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- 9