimplementation [30,3 11 . The sub-sectors that were analyzed were as follows:

1. Paper Factories; Pulp, paper and paperboard2. Rubber Factories; Tires and rubber gloves


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3. Iron and Steel Industries; Basic steel4. Non-Metallic Industries; Ceramics and glass5 . Machinery; Electronic valves and tubes6 . Food Factories; Milk products, edible oil and sugar7. Textile; Dyeing, bleaching and finishing

The criteria used to choose these sectors are based on the extent of energy usage, overall fuelenergy to electricity ratios and practicality of usingnatural gas in the manufacturing process.

Other sub-sectors such as petroleum refining, wood, and crude palm oil are not considered inthe list because they have already incorporated part of cogeneration or efficient energyoperations in some stages of its operation.

Various CHP options are included in the study to also allow the determbtion of the mosttechnically feasible option available for each sub-sector. The variousCHP options analyzedare:1. Gas engine or turbine CHP topping cycle, generating electricity as the main product and

steam as the by-product.2. Steam turbine CHP topping cycle generating electricity as the main product and steam as

by-product processes.3. Steam turbine bottoming cycle extracting waste heat from process exhausts gas to

generate electricity.4. Gas engine or turbine CHP topping cycle with electricity generated as the main product

and the emerging exhaust gas utilized directly in the process of heating and drying.


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From the analysis, the CHP's feasibility of implementation is determined based on itsEconomic Internal Rate of Return ( E m ) . CHP is considered highly economical if its ElRRis more than 100/o, moderately economical if its EIRR is between 510% and uneconomical ifit is less than 5 %.

Table 3.4 below shows the comparison between manufacturing sub-sectors and its economic

I Table 3.4: Sub-sectors and Economical Benefits

Table 3.5 and Figure 3.7 shows the CHP potential based on present available industries andpredicted future growth fiom 2006 to 2020. It can be seen that the estimated potential can besignificantly large, depending on the scale of CHP implementation. If CHP n only developedfor off-grid applications, it can each to about 141 MW of generation by 2020. Utilizing off-grid and grid connected systems for the most economic option can provide up to 1,498MWwithin the same time frame which is about 10 times higher than off-grid applications alone.Meanwhile, a maximum value of 2,245 MW can be achieved if the maximum capacity optionis pursued.

Uneconomical Sub-sectorsTextile- Textile FinishingMachinery- Manufacturing of glass tubesfor the electronic industrySteel and Iron- Steel

Non-Metallic- Medium scale ceramic tiles- Glass container manufacture

No1

2

3

4

Economical Sub-sectorsRubber Manufacturing- Rubber Tires- Rubber GlovesPaper- Industrial Papers

Food- Sugar Refining- Edible Oil Refining- Milk ProductsNon-Metallic- Large scale ceramictiles.

analysis of renewable energy potential in malaysia

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