Small Renewable Energy Power

7/28/2019 Small Renewable Energy Power

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Small Renewable Energy Power

(SREP) Programme for the Promot ion

of Renewable Energy PowerGeneration

ByDr. Hassan IbrahimChief Executive OfficerPusat Tenaga Malaysia

1st Meeting of ASEM Green IPPs NetworkBangkok, 24 - 25 October 2002


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- a non-profit organization(administered by the Ministry of Energy,

Communications & Multimedia, Malaysia)

Agent for public & private energy sectors;

Guardian / repository of a national energy database;

Providing policy support through conduct of policy studies;

Promoter of national RE & EE (5th fuel) programmes;

Coordinator and facilitator of energy RD&D projects;

National Secretariat on CDM (on energy).

Established in 1998 to fulfill the need for a national energy researchcentre that co-ordinates various activities, specifically energy

planning & research, energy efficiency, and renewable energy.

Main functions of PTM :


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Background

Malaysias Four-Fuel Strategies was adopted since

1979: oil, gas, coal & hydro; In 1999, Fifth-Fuel strategy was announced by Prime

Minister: EE & RE;

8th Malaysia Plan (2001-2005) stresses on the

development of Fifth-Fuel, with fiscal incentivesprovided in Budget 2001;

Third Outline Perspective Plan (OPP3) (2001-2010)also stresses on the management of RE resources &

encouragement of RE utilisation; In 2001 MECM announced its target of achieving grid-

connected 500MW RE-powered electricity;

Malaysia signed Kyoto Protocol in 1999 and ratified itin 2002.


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Sustainable development of the energy sector isimportant in ensuring competitiveness of theeconomyEfforts will be undertaken to manage

both depletable and renewable energy resources tocater for the demand of the economy;

To supplement the conventional supply ofenergy, new sources such as renewable energy willbe encouraged.Of these, biomass resources suchas oil palm and wood waste as well as rice husks,will be used on a wider basis mainly for electricitygeneration. Other potential sources include palm

diesel and hydrogen fuel.

OPP3 (2001-2010)Statements on ENERGY SECTOR (infrastructure)


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RE Strategies in 8th Malaysia Plan

Strategies to intensify development of RE in 8MP (01-05):

Promotion of RE resources such as biomass, biogas,municipal waste, solar and mini hydro;

In-house biomass-based cogeneration;

Demonstration projects;

Commercialization of research;

Extension of financial and fiscal incentives;

Promotion of cooperation between government agencies andprivate institutions;

R&D on palm diesel and usage of alternative sources such

as fuel cell, hybrid cell and hydrogen fuel.


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Experiments to burn CPO in power plant boiler and palmolein in diesel gensets. The power generated wassupplied to the grid;

Palm Diesel as an alternative transport fuel;

Small Renewable Energy Power (SREP)Programme;first REPA signed between TNB and ownerin September 2001;

Rice husks and MSW produced as fuel pallets;

Malaysia Biomass-based Power Generation andCogeneration in the Palm Oil Industry (GEF/UNDP-supported, launched on 18 October)

RE MILESTONES


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SREP Programme andits Present Status


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Malaysias SREP Programme SREP (Small Renewable Energy Power)

Programme was launched by Malaysias Ministerof Energy, Communications and Multimedia onMay 11th 2001;

Special Committee on Renewable Energy (SCORE)

was established to drive the programme; RE Palm oil residues (esp.), wood-wastes, rice

husk & rice stalk biogas, mini hydro, are mostpotential biomass fuel for this programme;

The Government has targeted a generationcapacity of 500 MW from SREP Programme in the8th Malaysia Plan (by end of 2005).


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Implementation Procedures forSREP Programme in Malaysia

Applications for new power plants or to rehabilitateand upgrade existing plants according to SREPGuidelines;

All existing power plants powered by RE may apply tosell electricity to the utilitys distribution system;

The developer is to negotiate with utility (TNB/SESB)based on willing seller and willing buyer basis;

A public license for generation and sale of energy willbe issued by the Energy Commission. The license willbe valid for 21 years from the date of the beginning ofoperations.


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SREP Criteria as Determined by SCORE

Capacity of generated power is not limited butmaximum capacity to be grid-connected is 10 MW;

The distance between the generating plant and thelocation of the interconnection point at the distribution

system must be within 10 km, with connection voltage11 KV to 33 KV;

The electricity buyer will decide the load (or whetherthere is load) at the site of generation;

No standby charges. If there is need for energy fromutility, the current tariff will be used to calculatecharges;


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SREP Criteria as Determined by SCORE(contd)

All costs incurred for the interconnection including systemreinforcement (if required) such as replacement of cables,switchgears, protection relays and installation of meters will beborn by the developer;

The existing generating plant must be ready to deliver power tothe distribution system within 12 month after the approval of theinterconnection;

The new plant and the rehabilitated plant must be ready tooperate within 24 months after REPPA has been signed;

Department of Environment requirements must be compliedwith;

If steam is needed for the mill, cogeneration system is givenpriority.


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FLOW CHART FOR APPLYING FOR CONNECTION

TO UTILITYS DISTRIBUTION SYSTEM

RE Developer to provide

Commitment Fee * for

Utility System Study

Re Developer negotiates

And signs REPPA with Utility

RE Developer commits to design and construct theInterconnection Facilities & System Reinforcement (if

Any) in accordance to Utility System Study

-* Commitment fee refundable to

-Re Developer upon off-take of power

RM15.000 for capacity < 3 MW

RM 25,000 for capacity from

3MW10 MW

-Developer & Utility to submit

-Monthly report on progress of

negotiation to SREP Centre, EC

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RE Developer to present finalizedPlant design & approval from

Utility for Interconnection

Facilities design

RE Developer to remit

Payment to Utility for all

Necessary system

Reinforcement work

RE Developer to start

Construction of proposed plant

And interconnection facilities

RE Developer/ Utility to perform

necessary work to reinforce system

RE Developer to submit

Protection coordination

studies./setting, testing &

Commissioning schedule etc

Final verification of design,

Testing and commissioning,

O & M procedures

Connect to Distribution Grid

c


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Progress of SREP Projects Proposals

1. Number of licenses issued(total capacity ~ 20 MW)

3

2. No of additional projects approved

(licenses pending on signing ofREPPA)

(Total capacity ~ 90 MW)

23

3. Additional proposals in pipeline 28


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Biomass Energy Potential from

Oil Palm Industry

A study conducted by DANCED in 1999 revealed:

Annual RE potential was estimated at 36.2 MTOE with an

equivalent value of more than US$6.8 billion (based on theequivalent average price of US$25 per barrel of oil);

36.2 Mtoe is 20% higher than Malaysias total energy demand

in 2000;

The gross RE potential is estimated at 823 MTOE for the periodbetween 2000 to 2020;


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Biomass Resource Potential (1999)

Sector Quantity

kton/yr

Potential

AnnualGeneration,GWh

Potential Capacity

MW

Rice Mills 424 263 30

Wood industry 2,177 598 68

Palm Oil mills 17,980 3,197 365

Bagasse 300 218 25

POME 31,500 1,587 177

TOTAL 72,962 5,863 665

Note: The potential annual electricity production and power generation arecalculated assuming all the available biomass resources are utilized. Source: MPOB,SIRIM, FRIM, Forestry Department and Ministry of Agriculture


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Additional Remarks/Conclusion

In energy sector, 8MP focuses on renewable energy & energy

efficiency as the fifth fuel by expanding four-fuel diversificationpolicy introduced in 1979;

Fiscal incentives, policy instruments & institutional mechanismare in place to drive the RE & EE strategies. They need to be

improved to achieve national target;Malaysia is targetting 500MW (5% of current electricity

demand) of power generation from RE to be grid-connected byend of 8MP (2005); Its only a soft approach;

Financing one major barrier in smooth progress of the SREPprogramme.


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For futher information, kindly refer to :

www.ptm.org.my
http://www.ptm.org.my/http://www.ptm.org.my/

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