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ANALYSIS ON THE FUTURE ENERGY DEMAND IN MALAYSIA NARDIA BINTI ZUBIR DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ENGINEERING FACULTY OF ENGINEERING UNIVERSITY OF MALAYA KUALA LUMPUR 2012 University of Malaya

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Page 1: ANALYSIS ON THE FUTURE ENERGY AND ELECTRICITY DEMAND …studentsrepo.um.edu.my/8144/15/Thesis_Nardia-1.11.pdf · yang digunakan bagi penjanaan kuasa elektrik. Unjuran yang telah dilakukan

ANALYSIS ON THE FUTURE ENERGY DEMAND IN

MALAYSIA

NARDIA BINTI ZUBIR

DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF ENGINEERING

FACULTY OF ENGINEERING

UNIVERSITY OF MALAYA

KUALA LUMPUR

2012

Univers

ity of

Mala

ya

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ii

UNIVERSITY MALAYA ORIGINAL LITERARY WORK DECLARATION

Name of candidate : NARDIA BINTI ZUBIR

Registration/Metric No: KGH070007

Name of Degree : Master of Engineering

Title of Project Paper/Research Report/Dissertation/Thesis (“this work”): ANALYSIS ON

THE FUTURE ENERGY DEMAND IN MALAYSIA

Field of Study: Energy Balance

I do solemnly and sincerely declare that

(1) I am the sole author/write of this work; (2) This work is original; (3) Any use of any work in which copyright exists was done by way of fair dealing and

for permitted purposes and any excerpt or extract from, or reference to or reproduction of any copyright work has been disclosed expressly and sufficiently and the title of the work and its authorship have been acknowledge in this work;

(4) I do not have any actual knowledge nor do I ought reasonably to know that the making of this work constitutes an infringement of any copyright work;

(5) I hereby assign all and every rights in the copyright to this work to the University of Malaya (‘UM’), who henceforth shall be owner of the copyright in this work and that any reproduction or use in any from or by any means whatsoever is prohibited without the written consent of UM having been first had and obtained;

(6) I am fully aware that if in the course of making this work I have infringed any copyright whether internationally or otherwise, I may be subject to legal action or any other action as may be determined by UM

Candidate’s signature Date Subscribed and solemnly declared before Witness’s signature Date Name:

Designation:

Univers

ity of

Mala

ya

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iii

ABSTRACT

Malaysia as a rapidly developing country has a very unique energy profile with

mixed energy resources such as oil, natural gas, hydroelectric potential and coal. The

production of the crude oil and petroleum products in Malaysia is expected to decline

from year to year. Natural gas is the major contributor to current trending of electricity

generation while coal is expected to be the major contributor for the future pattern of the

electricity generation in Malaysia. The industrial sector is expected remain to be the

largest consumer of energy in Malaysia; while the electricity consumption from

residential and commercial sectors is expected to increase and become the major

consumer in the electricity generation.

This study is mainly about the prediction of future pattern of energy supply,

demand, electricity demand, generated, future GDP growth and environmental impact

from electricity generation in Malaysia. Most of the data were obtained and collected

from National Energy Balance Malaysia Report, Energy Commission of Malaysia and

other government bodies. The future potential of emission production can be analyzed

and calculated based on data obtained from the total electricity generation and

percentage of each type of fuel which is used to generate the electricity.

The projections under historical forecasting modeling method indicated that

Malaysia’s energy supply and demand are expected to jump 129% and 105%

respectively and total electricity demand and generated are expected to increase 58%

and 48% respectively from 2012 to 2030. Meanwhile, Malaysia’s population is

expected to increase for about 38% and Malaysia’s GDP is expected to average 4.7%

from 2012 to 2030. However, it is expected that Malaysia will be fully developed and

the economic is expected to be fully matured in year 2021. The emission production

from electricity generation also depends on the percentage of the share in fuel mix

energy used to generate the electricity; where large emission is produced when usage of

coal is at the highest share. Hence, the predicted total of future potential emission

production from 2012 to 2030 are about 7,213,758.78 Mkg of CO2, 76,307.45 Mkg of

SO2, 29,619.16 Mkg of NOx and 1,842.38 Mkg of CO.

Univers

ity of

Mala

ya

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iv

ABSTRAK

Malaysia sebagai negara membangun, mempunyai corak profil tenaga yang

sangat unik dengan pelbagai jenis campuran sumber tenaga seperti minyak, gas asli,

elektrik hidro dan arang batu. Pengeluaran minyak mentah dan petroleum di Malaysia

dijangka akan berkurangan dari tahun ke tahun, manakala gas asli pula telah menjadi

penyumbang terbesar bagi penjanaan kuasa elektrik pada masa kini. Arang batu pula

diramal menjadi penyumbang terbesar bagi penjanaan kuasa elektrik di Malaysia.

Sektor industri dijangka akan tetap menjadi penyumbang terbesar bagi sektor tenaga

Malaysia. Sementara itu, penggunaan tenaga dari sektor perumahan dan komersial pula

diramal akan meningkat dan sekaligus menjadi penyumbang utama dalam penjanaan

kuasa elektrik.

Fokus utama disertasi ini adalah ramalan masa hadapan bekalan dan permintaan

tenaga, permintaan elektrik, penjanaan kuasa elektrik, Keluaran Dalam Negara Kasar

(KDNK) dan juga kesannya terhadap alam sekitar hasil dari penjanaan kuasa elektrik di

Malaysia. Kebanyakan data diperolehi dari laporan keseimbangan tenaga kebangsaan

(NEB) Malaysia, Suruhanjaya Tenaga dan lain-lain badan kerajaan yang berkaitan.

Potensi bagi hasil pengeluaran gas pada masa akan datang boleh dianalisa berdasarkan

data dari jumlah penjanaan kuasa elektrik disamping peratusan setiap jenis bahan api

yang digunakan bagi penjanaan kuasa elektrik.

Unjuran yang telah dilakukan melalui kaedah ramalan konvensional mendapati

bekalan dan permintaan tenaga di Malaysia dijangka melonjak sehingga 129% dan

105%. Manakala jumlah permintaan elektrik dan penjanaan kuasa elektrik adalah

dijangka meningkat ke 58% dan 48% dari tahun 2012 hingga 2030. Sementara itu,

populasi di Malaysia dijangka akan meningkat ke 38% dan anggaran bagi Keluaran

Dalam Negara Kasar (KDNK) di Malaysia juga dijangka meningkat dan berada pada

kadar purata sebanyak 4.7% dari tahun 2012 hingga 2030. Malaysia dijangka menjadi

sebuah negara yang pesat membangun dengan pertumbuhan ekonomi matang pada

tahun 2021. Penghasilan emisi gas dari penjanaan kuasa elektrik juga bergantung

kepada peratusan campuran bahan api yang digunakan. Pengeluaran emisi gas didapati

paling banyak terhasil apabila penggunaan arang batu berada pada peratusan paling

tinggi. Justeru, ramalan jumlah potensi penghasilan emisi gas dari tahun 2012 hingga

2030 dianggarkan sebanyak 7,213,758.78 Mkg bagi gas CO2, 76,307.45 Mkg bagi gas

SO2, 29,619.16 Mkg bagi gas NOx dan 1,842.38 Mkg bagi gas CO.

Univers

ity of

Mala

ya

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v

ACKNOWLEDGMENTS

This dissertation would not have been possible without the guidance and the

help of several individuals who in one way or another contributed and extended their

valuable assistance in the preparation and completion of this study.

Firstly, I would like to thank Allah, the Almighty for giving me the strength,

determination, perseverance and ability to successfully complete this dissertation.

I would like to express my utmost appreciation and gratitude to my supervisor,

Prof Dr. T.M Indra Mahlia in giving me opportunity and kind consideration to complete

my dissertation besides sharing valuable insights to the research work. Deep and sincere

thanks also go to En Zaharin Zulkifli from Energy Information Unit Energy

Management and Industry Development Department Energy Commission of Malaysia

and Pn. Sazalina Zakaria from GreenTech Malaysia Sdn. Bhd for giving me guidance,

advice, encouragement and being accommodating to all my queries.

Special thanks to my family members especially my dearest mother and sisters

who continuously giving me support, encouragement and advice as I hurdle all the

obstacles in the completion this research work. Last but not least, thanks to all my

friends for their unfailing moral support and encouragement to complete the dissertation.

Univers

ity of

Mala

ya

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vi

CONTENTS

ORIGINAL LITERARY WORK DECLARATION ii

ABSTRACT (ENGLISH)

ABSTRACT (MALAY)

iii

iv

ACKNOWLEDGMENTS v

CONTENTS vi

LIST OF FIGURES ix

LIST OF TABLES xii

NOMENCLATURE xv

CHAPTER 1: INTRODUCTION

1.1 Overview 1

1.2 Background 3

1.3 Objectives of the study 5

1.4 Scope of the study 5

1.5 Organization of the dissertation 6

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction 8

2.2

2.3 2.4

Overview of the energy profile and energy pattern in Malaysia

2.2.1 Energy demand in Malaysia by sectors

2.2.2 Energy growth forecast

Overview of the world and Malaysia’s electricity generation

2.3.1 Electricity supply in Malaysia by sources

2.3.2 Electricity growth forecast

Overview of environmental impact from energy supply and electricity generation 2.4.1 Overview of emission production

2.4.2 Emission production from the energy sector

2.4.3 Power plants emission

8

12

16

17

20

26

30

32

36

37

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vii

CHAPTER 3: METHODOLOGY

3.1

3.2

3.3

3.4

Introduction

Method analysis for the future energy pattern in Malaysia

Method analysis for the future pattern of electricity generation in Malaysia Method analysis for the environmental impact from electricity generation in Malaysia

38

40

45

55

CHAPTER 4: RESULTS AND DISCUSSIONS

4.1 4.2 4.3 4.4

Introduction Results and Discussions for the Prediction of Future Energy Pattern in Malaysia 4.2.1 Prediction for the future total primary energy supply and total final energy demand in Malaysia 4.2.2 Prediction for the commercial energy supply from year 2012 to 2030 4.2.3 Prediction for the future final energy use by sectors from year 2012 to 2030 4.2.4 Prediction for the future final energy consumption and real GDP from year 2012 to 2030 Results and Discussion for the Prediction of Future Electricity Generation in Malaysia 4.3.1 Prediction for the future electricity demand and electricity generated in Malaysia 4.3.2 Prediction for future electricity generation from various mix energy (exclude co-generation and private licensed plants) from year 2012 to 2030 4.3.3 Prediction for the future total electricity generation for various types of power plant from year 2012 to 2030 4.3.4 Prediction for the future electricity consumption by sectors from year 2012 to 2030 4.3.5 Prediction for the future trends in GDP, total electricity demand

per capita (toe/capita) and total electricity generated per capita (toe/capita)

Results and Discussion for the Environmental Impact due to the Emission Production from the Electricity Generation in Malaysia 4.4.1 Prediction of the future potential emission production from the electricity generation in Malaysia 4.4.2 Prediction of the future potential emission per unit of electricity generation in Malaysia 4.4.3 Review on the emission effects from various types of power plant in Malaysia from year 2000 to 2008 4.4.4 Discussion on the emission effects from various types of power plant in Malaysia from year 2000 to 2008

59 63

64

66

68

70

73

73

75

78

81

85

91

91

95

98

101

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viii

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions 105 5.2 Recommendations 107 REFERENCES

109 APPENDIX

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ix

LIST OF FIGURES

No 2.1 2. 2 2. 3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

3.1

4.1

4.2

4.3

4.4

Description

Final Energy Demand By Sectors

Final Energy Demand

GDP and Population

Malaysia’s Electricity Generation Mix (2003)

Malaysia’s Electricity Generation Mix (1990-2003)

Electricity Generation Mix

Growth in world electricity generation and total delivered energy

consumption, 1990-2035 (index, 1990=1)

Trends in GDP and electricity consumption (GWh) in Malaysia

From year 1990-2003

CO2 emission at Malaysia, 1980-2006

CO2 Emissions by Sector

Research methodology flowcharts

Prediction trend of total primary energy supply and total final energy

demand from year 1990 - 2030

Prediction pattern for commercial energy supply from year 1990-2030

Final energy use by sectors in Malaysia for year 2008

Prediction of future final energy use by sectors in Malaysia for year 2030

Page

12

16

17

20

21

21

27

28

30

37

39

65

67

69

69

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x

No

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

Description

Prediction of final energy consumption and real GDP from year

1990 – 2030

Prediction trend of future electricity demand and electricity generated

from year 1990 - 2030

Prediction pattern of the future electricity generation in Malaysia from

various mix energy (exclude co-generation and private licensed plan)

from Year 1990-2008

Prediction pattern of electricity generation in Malaysia power plants by

type of power plant from Year 1990 – 2008

Prediction pattern of total electricity consumption by sectors in Malaysia

from year 1990 - 2030

Total Electricity Consumption by sectors in Malaysia for the year 2008

Prediction of future electricity consumption by sectors in Malaysia for

the year 2030

Electricity Demand per Capita, Total Electricity Generated and Real

GDP from Year 1990 - 2030

Prediction of Future Trends in GDP and Electricity Demand from Year

1990 - 2030

Trends in Annual Growth Rates of GDP, Energy Demand and

Electricity Demand in Malaysia from 1990 - 2030

Potential trend of emission production from electricity generation from

year 1990-2008

Page

72

74

77

80

83

83

84

88

88

90

93

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xi

No

4.16

4.17

4.18

4.19

Description

Potential trend of emission production per unit electricity generation

from year 1990-2030

Emission production from various types of power plants from year

2000 – 2008

Malaysia Installed Capacity in Year 2000

Malaysia Installed Capacity in Year 2008

Page

97

100

102

102

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xii

LIST OF TABLES

No

2.1

2.2

2.3

2.4

2.5

2.6

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

Description

Energy Mix in Malaysia from Year 1980-2003

OECD and non-OECD net electricity generation by energy source, 2008-

2035 (trillion kilowatt hours)

Major Electricity Producers in Malaysia

Table: Fuel Mix (per cent) in Total Electricity Generation, Malaysia,

2000-2010

Projection of maximum demand (MW) for Peninsular Malaysia,

Sabah and Sarawak

Malaysia Ambient Air Quality Guidelines Pollutant

Total primary energy supply and total final energy demand

Commercial energy supply

Final energy use by sectors

Table Final Energy Consumption and Real GDP

GDP growth assumption in Malaysia to 2030

Total electricity demand, total electricity generated and population

Total electricity generation from various mix energy

(exclude co-generation and private licensed plants)

Fuel types consumption in all types of Malaysian thermal power plants

Total electricity generation (GWh) for various types of power plant

Page

9

18

19

22

29

33

41

41

42

42

43

46

46

47

47

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xiii

No

3.10

3.11

3.12

3.13

3.14

3.15

3.16

3.17

4.1

4.2

4.3

4.4

4.5

Description

Total electricity consumption by sectors.

Trends in GDP and population with electricity demand and generated.

Trends in annual growth GDP (%), annual growth final energy demand

(%) and annual growth final electricity demand (%)

Percentage of electricity generation based on fuel types.

CO2, SO2, NOx and CO emission from fossil fuel for a unit of electricity

generation

Nominal capacity (MW) for various types of Malaysian power plant

from 2000 - 2008.

Electricity generation (GWh) for various types of power plant from year

2000 - 2008

Power plants electricity generation contribution (%) from year 2000 -

2008

Forecasted for the future total primary energy supply and total final

energy demand in Malaysia from year 2012 - 2030

Forecasted for the commercial energy supply in Malaysia from year 2012

- 2030

Forecasted for the future final energy use by sectors in Malaysia from

year 2012 - 2030

Forecasted for the future final energy consumption and real GDP in

Malaysia from year 2012 – 2030

Forecasted for the future total electricity demand and electricity

generated in Malaysia from year 2012 - 2030

Page

48

49

50

55

56

57

58

59

64

66

68

71

73

\

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xiv

No

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

Description

Forecasted for the future electricity generation from various mix energy

(exclude co-generation and private licensed plants) from year 2012 -

2030

Forecasted for the future total electricity generation for various types of

power plant from year 2012 - 2030

Forecasted for the future electricity consumption by sectors in Malaysia

from year 2012 - 2030

Total electricity demand per capita (toe/capita), total electricity generated

per capita (toe/capita) and GDP in Malaysia from year 1990 - 2008

Forecasted for the future total electricity demand per capita (toe/capita),

total electricity generated per capita (toe/capita) and GDP in Malaysia

from year 2012 - 2030

Forecasted for the future annual growth rates of GDP, final energy

demand and electricity demand in Malaysia from year 2012 -2030

Forecasted electricity generation and percentage mix of electricity

generation in Malaysia from year 2012 - 2030

Potential emissions production by electricity generation in Malaysia from

year 1990 - 2000

Prediction of future potential emissions production by electricity

generation in Malaysia from year 2012 - 2030

Emission per unit of electricity generation (kg/GWh) from Year 1990 -

2008

Prediction of future potential emission per unit of electricity generation

(kg/GWh) from Year 2012 - 2030

Emission production from various types of power plants from year

2000 – 2008

Page

76

79

82

86

87

89

91

92

92

95

96

99

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xv

NOMENCLATURES

Symbols

c,k

ED

EGi

EMi

Emn p

EM p

i EMP EP

p i

FGi f

GDP

i

P

PD

PEn

i

p i

PPC x y

% GDP

Description

Constant value

Electricity Demand

Total electricity generation from all types of fuel

Total emission (kg or ton) ; i = year

Fossil fuel emission for a unit of electricity generation (Emission factor); n = types of fuel (kg); p = types of emission gasses Annual emission production; i = year; p = types of emission gasses Emission from power plant Emission per unit electricity generation; i = year; p = types of emission gasses Electricity generation from various types of fuel; i = year; f = types of fuel Gross Domestic Product

Particular year

Population

Total Electricity Demand per Capita Percentage of electricity generation ; i = year; n = fuel type (%) previous year (a year before)

Percentage of power plant contribution, f – depends on types of fuel used year predicted–year start

predicted value

Annual Growth Gross Domestic Product

Unit

(J)

(GWh)

(kg)

(kg/GWh)

(kg)

(kg)

(kg/GWh)

(GWh)

(RM)

(J/capita)

(%)

(%)

(%)

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xvi

Symbols

% ED

% ECD

% FGi f

ΣFG

Description

Annual Growth Energy Demand

Annual Growth Electricity Demand

percentages of the various types of fuel for electricity generation; i = year ; f = types of fuel Total electricity generation (GWh) ; i = year

Unit

(%)

(%)

(%)

(GWh)

Abbreviations APEC

BAU

CDM

CO

Asia-Pacific Economic Cooperation

Business-as-usual

Clean Development Mechanism

Carbon monoxide

CO2

COGEN

EE

EIA

EPU

ERIA

ESP

FGD

FiT

GDP

GHG

GJ

GT

GWh

IPPs

KDNK

KeTTHA

Kg

KWh

LNG

Carbon dioxide

Cogeneration

Energy-efficient

Environmental Impact Assessment

Economic Planning Unit

Economic Research Institute for ASEA and East Asia

Electrostatic Precipitators

Flue Gas Desulphurisers

Feed in Tariff

Gross domestic product

Green house gases

Gega Joule

Green Technology

Giga watt hours

Independent Power Producer

Keluaran Dalam Negara Kasar

Kementerian Tenaga, Teknologi Hijau dan Air Malaysia

(The Ministry of Energy, Green Technology and Water)

Kilogram

kilo watt hours

Liquid Natural Gas

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xvii

LPG

Mkg

MSEU

MJ

MW

NEB

NEB

NO2

NOX

NRC

NUR

OECD

OPP2

PM

PTM

Liquefied Petroleum Gas

Mega Kilogram

Malaysia Sustainable Energy unit

Mega Joule

Megawatts

National Electricity Board

National Energy Balance

Nitrogen dioxide

Nitrogen oxide

National research council

Northern Utility Resource

Organization for economic co-operation and development

Outline Perspective Plan 2

Particulate Matter

Pusat Tenaga Malaysia

(Malaysia Energy Center)

R&D

RE

RM

SESB

SESCo

SO2

SREP

ST

TJ

TNB

TSP

TWh

UM

UN

US

Research and development

Renewable Energy

Ringgit Malaysia

Sabah Electricity Sdn. Bhd

Sarawak Electricity Supply Corp

Sulphur dioxide

Small Renewable Energy Power

Suruhanjaya Tenaga

(Energy Commission of Malaysia)

Tera Joule

Tenaga Nasional Berhad

Total Suspended Particulate

Tones watt hours

University Malaya

United Nation

United States

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1

CHAPTER 1

INTRODUCTION

1.1 Overview

Malaysia has considerable energy resources, in the form of oil, natural gas,

hydroelectric potential and coal with about 4.4 billion barrels reserves of oil. Currently,

Malaysia is a net exporter of energy (Jacob, 1997). The country registered a total net

export of 1,101,642 TJ in 2001. LNG was the largest exports followed by crude oil.

However, Malaysia is a net importer of coal and mostly to meet the need of electricity

generation (Taha, 2003). Associated gas contribute approximately 325 billion standard

m3 from the total of 1.92 trillion standard m3 of natural gas discovered in Malaysia The

hydroelectric potential in the country is about 29,000 MW while an annual energy

output is 123 TWh. Malaysia’s coal reserves are estimated 977,000 million kg. In the

1980s, the installed capacity for electricity generation mainly from oil and natural gas-

powered plants increased at an average annual rate of 9.2%. The average annual growth

rate in consumption during this period was 9.1%. The industrial sector accounted for a

major share of the growth which is 46% in 1990, followed by the commercial sector,

31% and residential sector, 20%. Over 82% of households had access to electricity by

1990 due to government emphasis on rural electrification programmes (Jacob, 1997).

Currently, Tenaga Nasional Berhad (TNB) undertakes Electricity supply in

peninsular Malaysia while in Sabah and Sarawak by the Sabah Electricity Board (SEB)

and Sarawak Electricity Supply Corporation (SESCO) respectively. All three utilities

carry out generation, transmission and distribution of electricity in their operating areas.

In 1990, TNB was incorporated as a private company with the Government of Malaysia

owning over 70% of its equity. TNB had an installed capacity of about 7,400 MW in

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May 1995. The installed capacity is supplemented with about 2,000 MW of capacity

from independent power producers (IPPs) to meet a maximum demand of about 5,900

MW. TNB generated 33.984 TWh of electrical energy in its financial year ending on

August 31, 1994. About 42% was from natural gas, 30% from oil, 13% from coal and

15% from hydro. TNB currently serves about 3.53 million consumers which consist of

3.0815 million domestic, 429,800 commercial, 11,400 industrial, 11,200 public lighting

and 100 mining. SESCO had an installed capacity of 524 MW for a maximum demand

of about 245MW at the beginning of 1994. In 1993, it generated about 1,456 GWh of

energy. From the total energy, 56% was from natural gas, 29% from hydro and 15%

from oil. Currently, SESCO serves about 211,700 consumers which consist of 177,100

domestic, 32,300 commercial, 500 industrial and 1,800 public lighting. Meanwhile, at

the beginning of 1994, SEB’s installed capacity was 454 MW which catered for a

maximum demand of about 280 MW. In 1993, from the 1,540 GWh of energy

generated, the mix of sources was 49% oil, 26% hydro and 25% natural gas. Currently,

it serves about 192,700 customers which consist of 161,300 domestic, 27,500

commercial, 3,100 industrial and 800 public lighting (Jacob, 1997).

Electricity has become a vital factor sustaining the well-being of the Malaysian

people whereas, burning fossil fuels such as coal, oil, gas or hydropower for producing

electricity creates by-products such as CO2, SO2 and NOx. The by-products which can

trigger pollution when released into environment may change the planet’s climate and

may also harm ecosystems. They form a heat-trapping blanket around the earth and

absorb radiant energy that contributes to the greenhouse effect as the concentrations of

pollutants increase. The increased in electricity production has released global warming

pollutants faster than natural processes can remove it, leading to human-caused

warming of the globe over the past, more than three decades (Al-Amin et al., 2007).

National Green Technology that was launched by our Prime Minister, Datuk Seri

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Najib Tun Razak in 24 July 2009 stated that the National Green Technology Policy is built

on four pillars, which are (1) seek to attain energy independence and promote efficient

utilization, (2) conserve and minimize the impact on the environment, (3) enhance national

economic development through use of green technology (GT) and (4) improve the quality

of life (KeTTHA, 2009). Thus, forecasting becomes an important tool in economic

forecasting through the century, particularly in the business cycles as economic

activities increase. Meanwhile, the cost of supplying energy will get more expensive in

the future. As the economy keeps on expanding, demand for energy will continue to

increase. Due to this, forecasting tools are very useful in charting our future energy

market for energy decision planning and development. Energy is vital factor in

economic development and recognized as one of the prime agent in the productivity

increase. The availability of energy, economic activity and improvements in standards

of living as well as overall social well being provide a strong relationship between them

(Ismail and Mahpol, 2005).

1.2 Background

The four-fuel policy which focuses on oil, gas, hydro, and coal is a strategy to cut

down on the usage of oil and hence promote the use of non-oil resources. This is due to

the increase of the oil price. However, during the Eighth Malaysia Plan, Malaysian

Government officially announced the Development of a Strategy for Renewable Energy

as the Fifth Fuel project to assess the use of renewable energy (RE) potential in

Malaysia such as hydro power, biomass, biogas, municipal waste, landfill, solar thermal,

photovoltaic, fuel cell and so on and so forth will be researched and used to further

diversify Malaysia’s energy sector. This policy supersedes the Four-Fuel Diversification

Policy, replacing fossil fuel with renewable energy which will contribute to preservation

of the environment.

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Current trending for electricity generation is increased year by year and it was

expected to increase more than double in the future. Between 2000 and 2005, the

sources of fuel for power generation were further diversified with the increased use of

coal, consistent with the strategy to ensure security and reliability of electricity supply

as well as to reduce the high dependence on gas. With regard to electricity pricing, the

availability of electricity in adequate quantity and quality and at reasonable prices is

necessary for the promotion of industrial development. Efforts will be carried out to

ensure stability in electricity tariffs at acceptable and internationally competitive levels.

In the meantime, strategies to generate sufficient revenues through power utilities for

future development plans will be taken into account.

From the analysis that have been made for the current and future pattern of energy

and electricity demand in Malaysia, the trending show that the demand will be

increasing tremendously year by year. The increasing demand in electricity generation

from various power plants in Malaysia will affect the environment by emitting various

types of emission gasses. With reference to the Eighth Malaysian plan, the government

has ratified the Kyoto Protocol in September 2002. As a non-Annex 1 country,

Malaysia is able to utilize the Clean Development Mechanism (CDM) as a mean to

reduce domestic CO2 emissions as well as for technology transfer from developed

countries. This will ultimately create investment opportunities in the greenhouse gas

emission reduction projects.

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1.3 Objectives of this study

The framework proposed in this dissertation focuses on the current and future

pattern of energy supply, demand, electricity demand, generation and also the

environment impact from the electricity generation. The objectives of this study can be

summarized as follows:

1) To forecast future energy pattern from year 2012 until 2030 and review the

current trend in Malaysia.

2) To forecast future pattern of electricity generation from year 2012 until 2030

and review the current trend in Malaysia.

3) To analyze the future potential emission production from the future electricity

generation in Malaysia

1.4 Scope of the study

This study includes the analysis of the current trending and future pattern of

energy demand, energy supply, electricity demand and electricity generation in

Malaysia. The analysis on the energy and electricity demand from various sectors in

Malaysia is also considered. This study will help us to discover which sector will be the

major contributor on the future energy and electricity demand in Malaysia. It is also

help us to discover which power plant is expected to be the major contributor to

generate the electricity in Malaysia, based on the future prediction of possible various

mix energy used. Analysis on the economic impact on the future annual growth rates of

GDP, energy demand and electricity demand in Malaysia also being analyzed on this

study. Besides, this study also involved on the analysis of the future potential emission

production from future total electricity generation and from various types of power

plants that have been used to generate the electricity in Malaysia. Therefore, from the

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results analysis, in order to gain energy supply which are sustainable and secure,

Malaysia should adopt various energy policies.

This study is not an experimental basis, so it does not involve any experimental

setup. This study is mainly involved the data analysis. Some of the relevant information

and data were obtained anonymously. Therefore the study for the future energy demand,

energy supply, electricity demand, generation and the environmental impact are carried

out with the assumption that the data given by Malaysian Green Technology

Corporation (GreenTech Malaysia) formerly known as Malaysia Energy Center or Pusat

Tenaga Malaysia (PTM), Energy Information Unit Energy Management and Industry

Development Department Energy Commission of Malaysia (ST) and Tenaga Nasional

Berhad (TNB) are accurate, reliable and acceptable. The rest of the data needed for

calculation were taken from several sources such as country reports and journal articles.

1.5 Organization of the dissertation

The dissertation comprises of 5 chapters and the organizations of the dissertation

are as follows:

Chapter 1 is an introduction, which introduces the background, objectives, scope

of study and together with organization of the dissertation

Chapter 2 presents a literature review that consists of an overview of the energy

profile and energy pattern in Malaysia, overview of the world and Malaysia’s electricity

generation and overview of environmental impact from energy supply and electricity

generation in Malaysia.

Chapter 3 deals with research methodology which includes the analysis for the

future energy pattern in Malaysia, analysis for the future pattern of electricity

generation in Malaysia and analysis for the environmental impact from electricity

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generation in Malaysia. The process starts with the data findings, interview and

discussion with the technical persons and personnel from Tenaga Nasional Berhad

(TNB), Malaysian Green Technology Corporation (GreenTech Malaysia) and Energy

Information Unit Energy Management and Industry Development Department Energy

Commission of Malaysia. The analysis was then followed with the historical modeling

method to calculate the future energy demand, supply, electricity demand, generation

and emission production from electricity generation in Malaysia. The calculations were

also involved in analyzing the future annual growth rates of GDP, energy demand and

electricity demand in Malaysia.

Chapter 4 presents results and discussion as follows:

i) Results and discussion based on objectives 1, which are on the prediction

of future total primary energy supply and total final energy demand in

Malaysia, future commercial energy supply, future final energy use by

sectors, future final energy consumption and real GDP.

ii) Results and discussion based on objectives 2, which are on the prediction

for the future electricity demand and electricity generated in Malaysia,

future generation from various energy mixes, future total electricity

generation for various types of power plant and future electricity

consumption by sectors.

iii) Results and discussion based on objectives 3, which are on the prediction

of the future potential emission production from the electricity generation

in Malaysia, future potential emission per unit of electricity generation in

Malaysia, review and discussion on the emission effects from various

types of power plant in Malaysia from year 2000 to 2008

Chapter 5 is divided into two sections, which are conclusion of the present work

and recommendations.

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

Final energy consumption grew at a fast rate of 5.6 percent between 2000 and

2005 to reach 1,628,743 TJ in 2005. It is parallel with Malaysia’s rapid economic

development. A substantial portion of the energy consumed, about 63%, was from oil. It

was mainly utilised in the transport and industrial sectors. Natural gas consumption also

increased rapidly in line with fuel electricity demand. The share of natural gas in total

installed electricity generation capacity remains high at 70% in 2005, although has

reduced slightly from 77% in 2000. In 2005, the share of coal only reached 22%

although the government has made considerable efforts to increase the share of coal in

the electricity generation mix (APEC, 2006).

2.2 Overview of the energy profile and energy pattern in Malaysia

Malaysia adopted the Five-fuel Diversification Strategy of energy mix in year

1999. According to this policy, five main energy sources which are natural gas, coal,

oil, hydro and renewable energy contributed to the energy mix in Malaysia (Mohamed

and Lee, 2006). With reference to our Prime Minister keynote address, fossil fuels are

expected to remain as dominant source of energy for decades. Renewable energy (RE)

such as solar, wind, biofuel, biomass and geothermal heat are expected to double until

the year of 2030 despite the fact that their share in the energy mix is around 5.9% of

total energy demand by year 2030 (Najib, 2009). As referred to the sources taken from

Mohamed and Lee (2006); Abdul-Rahman (2003) and BioGen (2003), Table 2.1 shows

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the share of energy mix in Malaysia from year 1980 to 2003. The renewable energy was

recognized as being the fifth fuel in the energy mix supply.

Table 2.1 Energy Mix in Malaysia from Year 1980 - 2003 Source of energy 1980 (%) 1990 (%) 2000 (%) 2003 (%)

Oil 87.9 71.4 53.1 6.0 Natural Gas 7.5 15.7 37.1 71.0 Hydro 4.1 5.3 4.4 10 Coal 0.5 7.6 5.4 11.9 Biomass - - - 1.1 Sources: (Abdul-Rahman, 2003;BioGen, 2003)

From the study, it is discovered that in year 1983, the contribution of natural gas

in the energy mix increase significantly throughout the years. Natural gas is supplied via

a gas reticulation system installed by the PETRONAS. It was found that, Malaysia is

being one of the main producers of natural gas in Asia, whereby the reserves of natural

gas are the largest in South East Asia and also 12th largest in the world. The study also

reviewed that the natural gas could maintain its contribution to the energy mix as the

main source of energy for the next 87 years if we were to compare with oil for about 12

years (Mohamed and Lee, 2006).

Meanwhile, coal was found to be the cheapest and most abundantly available

fossil fuel. Countries like USA and China use coal as their main source of fuel and thus

coal play significant role in the energy mix. As referred to the previous Table 2.1; in

year 2003, about 12% of coal has contributed to the energy mix in Malaysia, while in

year 2008 about 30% or 14,200 MW of coal has contributed in total energy

consumption while in year 2013, it is expected to increase up to 42% or 17,600 MW

(Mohamed and Lee, 2006; Oh et al., 2010). According to (Thaddeus, 2002), 69% of

coal reserve in Malaysia is found in Sarawak while 29% are found in Sabah while the

remaining 2% are found in Peninsular Malaysia. Mohamed and Lee (2006) also

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mentioned that, Malaysia’s coal reserves are actually sufficient to meet its demand but

we are still importing the coal from other countries mainly from Australia, Indonesia,

China and South Africa due to the high extraction cost of locally sourced coal. The

study also found that the coal reserves with low ash and sulfur levels in Malaysia have

heat values ranging between 21,000 and 30,000 kJ/kg. In Malaysia, two coal fired

plants which are located at Kapar and Jaamanjung owned by Tenaga Nasional Berhad

(TNB) while another two coal fired plants which are located at Tanjong Bin and Jimah

owned by independent power producer (IPPs) (Oh et al., 2010). According to Kataoka

(1992), the installments of gas cleaning technology will increase the capital costs of the

power plant. The installation of a wet-type flue gas desulfurization for instance has an

efficiency of removing more than 90% of the SO2 produced and will add an additional

dollar per unit kW to the capital cost.

Hydropower is expected to play significant role in energy generation mix due to

fossil fuel supply constraint and hike in the prices. For Peninsular Malaysia, its share in

generation mix is expected to increase from 5% in 2008 to 35% in 2030. Thus, TNB

needs to maintain the reserve margin at around 20% in Peninsular Malaysia. The

development plans of large hydroelectric projects under the Sarawak Corridor of

Renewable Energy which span over a period of 22 years has potential to generate about

28,000 MW of electricity once fully developed (Malaysia Today, 2008).

Nevertheless the study has found that, hydropower dams have significant

contributions to human development. Hydropower dams can generate electricity that is

clean and renewable. Besides, electricity from hydropower is relatively cheaper when

compared to other sources (oil and natural gas) and the cost will not be affected by the

changing fuel prices. Apart from that, many hydropower projects had also brought

considerable socio-economic development such as flood control, irrigation, tourism,

local employment, skills development, rural electrification, the expansion of physical

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and social infrastructure such as roads and schools as well as the opening up of interior

areas of the country to other economics (Mohamed and Lee, 2006).

Based on the finding by Mohamed and Lee (2006), the role of oil in the energy

mix is affected considerably by the depleting reserves as well as oil price hike. Table

2.1 has proven that oil contributes in the energy mix and it has declined sharply from

90% in the year 1980 to merely less than 10% in the year 2003. This occurred after the

implementation of fuel diversification strategy in 1981 due to the international oil crisis

in 1973 and 1979 (Mohamed and Lee, 2006; Ong et al., 2011). The proven oil reserves

in Malaysia of about 5.46 billion barrels and 68% are situated in east Malaysia, Sabah

and Sarawak. It was indicated that Malaysia’s oil reserves will be exhausted in next 21

years based on the scenario that the production rate is consistent at around 700 thousand

barrels per day with the ratio between reserve and production is 21 (Ong et al., 2011).

Bigger challengers are being faced in findings solution to overcome the problem

of depleting natural resources, climate change, energy supply and food security in

meeting the increasing demand for energy without damaging the environments (Oh et

al., 2010; Koh and Lim, 2010). Therefore, for over more than 30 years, there are several

key policies and strategies have been developed by Malaysian government to mitigate

the issues of security, energy efficiency and environmental impact in order to achieve

the nation’s policy and meet the rising in energy demand. The implementation of fifth-

fuel strategy 2000 that was introduced in the 8th Malaysia Plan (2001-2005) also

promoted the use of RE to reduce the dependency on fossil fuel. This is due to the rising

of global concern on climate change. In May 2001, the Small Renewable Energy Power

(SREP) Programme was officially launched. So far, the target of 350 MW of electricity

generation from RE for example biomass, mini-hydro, solar, biogas and municipal

waste as alternatives to fossil fuel has not been achieved (Mustapa et al., 2010, Hashim

and Ho, 2011). Thus, to promote low carbon economy and society in the future,

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effective policies and incentive on RE are critical aspects and should be strongly

emphasized (Hashim and Ho, 2011).

The previous study from Al-Mofleh et al. (2009) also revealed that the energy

conservation policy in Malaysia has modestly improved for the last ten years and

therefore, Government of Malaysia should focus in adopting more energy efficiency

technologies in various sectors.

2.2.1 Energy Demand in Malaysia by Sectors

According to the previous study that has been conducted by Gan and Li (2008), it

is predicted that the total primary energy consumption will be triple by the year 2030.

Meanwhile, based on annual growth rate of 8.1%, the final energy demand is predicted

about 4,856,920 TJ in year 2020 (Keong, 2005). Final energy demand is estimated to

grow at 3.9 percent per year, reaching 4,132,569 TJ in 2030, nearly three times the 2002

level over the outlook period. The industry sector will have the highest growth rate of

about 4.3%, followed by transport at 3.9%, residential at 3.1% and commercial at 2.7%

(APEC, 2006).

-500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,000

1980 1990 2002 2005 2010 2020 2030 Year

TJIndustry Transport Commercial Residential

Figure 2.1 : Final Energy Demand By Sectors (Source : APERC Analysis 2006)

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2.2.1.1Energy Demand by Industry Sector

The shifting in industry structure, from energy-intensive to non-energy-intensive

industries, apart from improvement in energy efficiency will lead to the lower

forecasted growth in energy demand. Over the past two decades, energy demand in the

industrial sector is forecasted to grow at an average annual rate of 4.3% until 2030,

lower than its average annual growth of 7.5%. Energy intensity in the industrial sector is

expected to reduce at an annual rate of 0.8%, reaching 4,396 GJ per US$ million in

2030 from 5,527 GJ per US$ million over the outlook period in 2002. While the share

of oil in industrial energy demand is estimated to fall to 21 percent in 2030 from 35

percent in 2002 as the government promotes diversification of fuel sources. Natural gas,

with its large reserves and robust demand for petrochemical feedstock on the other hand

is forecasted to grow at 5.0% per year. Natural gas demand will surpass oil as the

leading fuel, and will account for 43% of industrial energy demand in 2030. Meanwhile,

renewable energy is estimated to grow at 2.7 percent per year. However, its share to

total industrial energy demand will remain at less than 1% in 2030. Biomass, which is

mainly used in cogeneration by palm oil industries, will account for almost all of the

demand for renewable fuels (APEC, 2006).

2.2.1.2 Energy Demand by Transport Sector

The transportation sector of Malaysia relies heavily on the road transport sub-

sector. In 2002, energy demand for road transport accounted 86% of the total transport

energy demand. In Kuala Lumpur for instance, urban transport relies heavily on

passenger vehicles, since rail infrastructure has not yet been well developed to connect

the city centre with the rest of residential suburbs. Inter-city passenger and freight

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movement rely on road transport due to limited availability of rail transport. As

Malaysia considers the auto manufacturing industry as an important driver for economic

development, passenger vehicle ownership has been promoted. Because of this, in 2002,

Malaysia has a relatively high level of passenger vehicle ownership of about 180 per

1,000 populations. Energy demand in road transport is estimated to grow at an annual

rate of 3.5%. The trend of growth shows gasoline growing at 2.9% per year, diesel at

4.2% per year while natural gas at 9.2% per year., Slowdown in population growth

towards the end of the outlook period, government measures to develop alternative

modes of transport such as rail, and improvements in efficiency for passenger vehicles

may have contributed to the slower growth rate for gasoline. In contrary diesel demand

for freight trucks will be mainly driven by the constant growth in manufacturing and

construction. Natural gas contributes to the fastest growth in road transport, as Malaysia

plans to mitigate road induced air quality problems by converting diesel-powered buses

to CNG, and promoting natural gas passenger vehicles. The natural gas share in the total

road transportation energy demand however will remain small at around 1% throughout

the outlook period. Energy demand for air transport is projected to grow at the fastest

growth rate of 5.8% per year. Malaysia targets to become a regional hub for air

transport, and is actively inviting international air carriers by providing landing tax

incentives for a number of years. Malaysia expects to increase the volume of

international air travel along with integration of economic activities among ASEAN

economies (APEC, 2006).

2.2.1.3 Energy Demand by Residential and Commercial Sectors

Throughout the outlook period, Malaysia’s residential energy demand is

expected to grow at 3.1 percent per year. The slow growth in total residential energy

demand was explained by the promotion of energy conservation and implementation of

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other environmental protection measures. In 2030, electricity, biomass and LPG are

expected to contribute about 57%, 24% and 17% respectively to the energy mix.

Electricity demand is forecasted to increase at annual rate of 4.9%, which is slower

compared with the 5.8% annual growth rate between 1997 and 2002. This is due to the

increasing efficiency of household appliances, such as refrigerators and air-conditioners.

A dominant fuel in rural areas mainly for cooking, Biomass is projected to grow at

0.9% annually over the outlook period. On the contrary, the demand for commercial

energy sources, for example LPG, will also increase by 2.7% per year until 2030 which

is slowly replacing biomass for cooking and water heating. Nevertheless, in the future,

LPG will face some competition with natural gas. The main triggers influencing energy

demand in the commercial sector is economic growth and weather condition. Due to

humid weather conditions in Malaysia, about 40% of total energy demand in the

commercial sector will be required for space cooling. With regards to the residential

sector, the government has taken initiatives to reduce the energy intensity of

commercial buildings and office equipment. Thus, energy demand growth in the

commercial sector will slow down to 2.7% annually while the value added for the

services industry will grow at 4.7 % per year. Over the outlook period in 2030, the

energy mix in the commercial sector will not be showing any significant change.

Electricity will account for about 68%, LPG 17%, heavy fuel oil 12% and 3%

accounting for natural gas. Due to the increasing demand for cooling and lighting in

commercial buildings, electricity is forecasted to increase at annual rate of 2.7%. LPG

demand is expected to grow at 2.8% per year while heavy fuel oil demand will grow at

1.9 % annually from the year 2002 and 2030. Demand in natural gas is expected to

grow at the fastest annual growth rate of 10.1%, although in 2002, it will increase from

a relatively small absolute value (APEC, 2006).

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2.2.2 Energy Growth Forecast

In 2030, Malaysia’s primary energy demand is forecasted to grow at an annual

rate of 3.5%, to reach 6,142,329 TJ, a 2.6-fold increase from 2002. Coal is estimated to

grow at the fastest rate of 9.7% per year, followed by natural gas at 2.9% and oil at

2.7%. Coal demand will increase significantly to meet the rising electricity demand. It

accounts for 93% of the total incremental coal demand which is 1,306,344 TJ. This is

parallel with Malaysia’s aim to increase the share of coal in the electricity generation

sector. Malaysia is a net importer of coal. In 2030, the imports will increase about 14

times from the year 2002 reaching about 1,398,458 TJ. (APEC, 2006).

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1980 1990 2002 2005 2010 2020 2030Year

TJCoal Oil Gas Hydro NRE

Figure 2.2 : Final Energy Demand (Source : APERC Analysis 2006)

Malaysia’s economy is projected to grow considerably over the outlook period

with an annual average growth rate at 4.8%. In 2030, the strongest growth will be from

the industry, largely the manufacturing sector and the services sectors which contribute

shares of 54% and 46% to total GDP respectively. According to UN Habitat projects, in

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2030, the share of Malaysia’s urban population will reach up to 78% from 63% in 2002.

This combined factor with high per capita GDP growth of 3.4% per annum over the

outlook period will lead to a change in lifestyle. However, energy consumption will be

based mostly on commercial energy sources, rather than traditional biomass sources.

This will ultimately cause a growth in energy demand for the transport, commercial and

residential sectors (APEC, 2006).

Figure 2.3: GDP and Population (Source: Global Insights (2005))

2.3 Overview of the world and Malaysia’s electricity generation

In 2008, world net electricity generation was 19.1 trillion kilowatt hours. It

increases by 84% to 25.5 trillion kilowatt hours in 2020 and 35.2 trillion kilowatt hours

in 2035 (Table 2.2). Despite the fact that in year 2008, the 2008-2009 global economic

recessions has reduced the rate of increase in electricity usage, only negligible change

of electricity usage was observed in 2009. In 2010, worldwide electricity demand

increased about 5.4%, and non-OECD electricity demand increased by approximately

9.5% (Energy Outlook, 2011).

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Table 2.2 OECD and non-OECD net electricity generation by energy source,

2008 - 2035 (trillion kilowatt hours) (Energy Outlook, 2011).

Region 2008 2015 2020 2025 2030 2035 Average annual percent change,

2008-2035 OECD Liquids 0.4 0.3 0.3 0.3 0.3 0.3 -0.8 Natural gas 2.3 2.5 2.7 2.9 3.4 3.8 1.8 Coal 3.6 3.3 3.4 3.5 3.6 3.8 0.2 Nuclear 2.2 2.4 2.6 2.7 2.8 2.9 1.0 Renewables 1.8 2.3 2.7 2.9 3.1 3.2 2.2 Total OECD 10.2 10.9 11.6 12.4 13.2 13.9 1.2 Non-OECD Liquids 0.7 0.6 0.6 0.6 0.5 0.5 -1.0 Natural gas 1.8 2.4 3.0 3.5 4.1 4.6 3.4 Coal 4.1 5.2 5.6 6.7 7.9 9.1 3.0 Nuclear 0.4 0.7 1.2 1.5 1.7 2.0 6.0 Renewables 1.9 2.8 3.6 4.0 4.5 5.0 3.7 Total non-OECD 8.9 11.8 13.9 16.3 18.8 21.2 3.3 World Liquids 1.0 0.9 0.9 0.9 0.8 0.8 -0.9 Natural gas 4.2 4.9 5.6 6.5 7.5 8.4 2.6 Coal 7.7 8.5 8.9 10.2 11.5 12.9 1.9 Nuclear 2.6 3.2 3.7 .4.2 4.5 4.9 2.4 Renewables 3.7 5.1 6.3 7.0 7.0 8.2 3.1 Total World 19.1 22.7 25.5 28.7 31.9 35.2 2.3

(Source : US Energy Information Administration International Energy Outlook 2011)

Over the past four decades, the mix of primary fuels worldwide that is used to

generate electricity has changed tremendously. The fuel that is most widely used for

electricity generation is coal although from the year 1970 to 1980, generation from

nuclear power grew rapidly while from the year 1980 to 1990, natural-gas fired

generation increased rapidly. Since the mid-1970s, the oil usage for electricity

generation has been decreasing due to oil price hike. Between 2003 and 2008, the high

fossil fuel prices together with concerns about the environmental impact due to

greenhouse gas emissions, have shifted interest to the development of fossil fuels

alternatives namely, nuclear power and renewable energy sources. In the IEO2011

Reference case, from 2008 to 2035, renewable energy sources are found to be the most

rapid growing sources of electricity generation with an average annual increase about

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3.1% per year followed by natural gas with 2.6% increase per year and nuclear power

with an increase of 2.4% per year. Although coal-fired generation is still the largest

source of generation through 2035, the annual average rise over the forecasting period is

only 1.9%. Nonetheless, any future national policies or international agreements

targeted at reducing the increase of greenhouse gas emissions could change

significantly the outlook for coal, in particular (Energy Outlook, 2011).

Tenaga Nasional Berhad (TNB) for Peninsular Malaysia, Sabah Electricity Sdn.

Bhd (SESB) for Sabah area and Sarawak Electricity Supply Corp (SESCo) for Sarawak

area dominate the electricity generation in Malaysia. Other power generators are the

Northern Utility Resource (NUR), Independent Power Producer (IPPs) and co-

generators (COGEN, 2006)

Table 2.3 Major Electricity Producers in Malaysia

Major Power Producers Electricity Generation

(GWh)

% Installed Capacity

(MW)

%

Tenaga Nasional Berhad (TNB) 38,660 47.8 8,050 48.1 Independent Power Producer (IPP) (Peninsular) 31,462 38.9 5,423 32.4 Cogen 3,397 4.2 787 4.7 Sarawak Electricity Supply Company (SESCO) 2,265 2.8 552 3.3

IPP (Sarawak) 1,537 1.9 301 1.8 IPP (Sabah) 1,537 1.9 301 1.8 Sabah Electricity Sdn Bhd (SESB) 1,294 1.6 485 2.9 Private Generation 728 0.9 836 5.0 TOTAL 80,880 100 16,735 100

(Source: EC-ASEAN COGEN III (December 2004))

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2.3.1 Electricity supply in Malaysia by Sources

In 2003, the total electricity generated in the Malaysia was 83,300 GWh. 72.8%

was contributed by gas, 16.3% coal, 6.2% hydropower, 4.0% oil products and 0.7% by

biomass and other fuels (Figure 2.4). 45,450 GWh or 57.6% out of the 78,900 GWh

produced by the utilities and IPPs was contributed by IPPs (Statistic of Electricity

Supply Industry in Malaysia, 2004). The total installed generation capacity of the

utilities and IPPs in the country at the end of 2003 was 18,800 MW with a plant mix of

58.2% gas turbine and combined cycle, 19.3% coal, 11.3% hydropower, 7.5% oil, 3.4%

diesel and the remaining others. The total capacity of cogeneration in operation was 800

MW producing 3,500 GWh of electricity. The country's electricity generation mix from

1990 to 2003 is shown in Figure 2.5 (COGEN, 2006).

Gas73%

Coal16%

Hydro6%

Oil4%

Biomass & Others

1%

Figure 2.4 : Malaysia’s Electricity Generation Mix (2003) (Source : Static of Electricity Supply Industry in Malaysia (2004))

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Figure 2.5 : Malaysia’s Electricity Generation Mix (1990-2003)

(Source: GreenTech Malaysia,Formerly known as Pusat Tenaga Malaysia (7 Sept 2005))

In 2030, the electricity demand of Malaysia will increase by 4.7% per year over

the outlook period, to reach 274 TWh. The growth in electricity demand is heavily

influenced by strong demand from the industrial sector, which is forecasted to increase

at 5.4% annually over the outlook period. Improving living standards has contributed to

the electricity demand for the residential sector to experience strong growth of 4.9% per

year. In 2030, per capita electricity demand is forecasted to increase more than double

from 2002 to reach 7,571 kWh/person. It is higher than that of the APEC region

averaging at 6,833 kWh/person (APEC, 2006).

6%

36%50%

50%

9%

20%

74%56% 48% 45%

11% 7%

45%

1 2%

0%1%1%

4%6%1 7%

1%1%1%

1990 2002 2010 2020 2030

Coal Oil Natural Gas Hydro NRE

Figure 2.6 : Electricity Generation Mix

(Source : APERC Analysis 2006)

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A total of 6,420 MW of new generation capacity was installed between 2000 and

2005 while the sources of fuel for power generation were further diversified. The use of

coal is increased consistent with the strategy to ensure security and reliability of

electricity supply as well as to reduce the high dependency on gas. Efforts were

undertaken to reduce the high dependence on natural gas in the generation mix by

increasing the use of coal. As a result, the share of coal in the total generation mix

increased from 8.8% in 2000 to 21.8% in 2005 while natural gas declined from 77.0%

to 70.2% (Table 2.4). During this period the electricity transmission system was further

expanded. New transmission projects linking generation plants to the main grids as well

as providing connections to new industrial and commercial areas were completed. In

addition, implementation of the rural electrification programme which currently stands

at 92.2% benefitted residences in Sabah and Sarawak in particular. Peak demand for

electricity is estimated to grow at an average rate of 7.8% per annum to reach 20,087

MW in 2010. The accumulated installed capacity is planned to be 25,258 MW. (UNDP,

2006).

Table 2.4 Fuel Mix (per cent) in Total Electricity Generation, Malaysia, 2000-2010

Year Oil Coal Gas Hydro Other Total (GWh)

2000 4.20% 8.80% 77.00% 10.00% 0.00% 69,280

2005 2.20% 21.80% 70.20% 5.50% 0.30% 94,299

2010 0.20% 36.50% 55.90% 5.60% 1.80% 137,909

(Source of Data: Ninth Malaysia Plan 2006–2010, Table 19-5)

In the Ninth Malaysian Plan 2006-2010, the implementation of the Four-fuel

Diversification Strategy has targeted the gradual change in fuel use from 74.9% gas,

9.7% coal, 10.4% hydro and 5% petroleum in year 2000 to 40% gas, 30% hydro, 29%

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coal and 1% petroleum by year 2020 (EPU, 2006). Initiatives are undertaken to

enhance the efficiency and viability of the utility companies and the independent power

producers. Thus, these efforts may enable a reduction in the reserve margin while

improving the security, reliability, quality and cost effectiveness of supply to customers.

The fuel mix for power generation will mainly comprise of coal and natural gas, with

coal play significant role. New coal based independent power producer plants that

utilize electrostatic precipitators and a flue gas desulphurization process will enable

coal-based production to meet environmental standards. Furthermore, in Peninsular

Malaysia, as part of efforts to promote the optimal utilization of municipal waste for

electricity generation, a pilot project on waste-to-energy is being implemented (UNDP,

2006).

Electricity generation in Malaysia is divided into two sub sectors which are

thermal generation and hydro generation. Hydro power plants use hydropower as

energy input and are considered as renewable energy while thermal power plants use

natural gas, diesel or heavy fuel oil, coal and coke as energy input (Jafar et al., 2008).

Among the electricity power plants in Malaysia are conventional thermal, combined

cycle, gas turbine, diesel, hydro, mini hydro and biomass. Malaysia recently decided to

use coal as the main fuel source for power generation as part of efforts to reduce our

dependency on oil and gas (MSEU, 2011).

Conventional steam-producing thermal power plants generate electricity through

a series of energy conversion stages. Fuel is burned in boilers to convert water to high-

pressure steam. It is then used to drive a turbine to generate electricity (World Bank,

1998). Currently, 32% of total electricity generation and 31% of total nominal capacity

are produced by steam power plants. The efficiency of these power plants in Malaysia is

about 35%. In Brayton cycle, natural gas can be used to generate electricity. Despite the

fact that the initial cost of these power plants is lower than steam turbines, their thermal

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efficiency is about 28.8%. This is much lower than the combined cycle and steam

turbine. In Malaysia at present, around 3650 MW of nominal capacity and 17,245 GWh

of electricity generation are produced by gas turbine power plants (NEB, 2008;

Sherkarchian et al., 2011).

High amount of energy is wasted through the expulsion of the exhaust gases in a

gas turbine power plant although for electricity generation, it is possible to transfer this

energy to a Rankine cycle. Power plants that utilize this method are called combined

cycle plants. Combined-cycle unit burns fuel in a combustion chamber while the

exhaust gases are used to drive a turbine. Meanwhile, waste heat boilers recover energy

from the turbine exhaust gases for the production of steam, which is then used to drive

another turbine. Generally, in terms of the amount of electricity generated per unit of

fuel, the total efficiency of a combined-cycle system is greater than conventional

thermal power systems. Nevertheless, fuels such as natural gas may be required in the

combined-cycle system (World Bank, 1998). The efficiency of thermal is higher than

other fossil fuel power plants.

The thermal efficiency of combined cycles in Malaysia is about 43.8%. At

present, combined cycles plants in Malaysia have around 8861 MW nominal capacity.

This is equivalent to 40.3% of the total capacity and hence produces about 40.2% of the

total electricity generated in Malaysia. In hospitals and industries that require a constant,

uninterrupted power supply, a diesel engine power plant is usually used as a backup

power source. Finding has shown that about 2% of nominal capacity and 1.8% of

electricity are generated from this power plant (NEB, 2008; Sherkarchian et al., 2011).

Hydro power has been used as a main renewable energy source. Its efficiency is higher

with longer life span although the initial cost of hydro power plants is higher than fossil

fuel plants. In Malaysia, the average annual rainfall is about 2000 mm. It is quite high

when compared to the average annual rainfall of the world which is about 750 mm.

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Hence, Malaysia is considered as one of the potential countries for hydro-power plants.

In 2008, 9.5% of nominal capacity and electricity generation was from hydro-power

plants generation. Mini hydro power plant is being used to produce electricity in smaller

scales such as for houses or small shops in remote area. Due to its smaller scale, it is

unnecessary to construct a dam. At present, mini hydro-power plants have 22 MW

nominal capacities which is equivalent to 0.1% of total nominal capacities. They

produce about 106 MWh of total energy generation (NEB, 2008; Sherkarchian et al.,

2011).

Factors such as economic, political and technical parameters influence the type

of fuel that is used for a power plant in a country. The parameters include cost of the

fuels, geographical location of the power plants, availability of the fuel, environmental

concerns as well as medium and long-term policies of the energy sector. Malaysian

power generation is largely from thermal power plants that use fossil fuels namely coal,

natural gas, diesel and petroleum. Coal and natural gas are used widely for steam

turbines and gas turbines while combined cycles use natural gas. Diesel is used in both

gas turbines and diesel engines (Sherkarchian et al., 2011). The types of fuel consumed

in Malaysian power plants are presented in Table 3.8 in Chapter 3.

Renewable energy resources have no doubt many benefits but they face

numerous challenges. Firstly, the development of technology to convert the renewable

energy resources into usable forms is still not that established. Secondly, the

commercialization of research findings has not been fully undertaken on a large scale

although it was reported by several research and studies that there is a technical

feasibility in the generation of energy from renewable resources. Thirdly, the high cost

of renewable energy generation faces stiff competition from cheaper alternative energy

such as from fossil fuels. For instance, the electricity costs from biomass, geothermal

and solar sources are within the range of US$ 7–25 cents/kWh, compared to the

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conventional electricity costs such as coal, natural gas, etc which are within the range of

US$ 4–6 cents/kWh (Hitam,1999). Higher costs of energy generation in terms of

investment costs and final energy costs from renewable resources cause the generation

of energy from renewable resources economically unattractive. Hence this factor further

restrains the efforts to promote the utilization of renewable energy (Mohamed and Lee,

2006).

Lack of reliable information on the potential supply of renewable energy at the

national level is another challenge of renewable energy usage. The availability of

biomass for example is not easily computed and obtained. This is due to the amount of

waste materials, such as wood residues, palm oil waste and agricultural waste, is seldom

documented by the waste generating entities as well as by the relevant government

agencies. Besides, the low demand for energy from renewable resources is also another

challenge that may hinder the utilization of renewable energy due to the weak public

awareness on the positive benefits of renewable energy when compared to non-

renewable energy. Last but not least, the relatively high cost of renewable energy as

compared to conventional energy may discourage the public from utilizing renewable

energy. To sum up, these are among some of issues that need to be addressed

appropriately and considered in depth before expecting a wider utilization of renewable

energy in Malaysia (Hitam, 1999).

2.3.2 Electricity Growth Forecast

Electricity supply show an increasing share of the world’s total energy demand

in the IEO2011 Reference case while electricity usage increases more rapidly when

compared to consumption of liquid fuels, natural gas, or coal in all end-use sectors

except transportation. From 1990 to 2008, growth in net electricity generation surpassed

the growth in delivered energy consumption which is 3.0% per year and 1.8% per year,

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respectively. On the contrary, from 2008 to 2035, it is projected that world demand for

electricity to be increased by 2.3% per year. It is also expected to surpass growth in total

energy use throughout the forecasting period (Figure 2.7) (Energy Outlook, 2011).

Figure 2.7 : Growth in world electricity generation and total delivered energy

consumption, 1990-2035 (index, 1990=1)

In Malaysia, from year 1991 to 2003, electricity consumption and GDP are kept

increasing parallel to the increasing of final energy demand and electricity. The

previous analysis also found that, the final energy demand has increased from

609,627 GJ in year 1991 to 1,448,116 GJ in year 2003. Meanwhile, electricity demand

increased from 22,273 GWh in year 1991 to 71,159 GWh in year 2003. As referred to

Figure 2.8, it is also projected that, as a rapid growing country like Malaysia, the

demand for electricity will continue to rise (NEB, 2003; Jafar et al., 2008).

0

1

2

3

4

1990 1999 2008 2017 2026 2035

Projections

Net electricity generation

Total delived energy

2008 History

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0

50,000

100,000

150,000

200,000

250,000

1990 1992 1994 1996 1998 2000 2002 Year

RM (M

illion

(at 1

987 p

rices

)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

GWh

GDP (RM Million)

Electricity Consumption (GWh)

Figure 2.8 : Trends in GDP and electricity consumption (GWh) in Malaysia from year

1990 – 2003

(Source: Reproduced from PTM (NEB, 2003, p.3.))

According to Keong (2005), the average annual electricity demand is forecasted

to grow by 8.87%. Malaysia is one of the countries among the ASEAN countries that

has recorded significantly high energy per capita and electricity intensity over the years

(NEB, 2004; Shrestha et al., 2009). On the other hand, the finding from Chandran et al.

(2010) has revealed the positive impact of electricity consumption on GDP. The

increase in 1% of electricity consumption would lead to increase between 0.68% and

0.79% in GDP. This finding has also shown that in economic growth, energy is a vital

source (Chandran et al., 2010). Electricity demand projections for the future are

pervaded by uncertainty and a variety of scenarios, making it difficult for decision-

makers to prepare concrete plans. The challenge is to incorporate these complexities

into strategic developments without causing inaction to result. The power sector, as is

widely recognized, forms part of and interacts with a more complex system that

includes economic, demographic, financial and environmental elements. Population

growth, resource endowments, energy prices, terms of trade, etc., are among the

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parameters which affect this system directly or indirectly through other systems (Jacob,

1997).

Table 2.5 Projection of maximum demand (MW) for Peninsular Malaysia, Sabah and

Sarawak (Jacob, 1997).

The Granger causality test method was used in the previous study by Lean and

Smyth (2010) in order to analyze the relationship between the electricity consumption,

economic growth and CO2 emission. The results have revealed that the increasing in

electricity consumption will result in higher GDP and will also generate higher rates in

economic growth. The energy production increases linearly with the electricity

consumption. The results conclude that in the long run the environmental degradation

Granger causes economic growth. (Lean and Smyth, 2010).

Annual Demand in MW Scenario 1990 1995 2000 2010 2020 (a) Low growth (business as usual) Peninsular Malaysia 3477 6444 9912 19087 26796 Sabah 199 352 521 1109 2206 Sarawak 194 357 547 1100 2231 (b) Moderate growth (business as usual) Peninsular Malaysia 3447 6444 9930 19388 31511 Sabah 199 352 522 1126 2594 Sarawak 194 357 548 1117 2623 (c) Moderate growth (energy efficient) Peninsular Malaysia 3447 6130 8937 15513 25191 Sabah 199 335 470 901 2073 Sarawak 194 339 494 894 2097 (d) Targeted growth (energy efficient) Peninsular Malaysia 3447 6332 9726 18705 34760 Sabah 199 346 512 1087 2861 Sarawak 194 350 537 1078 2894

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2.4 Overview of Environmental Impact from Energy Supply and Electricity

Generation

Global environment, fluctuation of oil price and also fossil fuel depletion are

some of the issues face by many countries including Malaysia. Recently, in Malaysia,

air pollution is becoming a great environmental concern. The air pollution is due to the

combustion of coal, lignite, petroleum, natural gas, wood, as well as agricultural and

animal wastes. These basic fuels emit by products such as CO2, SO2 and NOx. In the

year 2006, Malaysia has recorded the total of about 118,000 million kg of CO2 emission.

The amount of carbon emission per person was about 7,200 kg. Figure 2.4.1 shows the

emission of CO2 in Malaysia for 26 years starting from the year 1980 until 2006. The

rapid growth of primary energy consumption has largely contributed to the considerable

rise of CO2 emissions in particular from the year 1990 until now. The evidence also

suggests that degradation of the environment precedes economic growth. An energy

inputs have been consumed in the production to promote heavy industry in Malaysia

(Shafie et al., 2011).

-20,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

1980 1985 1990 1995 2000 2005 2010 Year

Thou

sand

kg

CO2 emission

Figure 2.9 : CO2 emission at Malaysia, 1980-2006 (Shafie et al., 2011).

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Under the Activity 13A of the Environmental Quality (Prescribed Activities)

(Environmental Impact Assessment) Order 1987 that was made under Section 34A of

the Environmental Quality Act 1974, it stipulates that an Environmental Impact

Assessment (EIA) study is mandatory for the construction of steam generated power

stations burning fossil fuels with a capacity of more than 10MW. The EIA report has to

be approved prior to the commencement of construction and physical activities.

Due consideration with regards to the environment for instance in maintaining

ecological balance as well as public acceptance need to be given and addressed

thoroughly during the development of new power plants. For example, to consider the

creation of significant opportunities for marine related aqua-culture farming and eco-

tourism for power stations which are located near the sea.

In operating the power plants, the EIA is used as the environmental control

standard. Particulate matter (PM), CO2, SOx and NOx emissions, noise levels, influence

discharge and smoke density are the factors which are monitored in compliance with the

EIA . The first coal plant in Malaysia which is Kapar Power Station has Electrostatic

Precipitators (ESP) and low NOx burners installed. Particulate matter discharge is

limited to 400mg/m3. Future coal plants will require Flue Gas Desulphurisers (FGD) as

a standard requirement. Retirement of inefficient units, bigger size plants, retrofitting,

repowering and refurbishment of plants are some of the guidelines that need to be

followed in the general principles towards application of new technology (Thaddeus,

2003)

Technologies could become commercially available to capture CO2 emissions

from fossil-fuel fired power plants. Research in CO2 capture technology suggests about

90% of the CO2 emissions from future advanced coal-fired and gas-fired power plants

could be captured. However, this technology is still in the early stage of development

for the power sector. Nonetheless, the proposed technologies for removal of CO2 from

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gas steams are well proven in the chemical and gas processing industries in similar

applications. To reduce cost and advance commercialization of the technology, further

studies of the application of this technology in the power generation sector are needed

(Edwards et al., 2001). Currently, TNB is also actively finding and installing the latest

technology in the operations of its latest power plant in order to reduce the emission

gases like CO2, NOx, CO and SO2 that can cause the environmental impact (TNB,

2009).

2.4.1 Overview of Emission production

Rising of atmospheric concentration of greenhouse gases such as carbon dioxide

(CO2) and other emissions that have a negative effect on the environment such as

sulphur dioxide (SO2), nitrogen oxide (NOx) and carbon monoxide (CO) has been

observed over the past few decades. The emissions of the gases are due to fossil fuels

burning. (Mahlia, 2002).

The air quality trend for the year 1997 to 2005 was computed by averaging

direct measurements from the monitoring sites on a yearly basis and cross-reference

with the Malaysian Ambient Air Quality Guidelines shown in Table 2.6 (Quality Report,

2005).

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Table 2.6 Malaysia Ambient Air Quality Guidelines Pollutant

Malaysia Ambient Air

Quality Guidelines Pollutant

Averaging Time Malaysia Guidelines

ppm

(µg/m3)

Ozone 1 Hour 8 Hour

0.10 0.06

200 120

Carbon Monoxide ** 1 Hour 8 Hour

30.0 9.0

35 10

Nitrogen Dioxide 1 Hour 24 Hour

0.17 0.04

320

Sulphur Dioxide 1 Hour 24 Hour

0.13 0.04

350 105

Particulate Matter (PM10) 24 Hour 12 Month

150 50

Total Suspended Particulate (TSP)

24 Hour 12 Month

260 90

Lead 3 Month 1.5

Note : **(mg/m3)

CO2 is a colourless and odourless gas which is produced when any form of

carbon is burned in an excess of oxygen. CO2 is the largest contributor to the

greenhouse effect. As the concentration of CO2 accumulates in the atmosphere due to

various human activities, the atmosphere is trapping more heat. This ultimately causes

the global warming. Thus, the greenhouse effect is directly link to global warming

(Mahlia, 2002).

SO2 is a colourless gas. It reacts on the surface of a variety of atmospheric solid

particles and can be oxidized within atmosphere water droplets. SO2 emission is mainly

by human and industrial activities such as fossil fuel combustion (Mahlia, 2002). The

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gas is formed during the combustion process of fuel containing sulphur for example oil

and coal. High concentration of SO2 in the atmosphere may increase the risk of adverse

symptoms in asthmatic patients as well as irritate the respiratory system. Other effects

associated with long-term exposure to high concentration of SO2 include respiratory

illness, alterations in lung function and aggravation of existing cardiovascular diseases.

Besides, there are also environmental concerns related with high concentration of SO2.

Sulphur dioxide together with NOx is a major precursor of acidic deposition. This

contributes to the acidification of soils, lakes and streams resulting in adverse impact on

the ecosystem. Sulphur dioxide can also be harmful to plant life and worsen the

corrosion of buildings and monuments (Quality Report, 2005).

Nitrogen dioxide (NO2) is highly reactive gas that is formed in the ambient air

through the oxidation of nitrogen monoxide (NO). It is a reddish brown. Nitrogen

oxides (NOx) is the term used to describe the total sum of NO, NO2, and other oxides of

nitrogen. High temperature combustion processes, such as those occurring in

automobiles and power plants are the major sources of man-made NOx emission. 95%

of the NOx from combustion processes are emitted as NO and the rest as NO2. Nitrogen

monoxide (NO) is readily converted to NO2 in the environment. Short term exposure to

NO2 may lead to changes in lung function in individuals with pre-existing respiratory

illnesses. It may also increase respiratory illness in children. On the other hand,

respiratory infection and lung function alteration may increase due to long term

exposure to NO2. Apart from that, Nitrogen oxides also react in the air to form ground-

level ozone and fine particle pollution. Both, ozone and the fine particle would cause

negative health effects (Quality Report, 2005).

Nitrogen oxides cause to a wide range of environmental effects. These include

the acid rain formation and potential changes in the composition and competition of

some species of vegetation in wetland and terrestrial systems, visibility impairment,

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acidification of freshwater bodies, eutrophication of estuarine and coastal waters and

increase in levels of toxins harmful to aquatic life (Quality Report, 2005).

CO is a colourless, odourless and poisonous gas. CO consists of a linked carbon

atom with oxygen. Exposure to CO may reduce the blood’s ability to carry oxygen. CO

is a product of incomplete burning of hydrocarbon-based fuels. Each atom of carbon in

the burning fuel joins with two atoms of oxygen forming a harmless gas during normal

combustion but when there is a lack of oxygen, each atom of carbon will link up with

only one oxygen atom to form carbon monoxide gas (Mahlia, 2002).

CO reduces oxygen delivery to organs and tissues. The health threat from

exposure to CO is most serious to those who suffer from cardiovascular diseases; CO

can be poisonous even to healthy people at high level of exposure. Exposure to

increased CO level may cause visual impairment, reduced work capability and poor

learning ability (Quality Report, 2005).

According to the references from Choi (2009) and Shafie et al. (2011), at the

Copenhagen Climate Change conference, Malaysian Prime Minister, Dato’ Seri Najib

Tun Razak announced that Malaysia was committed to reduce its carbon emissions up

to 40% by 2020 as compared with 2005 levels. Starting from 2011, Malaysia needs to

reduce emissions about 4% every year. However, this keynote address has raised much

controversy especially when it comes to the national energy policy whereby according

to this policy Malaysia should find other alternative energy for electricity generation

and it is expected that coal would be the dominant source in the future in order to

reduce the dependency on oil and gas (Abdul Hamid et al., 2008).

Nonetheless, the forecast results from the previous historical data estimated that

coal would be dominant energy source in the future and contribute to the high CO2

emission production. Therefore, the right technology and the application of clean-coal

technology should be adopted in the Malaysian power plant. This finding support the

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statement made by Dato’ Dr Leo Moggie during his keynote address which mentioned

that coal is projected to play important role in the energy mix despite the facts that

several major challenges need to be faced for example the emissions of the GHG and air

pollutants such as SO2 and NOx. (Leo-Moggie, 2002). Currently, Malaysia has been

aggressively promoting several policies and projects in order to reduce the emission of

GHD (Lau, et al., 2009). Recently, Feed-in Tariff (FiT) was proposed and launched in

Malaysia. FiT has been successfully proven for over 40 countries in the world as the

most effective mechanism and cost-effective way in fostering renewable energy such as

biomass, solar, biogas and mini-hydro rather than other policy mechanism such as

quotas, direct incentives or voluntary goals (RE World, 2011). Apart from that,

Malaysia has prepared strategies to ensure that this project will meet the target. It is

projected that in the year 2020, about 42,000 million kg of CO2 could be curbed from

power generation. In addition, it is also forecasted that about 145,000 million kg of CO2

to further increase in year 2030 (Chua et al., 2011).

2.4.2 Emission production from the energy sector

CO2 emissions from the energy sector are estimated to increase at 4.2% per

annum to reach 414,000 million kg of CO2 in 2030, a three-fold increase over 2002.

The biggest contributor to the increase of CO2 emissions is the electricity sector which

is at 49%, followed by the transportation sector at 28 % and the industry sector at 20%

(APEC, 2006).

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0

60,000

120,000

180,000

240,000

300,000

360,000

420,000

1980 1990 2002 2010 2020 2030Year

Mill

ion

(kg)

of C

02

Electricity Generation Other TransformationsIndustry TransportResidential Commercial

Figure 2.10 : CO2 Emissions by Sector

(Source: APERC Analysis (2006))

2.4.3 Power plants emission

Thermal power plants that were operated by using fossil fuels have produced

huge amount of air pollutants. The effectiveness of these power plants is recorded at

only about 35-40% with the remaining chemical energy converted into heat

(Sherkarchian et al., 2011 and Shafie et al., 2011). According to the previous study, coal

has found to be the highest contributor in producing the emission per kWh of CO2, SO2,

and NOx than other energy sources. Hydro and mini-hydro technologies for example

have zero CO2, SO2 and NOx emissions, but their contribution to the total electricity

generation is still small (Jafar et al., 2008). In this study, the major pollutants which are

being focussed include carbon monoxide (CO), sulphur dioxide (SO2), carbon dioxide

(CO2) and nitrogen oxides (NOx). Besides, the projection of total emission due to

electricity generation in Malaysia, the amount and also type of fuel used in all power

plants will be identified and discussed in the next chapter.

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CHAPTER 3

METHODOLOGY

3.1 Introduction.

Several sources of data are needed in carrying out this study. It started with the

appointment with the management staffs of Tenaga Nasional Berhad (TNB), Malaysian

Green Technology Corporation (GreenTech Malaysia) and Energy Information Unit

Energy Management and Industry Development Department Energy Commission of

Malaysia for setting the time and date to meet them and obtain some relevant

information about the energy. The meeting was then followed with discussion and data

collection activity with three technical people from Tenaga Nasional Berhad (TNB),

one technical person from the Malaysian Green Technology Corporation (GreenTech

Malaysia) and one technical person from Energy Information Unit Energy Management

and Industry Development Department Energy Commission of Malaysia. Among the

items that was discussed including briefing on the objectives and the benefits of this

study as well as the permission to enter the library of GreenTech Malaysia. The data

related to energy supply, energy demand and electricity demand were collected from the

National Energy Balance 2008 Malaysia, Malaysian Green Technology Corporation

(GreenTech Malaysia), Energy Information Unit Energy Management and Industry

Development Department Energy Commission of Malaysia, 9th Malaysian Plan and

Tenaga Nasional Berhad (TNB). These data include the key economic and energy data,

electricity consumption and mix energy supply and demand data (crude oil, natural gas,

coal and coke, hydropower, petroleum products and others). All the data are very

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significant to make the comparison and prediction for the future energy, future

electricity generation and total of the emission production from electricity generation in

Malaysia. Finally, all the data collected were analyzed and evaluated. Figure 3.1 shows

the research methodology flowchart.

NO

YES

Figure 3.1 Research methodology flowcharts

Literature Review

Research Methodology

Assessments of collected data

Statistic and prediction

Impact of the economic and environment

Is the impact satisfactory?

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Generally, in analyzing and evaluating the future energy pattern in Malaysia as

well as the future pattern of electricity generation in Malaysia, methods adopted are

survey data, historical modeling methodologies and data analysis. The details of the

analysis are further described and explained with specific equations in 3.2 for the future

energy pattern in Malaysia and 3.3 for the future pattern of electricity generation in

Malaysia. Similar methods as above were also adopted for the analysis of the

Environmental Impact from electricity generation in Malaysia with scenario approach

being also included. The analysis is illustrated and described in 3.4.

3.2 Method Analysis for the Future Energy Pattern in Malaysia

3.2.1 Survey Data

The data used for this study are the total primary energy supply data, total final

energy demand data, commercial energy supply data, total primary final energy use by

sectors and the final energy consumption and real GDP data. These data are collected

from the Reference (NEB, 2008). All the survey data are tabulated in Tables 3.1, 3.2,

3.3 and 3.4.

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Table 3.1 Total primary energy supply and total final energy demand

Year Total Primary Energy Supply (TJ)

Total Final Energy Demand (TJ)

1990 898,991 553,396 1991 1,102,646 609,627 1992 1,226,414 677,666 1993 1,252,960 731,385 1994 1,325,688 807,547 1995 1,418,514 928,007 1996 1,584,361 1,011,872 1997 1,807,654 1,095,654 1998 1,716,503 1,070,113 1999 1,864,639 1,140,036 2000 2,123,228 1,243,497 2001 2,176,361 1,319,533 2002 2,227,317 1,393,852 2003 2,410,247 1,448,116 2004 2,610,929 1,562,714 2005 2,771,292 1,602,993 2006 2,842,052 1,688,366 2007 3,030,718 1,853,501 2008 3,160,766 1,880,005

Table 3.2 Commercial energy supply

Year Oil (TJ) Natural Gas (TJ) *

Coal & Coke (TJ)

Hydropower (TJ)

1990 520,612 238,240 55,520 38,311 1991 569,767 279,482 65,485 44,089 1992 639,564 357,779 68,667 41,744 1993 667,785 323,613 56,608 52,840 1994 672,055 375,867 65,443 69,169 1995 702,118 463,250 67,494 64,480 1996 810,352 516,634 70,216 52,044 1997 909,333 590,702 67,913 33,077 1998 797,749 609,167 72,477 46,601 1999 814,372 665,440 81,228 69,839 2000 847,533 845,523 104,089 65,317 2001 907,449 838,740 124,354 70,635 2002 926,416 912,850 152,491 55,645 2003 1,002,912 874,162 222,581 44,215 2004 1,059,227 896,395 277,640 55,645 2005 1,015,934 1,037,664 288,442 54,975 2006 981,223 1,118,096 305,609 65,652 2007 1,070,867 1,145,647 370,466 63,224 2008 1,025,564 1,163,986 409,572 82,233

Note (*) : Net natural gas supply after subtracting exports, flared gas and re-injection and LNG production

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Table 3.3 Final energy use by sectors

Note (*) : Estimated data for Residential and Commercial from 1990 until 1996

Table 3.4 Final Energy Consumption and Real GDP

Year Others (Agriculture, Residential and

Commercial*) (TJ)

Non-Energy Use (TJ)

Transport (TJ) Industrial (TJ) Real GDP (RM Million)

1990 68,918 38,018 225,554 220,906 189,059 1991 78,464 44,843 243,097 243,223 205,312 1992 95,547 51,165 260,683 270,271 221,319 1993 89,225 84,870 274,583 293,592 239,792 1994 122,428 76,078 304,060 304,939 261,951 1995 137,459 83,489 327,716 337,472 283,645 1996 168,694 73,021 374,778 394,960 312,017 1997 149,183 96,217 427,116 423,138 335,556 1998 151,611 84,703 410,033 423,766 310,381 1999 157,389 75,324 477,025 430,298 328,194 2000 166,308 94,208 505,413 477,569 356,401 2001 173,593 99,567 550,046 496,243 358,246 2002 187,703 105,136 562,817 538,197 377,559 2003 188,289 98,185 597,527 564,073 399,414 2004 202,693 91,402 644,170 624,449 426,508 2005 219,189 90,984 644,128 648,650 449,250 2006 238,157 117,613 620,723 711,874 475,526 2007 271,192 123,851 658,071 800,387 505,919 2008 271,820 120,418 686,459 801,308 528,311

Note (*) : Estimated data for Residential and Commercial from 1990 until 1996

Source : i) Oil and gas companies, TNB, SESB, SESCo, IPPs, cement, iron and steel manufacturers ii) National Energy Balance 2007, Ministry of Energy, Green Technology and Water

Year Others (Agriculture, Residential &

Commercial*) (TJ)

Non-Energy Use (TJ) Transport (TJ) Industrial (TJ)

1990 68,918 38,018 225,554 220,906 1991 78,464 44,843 243,097 243,223 1992 95,547 51,165 260,683 270,271 1993 89,225 84,870 274,583 293,592 1994 122,428 76,078 304,060 304,939 1995 137,459 83,489 327,716 337,472 1996 168,694 73,021 374,778 394,960 1997 149,183 96,217 427,116 423,138 1998 151,611 84,703 410,033 423,766 1999 157,389 75,324 477,025 430,298 2000 166,308 94,208 505,413 477,569 2001 173,593 99,567 550,046 496,243 2002 187,703 105,136 562,817 538,197 2003 188,289 98,185 597,527 564,073 2004 202,693 91,402 644,170 624,449 2005 219,189 90,984 644,128 648,650 2006 238,157 117,613 620,723 711,874 2007 271,192 123,851 658,071 800,387 2008 271,820 120,418 686,459 801,308

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Table 3.5 GDP growth assumption in Malaysia to 2030

Year GDP (%) 2007 – 2010 0.83 2011 – 2015 4.57 2016 – 2020 4.72 2021 – 2025 4.15 2026 -2030 3.62

Source: Economic Planning Unit, Study to Formulate a New Energy Policy for Malaysia, August 2009

3.2.2 Modeling methodologies

This analysis is to figure out the prediction of future energy pattern in Malaysia.

For this purpose, initially, the data for the pattern of energy supply and demand,

percentage type of fuel used to produce energy and the percentage of energy used by

sectors should be identified. Some of the data are already available but others have to be

calculated with due respect to the energy consumption trend in Malaysia.

The method used to estimate the rest of the calculation data is polynomial curve

fitting. The method is an attempt to describe the relationship between variable x as the

function of available data and a response y which seeks to find some smooth curve that

best fit the data, but does not necessarily pass through any data points. Mathematically,

a polynomial of order k in x is expressed in the following form (Mahlia, 2002) :

y = co + c1x + c2x2 + …. ckxk (3.1)

From the above polynomial equation, the prediction for the future energy pattern

in Malaysia can be obtained and furthermore used in the data analysis.

3.2.3 Data Analysis

Based on the data shown in Table 3.1, using Eq. (3.1), the prediction of total

primary energy supply and total final energy demand in Malaysia from year 2012 to

year 2030 can be obtained by the following equation:

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y1 = 1829.7x2 + 85627x + 882249, R2 = 0.9933 (3.2)

y2 = 522.1x2 + 62924x + 493306, R2 = 0.9943 (3.3)

Based on the data shown in Table 3.2, using Eq. (3.1), the prediction of

commercial energy supply in Malaysia from year 2012 to year 2030 can be obtained.

The future production of oil can be forecasted by the following equation:

y3 = -946.91x2 + 46110x + 529112, R2 = 0.9395 (3.4)

The future production of coal and coke can be forecasted by the following equation:

y4 = = 1821.8x2 - 13935x + 77211, R2 = 0.9807 (3.5)

The future production of hydropower can be forecasted by the following equation:

y5 = = 2.8889x2 + 1143.1x + 44496, R2 = 0.2734 (3.6)

The future production of natural gas can be forecasted by the following equation:

y6 = 129.61x2 + 52114x + 214124, R2 = 0.9813 (3.7)

Based on the data shown in Table 3.3, using Eq. (3.1), the prediction of. future

final energy use by sectors in Malaysia from year 2012 to year 2030 can be obtained.

The future energy use in others sector (Agriculture, Residential & Commercial sector)

can be forecasted by the following equation:

y7 = -107.1x2 + 8158.4x + 69644, R² = 0.949 (3.8)

The future energy use in non-energy use sector can be forecasted by the following

equation:

y8 = -116.68x2 + 6058.9x + 41373, R² = 0.7992 (3.9)

The future energy use in transport sector can be forecasted by the following equation:

y9 = -312.37x2 + 34126x + 162193, R² = 0.9814 (3.10)

The future energy use in industrial sector can be forecasted by the following equation:

y10 = 892.92x2 + 13784x + 220045, R² = 0.989 (3.11)

The future GDP in Malaysia from year 2012 to year 2030 can be forecasted based

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on study carried out by the Economic Planning Unit (EPU) under the Prime Minister’s

Office of Malaysia (IREA) (Kimura, 2011). The assumed GDP growth rates are shown

in Table 3. 5

3.3 Method Analysis for the Future Pattern of Electricity Generation in

Malaysia

3.3.1 Survey Data

The data used for this study are the total electricity demand data, total electricity

generated data, population, total electricity generation from various mix energy

(exclude co-generation and private licensed plants), total electricity generation (GWh)

for various types of power plant, electricity consumption by sectors, trends in GDP,

electricity demand per capita (J/capita) and electricity generated per capita (J/capita)

data, trends in GDP and electricity consumption (GWh) data, and annual growth rates

of GDP, energy demand and electricity demand data. These data were collected from

the Reference (NEB, 2008). All the survey data are tabulated in Tables 3.6, 3.7, 3.9,

3.10 and 3.11

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Table 3.6 Total electricity demand, total electricity generated and population

Year Total Electricity Demand (TJ)

Total Electricity Generated (TJ)

Population

1990 71,807 82,861 18,102,000 1991 80,600 95,589 18,986,000 1992 92,868 105,554 18,985,000 1993 102,582 125,066 19,503,000 1994 122,763 140,767 20,049,000 1995 141,311 163,670 20,624,000 1996 158,143 185,107 21,101,000 1997 183,558 208,387 21,595,000 1998 191,639 209,894 22,107,000 1999 201,604 234,849 22,636,000 2000 220,362 220,362 23,418,000 2001 234,221 255,909 23,935,000 2002 247,954 267,298 24,447,000 2003 264,325 282,497 25,048,000 2004 278,142 296,230 25,580,000 2005 290,745 305,484 26,384,000 2006 304,688 323,404 26,840,000 2007 321,687 351,080 27,452,000 2008 334,374 352,629 27,730,000

Table 3.7 Total electricity generation from various mix energy (Exclude co-generation and private licensed plants)

Year Oil (TJ) Natural Gas (TJ)

Coal (TJ) Hydropower (TJ)

Total Input (TJ)

1990 125,149 56,985 34,040 38,311 254,486 1991 119,371 106,057 40,321 44,089 309,838 1992 105,177 131,639 40,530 41,744 319,091 1993 103,628 183,139 37,013 52,840 376,621 1994 92,365 214,333 38,730 69,169 414,597 1995 97,892 268,554 40,070 64,480 470,996 1996 110,453 313,564 39,777 52,044 515,838 1997 111,667 315,323 36,929 33,077 496,997 1998 100,697 372,057 40,363 46,727 559,844 1999 46,978 425,483 55,771 69,839 598,071 2000 32,784 484,855 62,596 67,494 647,729 2001 42,205 499,174 83,489 70,635 695,503 2002 76,999 520,193 107,020 55,645 759,857 2003 26,336 456,090 171,834 44,215 698,475 2004 22,861 441,519 223,041 55,645 743,067 2005 23,992 513,787 232,002 54,975 824,755 2006 32,994 516,257 249,671 65,652 864,574 2007 21,479 522,370 313,439 63,517 920,805 2008 20,098 571,567 337,849 82,233 1,011,747

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Table 3.8 Fuel types consumption in all types of Malaysian thermal power plants Fuel type Steam turbine Gas turbine Combined

cycle Diesel engine

Coal √ × × × Natural gas √ √ √ × Fuel oil √ × × × Diesel × √ × √ (Sources: Malaysia National Energy Balance (NEB, 2008)) Table 3.9 Total electricity generation (GWh) for various types of power plant

Year Conventional Thermal

(Coal/oil/gas) (GWh)

Gas Turbine (GWh)

Combined Cycle

(GWh)

Diesel Engine (GWh)

Hydro-power (GWh)

Mini Hydro (GWh)

Biomass (GWh)

1990 10,850.0 51.3 4,321.0 102.6 5,982.9 20.3.0 0.0 1991 13,000.0 789.0 5,432.0 151.6 6,321.9 29.9.0 0.0 1992 15,000.0 1,043.0 6,178.0 242.7 6,951.9 38.9.0 0.0 1993 16,982.0 1,972.0 6,689.0 438.9 7,332.9 54.2.0 0.0 1994 19,192.0 3,221.0 6,777.0 671.5 7,539.9 77.9.0 0.0 1995 20,882.0 4,321.0 7,222.0 789.3 8,013.6 89.3.0 0.0 1996 23,023.0 5,198.0 7,730.0 996.9 8,111.4 113.8 0.0 1997 25,282.0 6,322.0 8,612.0 1,276.9 8,213.3 130.3 0.0 1998 27,023.0 8,431.0 9,821.0 1,441.5 8,332.1 138.9 0.0 1999 28,051.0 10,132.0 11,221.0 1,673.9 8,114.1 146.9 0.0 2000 12,210.8 12,956.9 40,540.8 1,665.7 9,755.3 77.0 0.0 2001 19,016.1 14,075.7 40,638.5 1,718.4 9,678.3 85.1 0.0 2002 24,645.3 12,632.6 31,155.4 1,395.0 7,362.6 77.5 0.0 2003 20,848.7 18,953.4 32,138.4 1,895.3 8,487.8 164.8 0.0 2004 58,003.0 6,860.6 12,741.1 2,049.3 9,266.2 89.0 0.0 2005 21,573.8 21,391.8 36,866.7 1,729.5 9,375.9 91.0 0.0 2006 25,821.4 15,194.5 40,736.3 1,771.1 9,601.4 93.0 0.0 2007 32,626.7 16,313.3 40,834.0 1,823.8 9,524.5 101.3 0.0 2008 33,645.3 17,245.9 42,532.8 1,904.4 10,051.3 105.8 105.8

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Table 3.10 Total electricity consumption by sectors.

Year Residential and Commercial (TJ)

Industrial (TJ) Transport (GJ) Agriculture (GJ)

1990 37,055 34,752 - - 1991 41,368 39,232 - - 1992 45,261 47,606 - - 1993 48,025 54,557 - - 1994 57,153 65,610 - - 1995 64,857 76,455 - - 1996 73,147 84,954 - - 1997 82,107 101,409 41,870 - 1998 90,649 100,949 41,870 - 1999 92,951 108,485 167,480 - 2000 102,707 117,445 167,480 - 2001 111,374 122,679 209,350 - 2002 119,706 128,080 167,480 - 2003 128,373 135,743 209,350 - 2004 138,087 139,846 209,350 - 2005 149,350 141,144 209,350 - 2006 158,771 145,498 591,079 204,577 2007 170,202 150,188 640,402 669,543 2008 178,701 154,375 622,272 811,985

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Table 3.11 Trends in GDP and population with electricity demand and generated.

Year Electricity Consumption

(GWh)

Total Electricity

Demand (TJ)

Total Electricity

Generated (TJ)

Population Real GDP (RM Million)

1990 19,932 71,807 82,861 18,102,000 189,059 1991 22,373 80,600 95,589 18,986,000 205,312 1992 25,778 92,868 105,554 18,985,000 221,319 1993 28,474 102,582 125,066 19,503,000 239,792 1994 34,076 122,763 140,767 20,049,000 261,951 1995 39,225 141,311 163,670 20,624,000 283,645 1996 43,897 158,143 185,107 21,101,000 312,017 1997 50,952 183,558 208,387 21,595,000 335,556 1998 53,195 191,639 209,894 22,107,000 310,381 1999 55,961 201,604 234,849 22,636,000 328,194 2000 61,168 220,362 220,362 23,418,000 356,401 2001 65,015 234,221 255,909 23,935,000 358,246 2002 68,827 247,954 267,298 24,447,000 377,559 2003 73,371 264,325 282,497 25,048,000 399,414 2004 77,206 278,142 296,230 25,580,000 426,508 2005 80,705 290,745 305,484 26,384,000 449,250 2006 84,575 304,688 323,404 26,840,000 475,526 2007 89,294 321,687 351,080 27,452,000 505,919 2008 92,815 334,374 352,629 27,730,000 528,311

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Table 3.12 Trends in annual growth GDP (%), annual growth final energy demand (%) and annual growth final electricity demand (%)

Year Annual Growth GDP (%)

Annual Growth Final Energy Demand (%)

Annual Growth Final Electricity Demand (%)

1990 6.8 8.7 9.7 1991 8.6 10.2 12.2 1992 7.8 11.2 15.2 1993 8.3 7.9 10.5 1994 9.2 10.4 19.7 1995 8.3 14.9 15.1 1996 10.0 9.0 11.9 1997 7.5 8.3 16.1 1998 (7.5) (2.3) 4.4 1999 5.7 6.5 5.2 2000 8.6 9.1 9.3 2001 0.5 6.1 6.3 2002 5.4 5.6 5.9 2003 5.8 3.9 6.6 2004 6.8 7.9 5.2 2005 5.3 2.6 4.5 2006 5.8 5.3 4.8 2007 6.4 9.8 5.6 2008 4.4 1.4 3.9

3.3.2 Modeling methodologies

This analysis is to figure out the prediction of future energy electricity generation

in Malaysia. This method was also used previously to figure out the prediction of future

energy pattern in Malaysia. For this purpose, initially, the data for the total electricity

demand, total electricity generated, total electricity generation from various mix energy

(exclude co-generation and private licensed plants), total electricity generation for

various types of power plant, electricity consumption by sectors, trends in GDP,

electricity demand per capita (J/capita) and electricity generated per capita (J/capita),

trends in GDP and electricity consumption (GWh), and annual growth rates of GDP as

well as energy demand and electricity demand data should be identified. Some of the

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data are already available but others have to be calculated with respect to the electricity

consumption trend in Malaysia.

Therefore, the previous polynomial equation (3.1) can be used for the prediction

of the future electricity generation in Malaysia and it can be calculated and furthermore

used in the data analysis.

3.3.3 Data Analysis

Based on the data shown in Table 3.6, using Eq. (3.1), the prediction of total

electricity demand and total electricity generated in Malaysia from year 2012 to year

2030 can be calculated by the following equation:

y11 = -56.271x2 + 16051x + 64066, R2 = 0.9977 (3.12)

y12 = -102.92x2 + 17088x + 79037, R2 = 0.9921 (3.13)

Based on the data shown in Table 3.7, using Eq. (3.1), the prediction of future

electricity generation from various mix energy (exclude co-generation and private

licensed plants) in Malaysia from year 2012 to year 2030 can be calculated. The future

electricity generation using oil (TJ) can be forecasted by the following equation:

y13 = 4.0308x2 - 6480.7x + 126991, R2 = 0.8178 (3.14)

The future electricity generation using natural gas (TJ) can be forecasted by the

following equation:

y14 = -1460.3x2 + 53697x + 42661, R2 = 0.966 (3.15)

The future electricity generation using coal (TJ) can be forecasted by the following

equation:

y15 = 1693.5x2 - 14134x + 54202, R2 = 0.9778 (3.16)

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The future electricity generation using hydropower (TJ) can be forecasted by the

following equation:

y16 = -1.2994x2 + 1232x + 45495, R2 = 0.2728 (3.17)

Based on the data shown in Table 3.9, using Eq. (3.1), the prediction of total

electricity generation (GWh) for various types of power plant in Malaysia from year

2012 to year 2030 can be calculated. Therefore the future total electricity generation

from all types of power plant can be forecasted by the following equation:

y17 = -39.126x2 + 5561.1x + 12457, R2 = 0.9829 (3.18)

The future electricity generation from conventional thermal (coal/oil/gas) power plant

can be forecasted by the following equation:

y18 = -20.256x2 + 1522.5x + 10970, R2 = 0.3607 (3.19)

The future electricity generation from gas turbine power plant can be forecasted by the

following equation:

y19 = -21.592x2 + 1508.3x - 2954.8, R² = 0.8248 (3.20)

The future electricity generation from combined cycle power plant can be forecasted by

the following equation:

y20 = = 42.196x2 + 1515.1x + 5.103, R² = 0.7189 (3.21)

The future electricity generation from diesel engine power plant can be forecasted by

the following equation:

y21 = = -7.285x2 + 253.86x - 342.16, R2 = 0.9532 (3.22)

The future electricity generation from hydro-power plant can be forecasted by the

following equation:

y22 = -7.5082x2 + 335.56x + 5937.2, R² = 0.7814 (3.23)

The future electricity generation from mini hydro power plant can be forecasted by the

following equation:

y23 = -0.7672x2 + 18.918x + 1.3487, R2 = 0.5727 (3.24)

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The future electricity generation from biomass power plant can be forecasted by the

following equation:

y24 = 0.3977x2 – 6.2844x + 16.705, R2 = 0.3524 (3.25)

Based on the data shown in Table 3.10, using Eq. (3.1), the prediction of

electricity consumption by sectors in Malaysia from year 2012 to year 2030 can be

calculated. The future electricity consumption by residential and commercial sectors

can be forecasted by the following equation:

y25 = 154.8x2 + 5243.4x + 35092, R2 = 0.9985 (3.26)

The future electricity consumption by industrial sector can be forecasted by the

following equation:

y26 = -217.98x2 + 10881x + 28845, R2 = 0.9984 (3.27)

The future electricity consumption by transport sector can be forecasted by the

following equation:

y27 = 3013x2 - 20963x + 26714, R2 = 0.8931 (3.28)

The future electricity consumption by agriculture sector can be forecasted by the

following equation:

y28 = 5017.2x2 - 65578x + 122045, R2 = 0.6902 (3.29)

Based on the data shown in Table 3.11, using Eq. (3.1), the prediction of future

trends in GDP, future total electricity demand per capita (J/capita) and future total

electricity generated per capita (J/capita) in Malaysia from year 2012 to year 2030 can

be obtained. The future electricity trends in GDP can be forecasted by the following

equation:

y29 = 253.17x2 + 13107x + 199432, R2 = 0.9825 (3.30)

Based on the data shown in Table 3.6, the total electricity demand per capita

(J/capita) and total electricity generated per capita (J/capita) can be calculated using the

following equation:

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PDi. = EDi

Pi (3.31)

Future total electricity demand per capita (J/capita) and future total electricity

generated per capita (J/capita) can be calculated using Equation (3.31) since the

calculation for the prediction of the future electricity demand and electricity generated

in Malaysia is available.

Based on the data shown in Table 3.12, the future annual growth rates of GDP,

final energy demand can be calculated using the equations as per below:

% GDPi = (Σ GDPi - Σ GDPpi) / Σ GDPpi × 100 (3.32)

% EDi = (Σ EDi - Σ GDPpi) / Σ EDpi × 100 (3.33)

% ECDi = (Σ ECDi - Σ ECDpi) / Σ ECDpi × 100 (3.34)

Where;

PD = Total Electricity Demand per Capita

ED = Electricity Demand

P = Population

% GDP = Annual Growth Gross Domestic Product

% ED = Annual Growth Energy Demand

% ECD = Annual Growth Electricity Demand

i = year

pi = previous year (a year before)

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3.4 Method Analysis for the Environmental Impact from electricity generation

in Malaysia

3.4.1 Survey Data

The data used for this study are the total electricity generation data (Refer Table

3.7), percentage of various types of fuel used for electricity generation data including

CO2, SO2, NOx and CO emission from fossil fuel for a unit of electricity generation

data. In addition, data on nominal capacity (MW) for various types of Malaysian power

plant from 2000 to 2008 are determined. These data are collected from the Reference

(NEB, 2000-2008) and (Mahlia, 2002). All the survey data are tabulated in Tables 3.13,

3.14 and 3.15

Table 3.13 Percentage of electricity generation based on fuel types.

Year Oil Natural Gas Coal Hydro

1990 49.18% 22.39% 13.38% 15.05% 1991 38.53% 34.23% 13.01% 14.23% 1992 32.97% 41.25% 12.70% 13.08% 1993 27.52% 48.63% 9.82% 14.03% 1994 22.28% 51.70% 9.34% 16.68% 1995 20.78% 57.02% 8.51% 13.69% 1996 21.41% 60.79% 7.71% 10.09% 1997 22.47% 63.45% 7.43% 6.65% 1998 17.99% 66.46% 7.20% 8.35% 1999 7.85% 71.14% 9.33% 11.68% 2000 5.06% 74.85% 9.66% 10.43% 2001 6.07% 71.77% 12.00% 10.16% 2002 10.13% 68.46% 14.08% 7.33% 2003 3.77% 65.30% 24.60% 6.33% 2004 3.08% 59.42% 30.01% 7.49% 2005 2.91% 62.30% 28.13% 6.66% 2006 3.82% 59.71% 28.88% 7.59% 2007 2.33% 56.73% 34.04% 6.90% 2008 1.99% 56.49% 33.39% 8.13%

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Table 3.14 CO2, SO2, NOx and CO emission from fossil fuel for a unit of electricity generation

Fuel type Emission Factors (kg/kWh)

CO2 NOx SO2 CO

Coal 1.18 0.0052 0.0139 0.0002

Natural gas 0.53 0.0009 0.0005 0.0005 Fuel oil 0.85 0.0025 0.0164 0.0002

Diesel 0.85 0.0025 0.0164 0.0002 Other 0.00 0.00 0.00 0.00

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Table 3.15 Nominal capacity (MW) for various types of Malaysian power plant from 2000-2008.

Year Conventional thermal (Coal) (Oil/gas)

(MW)

Gas turbine (MW)

Combined cycle (MW)

Diesel engine (MW)

Hydro-power (MW)

Mini hydro (MW)

Biomass (MW)

Total (MW)

2000 700.0 1,670.0 3,456.9 5,056.0 295.3 2,059.1 33.3 0.0 13270.6

2001 1,700.0 1,726.0 3,572.9 5,345.0 350.7 2,078.0 40.5 0.0 14813.1

2002 1,700.0 1,560.0 4,521.2 5,355.0 429.0 2,066.1 40.0 0.0 15671.3

2003 3,802.4 1,569.3 4,526.7 7,625.0 503.0 2,072.2 40.2 0.0 20138.8

2004 4,692.3 8,361.9 1,544.0 2,807.4 501.3 2,105.5 20.1 0.0 20032.5

2005 3,884.4 893.0 4,710.4 10,336.0 401.8 2,053.8 22.3 0.0 22301.7

2006 4,570.6 910.1 3,337.0 8,858.1 424.7 2,083.1 20.2 0.0 20203.8

2007 5,977.3 894.4 3,512.2 8,878.7 436.3 2,094.2 21.8 0.0 21814.9

2008 5,980.7 904.0 3,646.0 8,868.0 431.0 2,091.0 29.0 39.0 21988.7

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Table 3.16 Electricity generation (GWh) for various types of power plant from year 2000-2008

Year Conventional thermal (Coal) (Oil/gas)

(GWh)

Gas turbine (GWh)

Combined cycle (GWh)

Diesel engine (GWh)

Hydro-power (GWh)

Mini hydro (GWh)

Biomass (GWh)

Total (GWh)

2000 7,809.0 4,401.0 12,957.0 40,541.0 1,666.0 9,755.0 77.0 0.0 70,220

2001 14,764.6 4,251.5 14,075.7 40,638.5 1,718.4 9,678.3 85.1 0.0 69,855

2002 21,700.3 2,945.0 12,632.6 31,155.4 1,395.0 7,362.6 77.5 0.0 77,501

2003 15,409.9 5,438.8 18,953.4 32,138.4 1,895.3 8,487.8 164.8 0.0 82,406

2004 20,938.1 37,064.9 6,860.6 12,741.1 2,049.3 9,266.2 89.0 0.0 89,098

2005 17,659.6 3,914.2 21,391.8 36,866.7 1,729.5 9,375.9 91.0 0.0 91,029

2006 21,719.8 4,101.6 15,194.5 40,736.3 1,771.1 9,601.4 93.2 0.0 93,218

2007 28,675.0 3,951.7 16,313.3 40,834.0 1,823.8 9,524.5 101.3 0.0 101,325

2008 29,624.8 4,020.5 17,245.9 42,532.8 1,904.4 10,051. 105.8 105.8 105,803

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Table 3.17 Power plants electricity generation contribution (%) from year 2000 - 2008

Year Conventional thermal (coal)

Conventional thermal (oil/gas)

Gas turbine

Combined cycle

Diesel engine

Total (GWh)

2000 20.70% 22.10% 20.40% 20.80% 2.70% 70,220

2001 21.80% 15.20% 22.40% 25.00% 2.80% 69,855

2002 19.50% 9.50% 22.40% 32.00% 2.60% 77,501

2003 18.70% 6.60% 23.00% 39.00% 2.30% 82,406

2004 14.30% 7.70% 23.50% 41.60% 2.30% 89,098

2005 19.40% 4.30% 23.50% 40.50% 1.90% 91,029

2006 23.30% 4.40% 16.30% 43.70% 1.90% 93,218

2007 28.30% 3.90% 16.10% 40.30% 1.80% 101,325

2008 28.00% 3.80% 16.40% 40.20% 1.80% 105,803

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3.4.2 Scenario approach and modeling methodologies

According to Schwartz, scenarios are tools that focus on perceptions about

alternative future environment. Although the end result might not be an accurate, it can

give a better decision about the future (Schwartz, 1996). Both the analyst and the policy

maker should have a scenario that resembles a given future and that this may assist

them through both the opportunities and the consequences of that future (Mahlia, 2002).

These analyses which are also based on historical modelling methodologies that

have been derived from data analysis (3.3.3) and by using the results obtained from

equations (3.15) to (3.18), to figure out for the future potential emissions of electricity

generation from various resources in Malaysia. For this purpose, initially, the electricity

pattern and percentage type of fuel use for electricity generation should be identified.

The percentage for the future electricity generation from various types of fuel can be

calculated from Table 3.7 and Table 4.6 using Equation (3.15) to (3.18) from data

analysis (3.3.3).

From the above mentioned polynomial equation (3.15) to (3.18), the potential

emission and also prediction for the production of future emission produced from the

electricity generation in Malaysia can be generated and thus used in the data analysis.

3.4.3 Data Analysis

The percentages of the various types of fuel for electricity generation were

calculated based on the data shown in Table 3.7 and Table 4.6. The percentage values

shown in Table 3.13, were calculated using the equation as per below:

% FGi f = (FGi f /ΣFG) x 100 (3.35)

The pattern of emission due to the fuel changes is the potential production of

emissions by electricity generation in Malaysia. The emission factors data shown in

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Table 3.14 is to be multiplied by the percentage of each type of fuel and total electricity

generation in that particular year, equal to the annual emission production. The common

gases include CO2, SO2, NOx and CO. The emission pattern of electricity generation

can be calculated by the following equation:

EMi = EGi (PE1 i EXEm

1 p E + PE2

i EXEm2 p E + PE

3

iEXEm

3 p E + … + PE

n

iEXEm

n p E) (3.36)

The emission per unit electricity generation for each year is a function of annual

emission divided by total electricity generation. This can be calculated by the following

equation:

EP A

p AEi E = (EM p

i / EGi) (3.37)

The emission pattern of various types of power plant can be calculated by using

the following equation:

EMPi = EGip (PPCA

1 AEi Ef XEm A

1 AEp E + PPCA

2 AEi Ef XEm A

2 AEp E + PPCA

3 AE

iEf XEm A

3 AEp E + … + PPC

n

iEf XEm

n p E) (3.38)

Where;

% FGi f = percentages of the various types of fuel for electricity generation; i = year ; f = types of fuel

FGi f = Electricity generation from various types of fuel; i = year; f = types of fuel

ΣFG = Total electricity generation from all types of fuel

EMi = Total emission (kg or ton) ; i = year

EGi = Total electricity generation (GWh) ; i = year

PEA

n AEi = Percentage of electricity generation ; i = year; n = fuel type (%)

Emn p = Fossil fuel emission for a unit of electricity generation (Emission factor);

n = types of fuel (kg); p = types of emission gasses EP

p i = Emission per unit electricity generation;

i = year; p = types of emission gasses

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EM p

I = Annual emission production; i = year; p = types of emission gasses

EMP = emission from power plant

PPC = percentage of power plant contribution, f – depends on types of fuel used

Em = emission factor

EG = electricity generation from various types of power plant

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CHAPTER 4

RESULTS AND DISCUSSIONS

4.1 Introduction

This chapter discusses results from the total primary energy supply data, total

final energy demand data, commercial energy supply data, total primary final energy

use by sectors and the final energy consumption and real GDP data that was tabulated in

the previous chapter. The analysis of the future energy pattern in Malaysia has been

revealed and the results from the analysis will be fully shown in this chapter at sub topic

4.2.

Meanwhile for the sub topic 4.3 discusses analysis results from the total

electricity demand data, total electricity generated data, total electricity generation from

various mix energy (exclude co-generation and private licensed plants), total electricity

generation (GWh) for various types of power plant, electricity consumption by sectors,

trends in GDP, electricity demand per capita (J/capita) and electricity generated per

capita (J/capita),trends in GDP and electricity consumption (GWh), and annual growth

rates of GDP, energy demand and electricity demand that were tabulated in the previous

chapter.

Finally sub topic 4.4 discusses analysis results from the total electricity

generation data, percentage of the various types of fuel for electricity generation data,

CO2, SO2, NOx and CO emission from fossil fuel for a unit of electricity generation data,

electricity generation (GWh) for various types of power plant from 2000 – 2008, power

plants electricity generation contribution (%) from year 2000 to 2008 and also nominal

capacity (MW) for various types of Malaysian power plant from year 2000 to 2008 that

were tabulated in the previous chapter. The analysis of the environmental impact due to

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the potential emission produced and prediction for the future emission production from

electricity generation in Malaysia have been generated and the results from the analysis

will be fully shown in this chapter.

4.2 Results and Discussion for the Prediction of Future Energy Pattern in

Malaysia

4.2.1 Prediction for the future total primary energy supply and total final energy

demand in Malaysia

The results of the predicted data based on Equations (3.2) and (3.3) from the year

of 2012 to 2030 are tabulated in Table 4.1 and illustrated in Figure 4.2.

Table 4.1 Forecasted for the future total primary energy supply and total final energy demand in Malaysia from year 2012 - 2030

The comparison between the before prediction which is for the previous year and

the prediction for the future energy supply and demand are separated by the dotted line

and as shown in Figure 4.1.

Year Total Primary Energy Supply (TJ)

Total Final Energy Demand (TJ)

2012 3,651,618 2,130,330 2013 3,819,581 2,216,749 2014 3,991,204 2,304,212 2015 4,166,487 2,392,719 2016 4,345,428 2,482,270 2017 4,528,029 2,572,865 2018 4,714,290 2,664,504 2019 4,904,210 2,757,188 2020 5,097,789 2,850,916 2022 5,295,028 2,945,688 2023 5,495,926 3,041,504 2024 5,700,483 3,138,365 2025 5,908,700 3,236,270 2026 6,120,577 3,335,219 2027 6,336,112 3,435,212 2028 6,555,307 3,536,249 2029 6,778,162 3,638,330 2030 7,004,676 3,741,456

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Figure 4.1 : Prediction trend of total primary energy supply and total final energy

demand from year 1990 - 2030

Figure 4.1 shows that pattern of the total energy supply and energy demand in

Malaysia increasing rapidly from year to year. The total primary energy supply for the

19 years which is starting from year 1990-2008 is 40,721,003 TJ while the total final

energy demand from 1990-2008 is 24,495,206 TJ. These results can be obtained from

Table 3.1. This is shows that total primary energy supply in Malaysia is 39.8% more

than total final energy demand in Malaysia. Even though the collected data is only from

year 1990 to the year of 2008, but the assumption for the total energy supply and

demand for the year 2009 and 2010 can be predicted too using the Equation (3.2) and

(3.3). Therefore the assumption of total primary energy supply and final energy demand

for past 19 years, which is from year 1992 to 2010, is 42,046,063 TJ and 25,292,746 TJ.

The prediction of total primary energy supply and total final demand in

Malaysia starting from the year of 2012 to 2030 can be also shown in Figure 4.1. This

graph also shows that the total of future primary energy supply and total future final

energy demand is increasing significantly from year to year. The results from Table 4.1

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shows that the total for future primary energy supply for the next 19 years which is

starting from year 2012-2030 is 101,649,474 TJ while the total for future final energy

demand from year 2012 to 2030 is 56,264,320 TJ. This is shows that total for future

energy supply in Malaysia is predicted to be 44.6% more than total future energy

demand in Malaysia which much more than for the past 19 year.

4.2.2 Prediction for the commercial energy supply from year 2012 to 2030

The results of the predicted data based on Equations (3.4), (3.5), (3.6) and (3.7)

from the year of 2012 to 2030 are tabulated in Table 4.2 and illustrated in Figure 4.4.

Table 4.2 Forecasted for the commercial energy supply in Malaysia from year

2012-2030

Year Oil (TJ) Natural Gas (TJ)

Coal & Coke (TJ)

Hydropower (TJ)

Total (TJ)

2012 1,085,228 1,423,363 652,392 71,042 3,232,025 2013 1,088,727 1,481,310 720,438 72,316 3,362,790 2014 1,090,332 1,539,515 792,128 73,594 3,495,569 2015 1,090,043 1,597,980 867,461 74,879 3,630,364 2016 1,087,861 1,656,704 946,438 76,169 3,767,172 2017 1,083,785 1,715,688 1,029,058 77,466 3,905,996 2018 1,077,815 1,774,930 1,115,322 78,768 4,046,835 2019 1,069,951 1,834,432 1,205,230 80,075 4,189,688 2020 1,060,193 1,894,193 1,298,781 81,389 4,334,556 2021 1,048,541 1,954,213 1,395,976 82,708 4,481,439 2022 1,034,996 2,014,493 1,496,814 84,033 4,630,336 2023 1,019,557 2,075,031 1,601,296 85,364 4,781,249 2024 1,002,224 2,135,829 1,709,422 86,701 4,934,176 2025 982,997 2,196,886 1,821,191 88,043 5,089,118 2026 961,877 2,258,203 1,936,604 89,392 5,246,075 2027 938,862 2,319,778 2,055,660 90,746 5,405,046 2028 913,954 2,381,613 2,178,360 92,105 5,566,032 2029 887,152 2,443,707 2,304,704 93,471 5,729,033 2030 858,456 2,506,060 2,434,691 94,842 5,894,049

The comparison between the final commercial energy supply from and the year

1990 to 2008 and the prediction for the future final commercial energy supply from year

2012 to 2030 in Malaysia are separated with the dotted line and as shown in Figure 4.2.

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Figure 4.2: Prediction pattern for commercial energy supply from year 1990 – 2030

Figure 4.2 shows that pattern of the final commercial energy mix supply in

Malaysia from year 1990 to 2008. The pattern shows the usage of oil and natural gas are

increasing rapidly. The usage of coal and coke are also increasing but slowly from year

to year. While the usage of petroleum products and others are decreasing from year to

year. The usage of hydropower is almost in steady state and not much different from

year to year.

Figure 4.2 also shows that the prediction patterns of the final commercial energy

mix supply in Malaysia from year 2012 to 2030. The prediction of usage natural gas,

coal and coke are increasing from year to year. The prediction of the usage of

hydropower is remaining almost in steady state from year to year. The usage of oil is

depleting from year to year. This shows that the production of oil products in Malaysia

is declining. The data and the graph also shows that, since year 1990 until 2008, the

demand of the energy usage is increasing tremendously and also causing the reduction

of the production of the oil products in Malaysia due to move away from huge

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dependency on oil and diversified the energy resources. Therefore, Malaysia has to start

searching for the new potential area of oil exploration to accommodate future energy

demand. Besides that Malaysia also has start to increase the usage of the hydropower

and also start to use the renewable energy such as biomass proactively instead of the

crude oil.

4.2.3 Prediction for the future final energy use by sectors from year 2012 to 2030

The results of the predicted data based on Equations (3.8), (3.9), (3.10) and (3.11)

from the year of 2012 to 2030 are tabulated in Table 4.3 and illustrated in Figure 4.3.

Table 4.3 Forecasted for the future final energy use by sectors in Malaysia from year

2012 - 2030

Year % Non-Energy Use

% Others (Agriculture, Residential and Commercial)

% Transport % Industrial

2012 5.5 14.1 35.7 44.7 2013 5.4 14.1 35.2 45.4 2014 5.2 14.1 34.6 46.0 2015 5.0 14.2 34.1 46.7 2016 4.8 14.2 33.6 47.4 2017 4.6 14.2 33.1 48.1 2018 4.5 14.3 32.6 48.7 2019 4.3 14.3 32.0 49.4 2020 4.1 14.3 31.5 50.1 2021 3.9 14.3 31.0 50.7 2022 3.8 14.4 30.5 51.4 2023 3.6 14.4 30.0 52.0 2024 3.4 14.4 29.4 52.7 2025 3.3 14.4 28.9 53.3 2026 3.1 14.5 28.4 54.0 2027 3.0 14.5 27.9 54.6 2028 2.8 14.5 27.4 55.3 2029 2.6 14.6 26.9 55.9 2030 2.5 14.6 26.4 56.5

The comparison between the final energy use by sectors in Malaysia for the year

of 2008 and the prediction year of 2030 are shown in Figure 4.3 and Figure 4.4.

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Figure 4.3: Final energy use by sectors in Malaysia for year 2008

Figure 4.4 : Prediction of future final energy use by sectors in Malaysia for year 2030

Figure 4.3 shows the percentage of the final energy use by sectors in Malaysia

for year 2008. The figure shows that energy in Malaysia is consumed mainly in the

industrial and transportation sectors, 42.6% and 36.5% respectively, followed by

commercial and residential sectors combined at 13.8 %, non-energy use and agricultural

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sector, which consumes 6.4% and 0.6% of the energy. While Figure 4.6 shows the

percentage of the prediction future final energy use by sectors in Malaysia for the 2030.

The figure shows that the future prediction energy in Malaysia is still consumed mainly

in the industrial and transportation sectors, 56.5% and 26.4% respectively, followed by

others at 15.2%, and non-energy use sector, which consumes 2.5% of the energy. The

prediction shows that in 22 years time, the energy consumed in industrial sector will be

increasing up to 13.9% and 1.4% for others which are include with agriculture and

commercial and residential sectors. While the transportation sectors will be decreasing

up to 10.1% and 3.9% for non-energy use sector in 2030. Meanwhile, from the

predicted calculation for agricultural sector also revealed that the sector will be

declining and consuming the lowest energy in 2030. This is due to the high demand of

energy in industrial sector. The prediction also shows that Malaysia should be starting

to increase the production from agricultural sector to avoid the declining from that

sector and to balance up the economic sector.

4.2.4 Prediction for the future final energy consumption and real GDP from year

2012 to 2030

The prediction of future energy consumption and GDP growth are based on

Equations (3.8), (3.9), (3.10), (3.11) and GDP growth assumption in Table 3.5. These

results are tabulated in Table 4.4 and illustrated in Figure 4.5.

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Table 4.4 Forecasted for the future final energy consumption and real GDP in Malaysia

from year 2012 - 2030

Year Non-Energy

Use (TJ) Others

(Agriculture, Residential & Commercial)

(TJ)

Transport (TJ)

Industrial (TJ)

Total (TJ) Real GDP (RM

Million)

2012 118,196 300,965 761,778 955,466 2,136,405 582,497 2013 119,004 313,943 781,847 1,009,432 2,224,226 609,117 2014 119,579 327,135 801,292 1,065,183 2,313,189 636,954 2015 119,921 340,542 820,112 1,122,720 2,403,294 666,062 2016 120,029 354,162 838,307 1,182,043 2,494,541 697,501 2017 119,904 367,997 855,877 1,243,152 2,586,929 730,423 2018 119,545 382,046 872,823 1,306,046 2,680,460 764,899 2019 118,953 396,309 889,144 1,370,727 2,775,132 801,002 2020 118,128 410,786 904,840 1,437,193 2,870,947 838,809 2021 117,069 425,478 919,911 1,505,445 2,967,903 873,620 2022 115,777 440,383 934,358 1,575,483 3,066,002 909,875 2023 114,252 455,503 948,180 1,647,307 3,165,242 947,635 2024 112,494 470,837 961,377 1,720,917 3,265,625 986,962 2025 110,502 486,386 973,950 1,796,312 3,367,149 1,027,920 2026 108,276 502,148 985,897 1,873,493 3,469,815 1,065,131 2027 105,817 518,125 997,220 1,952,460 3,573,623 1,103,689 2028 103,125 534,316 1,007,919 2,033,213 3,678,573 1,143,642 2029 100,200 550,721 1,017,992 2,115,752 3,784,665 1,185,042 2030 97,041 567,340 1,027,441 2,200,077 3,891,899 1,227,941

The comparison between the final energy consumption and real GDP in Malaysia

for the year of 1990 to 2008 and the prediction year of 2012 to 2030 are separated with

the dotted line and shown in Figure 4.5.

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Figure 4.5 : Prediction trend of final energy consumption and real GDP from year 1990 - 2030

Figure 4.5 shows the final energy consumption and real Gross Domestic Product

(GDP) growth in Malaysia from year 1990 to 2030. The GDP growth rapidly from year

to year and it is parallel with the increasing of final energy consumption in Malaysia.

From Table 3.4, the total energy consumption and real GDP growth in Malaysia for the

year 1990 are 553,396 TJ and RM 189,059. While the total energy consumption and

real GDP growth in Malaysia for the year 2008 are 1,880,005 TJ and RM 528,311. This

is shows that since year 1990 to 2008, the total energy consumption and real GDP

growth in Malaysia is increased almost triple for the past in 19 years time which is

increased more than 9% per annum. Figure 4.1, has already shown that the energy

demand and supply from year to year are increasing. These results can be the factor of

the increasing in energy consumption and also real GDP in Malaysia for the past 19

years and also for the future.

Figure 4.5 also shows the prediction of future final energy consumption and real

GDP growth in Malaysia from the year of 2012 to 2030. From Table 4.4 shows that the

total predictions of future energy consumption and real GDP growth in Malaysia for the

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2012 are 2,143,936 TJ and RM 610,320.00 respectively. While the predictions of total

future energy consumption and real GDP growth in Malaysia for the year 2030 are

3,891,704 TJ and RM 1,128,784 respectively. This graph also shows that the

predictions of future final energy consumption and real GDP in Malaysia for next 19

years are also increasing up to 81.5% and 85% respectively which are predicted to be

increased more than 4% per annum due to the high development, high energy demand

and also the increasing in population of Malaysia.

4.3 Results and Discussion for the Prediction of Future Electricity Generation in

Malaysia

4.3.1 Prediction for the future electricity demand and electricity generated in

Malaysia

The results of the forecasted data based on Equations (3.12) and (3.13) from the

year of 2012 to 2030 are tabulated in Table 4.5 and illustrated in Figure 4.6.

Table 4.5 Forecasted for the future total electricity demand and electricity generated in

Malaysia from year 2012 - 2030

Year Total Electricity Demand (TJ) Total Electricity Generated (TJ) 2012 389,953 405,160 2013 403,472 417,616 2014 416,878 429,867 2015 430,172 441,912 2016 443,353 453,751 2017 456,421 465,384 2018 469,378 476,812 2019 482,221 488,033 2020 494,952 499,049 2021 507,571 509,859 2022 520,076 520,463 2023 532,470 530,861 2024 544,751 541,053 2025 556,919 551,040 2026 568,975 560,821 2027 580,918 570,396 2028 592,749 579,765 2029 604,467 588,928 2030 616,072 597,885

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With reference to the previous Table 3.1, in year 1990, total electricity demand is

13% from the total final energy demand in Malaysia. While total electricity generated

in that year is 9.2% from the total primary energy supply in Malaysia. The total

electricity demand from the total final energy demand in Malaysia was increased in year

2008 to 17.8%. While the total electricity generated from total primary energy supply

was also increased to 11.2%.

The comparison between the before prediction which is for the previous year and

the prediction for the future electricity demand and generated are separated with the

dotted line and shown in Figure 4.6.

Figure 4.6 : Prediction trend of future electricity demand and electricity generated

from year 1990 – 2030

Figure 4.6 shows that pattern of the total electricity demand and electricity

generated in Malaysia increasing rapidly from year to year. The total of electricity

demand for the 19 years which is starting from year 1990-2008 is 3,843,373 TJ while

the total electricity generated from 1990-2008 is 4,206,637 TJ. These results can be

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obtained from Table 3.6. This is shows the average of total electricity generated in

Malaysia from year 1990 to 2008 is approximately 8.6% more than total electricity

demand in Malaysia. Even though the collected data is only from year 1990 to the year

of 2008, but the assumption for the total electricity demand and electricity generated for

the year 2009 and 2010 can be predicted too using the Equation (3.12) and (3.13).

Therefore the assumption of total electricity demand and electricity generated for past

19 years, which is from year 1992 to 2010, is 4,402,296 TJ and 4,774,352 TJ.

The prediction of future total electricity demand and electricity generated in

Malaysia starting from the year of 2012 to 2030 can be also shown in Figure 4.6. This

graph also shows that the total of future electricity demand and electricity generated is

increasing significantly from year to year. The results from Table 4.5 shows that the

total of future electricity demand for the next 19 years which is starting from year 2012-

2030 is 9,611,970 TJ while the total for future electricity generated from year 2012 to

2030 is 9,628,425 TJ. This is shows that total for future electricity generated in

Malaysia is forecasted to be approximately 0.2% more than total future electricity

demand in Malaysia.

4.3.2 Prediction for future electricity generation from various mix energy (exclude

co-generation and private licensed plants) from year 2012 to 2030

The results of the forecasted data based on Equations (3.14), (3.15), (3.16) and

(3.17) from the year of 2012 to 2030 are tabulated in Table 4.6 and illustrated in Figure

4.7.

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Table 4.6 Forecasted for the future electricity generation from various mix energy

(exclude co-generation and private licensed plants) from year 2012 - 2030

Year Oil (TJ) Natural Gas (TJ)

Coal (TJ) Hydropower (TJ)

Total Input (TJ)

2012 5,313 517,210 562,908 53,007 1,138,442 2013 3,551 505,193 624,982 49,616 1,183,373 2014 3,559 490,256 690,442 44,508 1,228,775 2015 2,470 472,399 759,290 40,488 1,274,648 2016 1,340 451,620 831,524 36,511 1,320,994 2017 0 427,921 907,146 32,742 1,367,812 2018 0 401,302 986,154 27,592 1,415,101 2019 0 371,762 1,068,550 22,526 1,462,862 2020 0 339,301 1,154,332 17,460 1,511,095 2021 0 303,920 1,243,502 12,352 1,559,800 2022 0 255,198 1,336,058 17,711 1,608,976 2024 0 201,730 1,432,002 24,913 1,658,625 2025 0 146,629 1,531,332 30,774 1,708,745 2026 0 140,767 1,634,050 35,213 1,759,337 2027 0 119,497 1,647,459 43,461 1,810,401 2028 0 100,572 1,712,944 48,402 1,861,937 2029 0 66,992 1,789,524 57,446 1,913,944 2030 0 55,059 1,848,435 62,931 1,966,424

The comparison between the electricity generation from various mix energy

(exclude co-generation and private licensed plants) from year 1990 to 2008 and

predicted for the future electricity generation from various mix energy (exclude co-

generation and private licensed plants) from year 2012 to 2030 in Malaysia are

separated with the dotted line and shown in Figure 4.7.

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Figure 4.7 : Prediction pattern of the future electricity generation in Malaysia from

various mix energy (exclude co-generation and private licensed plan)

Figure 4.7 shows that pattern of the Electricity Generation in Malaysia from

various mix energy (exclude co-generation and private licensed plan) from year 1990 to

2008. In 2008, the total electricity generated in the country was 1,011,747 TJ of which

56% was contributed by natural gas, 33% coal, 8% hydropower and by 2% oil products.

The pattern shows that natural gas is being the major contributor to the electricity

generation in Malaysia. The usage of coal is increasing slowly from year to year due to

reduce the high dependence on natural gas in the generation mix by increasing. As a

result, the share of coal in the total generation mix increased from 9.7% in 2000 to 33%

in 2008 whereas that of natural gas declined from 74.9 % to 56%. While the usage of oil

products are declining from year to year. The usage of hydropower is almost in steady

state and not much different from year to year.

Figure 4.7 also shows the prediction of future electricity generation in Malaysia

from various mix energy (exclude co-generation and private licensed plan in Malaysia)

from year 2012 to 2030. The prediction shows that coal will be the major contributor in

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the electricity generation and increasing tremendously from year to year. The usage of

natural gas is declining tremendously. This is due to the efforts that were undertaken to

reduce the high dependence on natural gas in the generation mix. The prediction of the

usage of hydropower is remaining almost consistent from year to year. While the usage

of crude oil products are declining from year to year due to the declining of the

production of crude oil and petroleum products in Malaysia. This prediction also show

that Malaysia should increase the usage of the renewable energy such as hydro and

biomass in order to reduce the high dependence on coal for the future and balance up

the mix energy generation from focusing in using certain types of energy.

4.3.3 Prediction for the future total electricity generation for various types of

power plant from year 2012 to 2030

The results of the forecasted data based on Equations (3.18), (3.19), (3.20), (3.21),

(3.22), (3.23), (3.24) and (3.25) from the year of 2012 to 2030 are tabulated in Table 4.7

and illustrated in Figure 4.6.

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Table 4.7 Forecasted for the future total electricity generation for various types of

power plant from year 2012 - 2030

Year Conventional Thermal

(Coal/oil/gas) (GWh)

Gas Turbine (GWh)

Combined Cycle (GWh)

Diesel Engine (GWh)

Hydro-power (GWh)

Mini Hydro (GWh)

Biomass (GWh)

Total (GWh)

2012 34,661.1 19,777.3 53,760.2 1,716.8 9,685.6 46.2 70.9 119,718.1 2013 35,272.1 20,313.9 57,174.1 1,642.9 9,683.2 30.6 82.5 124,199.4 2014 35,842.5 20,807.4 60,672.4 1,554.3 9,665.9 13.5 95.0 128,651.0 2015 36,372.5 21,257.7 64,255.1 1,451.2 9,633.6 10.0 108.2 133,088.3 2016 36,861.9 21,664.8 67,922.2 1,333.5 9,586.2 14.6 122.2 137,505.5 2017 37,310.9 22,028.7 71,673.7 1,201.3 9,523.8 20.0 136.9 141,895.4 2018 37,719.3 22,349.5 75,509.6 1,054.5 9,446.5 35.0 152.5 146,266.8 2019 38,087.2 22,627.0 79,429.8 893.1 9,354.0 40.0 168.9 150,600.1 2020 38,414.6 22,861.4 83,434.5 - 9,246.6 41.5 186.1 154,184.7 2021 38,701.5 23,052.6 87,523.6 - 9,124.2 16.5 204.1 158,622.4 2022 38,947.9 23,200.6 91,697.0 - 8,986.7 18.9 222.8 163,073.9 2023 39,153.7 23,305.4 95,954.8 - 8,834.3 16.4 242.4 167,507.0 2024 39,319.1 23,367.0 100,297.1 - 8,666.8 40.0 262.8 171,952.7 2025 39,443.9 23,385.5 104,723.7 - 8,484.3 19.8 283.9 176,341.1 2026 39,528.2 23,360.8 109,234.7 - 8,286.7 20.4 305.9 180,736.7 2027 39,572.0 23,292.9 113,830.1 - 8,074.2 21.0 328.6 185,118.8 2028 39,575.3 23,181.8 118,509.9 - 7,846.6 21.8 352.2 189,487.6 2029 39,538.1 23,027.5 123,274.1 - 7,604.1 22.5 376.5 193,842.8 2030 39,460.4 22,830.0 128,122.7 - 7,346.5 23.9 401.6 198,185.1

The comparison between the total electricity generation for various types of

power plant from year 1990 to 2008 and the prediction for the future total electricity

generation for various types of power plant from year 2012 to 2030 in Malaysia are

separated with the dotted line and shown in Figure 4.8. Univers

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Figure 4.8 : Prediction pattern of electricity generation in Malaysia power plants by type

of power plant from year 1990 – 2030

Table 3.9 and Figure 4.8 show that starting from the year 2000, most of the

electricity was generated from combined cycle’s power plant and followed by the

conventional thermal (coal) power plant and the generations from these two types of

power plant are increasing year by year. While the diesel engine power plants are being

slowly phase out. It is also shows that the electricity generation from fossil fuels is

much higher than renewable sources due to meet the high electricity demand. Accept

for the year 2004, the production from combine cycles power plant was dropped to 63%

due to the increasing of 81% of the generation from conventional thermal (oil/gas)

power plant. While starting from year 2005, Malaysia starts to reduce tremendously the

production of electricity generation from conventional thermal (oil/gas) up 89% due to

the declining of the fuel consumption (Table 3.16). Malaysia is starting to generate the

electricity from biomass power plant since 2008 until now. Currently many oil and gas

company started to do the research on this field and started to use biomass power plant

to generate the electricity.

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Table 4.7 and Figure 4.8 are also show the prediction of the future electricity

generation from various types of power plants. This graph shows that the combined

cycle power plant still will be the biggest contributor to the electricity generation in

Malaysia, followed by the conventional thermal (steam turbine), gas turbine and hydro-

power plant. It is noted that the changes in share of the mix energy sources will affect

the contribution percentage of the each type of the power plants that generate electricity

in Malaysia. Therefore, with reference from the literature review in the previous chapter,

the efficiency of the hydro power plant is generally higher and their life span is also

longer compared to the fossil fuel power plants although the initial cost of the power

plant is a bit higher than fossil fuel plant. Thus, Malaysia should increase the electricity

generation from this hydro power plant and other renewable power plants in the future

due to the higher efficiency and long term saving.

Furthermore, this result is a prediction only and the real generation of the future

electricity in Malaysia is subjected to the future efficiency of each type of the power

plant and also the development of Malaysia especially in the research and development

for the next 19 years ahead.

4.3.4 Prediction for the future electricity consumption by sectors from year

2012 to 2030

The results of the predicted data based on Equations (3.26), (3.27), (3.28) and

(3.29) from the year of 2012 to 2030 are tabulated in Table 4.8 and illustrated in Figure

4.9.

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Table 4.8 Forecasted for the future electricity consumption by sectors in Malaysia from

year 2012 - 2030

Year Residential and

Commercial (TJ)

Industrial (TJ)

Transport (GJ) Agriculture (GJ)

Total (TJ)

2012 225,370 162,725 1,023,820 1,107,654 390,226 2013 237,579 163,797 1,138,442 1,267,850 403,782 2014 250,098 164,433 1,259,090 1,438,080 417,228 2015 262,927 164,633 1,385,764 1,618,345 430,564 2016 276,065 164,397 1,518,464 1,808,644 443,789 2017 289,513 163,725 1,657,190 2,008,978 456,904 2018 303,270 162,617 1,801,942 2,219,346 469,908 2019 317,337 161,073 1,952,720 2,439,748 482,803 2020 331,714 159,093 2,109,524 2,670,185 495,587 2021 346,400 156,677 2,272,354 2,910,656 508,260 2022 361,396 153,825 2,441,210 3,161,162 520,824 2023 376,701 150,538 2,616,092 3,421,702 533,277 2024 392,316 146,814 2,797,000 3,692,276 545,620 2025 408,241 142,655 2,983,934 3,972,885 557,852 2026 424,475 138,059 3,176,894 4,263,528 569,975 2028 441,019 133,027 3,375,880 4,564,206 581,986 2029 457,872 127,560 3,580,892 4,874,918 593,888 2030 475,035 121,656 3,791,930 5,195,664 605,679

The comparison between the total electricity consumption by sectors from year

1990 to 2008 and the prediction for the future electricity consumption by sectors in

Malaysia from year of 2012 to 2030 are separated with the dotted line and shown in

Figure 4.9.

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Figure 4.9 : Prediction pattern of total electricity consumption by sectors in Malaysia from

year 1990 - 2030

Figure 4.10 : Total Electricity Consumption by sectors in Malaysia for the year 2008

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Figure 4.11 : Prediction of future electricity consumption by sectors in Malaysia for

the year 2030

Figure 4.9 shows the percentage of the total electricity consumption by sectors

in Malaysia from year 1990 to 2008. The figure shows that total electricity consumption

in each sector are increasing yearly. Accept in year 1998 for the industrial sector, the

electricity consumption by industrial sector is slightly decreased for a year but after year

1999 to 2008, the electricity consumption for this sector is slightly increased from year

to year. Besides, Figure 4.10 shows that the electricity in Malaysia is consumed mainly

in the residential and commercial sectors combined at 53.4% and industrial sectors at

46.1% respectively, followed by the transportation and agricultural sectors which

consumes at 0.2% both. While Figure 4.9 also shows the prediction of future electricity

consumption by sectors in Malaysia from year 2012 to 2030. The figure shows that the

electricity consumption from residential and commercial are increasing tremendously

and this sector will be the major consumer due to the high demand of electricity

generation in Malaysia (see Figure 4.11). While the electricity consumption from

industrial sector will be decreasing due to the application of high efficiency machines

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and equipment used and the implementation of the energy saving concept in most of the

factories. From Figure 4.11 shows that the prediction in 22 years time, the electricity

consumption in residential and commercial sector will be increasing up to 79.8%, 0.9%

for agricultural sector and 0.65% for transportation sector. The electricity consumption

in industrial sector will be decreasing up to 18.7% in 2030. The increasing of the

electricity consumption in residential and commercial sector is due to the increasing of

the population in Malaysia and high demand. The prediction also shows that Malaysia

should be starting to implement the energy saving in building in order to reduce the

electricity consumption on that sector and Malaysia should be started to increase the

production from agricultural sector in order to balance up the economic sector.

4.3.5 Prediction for the future trends in GDP, total electricity demand per capita

(GJ/capita) and total electricity generated per capita (GJ/capita)

The results of the predicted data from the year of 2012 to 2030 are based on

Equations (3.30) and (3.31) are tabulated in Table 4.10 and illustrated in Figure 4.12.

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Table 4.9 Total electricity demand per capita (GJ/capita), total electricity generated per

capita (GJ/capita) and GDP in Malaysia from year 1990 - 2008

Year Total

Electricity Demand (GWh)

Total Electricity Demand per capita

(GJ/capita)

Total Electricity Generated per capita

(GJ/capita)

Real GDP (RM Million)

Population

1990 19,932 3.97 4.58 189,059 18,102,000 1991 22,373 4.25 5.03 205,312 18,986,000 1992 25,778 4.89 5.56 221,319 18,985,000 1993 28,474 5.26 6.41 239,792 19,503,000 1994 34,076 6.12 7.02 261,951 20,049,000 1995 39,225 6.85 7.94 283,645 20,624,000 1996 43,897 7.49 8.77 312,017 21,101,000 1997 50,952 8.50 9.65 335,556 21,595,000 1998 53,195 8.67 9.49 310,381 22,107,000 1999 55,961 8.91 10.38 328,194 22,636,000 2000 61,168 9.41 9.41 356,401 23,418,000 2001 65,015 9.79 10.69 358,246 23,935,000 2002 68,827 10.14 10.93 377,559 24,447,000 2003 73,371 10.55 11.28 399,414 25,048,000 2004 77,206 10.87 11.58 426,508 25,580,000 2005 80,705 11.02 11.58 449,250 26,384,000 2006 84,575 11.35 12.05 475,526 26,840,000 2007 89,294 11.72 12.79 505,919 27,452,000 2008 92,815 12.06 12.72 528,311 27,730,000

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Table 4.10 Forecasted for the future total electricity demand per capita (GJ/capita), total

electricity generated per capita (GJ/capita) and GDP in Malaysia from year 2012 - 2030

Year Total Electricity

Demand (GWh) Total Electricity

Demand per capita (GJ/capita)

Total Electricity Generated per

capita (GJ/capita)

Real GDP (RM Million)

Population

2012 108,246 12.11 12.58 566,325 32,212,662 2013 111,999 12.29 12.72 592,207 32,837,289 2014 115,720 12.46 12.84 619,270 33,467,960 2015 119,411 12.61 12.96 647,571 34,104,675 2016 123,069 12.76 13.06 678,136 34,747,434 2017 126,697 12.89 13.15 710,144 35,396,237 2018 130,294 13.02 13.23 743,663 36,051,084 2019 133,859 13.14 13.29 778,764 36,711,975 2020 137,393 13.24 13.35 815,522 37,378,910 2021 140,896 13.34 13.40 849,366 38,051,889 2022 144,367 13.43 13.44 884,615 38,730,912 2023 147,808 13.51 13.47 921,326 39,415,979 2024 151,217 13.58 13.49 959,561 40,107,090 2025 154,595 13.65 13.50 999,383 40,804,245 2026 157,941 13.71 13.51 1,035,561 41,507,444 2027 161,256 13.76 13.51 1,073,048 42,216,687 2028 164,541 13.81 13.50 1,111,892 42,931,974 2029 167,793 13.85 13.49 1,152,143 43,653,305 2030 171,015 13.88 13.47 1,193,850 44,380,680

The relationship between the current and prediction of the future real GDP

growth, total electricity demand per capita (GJ/capita) and total electricity generated per

capita (GJ/capita) in Malaysia from year 1990 to 2030 are reviewed in Figure 4.12.

Meanwhile Figure 4.13 shows the relationship between future trends of GDP growth

and electricity demand in Malaysia. Univers

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Figure 4.12 : Electricity Demand per Capita, Total Electricity Generated and

Real GDP from Year 1990 - 2030

Figure 4.13 : Prediction of Future Trends in GDP and Electricity Demand from

Year 1990 - 2030

Figure 4.12 shows the Gross Domestic Product (GDP) growing rapidly from year

to year until 2008 and it is parallel with the increasing of total electricity demand and

generated per capita in Malaysia due to the increasing of the population in Malaysia

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(Table 4.9 and 4.11). Between 1990 and 2008, gross domestic production (GDP) growth

averaged above 9% per annum. The GDP was dropped to 7% in year 1998 due to the

effected of Asian Financial Crisis in 1997.

Figure 4.12 also shows that the prediction of future trends GDP in Malaysia is

growing year by year. While the electricity demand and generated per capita from the

year of 2012 to 2030 are within the same range of average from year to year. The results

from Figure 4.13 can be predicted that Malaysia’s GDP will be growing by 4.7% on

average from 2012 to 2030. Within the same period, total electricity demand is

predicted to increase from 108,246 GWh in 2012 to 171,015 GWh in 2030. This is also

shows that the future electricity demand and trends GDP growth in Malaysia for next 19

years are increasing and keep growing due to the increasing of the population and high

development in Malaysia

Table 4.11 Forecasted for the future annual growth rates of GDP, final energy demand

and electricity demand in Malaysia from year 2012 - 2030

Year Annual Growth (%) Annual Growth Final

Energy Demand (%) Annual Growth Final

Electricity Demand (%) 2012 4.57 4.2 3.6 2013 4.57 4.1 3.5 2014 4.57 3.9 3.3 2015 4.57 3.8 3.2 2016 4.72 3.7 3.1 2017 4.72 3.6 2.9 2018 4.72 3.6 2.8 2019 4.72 3.5 2.7 2020 4.72 3.4 2.6 2021 4.15 3.3 2.5 2022 4.15 3.3 2.5 2023 4.15 3.2 2.4 2024 4.15 3.1 2.3 2025 4.15 3.1 2.2 2026 3.62 3.0 2.2 2027 3.62 2.9 2.1 2028 3.62 2.9 2.0 2029 3.62 2.8 2.0 2030 3.62 2.8 1.9

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Figure 4.14 : Trends in Annual Growth Rates of GDP, Energy Demand and Electricity

Demand in Malaysia from 1990 - 2030

Figure 4.14 reviewed the current and prediction of the future trends in annual

growth rates of Gross Domestic Product (GDP), final energy demand and final

electricity demand in Malaysia from year 1990 to 2030. The patterns show that the

annual growth rates of GDP, energy demand and electricity demand are fluctuate and

instable from year to year due to the development progress in Malaysia. The annual

growth rates of GDP and energy demand were dropped drastically to -7.5% from 7.5%

and -2.3% from 8.3% respectively in year 1998 due to the effected of Asian Financial

Crisis in 1997. Meanwhile the annual growth rate of electricity demand was also

dropped to 4.4% from 16.1% in year 1998.

The results were also predicted that the annual growth rates of GDP, energy

demand and electricity demand will become stable starting from year 2016 and slowly

depleting until year 2030. It is expected that Malaysia will be fully developed and the

economic is expected to be fully matured in year 2021.

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4.4 Results and Discussion for the Environmental Impact due to the Emission

Production from the Electricity Generation in Malaysia

4.4.1 Prediction of the future potential emission production from the electricity

generation in Malaysia

The results of the predicted data based on Equations (3.35) and (3.36) from year

2012 to 2030 are tabulated in Table 4.14 and illustrated in Figure 4.15.

Table 4.12 Predicted electricity generation and percentage mix of electricity generation

in Malaysia from year 2012 - 2030

Year Oil Natural Gas Coal Hydro Total (GWh)

2012 0.15% 45.43% 43.54% 10.88% 316,185 2013 0.10% 42.69% 45.90% 11.31% 328,664 2014 0.08% 39.90% 48.08% 11.94% 341,271 2015 0.05% 37.06% 50.35% 12.54% 354,006 2016 0.00% 34.19% 52.83% 12.98% 366,880 2017 0.00% 31.29% 54.96% 13.75% 379,882 2018 0.00% 28.36% 56.78% 14.86% 393,013 2019 0.00% 25.41% 58.62% 15.97% 406,282 2020 0.00% 22.45% 61.20% 16.35% 454,570 2021 0.00% 19.48% 63.54% 16.98% 433,206 2022 0.00% 15.90% 67.04% 17.06% 446,859 2023 0.00% 12.20% 70.32% 17.48% 460,653 2024 0.00% 8.60% 73.64% 17.76% 474,574 2025 0.00% 8.00% 74.02% 17.98% 488,623 2026 0.00% 6.60% 75.38% 18.02% 502,800 2027 0.00% 5.40% 76.03% 18.57% 517,116 2028 0.00% 3.50% 77.54% 18.96% 531,561 2029 0.00% 2.80% 78.02% 19.18% 546,133 2030 0.00% 2.10% 78.56% 19.34% 560,845

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Table 4.13 Potential emissions production by electricity generation in Malaysia from

year 1990 - 2008

Emissions production

Year CO2 (Mkg) SO2 (Mkg) NOx (Mkg) CO (Mkg)

1990 49,097.94 709.51 150.34 16.76 1991 57,011.08 714.18 167.64 23.60 1992 57,500.48 654.01 164.50 26.38 1993 63,555.36 640.37 171.18 33.25 1994 66,056.16 600.06 173.66 37.05 1995 75,781.41 637.90 192.99 44.96 1996 85,274.04 700.20 212.53 51.90 1997 84,893.23 695.09 209.72 52.05 1998 91,765.36 666.10 221.17 59.51 1999 92,009.01 488.40 219.56 64.80 2000 99,620.08 458.22 234.34 72.63 2001 110,806.81 583.87 274.65 76.31 2002 129,821.02 835.96 338.03 82.47 2003 129,680.30 846.70 380.49 74.35 2004 143,492.57 1,026.54 448.36 74.98 2005 157,350.98 1,076.44 480.22 85.58 2006 165,634.07 1,186.17 512.63 87.40 2007 184,701.09 1,380.46 598.21 91.15 2008 199,617.64 1,475.40 644.80 99.26

Table 4.14 Prediction of future potential emissions production by electricity generation

in Malaysia from year 2012 - 2030

Emissions production

Year CO2 (Mkg) SO2 (Mkg) NOx (M kg) CO (Mkg)

2012 238,980.70 1,993.17 846.33 99.45 2013 252,652.74 2,172.45 911.55 100.39 2014 266,018.48 2,353.31 976.46 100.95 2015 280,008.85 2,546.06 1,045.37 101.28 2016 295,192.00 2,756.85 1,120.77 101.48 2017 309,362.87 2,961.52 1,192.65 101.19 2018 322,392.94 3,157.55 1,260.71 100.36 2019 335,747.32 3,362.08 1,331.36 99.25 2020 382,359.43 3,917.96 1,538.47 106.66 2021 369,531.54 3,868.29 1,507.30 97.25 2022 391,154.88 4,199.61 1,621.73 95.44 2023 412,024.33 4,530.74 1,735.02 92.89 2024 434,012.91 4,878.12 1,854.01 90.30

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Emissions production

Year CO2 (Mkg) SO2 (Mkg) NOx (M kg) CO (Mkg)

2025 447,498.37 5,046.88 1,915.91 91.88 2026 464,820.31 5,284.84 2,000.72 92.39 2027 478,732.84 5,478.94 2,069.58 92.59 2028 496,223.68 5,738.50 2,160.04 91.74 2029 510,894.47 5,930.34 2,229.45 92.86 2030 526,150.12 6,130.23 2,301.72 94.01

Table 4.12 shows the forecasted percentage for various types of fuel used for

electricity generation in Malaysia from year 2012 to 2030. The potential emission

production and also the comparison between the production of emission for previous

year and the prediction of future potential emission production from electricity

generation are shown in Figure 4.20 and Figure 4.21.

-500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,500

19901994

19982002

20062010

20142018

20222026

2030

-50,000100,000150,000200,000250,000300,000350,000400,000450,000500,000550,000600,000

SO2 (M kg) NOx (M kg) CO (M kg) CO2 (M kg)

SO2,

NOX

& C

O (M

kg)

CO2

(M kg

)

Year

Potential Trend of Emission Production From Electricity Generation From Year 1990 - 2030

Figure 4.15 : Potential trend of emission production from electricity generation

from year 1990- 2030

Figure 4.15 shows the pattern of emission production from electricity generation

in Malaysia. The pattern shows that the emission production for each type of emission

gasses is increasing from year 1990 to 2008 due to the increasing of electricity demand

and total energy input to generate electricity in Malaysia. The changes in energy sources

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for electricity generation also have contributed to the emission pattern in Malaysia

(Refer Table 4.12) in which energy source from coal is the major contributor in

producing more emission from CO2, followed by the SO2, NOx and CO. Table 4.13 and

Figure 4.15 show that the huge emission is produced from CO2 and was projected to

increase from 49,100 Million kg in year 1990 to 196,600 Million kg in year 2008. The

productions for the second emission contributor, SO2 and third contributor, NOx, were

projected to increase from 709,000 thousand kg and 150,000 thousand kg in year 1990

to 1,470 Million kg and 644,000 thousand kg in year 2008 respectively. On the contrary,

the emission produced from CO is minor compared to the others. Nonetheless, the

statistic from year 1990 to 2008 shows that the emission produced from this CO gas

was also increased from 16,000 thousand kg to 99,000 thousand kg in a year. This is

shows the average of total emission production in Malaysia from year 1990 to 2008 for

the all four types of gas is increasing approximately 16% per annum.

The prediction of future potential emission production from electricity

generation for the next 19 years which starts from year 2012 to 2030 is shown in

Figure 4.16. The results show that the predicted total for future potential emission

production for 19 years are about 7,213,758.78 Mkg of CO2, 76,307.45 Mkg of SO2,

29,619.16 Mkg of NOx and 1,842.38 Mkg of CO. Future potential emission is expected

to increase due to several factors. Some of the factors are high energy consumption,

increasing in the population size and rapid development in Malaysia. The total amounts

of emission are considered very huge for a small developing country like Malaysia. The

graph from Figure 4.16 also shows that the future potential emission production from

total electricity generation is increasing tremendously from year to year due to

increasing of future electricity demand and also monopoly of the coal usage. The results

project that the future potential CO2 emission production due to electricity generation is

increasing approximately 526,000 Million kg which is more than double in year 2030.

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The future emission production from SO2 and NOx are also projected to increase up to

6,100 Million kg and 2,300 Million kg respectively. The increase is more than triple.

However the prediction of emission production from CO is almost maintain every year

and does not show much different. To sum up, the average of total prediction for all

potential emission production in Malaysia that came from the future electricity

generation for next 19 years which starts from year 2012 will be increasing

approximately 0.3% per annum.

4.4.2 Prediction of the future potential emission per unit of electricity generation in

Malaysia

The results of the forecasted data based on Equation (3.37) from the year of 2012

to 2030 are tabulated in Table 4.16 and illustrated in Figure 4.16

Table 4.15 Emission per unit of electricity generation (kg/GWh) from Year

1990 - 2008

Year CO2 (kg/GWh)

SO2 (kg/GWh)

NOX

(kg/GWh) CO

(kg/GWh) 1990 695,040.00 10,043.40 2,128.40 237.20 1991 661,910.00 8,292.00 1,946.30 274.00 1992 649,250.00 7,383.80 1,857.10 297.90 1993 606,970.00 6,115.20 1,634.50 317.60 1994 573,300.00 5,208.40 1,506.40 321.70 1995 579,200.00 4,877.70 1,475.00 343.60 1996 595,000.00 4,883.90 1,482.60 362.20 1997 614,590.00 5,035.60 1,517.90 376.80 1998 590,410.00 4,285.30 1,422.90 382.90 1999 553,720.00 2,943.80 1,321.00 389.90 2000 554,780.00 2,559.20 1,306.00 404.10 2001 573,990.00 3,027.40 1,422.70 395.20 2002 615,280.00 3,958.80 1,602.20 390.90 2003 668,670.00 4,369.10 1,961.90 383.30 2004 695,170.00 4,975.40 2,172.10 363.20 2005 686,420.00 4,693.00 2,094.40 373.50 2006 700,350.00 5,063.90 2,181.90 365.70 2007 721,260.00 5,386.70 2,335.80 356.10 2008 703,200.00 5,195.00 2,270.00 350.00

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Table 4.16 Prediction of future potential emission per unit of electricity generation

(kg/GWh) from Year 2012 - 2030

Year CO2 (kg/GWh)

SO2 (kg/GWh)

NOX (kg/GWh)

CO (kg/GWh)

2012 755,826.00 6,303.81 2,676.70 314.53 2013 768,727.00 6,609.95 2,773.51 305.45 2014 779,494.00 6,895.74 2,861.26 295.82 2015 790,973.00 7,192.15 2,952.99 286.10 2016 804,601.00 7,514.32 3,054.87 276.61 2017 814,365.00 7,795.89 3,139.53 266.37 2018 820,312.00 8,034.22 3,207.80 255.36 2019 826,389.00 8,275.23 3,276.93 244.29 2020 841,145.00 8,619.05 3,384.45 234.65 2021 853,016.00 8,929.46 3,479.40 224.48 2022 875,342.00 9,398.06 3,629.18 213.58 2023 894,436.00 9,835.48 3,766.44 201.64 2024 914,532.00 10,278.96 3,906.68 190.28 2025 915,836.00 10,328.78 3,921.04 188.04 2026 924,464.00 10,510.82 3,979.16 183.76 2027 925,774.00 10,595.17 4,002.16 179.06 2028 933,522.00 10,795.56 4,063.58 172.58 2029 935,476.00 10,858.78 4,082.24 170.04 2030 938,138.00 10,930.34 4,104.02 167.62

The comparison between emission per unit of electricity generation (kg/GWh) for

previous year and the prediction of future potential emission per unit of electricity

generation are shown in Figure 4.16.

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Figure 4.16 : Potential trend of emission production per unit electricity generation from

year 1990 – 2008

Figure 4.16 shows the pattern of emission production per unit electricity

generation. The pattern shows that the emission production from electricity generation

depends on the percentage of the share in fuel mix energy used to generate the

electricity. More coal sharing may contribute to the increasing in emission production in

a year. The emission that came from CO2 gas is still the major contributor with the

largest emission produced since CO2 has shown the highest amount in emission factors.

(Refer Table 3.14). The results from Table 4.12, Table 4.15 and also Figure 4.16,

proved that when the percentage of coal is reduced from 7.43% to 7.2% in year 1997,

the emission production per unit electricity also dropped significantly to 10% until the

end of year 2000. But starting from year 2001, the emission production started to

increase back since the percentage of coal usage was also increased and similar trend

was observed until the end of year 2008.

The results from Table 4.16 show that the forecasted potential of future total

emissions production per unit electricity in year 2030 will be increasing tremendously

-1,000.002,000.003,000.004,000.005,000.006,000.007,000.008,000.009,000.00

10,000.0011,000.00

1990

1994

1998

2002

2006

2010

2014

2018

2022

2026

2030

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

900,000.00

1,000,000.00

SO2 (kg/GWh) NOX (kg/GWh) CO (kg/GWh) CO2 (kg/GWh)

CO2

(kg/

GW

h)

Year

Potential Trend of Emission Production per Unit Electricity Generation From 1990 - 2030

SO2

, NO

X &

CO

(kg

/KW

h)

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and there will be about 938,138 kg/GWh of CO2, 10,930.34 kg/GWh of SO2, 4,104.02

kg/GWh of NOx and 167.62 kg/GWh of CO. The results also predicted widely usage of

coal in the future. Apart from that, coal is expected to play vital role in electricity

generation since the prediction trend shows the declining in the natural gas usage and

the phasing out of the oil production. The increasing in coal usage also maybe because

the electricity starting from the year 2016 while the share of coal in the future is

predicted to increase tremendously

from 45.43% in the year 2012 to 78.56% in the year 2030. These results also

proved that the increasing in the share of coal in electricity generation causes the

increase in emission production per unit electricity generation since high carbon content

in coal will produce the highest CO2 gas emission during combustion process in the

power plant. Therefore, the government of Malaysia should take immediate measures in

controlling and managing high dependency on coal although the coal prices are low.

Besides, other measure that should be focussed on is on developing the renewable

resources and any others fuel resources with lesser emission production or almost zero

emission factors per unit electricity generation.

4.4.3 Review on the emission effects from various types of power plant in Malaysia

from year 2000 to 2008

The results of the emission effects from various types of power plant in

Malaysia were calculated by using Equation (3.38) in the previous chapter based on the

data that were obtained in Table 3.16 and Table 3.17.

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Table 4.17 Emission production from various types of power plants from year 2000 -

2008

Year Emission (Mkg)

Steam Turbine

Gas Turbine Combined Cycle

Diesel Engine

Total (Mkg)

2000 CO2 38,567.63 7,592.19 7,741.05 1,611.55 55,512.42 SO2 464.31 7.16 7.30 31.09 509.87 NOx 128.35 12.89 13.15 4.74 159.13 CO 13.77 7.16 7.30 0.38 28.61

2001 CO2 32,622.29 8,293.19 9,255.79 1,662.55 51,833.81 SO2 391.12 7.82 8.73 32.08 439.75 NOx 115.29 14.08 15.72 4.89 149.98 CO 10.48 7.82 8.73 0.39 27.43

2002 CO2 27,993.36 9,200.92 13,144.17 1,712.77 52,051.22 SO2 334.49 8.68 12.40 33.05 388.62 NOx 103.62 15.62 22.32 5.04 146.60 CO 8.18 8.68 12.40 0.40 29.66

2003 CO2 25,689.25 10,045.29 17,033.32 1,611.04 54,378.90 SO2 306.11 9.48 16.07 31.08 362.74 NOx 98.62 17.06 28.92 4.74 149.34 CO 6.89 9.48 16.07 0.38 32.81

2004 CO2 24,501.95 11,097.16 19,644.33 1,741.87 56,985.30 SO2 293.04 10.47 18.53 33.61 355.65 NOx 89.58 18.84 33.36 5.12 146.90 CO 7.35 10.47 18.53 0.41 36.76

2005 CO2 26,240.02 11,337.66 19,539.37 1,470.12 58,587.17 SO2 311.62 10.70 18.43 28.36 369.11 NOx 105.14 19.25 33.18 4.32 161.90 CO 6.27 10.70 18.43 0.35 35.75

2006 CO2 31,289.55 8,053.10 21,590.22 1,505.47 62,438.35 SO2 371.22 7.60 20.37 29.05 428.23 NOx 126.89 13.68 36.66 4.43 181.65 CO 7.22 7.60 20.37 0.35 35.53

2007 CO2 39,289.78 8,646.06 21,642.01 1,550.27 71,128.12 SO2 465.37 8.16 20.42 29.91 523.85 NOx 162.55 14.68 36.75 4.56 218.54 CO 8.50 8.16 20.42 0.36 37.44

2008 CO2 40,505.62 9,196.40 22,542.39 1,618.79 73,863.19 SO2 479.73 8.68 21.27 31.23 540.91 NOx 167.72 15.62 38.28 4.76 226.38 CO 8.74 8.68 21.27 0.38 39.06

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Emission Production from Various Types of Power Plants in Malaysia

0%

20%

40%

60%

80%

100%

CO2

SO2

NO

xCO CO

2SO

2N

Ox

CO CO2

SO2

NO

xCO CO

2SO

2N

Ox

CO CO2

SO2

NO

xCO CO

2SO

2N

Ox

CO CO2

SO2

NO

xCO CO

2SO

2N

Ox

CO CO2

SO2

NO

xCO

2000 2001 2002 2003 2004 2005 2006 2007 2008

Diesel EngineCombined CycleGas TurbineSteam Turbine

Figure 4.17 : Emission production from various types of power plant In Malaysia

from year 2000 - 2008

Table 4.17 shows the results of emission production from various types of

power plant in Malaysia from year 2000 to 2008. The results show the largest amount of

emission that has been emitted from each type of power plants is CO2. While Figure

4.17 reviewed the pattern of emission production from various types of power plant in

Malaysia. The results revealed that the steam turbine power plant is being the largest

contributor to the huge production of emission due to the high share in the coal usage.

The pattern also shows that the emission production from various power plants depends

on the percentage of the share in fuel mix energy used to generate the electricity. More

coal sharing may contribute to the increasing in emission production in a year.

Generally, the amount of emission production from combined cycle and gas

turbine are almost the same since the same energy source used which is natural gas.

However the trends revealed that the second largest power plant that is contributed to

generate electricity in Malaysia is combined cycle power plant. Apart from this, a

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combined cycle power plant is being the second largest contributor to huge emission

production and followed by the gas turbine. Meanwhile diesel engine power plant

revealed the insignificance share in the total emission.

4.4.4 Discussion on the emission effects from various types of power plant in

Malaysia from year 2000 to 2008

The data for installed capacity (MW) to generate electricity from various types of

power plant in Malaysia from the year 2000 to 2008 are tabulated in Table 3.4.3 and

illustrated in Figure 4.18 and Figure 4.19

Table 3.15 shows that the electricity generation from fossil fuels is much higher

than renewable resources due to high demand in generating the electricity by using the

fossil fuel power plant. Electricity generation using biomass fuel is still new in Malaysia

with only a small portion of contribution and besides the production has just began in

the year 2008. Many companies in Malaysia particularly the oil and gas have started

developing and increasing biomass fuel in their production to generate the electricity. In

general, there are two types of power plants that are using a combination of mix fuel

energy resources as their input to generate the electricity. These two types of power

plants are steam turbine which uses a combination of three types of fuel mix and also

gas turbine which uses a combination of two types of fuel mix energy resources. Only

steam turbine power plant is using coal as their input energy with the combination of

two others fuels, natural gas and oil. Meanwhile, gas turbine power plant is using a

combination of types of fuel mix, natural gas and diesel as the input to generate the

electricity.

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Figure 4.18 : Malaysia Installed Capacity in Year 2000

Figure 4.19 : Malaysia Installed Capacity in Year 2008

Figure 4.18 and Figure 4.19 show the comparison between the share of each type

of power plant that contributed in electricity generation in the year 2000 and 2008.

These figures also show that the share of conventional thermal (coal) increased

significantly from 5.3% to 27.2%. This proves conventional thermal (coal) which is also

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known as steam turbine as being the major contributor to the emission production. On

the other hand, the diesel engine power plant is slowly phasing out and the share is also

slowly decreasing from 2.2% to 2.0% in year 2008 due to the phasing out of oil

consumption in the future. This type of power plant does not give much impact to the

environment due to its insignificance share in the total emission.

The production of electricity from gas turbine power plant is decreasing from

26% to 16.6% in year 2008. If we were to compare between coal and natural gas,

natural gas does not give huge contribution to the pollution due its emission factor per

unit electricity generation is much less than coal. In fact, from the figure also shows that

the share of hydro power plant and mini hydro power plant also decreased from 15.5%

to 9.5% and from 0.3% to 0.1%. The decreased share in hydro power plant also

contributed to the increased in emission production. The emission production can be

reduced by decreasing the dependency on conventional thermal (coal) power plant in

the future and substituting it with the renewable power plants. With reference to Table

3.15, we can observe that from year 2000 to 2005 the usage of combined cycle power

plant increased, but it dropped to 14.3% in the year 2006 and this trend has been

leveling out. If we were to compare between years 2000 to 2008, the share of the

combined cycle power increased from 38.1% to 40.3%. From Table 4.12, the prediction

shows that the consumption of natural gas is declining due the concurring of the coal

usage.

From these results, we can predict that the share of combined cycle power plant

will be decreasing drastically while the share of conventional thermal (coal) plant will

be increasing tremendously by end of year 2030 due to the monopoly of the coal usage.

Therefore, the government of Malaysia should take serious measures in avoiding too

much dependency in coal and increasing back the share of combined cycle power plant

due to its highest efficiency compared to other fossil fuel power plants. Besides, as

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mentioned before Malaysia should balance up the mix fuel energy input to generate

electricity with increased share of various types of renewable resources such as hydro,

biomass, solar, landfill gas and others in order to reduce the emission production in

Malaysia for the future.

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CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

From the analysis that was obtained from objective 1 in the previous chapter, this

study has shown the current and future pattern of the energy supply and demand,

commercial mix energy supply, final energy use by sectors and final energy

consumption and GDP growth in Malaysia for the past and next of 19 years. Besides,

the analysis from objective 2, has shown the current and future pattern of the electricity

demand and generated, electricity generation from various mix energy (exclude co-

generation and private licensed plants), total electricity generation for various types of

power, electricity consumption by sectors, trends in GDP, total electricity demand per

capita (J/capita) and total electricity generated per capita (J/capita) in Malaysia for the

past and next of 19 years. Finally the analysis from objective 3, has shown the

environmental impact due to the emission production from the electricity generation in

Malaysia, the prediction of the future potential emission per unit of electricity

generation in Malaysia and emission effects from various types of power plant that

generate electricity in Malaysia.

The conclusions that have been derived from this study are as per below:

1) Total primary energy supply is expected to increase until year 2030 due to the

increasing of the future energy demand. The demand of the energy usage is

expected to increase tremendously due to the anticipated higher GDP growth.

2) The production of the crude oil and petroleum products in Malaysia is

expected to decline from year to year while the use of natural gas, coal and

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coke is expected to increase and the contribution by hydro will remain about

the same.

3) The industrial sector is expected remain to be the largest consumer of energy

in Malaysia. While the electricity consumption from residential and

commercial sectors are expected to increase and being the major consumer in

the electricity generation.

4) Total electricity generated is expected to increase until year 2030 due to the

increasing of the future electricity demand. The steam turbine power plant is

expected to be the major contributor of the electricity generation in Malaysia

due to the expected of high dependency on coal utilization.

5) Natural gas is being the major contributor to current trending of electricity

generation. While coal is expected to be the major contributor for the future

pattern of the electricity generation in Malaysia due to the declining of the

natural gas usage by reducing the high dependence on natural gas in the

generation mix.

6) Future electricity demand and trends GDP in Malaysia are expected to

increase and keep growing due to the increasing of the population, economic

growth and high development in Malaysia.

7) The annual growth rates of GDP, energy demand and electricity demand are

expected to reach the stability stage starting from year 2016 and slowly

depleting due to the fully matured of the economy in year 2021.

8) The future pattern shows that the emission production from electricity

generation also depends on the percentage of the share in fuel mix energy

used to generate the electricity. Large emission is produced when usage of

coal is at the highest share.

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9) Among the various types of power plants that have been used to generate

electricity, the combined cycle power plant has been the major contributor to

the emission production. The emission production can be reduced by

replacing the mix fuel energy input with the renewable resources power plants.

5.2 Recommendations

Malaysia Government should maintain the strategy in diversifying the energy

resources due to move away from huge dependency on single source supply especially

on oil to develop its renewable resources especially hydro power and biomass.

Therefore the recommendations that have been from this study are as follow:

1) Malaysia should increase the usage of the renewable energy such as hydro and

biomass in electricity generation in order to reduce the high dependence on coal

for the future and balance up the mix energy generation from focusing in using

certain types of energy. This would help to reduce emissions in the future and also

help the Malaysian utilities to survive in the global market, due to high cost of

conserving emissions in the future.

2) Malaysia should be starting to implement the energy saving in building in order to

reduce the electricity consumption.

3) To reduce the dependency in steam turbine or thermal power plant and replace it

with the combined cycle power plant to generate the electricity due to its high

efficiency. Besides Malaysia should increase the electricity generation from this

hydro power plant and other renewable power plants in the future due to the

higher efficiency and long term saving. This will ultimately help to reduce the

emission production in the future. This helps to reduce the dependency on coal

usage and also to reduce the emission production.

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4) R&D needs to be more focused on further increasing efficiencies, reducing

emissions of local air pollutants to near zero, developing plants compatible with

carbon capture and storage and reducing the capital costs of plants.

5) Local air pollution must be minimized using advanced generation and emissions

control equipment, where applicable.

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