Traditionally energy companies worldwide have been faced with the challenge of balancing reliability of electricity supply with affordability for the end consumer. This is a relatively simple equation to balance, the most straightforward solution being to use the cheapest and most readily available fuels to produce electricity at the lowest cost. But with the spectre of climate crisis looming ever greater in recent years, the element of environmental sustainability has become increasingly important, complicating the dynamics of energy supply.
The recent August 2021 IPCC report marks a landmark for the energy sector. The report conclusively and categorically states that anthropogenic climate change is real, while highlighting that a significant portion of that change is driven by the way electricity is produced and consumed, as well as current models of transport and industry. In scientific circles these truths have long been held as self-evident, backed by incontrovertible data, and while the report doesn’t break any substantially new ground, some of the language used is stronger than in previous reports, notably with the word ‘unequivocal’ appearing multiple times in the Summary for Policy Makers . But where the report and its summary differ from other previous documents is in the unanimous agreement of the facts by all 195 nations involved.
No country can now legitimately deny or ignore the need to make the necessary changes required to avoid catastrophic effects. Many of those changes will have to be made in the energy sector, leading to what is sometimes called the Energy Trilemma.
Suruhanjaya Tenaga’s (Malaysia’s Energy Commission) 2020 Peninsular Malaysia Generation Development Plan 2020 (2021 – 2039) outlines plans as to how to manage this trilemma. It is no longer enough to simply use the cheapest and most readily available fuels, which are for the most part, especially in a Malaysian context, is the fossil fuels at the heart of the climate problem. Indeed, one of the elements specifically proposed in the report is reducing a dependence on coal, generally seen as the worst offender when it comes to carbon emissions.
Thankfully alternative energy sources are available to take coal’s place. In some countries nuclear power, long-favoured for being an economical method of energy production, is now toted for the low level of CO2 emissions involved. But given its complex reputation, among other factors, nuclear power isn’t always the most popular choice. While nuclear has been discussed as a possibility in the past in Malaysia, this report rules out any plans to integrate nuclear into Malaysia’s energy mix with a succinct and decisively phrased ‘No Nuclear’.
Renewable Energy (RE) is now at the heart of many countries’ energy programmes, either in the planning stage or already making significant contributions to powering national grids. Among renewables, hydropower has a longstanding history and currently the large hydro capacity in Malaysia stands at 5,684MW with Peninsular Malaysia contributing 2,232 MW of the capacity.
In conclusion, the report makes clear that Malaysia’s energy sector is not only aware of the trade-offs required to balance environmental sustainability, energy security, and energy equity, but has a clear roadmap of how to achieve and maintain this challenging balance.
Suruhanjaya Tenaga’s report draws the pathway towards the diversification of Peninsular Malaysia’s energy mix by increasing the RE share of energy production from the current from 17% to 31% by 2025, while simultaneously reducing the thermal capacity share from 82% to 69% in the same period. By doing so it plans to be in line with Malaysia’s 2015 COP21 commitments, with a projected decrease in emission intensity to 45% in 2030 compared to 2005 level and a further 65% reduction by 2039.
It is worth noting that the report did not specify on the types of renewable energy to be used beyond the label ‘non-thermal’ but concludes that it will be reviewed on an annual basis to consider ‘emerging technologies’, among other factors. However, given the renewal of the successful Net Energy Metering Scheme (NEM2.0), that saw the full 2019-2020 quota of 500MW of solar PV generating capacity taken up by private individuals and organisations, it seems reasonable to expect that the further 500MW quota allowed for 2021-2023 under NEM3.0 will be similarly fully subscribed.
In conclusion, the report makes clear that Malaysia’s energy sector is not only aware of the trade-offs required to balance environmental sustainability, energy security, and energy equity, but has a clear roadmap of how to achieve and maintain this challenging balance.
*Note: This figure applies to Malaysia as a country, while the report discussed is limited to Peninsular Malaysia