Malaysia's Options for Power (Part 2) 8:30 PM

Coal

Issues

• Over reliance on coal (40% of country's energy source)
• Supply risks (availability and politically)
• Price risks including FOREX
• Scarcity of suitable sites for future coal plants
• Environmental & climate change regulation

Possible Solutions

• Continuous strategic coal procurement
• Diversification to other sources of generation
• Strategic investment in coal mines
• Use of advanced technology to optimize and increase efficiency

Truth is, we don't have much coal. Yes, we have coal mines but the supply can't keep up with the demands. Thus we have to import from outside (Indonesia 72%, Australia 15%, Africa 13%). The price for coal is not the same every year. It fluctuates and of course it won't go down. That is if we are not troubled by politics or currency crisis. In 2010, our import is doubled from 9-11 million tonne to 19.9 million tonne. 

Burning coal is already bad for environment and yet we are burning money to charge our gadgets.

Malaysia's Options for Power (Part 1) 8:11 PM

Natural Gas

Issues

• Demand exceeds supply
• Depleting local gas supply
• Power sector gas supply uncertain beyond 2019
• Gas price not reflecting cost of supply - lack of incentive for new supply investment

Possible Solutions

• Further gas resource development from marginal fields and import of gas from Indonesia, JDA etc.
• Reconsidering of benefits & costs of future piped gas export to Singapore
• More sustainable basis for allocating gas for power & non-power sectors
• Leverage on Liquefied Natural Gas (LNG) terminals being built by Thailand and Singapore
• Development of LNG regas terminal in Peninsular Malaysia
• Remove subsidy gradually

When there's fuel, there's natural gas. Petronas has warned us about petroleum reserves which will dry out by 2020. The production will decline 10% each year. What will happen by then? Yeps, we have our own oil but since the grade is high, the oil is being sold to other countries. Of course this comes together with certain contracts (with Japan for example is 20 years).

Someone may mention about using palm oil as alternative. Same thing. Selling the oil is more profitable than using it for power generation. As always.. money comes first. Not everyone is willing to sacrifice for the benefit of all. Not yet.