Ingenieur Vol. 75 ingenieur July 2018-FA - Page 32

INGENIEUR ASIANPOWER Recent developments within the Malaysian solar power sector attest to the fact that the renewables sector is becoming an attractive investment destination for renewables developers. The continuation of auctions in the country and the successful commissioning of the projects contracted, presents a sizeable upside risk to our forecasts. Thankfully, Malaysia’s well-established solar manufacturing sector ensures that there is a reliable and low-cost supply chain for solar project developers. As a result, the project pipeline, notably for biomass and solar projects, is strengthening accordingly. The Government’s commitment to the domestic renewables sector has strengthened of late, and a number of regulations have been put in place to encourage investment into the sector, including feed-in tariffs, tax incentives and, more recently, renewable energy auctions. Robust growth is expected in non-hydro renewables capacity over the coming decade, with annual average growth rates of 8.5% between 2018 and 2027. This will result in non-hydro renewables capacity totalling 3.3GW by 2027. More renewable energy projects expected in the near term - Sunbiz More renewable energy (RE) projects are expected to come up for bids in the near term in Malaysia as the new Energy, Green Technology, Science, Climate Change and Environment Ministry is committed to push up the nation’s RE capacity. While there is no indication of an ideal or target reserve capacity, the new Minister indicated that the abundant reserve capacity gives the industry decent time to build up its RE capacity within the next three to seven years, without the need for much more major new plant start-ups in the near- term. This suggests in the near future, sector opportunities could tilt heavily towards RE project awards and a dearth of future fossil fuel plants, MIDF added that the Ministry aims to reduce the reliance on imported fuel by aggressively 6 30 VOL VOL 75 55 JULY-SEPTEMBER JUNE 2013 2018 increasing the RE contribution to the mix from just 2% currently to 20% “in the future”. It said the push for RE is not entirely new and efforts had been taken previously to increase RE contribution to the system such as the Large Scale Solar (LSS) projects. Solar accounts for the bulk of Malaysia’s RE. However, there is the issue of getting RE sources to reach grid parity for it to be cost competitive and gain a larger share of generation mix without burdening end-consumers. MIDF also noted that given the indication of excessive reserve capacity, the pace of any major plant start-ups in the near-term is likely to be impacted. It added that although the new Minister’s intention is to champion RE, it opined that the shift is for RE to eventually dilute contribution from fossil fuel rather than near-term, outright replacement. There is the issue of feasibility to induce RE in a big way into the system too which will have to be sorted out. The Energy-Transformation Nexus - UNCTAD Access to electricity is essential for the structural transformation of the economies of the least developed countries. Equally, such a transformation is essential to electricity access. The viability of investments in electricity infrastructure depends critically on demand; and structural transformation directly generates demand in production processes and also strengthens domestic demand by raising household incomes. This two-way relationship – the energy–transformation nexus – is central to the development process, and essential to universal electricity access in the least developed countries. However, there are limits to the productive use of electricity brought about by transformational energy access alone, because of other constraints on producers. Energy and development strategies therefore need to be closely co-ordinated. Insufficient demand for electricity will slow the development of modern energy systems, yet if energy demand for productive use remains