Analysis of the Potential Solar Energy Market in Malaysia: A Case Study on Renewable Energy Industry

1. SOLAR ENERGY:
A CASE STUDY OF
SUSTAINABLE ENERGY

2. Outline
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•
•
•
•
Introduction
Problem of Statement
Literature review
Solar Energy
Conclusion

3. Introduction
• Terms of Energy
– Energy means capacity to performs works
– Many different energies – physics, chemical,
biology
– Exists in many forms, transferable and
conservable
– In generation of electricity – energy divides to
non-renewable and renewable energy

4. Introduction
• Energy in Malaysia
– Ideally, a good mix of renewable and nonrenewable
– Demand is increasing about 4.7 % a year
– In 2009 at 103.2 TWh expected to increase to
274 TWh (2030)
– User fraction
• Transportation (40.5%)
• Industrial (38.6%)
• Residential and commercial (13.1%)

5. Introduction
• National energy policies
– National Energy Policy (NEP) 1979
• Four fuel diversification – oil, hydropower, natural
gas and coal
– Revised NEP in 1999
• Five fuel diversification – oil, hydropower, natural
gas, coal and renewable energy

6. Problem of Statement
• Energy issues in Malaysia
– Increasing demand but less supply
– Depletion of fossil fuel & need alternative
– Environmental issues
• GHGs emission
• Pollution
• Climate changes
• Solution?
– Diversification of energy

7. Literature Review
• Sustainable energy strategy
– Five-fuel Diversification 1999
• Lessen dependency on fossil fuel
• Promote new alternative energy source
– National Green Technology Policy 2009
• Promote green technology
• Energy efficiency
• Environmentally friendly

8. Literature Review
• Potential renewable energy in Malaysia
– Biomass, solar, mini-hydropower, municipal
waste, biogas, & wind.
• Highest potential to be implemented
according to Ministry of Energy, Green
Technology and Water are:
– Biomass
– Solar

9. Literature Review
• Why Biomass?
– Plenty of resources to generate the energy
– Palm oil residues, wood residues, agriculture
residues
– These resources use to generate heat and
electricity

10. Literature Review
• Why Solar?
– Solar energy is a naturally
– Location of Malaysia – equatorial region
– Suitable climate
• High temperature 22 to 33 deg Celsius
• High humidity 80 – 90%
– Abundant of sunshine
• Average daily solar radiation is 1643 kWh/m2

11. Literature Review
• Why Solar over Biomass?
– Potential growth due to emerging technology
– Expected to be main source surpass other renewable
energy in Malaysia (source: KeTTHA)
– Solar panels have efficiencies as high as 19%,
meaning that much of the sun’s energy is converted
into electricity.
– Clean, no GHGs emission
– Can install widely regardless of location in M’sia
– Small investment for micro-generation (residential)
– Less or almost free maintenance and high reliability
with life span expectation of 20–30 years

12. Solar Energy
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•
•
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Still infancy level
Most promising renewable energy in Malaysia
Small scale to large scale installation
Application of solar
– Solar thermally generated electricity- complex
collectors to gather solar radiation to produce
temperature high enough to drive steam turbines to
produce electric power,
– Solar Photovoltaic (PV) energy - direct conversion of
sun’s ray to electricity- single junction silicon solar cell
has 19% efficiency

13. Solar Energy
• Widely used in Malaysia is solar PV application
• Mostly for small scale up to medium scale
installation like residential and buildings
• Government support program like Malaysia Building
Integrated Photovoltaic (MBIPV)
– To promote and stimulate the PV solar system
– Reduce long term cost of BIPV
– Aims for energy efficiency with integration solar to existing
electricity grid
– The project results are expected to induce an increase of
BIPV application by 330% from the baseline in 2005, with
a cost reduction of 20% by the year 2010.

14. Solar Energy
• Current application status
– Formulation of programs like BPIV & SREP to support the
development
– R&D by universities like UKM on solar thermal systems
and grid connected PV; UPM on solar energy & UM on
BIPV
– Installation mostly small to medium scale – residential &
buildings
– Policies like National Energy Policy (NEP), National
Depletion Policy (NDP)
– Acts like Renewable Energy Act 2011 & Sustainable
Energy Development Authority Act 2011

15. Solar Energy
• Management of resources
– Ministry of Energy, Green Technology and Water for
policies and acts
– Energy Commission for supervision and enforcement
– Malaysian Industrial Development Authority (MIDA) for
promotion of RE
– Tenaga Nasional Bhd as utility providers
– SIRIM for R&D
– MoHE, universities, etc – provides courses, trainings on
RE

16. Solar Energy
• Future prospect
– Projected to supply 30% of world’s energy by 2050
– Under MBIPV, solar PV energy in Malaysia as main
energy source
– Introduction feed-in-tariff (user sells electricity to utility)
stimulate solar PV applications
– Introduction of SURIA1000, a funding incentive (similar
concept to hire and purchase)
– R&D of technology of solar system by
universities, companies etc to improve the system
– Malaysia as major player in solar system

17. Conclusion
• Highly potential due to its location – equatorial
location
• One of future sustainable energy due to advantages
of solar system
• Efforts and commitment from GoM in term of
policy, funds, R&D and stimulation increases the
growth
• Major barrier is capital investment but can be
compensated by proper planning and management

18. Conclusion
• Education sectors plays major role on training and
expertise level
• Media promotion increases public awareness thus
encourage rapid adoption of BIPV
• In conclusion, Malaysia should optimize solar PV
system to replace non-renewable energy