Ingenieur Vol. 75 ingenieur July 2018-FA | Page 11

Figure 1: Unsubsidised Levelised Cost of Energy Comparison
intermittent, and subsequently not reliable is
no longer true. Some countries (e.g. Germany,
Denmark and India) have demonstrated that
higher renewable energy share helps to reduce
wholesale electricity tariff, increases national
energy security and most importantly, addresses
the climate agenda. Intermittency and reliability
can be addressed via increasing spatial
distribution of the RE plants and employing the
energy balancing market.
In Malaysia, we have huge potential for two
types of RE– solar and hydro. Malaysia’s hydro
potential is estimated to be around 20,000 MW
in the state of Sarawak, of which only around
3,500 MW has been commercialised. Hydro has
the potential to contribute to the energy balancing
market as we scale up solar PV in the energy
mix. The components of an energy balancing
market are typically energy storage, demand side
response via price signal (time of use), advanced
forecasting tools, digitalisation of the grid, and a
smart electricity system to balance supply and
demand.
The ASEAN bloc can collaborate in regional
energy transition by increasing cross-border
electricity so the energy balancing market is
spread over greater geographical areas. This is
already taking place with the recent Laos-Thailand-
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