ANALYSIS OF RENEWABLE ENERGY POTENTIAL IN MALAYSIA

KYAIRUL AZMI BIN BAHAFUN STUDENT ID: 3208993 POSTGRADUATE COURSEWORK STUDENT FACULTY OF ELECTRICAL ENGINEERTNG AND TELECOMMUNICATIONS (EET)

UNIVERSITY OF NEW SOUTH WALES, AUSTRALIA

DECEMBER 2007

ABSTRACT
Renewable energy is becoming a prominent resource for global electricity generation. The tendency to lean towards renewable energy is because it does not run out with use over time as compared with conventional hels. Another important factor is that it produces little or no greenhouse gas and pollution to the environment. Malaysia, one of the developing countries located in South East Asia is also in the process of utilizing its available resources and discover its potential. The objective of this report is to identiijl the potential renewable energy resources available in Malaysia and also its current implementation. It also covers the current policy for renewable energy in Malaysia Various resources and published materials in international journals, conferences, information released by specific bodies under the government and miscellaneous resources are used to determine this potential. From this analysis, it can be seen that for Malaysia, biomass has the most potential to be utilized due to its abundance availability in the agricultural sector especially in the palm oil industry. Next in line is solar, which also has significant potential to contribute towards renewable electricity

i generation. Other types of renewable energy may also contribute towards the supply m x of
electricity generation, albeit at a smaller scale. Policies also play an important role in encouraging the development of renewable energy. The government has mandated a number of policies to incorporate renewable energy into the system. However, present policies are not enough to ensure its survival. It is essential for Malaysia to strike a balance in terms of policies and in the meantime continue the development towards renewable energy utilization to maintain a sustainable future.

ACKNOWLEDGEMENT

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

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

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

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

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

CHAPTER 1.0 INTRODUCTION

Renewable energy can be generally defmed as sources of energy that does not run out with use over time. They are found in abundance around us and they have been part of human's daily lives for so long that they used to be taken for granted. Other definitions of renewable energy are "energy obtained f'rom the continuous or repetitive currents of energy recurring in the natural environment" and "energy flows which are replenished at the same rate as they

are "used" " [I].

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

The key issue that motivates the drive towards exploring renewable technology is sustainability. The present system rely mainly on fossil fuels, i.e. coal, natural gas and oil which are consumed far more than the amount it is produced. In 2004, the worldwide energy consumption of the human race was 15 TW (= 1.5 x 1013W) with 86.5% from burning fossil fuels [2]. According to a study, at present, proven world coal reserves should last for about 200 years, natural gas for around 60 years and oil for approximately 40 years [I]. However, according to the International Energy Agency's findings published in June 2006, world 1

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

Another aspect under sustainability is the environmental issues. Conventional electricity generation produces carbon dioxide, which is released to the atmosphere. This contributes to the greenhouse effect and the phenomena of global warming. Other emissions such as sulphur dioxide and nitrogen dioxide may also be produced, depending on the type of fossil fuel and method of burning [3]. Renewable energy helps in reducing this, playing a role in making the world a healthier place for humans to live in.

The situation in Malaysia is no different. The government has also given serious attention in the need to find and utilize renewable resources to add to the energy supply mix.Apart fiom the apparent issues discussed, the country is also looking for ways to diversify the current energy resource. Although the implementation is going to be a long and tedious process, it is

a worthwhile project to undertake in the long run.

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

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

1.1 Objectives
The objectives of this thesis are summarized as follows:

1. To identifl the potential renewable energy resources that is available in Malaysia.

2. To analyze the current implementation of renewable energy systems in Malaysia and

its relation with the electricity generation sector. 3. To study the effects of renewable systems in the present energy generation mix, particularly in the electricity generation sector.
4. To examine the W e prospects of power generation via renewable energy

development for the country.

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

renewable energy use.

1.2 Scope of Study

The main scope of this study focuses on the availability of renewable energy in terms of

l energy and electricity generation. The geographical scope of this study covers a l areas in
Malaysia, which includes the Peninsular Malaysia, Sabah and Sarawak.
3

Description
IL?

Malaysia
I
I

I'

',P*

C41_1@

>

' f f

i
I , '

SPrU Ti. Y
"

SLA'VDS

,
i

.
Kudala@5
-, i;,.,..,,,

Kola
2 Ukl; 1
I

{J '

67, r-,I

Kl~;lMItlj' ~<.rrmrn.*.
RSWI

~_msh Tzhpng OIHn

,Lu'nut
' k

zercmgpnc.

MI=*

PRllPlFl

'

.-

anda ah at+ ,
.%Ju.J~

.lph

KUALA ,kuanan LUMPUR

Kd $ rg

' KF~I~VLICY
.wq~h+

.~erernhh K I R ~
'

.' -

PO^ .~t?hka Jahor

. DCLSOX.
/

. -. i

.
r
>-N

IblnfJftccJ,r3, -*>
4
0
C

5?7rc

I
b

Iv,
1%

2plm
?m-1

- 't. ,

IP.'BObrESI A
1 4

Figure 1.1 : Map of Malaysia (Source: http://en.wikipediaorglwikilImage:My-map.png) Malaysia is a country located in South East Asia, consisting of two distinct regions divided by the South China Sea, namely Peninsular Malaysia (or West Malaysia) and Malaysian Borneo (or East Malaysia). Peninsular Malaysia consists of eleven states, with bordering countries Thailand to the north, where they share a land boundary, and Singapore to the south, where both countries are separated by the Straits of Johor. While East Malaysia, comprising of two states, is situated at the northern part of Borneo, bordering Indonesia and surrounding Brunei.

The country's total area is 329,847 km2with an estimate population of 27.356 million people and approximate amount of $12,800 per capita GDP [4]. It has three main races, Malays, Chinese and Indians and a minority of other races. Malays, the indigenous people of the country, is the largest race in the country, followed by the Chinese and Indians respectively.

country is the Malay language and English is regarded as the second language.

h terms of the government, Malaysia practices federal constitutional monarchy, where the
country is headed by the Yang di-Pertuan Agong and politically led by the Prime Minister.
Malaysia, together with Indonesia, Singapore, Philippines and Brunei were the founding members of ASEAN and also an active member in international organizations such as the United Nations (U.N) and the Organization of Islamic Conference (OIC).

R 2.0: GENERAL OVERVIEW

2.1 World's Energy Consumption

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

.-

Oil 37%

Coal 25%

Gas 23%

FNuclear 6%

Hydro 3%

Biomass 4%

Figure 2.1 :Global Power Usage (Source: Wikipedia)

I9 Large hydro
58.23% Geothermal elec 0.72% Solar hea 6.83%

Small hydro 5.1 2% Photovdtaic 0.42%

Wind power 4.58% Other decn 0.05%

nGeothermal heat 1Biodiesel fuel

2.17% 1.21%

Biomass dec 3.42% Biomass heat+ 17.08% Biodhanol fuel 0.16%

Figure 2.2: World Renewable Energy in 2005 (Source: Wikipedia)

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

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

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

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

energy required for heating of habitable spaces.

For generating electricity directly from the sunlight, there are two principal ways; solar thermal electricity and solar PV cells [7]. Solar thermal electricity concentrates sunlight using a system of collectors. The concentrated sunlight then heats the water to sufficiently high temperatures to turn a steam turbine and hence generate electricity. Solar PV cells use a special surface that emits electrons when exposed to light. The moving electrons produce a DC current that can be passed through an inverter to produce alternating current. 8

2.4 Wind

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

turbines. Most modem wind power is generated in the form of electricity by converting the

rotation of turbine blades into electrical current by means of an electrical generator. Wind power is used in large scale wind farms for national electrical grids as well as in small individual turbines for providing electricity to rural residences or grid-isolated locations. Wind technology is the fastest growing technology in the world, growing at over 25% on average annually [8].

At the end of 2006, global installed capacity was 73,904 MW of which Europe acquires 65%. Germany leads the list with total installed capacity of 21,283 MW to date. Spain runs second
with 12,801 MW followed by United States with 11,603 MW. Denmark sits in fifth with

generation of 3,140 MW but Denmark has the highest percentage of electricity generation coming from wind turbines, with supplies over 20% of the country's energy needs [9].

2.5 Hydro
is Hydroelectricity is a well-established technology, and the f r t renewable technology to be
developed. It is already a major contributor to world energy supplies, producing power reliably and at competitive prices for about a century. It provides one sixth of the world's

annual electrical output and over 90% of electricity from renewables [lo].

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

II

coal-burning. Compared to nuclear power, hydroelectricity generates no nuclear waste, has none of the dangers associated with uranium mining, nor nuclear leaks. Unlike uranium, hydroelectricity is also a renewable energy source. Compared to wind f m s , hydroelectricity power plants have a more predictable load factor. If the project has a storage reservoir, it can
be dispatched to generate power when needed. Hydroelectric plants can be easily regulated to

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

2.6 Energy Supply in Malaysia

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

For Peninsular Malaysia, the current total installed generation capacity is 17,623 MW, with

TNB holding 8,417 MW (47.8%), IPP holding 6,787 MW (38.5%) and another 2,419 MW

(13.7%) jointly owned by TNB and Malakoff (via Kapar Energy Ventures, KEV). The tables

below give the general information about the status of electricity generation in Malaysia [l 1,

---

- -

--

...

. .~---

~~

-.
~. . . .

~.

- -

.. .-

Campuran Penjanaan (GWj) (Genera$on Mix ( i h ) GV)

,

.- - .

. -

--

-. - .. . .

~ . . .
~

---

(I) Hidro &d!o,J

~. . . . . -.
~

5,971
- . - .

4,992
)

4,444

4,032 16,719
!
-

4,656
. -

-. -,,--

(2) Gas (GaJ

-

23,223, 4,038
~

22,826, ' 21,636,

--LL

15,859 6,129
-

(3) Ararqbatu (Cod

-.
-

6,238
.-

8,953 3,573

7,599 33f.l
-

(4) t.linyak ( i ) Ol
-

1,424
~-

1,600 235
~ ~

185 1 3
.

~-

--

-~

(5) Distilbte ( s ' : e B01d)

- .
-

--

- .

-~
~~~

29

.. .
~

(6f Dlsel (LYesel)

!

--

(7j Lain-bin ( t e s Ohr} -..Jurnl.7h (Total)

. .. .. --.. .- .

-.

34,685
-.-

35.891
~-

38,606
--

28,680
~~

26.8r12
-

Table 2.1: Generation Mix of Energy in Malaysia [l 11

(I) Hidro

(wm)
--

1,891
--. -

1,874 3,427
--

19 1 .1
.

1,91I

1,911

- .
~

--

j (2 G a Tutine & Comb/nedCyie

--

3,266'
--

3,302 1,447 1,396

--L

(3) Aram$atu (Coal)

. -

-..

--

600

1,524
+ ~- .

(4) Cowenti&
,

Thema' (Oi!.Gas)
- - ~. -.
.

1,426
-

1,405
-

(5) Disel (Diesel)

ifi Jumbh PenbnaanflctzIGeneration)

7,183

8,230

8,056

8,164

5,641

(9) Km PenjanaaniJen.'kL4.1) (Cat ( Generai;o~!}!sen/?rWh,J 3

- - -

- -.

--

. -

--

a) Rnjanaan Serdiri (Own Ge,~eraiion}

-.
-

10.60

10.89

11.25

10.20

9.3

--

b) Tenaga Dihli (Energy Purchi~sed}

C) Kos Kwluruhan- (a) & @)

(Ovefa/!'o t - (}& (bJi Cs a

Table 2.2: Generation Capacity of Malaysia [l 11

peninsular Malaysia

I
I

yn Povier Generation
Segan Energy Ventures Sdn Bhd powertek Sdn Bhd Port Dickson Sdn. Bhd. pahlawan Power Sdn. Bhd Genting Sanyen Power Sdn Bhd Sabah

Paka Terengganu Pas~r Gudang Johor Lumut. Perak Alor Gajah. Melaka Tanjung Gemuk. Port Dickson Tanjung Keling. Melaka Kuala Lmgat. Selangor

808 104 1.303 440 440 3 3 720

7 Aoril 1993

15 July 1993 1 Disember 1993 1 Disember 1993 26 May 1999 1 July 1993

ARL Tenaga Sdn Bhd Sewdong Power Sdn. Bhd. Pwertmn Resources Sdn. Bhd. Stratavest Sdn. Bhd. Sandakan Power corporation Sdn. Bhd

Melawa Tawau Karambunai Sandakan Sandakan

50 36 120 64.4 34

14 June 1994 31 March 1995 6 February 1997 1 October 1996 29 November 1997

Table 2.3 Independent Power Producers [12]

CHAPTER 3.0: ANALYSIS OF RENEWABLE ENERGY IN MALAYSIA

3.1 Malaysia's Biomass
Biomass is one of the most important potential sources of renewable energy in Malaysia, due to its enonnous output from oil palm residues and wood wastes. At present, biomass fuels account for about 16% of the energy consumption in the country, of which 5 1% is from palm oil biomass and 22% h m wood waste [13]. Resources are also available from other agricultural sources and agro-based industries. The basic biomass availability can be summarized as in Figure 3.1 below. Basically, there are 5 major categories of biomass sources in Malaysia; oil palm, wood, rice, sugarcane and municipal waste. Under each categories are listed the type of residues and wastes each one produces.

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

Sector Rice Milk Wood Industries Palm Oil Mills Bagasse

Quantity kton / yr

Potential Annual Generation (GWh)

Potential Capacity (MW)

424 217 17980 300 31 500

72962

263 598 3197 218 1587

30 68 365 25 177
665

POME
Total

5863

Table 3.1 : Biomass Resource Potential (Source: MPOB, SIRIM, FRIM, Forestry Dept., & Ministry of Agriculture)
1

Table 3.1 provides information about the quantity of wastes produced annually according to the respective sectors. The palm oil mills provide the highest potential generating capacity at

365 MW and annual generation potential of 3 197 GWh. Palm Oil Mill Effluent (POME) also
can give significant contribution to the potential generation capacity with 177 MW.Bagasse, which is the waste after sugarcane stalks are crushed to extract their juice, and rice mills also have a modest generation capacity of 25 MW and 30 MW respectively.
1800

t g
3 c 0 .o

I"
140

--Fibres at 28% M C S h e l l at 21% MC -EFB at 6S04 k1C EFS at 3S06 MC -

z! 1200 -5
1000 --

ij n

200--

1 1

1 1

1 1

I 1

m 1

I 1

I 1

I ~

I 1

, o ps "s s8eP 9 eosO 9 , ~ ! + + + ~ " 0 2+& 0 ~+0Q + '~ 0 2 @ q Q 9 2 s e ~ f e 2@ @ 6 ' + + + + + ~ ~

@

Year

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

The potential power generations of oil palm residues are depicted in the graph of Figure 3.2. comparisons are made between fibers, shells, and empty fruit bunches (EFB) at different levels of moisture content (MC). It can be seen that EFB with a low amount of moisture has the highest potential for power generation. The generation potential is expected to increase in the future due to the expected expansion of the palm oil industry by 40% within the span of 20 years [13].

Type of Industry

Production (Thousand Tonne) 59,800

Residue

Residue product Ratio

(36)
Oil palm

Residue Generated (Thousand Tonne) 12,641.7

Potential Energy PJ 57

Potential Electricity Gcneration ( MW) 521

EFB at 6 5XMC
Fihr

21.14

12.72

7.606.6

108

1032

Shell

5.67

3,390.7

55

545

Total Soltd

16,670.6

220

2098

POME(3.5m3 per CP0/65% of FFB)

ton

of

38,870

320

Table 3.2: Potential Power Generation from Oil Palm Residues (Source: Malaysian Oil Palm Statistics 2002, 22nd edition, MPOB) Table 3.2 shows the types of residues produced by the palm oil industry and their potential generation capability using available data from year 2002. Empty fruit bunches (EFB)in palm oil mills is a fibrous material of purely biological origin. It contains neither chemical nor mineral additives and is generally available without any foreign elements such as gravel, nails, wood residues, waste etc. From the table, it can be seen that the residue generated is almost 2 times the amount of fiber residue and almost 4 times the amount of shell. Yet it has the lowest potential electricity generation at 521 MW. The reason is because of its moisture

content. At 65%, the water content is too high. In average, for each kg of combustible matter,

2 kg of water must be evaporated [14]. The combustion process will be cooled by the
evaporation of water to an extent; therefore it is not possible to maintain good combustion quality unless the EFB is pretreated to reduce its moisture through another process before it is
I

utilized for energy generation. Shells in palm oil industries refer to the fractions after the nut has been removed during the
crushing process. They are also fibrous materials which are easily handled in bulk directly

from the product line to the end use. Its moisture content is low compared to other biomass residues; therefore it has a slightly more electricity generation potential than EFB even though the amount of residue generated is much lower. Fiber has the largest potential

1m -.

---------.--

--

*- A -* -

loo 3
L

80-

.-

C
I

I --C

2
= 5
40-

n
20

N ~
L & ;

Paddy Straw

0
~
0

9 c3

C N r n W N

Cr

Year
1

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

RR.2Mw

Industry

Year 2000 (Thourmd Tonne)

Restdue product Ratio (XI

Rddue Crrmatd (Thousand Tonm)

Fwentbl En (PJ)

Pountial Powor (Mw)

Rlco

2.140

Rlco Husk

22

47 1

7.536

72.07

Paddy Straw

40

856

8.769

83.86

TOTAL

2,140

1327

16.305

155.93

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

Figure 3.3 and Table 3.3 depict the potential energy that can be harnessed fiom paddy residues. Paddy residues consist of two parts; rice husk and paddy straws. It can be seen that the graph is fairly flat with only minor fluctuations throughout 1991 to 2007. There is a slight increase expected fiom 2007 to 2010 but mainly the amount of residue will remain roughly the same because the paddy production output in Malaysia has reached its peak production capacity and land use. The only advancement would be in the biotechnological aspect of production. Due to its residue product ratio, paddy straws can potentially produce slightly more power than rice husk. The total amount of residue generated according to data for year 2000 is 1327 thousand tones, which is equivalent to about 156 MW of electricity generation.

120 -

80

l p d """I" & Venner - -Mou ding waste

+ P

t m ..w
Q1

a,
40-

20-

r-

1993

---I

*-

-=--I

IE1EI-I

1995

19%

1997

1998

1999

2CCO

220 1

2032

Year
Annual Operating hr = 6100 1PJ = 1OE15 = 277777.8MWh = 46 MW Electrical convemTSIon efficiency is 21%

Figure 3.4: Wood Residues Potential Power Generation (Source: Biomass Resource Inventory Report, BioGen Project PTM)

As mentioned earlier, wood residues also play a significant role in contributing towards biomass energy. Three types of residues and its power potential based on data available until 2002 are illustrated in Figure 3.4. Plywood & Venner wastes and moulding waste has very little potential to be commercialized. Only sawn timber waste has considerable capacity to be utilized. The potential plummeted f o about 100 MW in year 1997 to less than 50 MW in rm
1998 due to environmental issues, where the amounts of trees cut were reduced in

conjunction with the government's aspiration to preserve forests and slow down the process of lumbering.

3.1.1 Municipal Solid Waste (MSW)

Composition of Solid MSW in Malaysia

Commercial1 Industrial

49%

Municipal 2%

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

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

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

i n d u c e d . Apart h m that, another solution that is also beneficial in terms of energy is incineration. Burning MSW can generate energy and in the meantime reduce the weight and volume of the waste amount by 75% and 90%respectively [I 7 . 1

Unfortunately, although there are preliminary studies done to assess the situation, no conclusive studies have been published thus far. The major problem in evaluating this problem is the difficulty of identifjring specific amount of waste produced. In the agricultural and industrial sector, companies rarely keep track of the waste they produce in detail. Furthermore, they are reluctant to share the knowledge openly as it might have implications for them later on. Therefore, a more extensive research has to be done to assess the potential
! i

of MSW in Malaysia so that the appropriate technology for incineration can be adopted.

3.1.2 Biogas
Biogas typically refers to biofbel gas that mainly contains methane and carbon dioxide. It can
be obtained from wastes through anaerobic conditions. In Malaysia, one of the areas that can

be utilized to obtain biogas is in landfills. Landfill gas is produced from organic wastes disposed on a landfill. The waste is covered and compressed mechanically. As conditions become anaerobic the organic waste is broken down and landfill gas is produced.

I(

--f

L m * * - * ,. *
4 * :

-- ,---

_ -.
I -

-.-.-

Figure 3.6: TNB Jana Landfill Project (Source: Tenaga Nasional Berhad, TNB)

I I

Figure 3.6 shows the Jana Landfill Project, the frt grid-connected renewable energy project is
in Malaysia which was commissioned in April 2004. It has 2 MW of installed capacity and

fueled by biogas captured h m the landfill area. A number of potential sites have been identified with projected capacity of approximately 20 MW.

3.1.3 Cogeneration
Cogeneration, also commonly referred to as Combined Heat & Power (CHP) is the combined production of electricity and heat which is used in industrial and commercial processes. CHP provides an efficient method to fulfill energy needs, as the heat that is usually wasted would

be captured and put to good use. Cogeneration offers a number of advantages in terms of
electricity. Its major contribution would be assisting the main electricity utility to supply part of the demand of the grid. By achieving this, utility planning can be made easier, as the strain put on the grid can be reduced. This may lead to cost reduction and conservation of capital investment, which can be reallocated to upgrade the current system to increase reliability and quality of service.

In line with the objective to utilize biomass to its optimum capability, the government also
in a project dubbed BioGen, which stands for Biomass Generation & Cogeneration project. Similar to the MBIPV program, this project is jointly funded by UNDP under the ~ l o b aEnvironment Facility (GEF), the Malaysian government and private corporations. Its l main targets are to reduce GHG emissions, to further utilize the waste residue obtained from palm oil, and to promote growth in the power generation and cogeneration sector.

currently, under the Small Renewable Energy Program (SREP), 22 projects have been approved for palm oil wastes and 5 of them have already signed an agreement with the utility
to supply electricity. One project, TSH Resource, located in Kunak, Sabah have already been

commissioned. It has a generating capacity of 14 MW of which 10 MW is sold to the utility (SESB).

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

A number of case studies have been conducted by DANIDA on various

manufacturing sub-sectors to determine the feasibility of cogeneration systems for future implementation [30,3 11. The sub-sectors that were analyzed were as follows:

1. Paper Factories; Pulp, paper and paperboard

2. Rubber Factories; Tires and rubber gloves

3. Iron and Steel Industries; Basic steel

4. Non-Metallic Industries; Ceramics and glass

5. Machinery; Electronic valves and tubes

6. Food Factories; Milk products, edible oil and sugar

7 Textile; Dyeing, bleaching and finishing .

The criteria used to choose these sectors are based on the extent of energy usage, overall fuel energy to electricity ratios and practicality of using natural gas in the manufacturing process. Other sub-sectors such as petroleum refining, wood, and crude palm oil are not considered in the list because they have already incorporated part of cogeneration or efficient energy operations in some stages of its operation.

Various CHP options are included in the study to also allow the determbtion of the most technically feasible option available for each sub-sector. The various CHP options analyzed

are:
1. Gas engine or turbine CHP topping cycle, generating electricity as the main product and
steam as the by-product.

2. Steam turbine CHP topping cycle generating electricity as the main product and steam as
by-product processes. 3. Steam turbine bottoming cycle extracting waste heat from process exhausts gas to generate electricity.
4. Gas engine or turbine CHP topping cycle with electricity generated as the main product

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

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

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

Economical Sub-sectors No Rubber Manufacturing 1 - Rubber Tires - Rubber Gloves 2 Paper - Industrial Papers 3 Food

Uneconomical Sub-sectors Textile - Textile Finishing Machinery - Manufacturing of glass tubes for the electronic industry Steel and Iron - Steel

Sugar Refining Edible Oil Refining Milk Products Non-Metallic Non-Metallic - Medium scale ceramic tiles - Large scale ceramic - Glass container manufacture tiles.

Table 3.4: Sub-sectors and Economical Benefits

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