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MESI 2.0 and SEDA

The document summarizes Malaysia's efforts to transition to renewable energy and reform its electricity supply industry. Key points include: - Malaysia aims to reduce carbon emission intensity and achieve 30% renewable energy by 2025, excluding large hydroelectric dams. Various policies like net energy metering, feed-in tariffs, and green financing schemes support this transition. - Reforming the electricity supply industry (MESI 2.0) would introduce competition, independent system operators, and consumer choice. This could lower prices, increase investment and jobs, and empower consumers. - Transitioning to renewable energy is projected to generate RM33.25 billion in private investment and over 47,000 jobs by 2025 across technologies like solar

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79 views

MESI 2.0 and SEDA

The document summarizes Malaysia's efforts to transition to renewable energy and reform its electricity supply industry. Key points include: - Malaysia aims to reduce carbon emission intensity and achieve 30% renewable energy by 2025, excluding large hydroelectric dams. Various policies like net energy metering, feed-in tariffs, and green financing schemes support this transition. - Reforming the electricity supply industry (MESI 2.0) would introduce competition, independent system operators, and consumer choice. This could lower prices, increase investment and jobs, and empower consumers. - Transitioning to renewable energy is projected to generate RM33.25 billion in private investment and over 47,000 jobs by 2025 across technologies like solar

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Credit:Michael Martin

%
reduction in
Carbon Emission Intensity of GDP
Launching of
Malaysia Green Tech & Climate Change Centre
National Coordination Council
for Climate Adaptation and Mitigation
Achievements
No Nuclear Power
%
renewable energy target in generation mix by 2025
excluding large hydro above 100MW
Achieving 20% RE Target

78 760 483 736 2,057MW


6,906MW
Additional Required
Installed Capacity, 2018 (MW) Capacity
*6,677MW required as of 21 Nov 2019

274 96 566 1,870 2,806MW


BAU Additional Capacity, 2025 (MW)

30 434 3,636 4,100MW


Additional Capacity Required to for 20% RE, 2025 (MW)
Government Strategies to
Achieve RE Target

NEM LSS FiT


Net Energy Metering Large Scale Solar Feed-in Tariff
Net Energy Metering
(NEM)
• 3.2 million landed
residential properties
• 450,000 shoplots
• 90,000 terrace
factories
• 21,000 standalone
factories
• 1,000 shopping
complexes
NEM UPTAKE RATE

3X
Before

2016 – 2018 Jan – Sept 2019


(3 years) (9 months)
www.seda.gov.my
Large Scale Solar (LSS)
Lowest Bid at LSS3 Gas Generation Cost
17.77sen/kwh 23.22sen/kwh
Project Revocation
389 FiT Projects
RM 2.1 bilion
e-Bidding
20% RE Enablers
GTFS GITA GITE
Green Technology Green Investment Green Income Tax
Financing Scheme Tax Allowance Exemption

Green RECs RE
Renewable Energy
Tariff Certificate Trading
Cumulative investment by technology – RE
transition scenario at 2025: RM33.25B

33.25Billion
RM
of Private Investment
24%
16%

7%

19%
34%

Mini Hydro Biogas Solar LSS Biomass Rooftop Solar


Total employment of the RE transition scenario
excluding manufacturing at 2025: 47,153 Jobs

6%
More than 11%

100,000
Employment
39%

16%

28%

Mini Hydro Biogas Solar LSS Biomass Rooftop Solar


Jobs Created per Gigawatt-Hour
of Energy Generated, 2016

Solar 6.65jobs created


per GWh

Coal 0.07jobs created


per GWh

Natural Gas 0.06jobs created


per GWh

Source: U.S. Energy and Employment Report, U.S. Department of Energy. January 2017
Green Industries
the new frontier of growth
Increasing Efficiency
in the
Electricity Industry
Reimagining Malaysian
Electricity Supply Industry
(MESI 2.0)
MESI 1.0

Source:
Reimagining Malaysian Electricity Supply Industry 1. JPPPET 2018
2. Doing Business 2019, Training for Reform, A World Bank Group Flagship Report (2019)
(MESI 2.0)
Future Challenges
3 Emerging Technologies Disrupting The Industry
Electrification
New technologies resulted increase in demand of electricity. We have to prepare
early to ensure this demand is met.
Key technologies: Electric vehicles, smart charging, appliances, heat pumps

Digitalisation
Allowing better control and connectivity for consumers. Also enables dynamic and
innovative energy products.
Key technologies: Smart meters/ Smart grid, automation systems, Internet of
Things and Industry Revolution 4.0

Decentralisation
Empowering consumers to actively participate in electricity supply industry.
Key technologies: Energy Efficiency, Solar PV, Distributed Storage, Batteries,
Microgrids, Demand Response, Peer-to-Peer

Reimagining Malaysian Electricity Supply Industry


(MESI 2.0)
Cancelled SIX Power Projects
4 gas-fired power plant
2 hydro projects
Savings: RM 11.4 billion
Pursuing RM 250 million
from IPPs to AAIBE
(for tariff cushion)
Tariff Structure

MESI 2.0:
Driving
Efficiency
Across Value
Chain
Source:
1. JPPPET 2018
2. TNB, Cost of Service Study 2018
MESI 2.0: Driving Efficiency Across Value Chain
MESI 1.0 MESI 2.0 (Recommendation)
(2010 – 2014) (2019 – 2025)

TNB-F PETRONAS Coal


suppliers Gas
Fuel TNB-F suppliers PETRONAS suppliers

TNB Gen IPPs RE)


IPPs
IPPs (including IPPs
TNB Gen IPPs
IPPs
IPPs (including RE) IPPs
Gentailer

Generation Wholesale Market


NEDA RF-SB RF-GSO NEDA + Capacity Market ISB IGSO

TNB Transmission TNB Transmission

TNB Distribution
Grid TNB Distribution
Alternate IPPs
TNB Retail Retailers
IPPs
Gentailer
TNB Retail

 Single Buyer and GSO ring-fenced within TNB  Fuel supplies, generation segment and retail services may evolve to be
Retail
under competitive environment
 Transmission and Distribution owned by TNB
 New SB and GSO act as independent functions as part of level-playing
RF: Ring-fenced
ISB: Independent Single Buyer
field objective
IGSO: Independent Grid System Operator  Transmission and distribution wires remain natural monopoly (and
regulated
Reimagining Malaysian Electricity Supply Industry (MESI 2.0)  Green choices
Aggregated timeline for MESI initiatives

Reimagining Malaysian Electricity Supply Industry (MESI 2.0)


Potential Outcome
Better Consumer Experience
 Choice, options and control
 Improved service levels

Reasonable Electricity Prices


 Regionally competitive
 Transparency across the value chain

Generating Additional Economy Activity


 Increased capital investments and new job opportunities (2020-2030)
 New Small Medium Enterprise (SME’s) businesses

Reimagining Malaysian Electricity Supply Industry


(MESI 2.0)
Other Initiatives
BSH RM1,500
4,247,292

G Rebat RM20
3,981,040 1,121,147

A C
131,770 120,904
B
13,578
E F
66,443 D 981,505
5,160

e-Kasih (Rebat RM40)


216,951
e-Kasih KIR
who received electric bill subsidies increased 6 times
from 18,738 to 120,000 recipients
www.mestecc.gov.my/web/plastik/
Thank You

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