Rural Electrification in Sarawak Smart Village Workshop, UNIMAS 27-29 Jan 2015

Chen Shiun, PhD. General Manager, Research & Development

Rural Infrastructure Development Housing, Road, Water & Electricity

Engaging multiple ministries and agencies

• Federal Ministry of Rural and Regional Development: funding and project management

• State ministries: project coordination:

• Ministry of Public Utilities: grid connections

• Ministry of Rural Development: off-grid schemes

• Sarawak Energy Berhad (state-owned utility company):

• Planning and technical advisor (engineering & design)

• Eventual asset owner; undertake operation and maintenance

Financial arrangements for rural electrification in Sarawak

• CAPEX for grid and off-grid schemes: Federal ministry

• OPEX for rural grid lines: Sarawak Energy

• OPEX for off-grid schemes: Federal ministry

• Urban/rural ratio 52%:48% with 1.2 million people living in rural settings: 6,235 villages, about 200,000 homes

• 2,216 (36%) of villages yet to have 24-hr electricity – Some 40,000 homes and 250,000 people

70.9% 72.4%

78.2%

81.0%

85.1% 86.4%

89.1% 90.8%

92.5% 94.2%

95.8%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Co

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ge P

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ge

Rural Electrification Coverage by Households

Kuching

Sibu

Bintulu

Miri • 4 major cities interconnected by T&D network • Multiple new T&D lines under construction • Areas supplied are according to T&D network • With 24-hr electricity (4019 villages) • Without 24-hr electricity (2216 villages)

Rural Schools • Schools connected to grid • Remote schools (289) utilizing diesel • Mostly small with 6-10 classes,

but with student hostels & staff quarters

Kuching

Sibu

Bintulu

Miri

A typical situation

Each household run their own diesel generator set for 2-3 hours of electricity in each evening, at great expense

Ministry of Education provides rural schools with diesel generator sets and diesel fuels for classrooms and quarters

Ministry of Health runs rural clinics with electricity using own diesel generator sets and diesel fuels

7

Cluster 5

Cluster 4

Cluster 3

Batang Ai Upstream

1 school, 6 villages 92 hh, ~522 people

2 villages 40 hh, ~188 people

4 schools, 50 villages 829 hh, ~5000 people

Lack of proper access hampers construction and eventual

operation and maintenance

Sparsely distributed villages means numerous small systems (little economy of scale)

Few activities and limited opportunities makes rural areas unattractive to technically skilled

Lack of other infrastructures and amenities such as water supply and telecommunications

Financial constraint limits progress (off-grid schemes costing RM200k / household)

Challenges faced at Rural Sarawak

Rural Electrification Strategy

Main objective is to replace costly and non-continuous diesel generation with affordable electricity

• 24hr supply and comparable reliability

• Rural communities are charged at the same rates as urban dwellers

Wherever possible, connect village to the main grid

• Grid is still the most sustainable option for the long term

• Off-grid mini/micro grid schemes for remote/isolated villages:

• Without proper road/land access

• Too far for grid connection

Multi-stage distance-based expansion strategy

• Villages close to grid (< 30km) and with road access

• Villages close to grid (< 30km) but need road access

• Remote villages (> 30km)

100% rural electrification coverage by 2020/25

• Currently around 84%

• Still require continuing investment yearly

• Further investments in grid lines and substations

• Off-grid renewable alternatives are reserved for isolated villages

Rural Electrification Scheme (RES) via Grid Connection

• Already electrified (4019 villages) • RES 2009/10 (RM250 mil) • RES 2010/11 (RM415 mil) • RES 2011/12 (RM540 mil) • RES 2012 (RM350 mil) • RES 2013 (RM450 mil) • RES 2014 (RM200 mil) • RES 2015 (RM260 mil)

• Yet to be electrified (2216 villages)

Hybrid Station in Sarawak ~ 30 stations, ~66 Villages and ~2115 households • 1 microhydro & the rest are solar hybrids • From single-village (~100kWp) to cluster of 9

villages (> 800kWp)

Microhydro hybrid at Long Banga, Ulu Baram

132 households; T&C completed in

Sep 2014; Full operation from Jan

2015

Expanding to 4 more villages, schools, clinic,

airport & various facilities; Integrate with 2 solar hybrids

2x160kW Turgo turbines; 160+80kW diesel backup; 11km

of 11kV lines

Solar hybrid at Rh Dau, Betong

26 households Power house Solar panel @97.2 kWp

Battery 5x2250AH @48V Diesel backup 58kW Inverters

T&C completed on 15/16 Jan 2015; Full operation from Feb 2015

CSR Project at Batang Ai: Solar Home System

• To bridge energy gap while waiting for fund for long term solution

• To reduce financial burden of rural communities

• To tap the use of renewable energy

• Solar Home System for Rh. Kino (20 hh) and Rh. Manggat (17 hh) with a total of 200 villagers

• Project costs RM558,880 • Each household is provided

with 24 hours electricity supply to power 8 lights, TVs, radios, fans, computers and phone charger

Location Solar panels Power control unit & batteries Community engagement

Business Models for Rural MicroGrid C

om

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nit

y-b

ased

mo

del

• Small scale DIY approach

• Community operate and maintain

• No tariff but monthly contribution towards O&M

• Not reliable

Pri

vate

sec

tor-

bas

ed m

od

el

• Micro IPP

• Had explored public-private partnership

• Did not proceed due primarily to cost constraint

• Lacking sound business case

Uti

lity-

bas

ed m

od

el

• 365x24 service on standard tariff

• Government fund CAPEX and subsidize OPEX

• Utility operate and maintain