Coal-Fired Power Favored by Malaysia in Drive for 6,000 Megawatts to be Added by 2020

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Malaysia's power demand is expected to grow at a rate of 3% to 5% annually through 2020 from a current installed base of 21,817 megawatts (MW). The country has one of the highest rates of power consumption per capita in the Asean region.

The country's power target is to increase power generation capacity by 6,000 MW between 2015 and 2020. According to MIDF Amanah Investment Bank's research arm, the power generation mix in Malaysia is heavily tilted towards natural gas (58%), followed by coal (33%), hydropower (5%) and other sources (4%). The research report says that in recent years, fuel availability to the power sector has been challenged by the tightness in the supply of natural gas.

"However, there is a notable shift in the generation mix to a heavier reliance on coal-fired plants instead, due to high demand and gas curtailment by Petroliam Nasional Bhd (Petronas)," the report said. An increase in coal-generated power from the current 33% to 45% by 2020 and 50% by 2030 is anticipated.

In terms of the Eighth Malaysia Plan, the government is focused on developing a diversified generation mix covering oil, natural gas, coal and hydropower under the "Four Fuel" policy, with renewable energy added as a fifth fuel source.

Currently, Malaysia's Energy Commission has two coal-fired plants with a total capacity of 3,000 MW under consideration. The commission invited prospective bidders to participate in the pre-qualification process by identifying suitable partners and project sites.

Reports say that the first, 1,000-MW project would be constructed on a fast-track basis, and the second, 2,000-MW plant would be set up at a greenfield site.

The fast-track project is scheduled to be operational by October 2017, and the second is slated for commissioning by 2018-19.

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