January 26, 2015

MIDA Calls for Boost of Renewable Energy to Power Capacity Mix

The Malaysian Investment Development Authority (Mida) hopes the contribution of renewable energy (RE) to the country’s electricity generation to increase to five per cent this year from two per cent at present.

Its Deputy Chief Executive Officer, Datuk Phang Ah Tong said the number of RE production sources was not encouraging as the country awaited the feed-in tariff (FiT) policy.

He said in the Tenth Malaysia Plan (10MP), the RE production capacity was targeted to hit five per cent, instead it was languishing at less than two per cent as the country was nearing the end of the plan.

“We have to catch up as by the 11th Malaysia Plan, we are looking at a 11 per cent contribution (from RE),” he told reporters on the sidelines of the Mida and Asean-Korea Centre Joint Collaboration Seminar here today.

At the moment, the country’s total installed power capacity stands at 21,000 (megawatt) MW, with firm supply at some 18,000 MW. The peak demand is at 16,500 MW, with the possibility of going up to 17,000 MW.

Phang said the power capacity generated from all RE sources, namely biomass, biogas, solar and mini hydropower, to date stood was between 2,000 MW and 2,500 MW.

“We hope this will increase our energy mix as we are currently relying more on coal and natural gas. We plan to increase power generation from biomass, biogas and solar power this year by 1,250 MW from each source.

“Currently, in term of RE production, biomass is ahead, but solar power will catch up as Malaysia receives an average six hours of sunshine daily,” he added.

Earlier, in his speech, Phang said the potential of mini-hydro projects, especially the run-of-the-river type, was huge as energy available from streams had been proven to provide considerable contribution to electricity supply in rural areas.

“RE from biomass and solar has the potential of contributing 90 per cent to the total RE mix and this is in line with the government policy to reduce 40 per cent of the carbon emission intensity by 2020.

“Under the National Renewable Energy Policy and Action Plan in the 10MP, biomass and solar power are expected to contribute at least 800 MW and 220 MW respectively to the country’s power capacity mix,” he added. 

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