MALAYSIA Minister of Energy and Natural Resources Ministry (KeTSA) energy transition plans for 2040 to target 40 percent of its power generation from renewable energy (RE) sources of 18 GW. As a part of this plan, it has set 31 percent power generation from RE by 2025 and 40 percent by 2035, as its energy transition plan until 2040. The installed RE capacity is having around 8 GW by the mid of 2021 and plans to increase 18 GW more than the double capacity by 2035. Solar will be the largest share among the RE capacity, also Ministry is planning to introduce a utility-scale BESS (Battery Energy Storage System) of 500 MW from 2030-2034. This will push the RE capacity in the Peninsular from the current 4,430 MW to 10,944 MW in the coming 15 years. Under the Paris Climate Agreement, Malaysia is planning to reduce the carbon emission intensity from the Power sector by 45 percent in 2030, and 60 percent in 2035 compared to the 2005 level. By 2033, more than 7 GW of coal-based thermal plants are going to expire the PPA, and the government doesn’t have any such plans to set up a new coal-fired power plant, again the operation of these plants will be dependents on future technologies and the cost of adaptability. The eliminating of coal plants should be a continuous process to guarantee a balance between climate safety and the energy demand of the economy.
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The first Solar PV tender was delivered in 2016 with a total capacity of 200 MW in Peninsular Malaysia and 50 MW in Sabah, followed by the second round in 2017 with an aggregate total capacity of 360 MW in Peninsular Malaysia and 100 MW in Sabah/Labuan. The third round of LSS tender opened up in February 2019 for an expected $490 million (RM2 billion) worth of projects with a total capacity of 500 MW with an expected commissioning date in 2021. Of the total 500 MW, four projects of 350 MW bids below the average gas generation cost of $0.056 per kWh, while the other 135 MW utility-scale bid goes to $0.078 per kWh, the competitive tariff price were due to technological advancements and open bids for the tenders.
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