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TNB ENERGY SERVICES SDN BHD (A wholly-owned subsidiary of Tenaga Nasional Berhad) DEVELOPMENT IN TNB ENERGY SERVICES RENEWABLE ENERGY PROJECTS 1 Making It Happen, Getting It Done Presented by: Shahrir Abdul Latiff Managing Director TNB Energy Services Sdn Bhd

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Page 1: DEVELOPMENT IN TNB ENERGY SERVICES RENEWABLE ENERGY PROJECTS · DEVELOPMENT IN TNB ENERGY SERVICES RENEWABLE ENERGY ... DEVELOPMENT PLAN Source: Ministry of Energy, ... Renewable

TNB ENERGY SERVICES SDN BHD

(A wholly-owned subsidiary of Tenaga Nasional Berhad)

DEVELOPMENT IN TNB ENERGY SERVICES RENEWABLE ENERGY PROJECTS

1 Making It Happen, Getting It Done

Presented by: Shahrir Abdul Latiff Managing Director

TNB Energy Services Sdn Bhd

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CONTENT OUTLINE

MALAYSIA’S PERSPECTIVE ON RENEWABLE ENERGY

TNB/TNBES ROLES IN RENEWABLE ENERGY

WAY FORWARD

2

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MALAYSIA’S PERSPECTIVE ON RENEWABLE ENERGY

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NATIONAL ENERGY POLICIES AND DEVELOPMENT PLAN

Source: Ministry of Energy, Green Technology and Water, Energy Commission

9th Malaysia Plan (2006-2010) Target: 300 MW grid-connected RE in Peninsular Malaysia

Target: 50 MW grid-connected RE in Sabah

10th Malaysia Plan (2011-2015) New RE Policy and Action Plan

Target: 985 MW of RE by 2015 (~5.5% of energy mix)

National Energy Policy

(1979)

National Depletion

Policy (1980)

National Fuel Policy (1981)

National Fuel Policy (2001)

National Green Technology

Policy (2009)

THE IMPORTANCE OF RENEWABLE ENERGY

Malaysia’s Perspective On Renewable Energy

8th Malaysia Plan (2001-2005) RE as the fifth fuel

Target: 5% RE in energy mix

RENEWABLE ENERGY as the fifth fuel in energy supply mix

GREEN TECHNOLOGY as the driver to accelerate the national economy and promote sustainable development

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Introduction of FiT spurs the RE development

FiT for development of solar, mini hydro, biomass and biogas was

introduced in Nov 2011

Support initiatives

Introduction of Green Technology Funding Scheme, MIDA tax exemption

1

2

THE COMMITMENT OF MALAYSIAN GOVERNMENT ON RE

Malaysia’s Perspective On Renewable Energy

5

Year Cumulative RE Capacity

RE Power Mix Cumulative CO2 avoided

2015 985 MW 5.5% 11.1 mt

2020 2,080 MW 11% 42.2 mt

2030 4,000 MW 17% 145.1 mt

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INSTALLED CAPACITY (MW) OF COMMISSIONED RE INSTALLATIONS

Total RE capacities (in MW) granted with Feed-in Approvals under the FiT mechanism and which have achieved the FiT Commencement Date - Source SEDA website, 10 April 2013

0

5

10

15

20

25

30

35

40

45

Biogas Biogas ( Landfill /Sewage )

Biomass Biomass ( SolidWaste )

Small Hydro Solar BIPVIndividual

Solar Non-individual (≤ 500

Kw)

Solar Non-individual (> 500

Kw)

2012

2013

Malaysia’s Perspective On Renewable Energy

6

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INSTALLED CAPACITY (MW) OF PLANTS IN PROGRESS

0

5

10

15

20

25

30

35

40

45

50

55

Small Hydro Biomass ( SolidWaste )

Biomass Biogas ( Landfill /Sewage )

Biogas Solar BIPVIndividual

Solar Non-individual (≤ 500

kW)

Solar Non-individual (> 500

kW)

2012

2013

2014

2015

Total RE capacities (in MW) granted with Feed-in Approvals under the F.i.T mechanism and which have not yet achieved the F.i.T Commencement Date. - Source SEDA website, 10 April 2013

Malaysia’s Perspective For Renewable Energy

7

Industry learning curve – difficulty to meet declared milestones by feed in

approval holders (FiAHS)

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TNB/TNBES ROLES IN RENEWABLE ENERGY

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• Largest electricity utility in Malaysia (national utility)

• Listed on Stock Exchange • RM87 billion in assets • 33,500 employees

ABOUT TNB & TNBES

TNB Green Policy

• Aspires to become a primary driver of green energy in Malaysia by 2015

• Efforts on the supply side – measures to minimise environmental impact

• Efforts on demand side – EE and DSM – reduce or defer related generation and network investments

• Implementation of RE initiatives within TNB

TNB/TNBES Roles In Renewable Energy

Corporate responsibility:

• Safeguard the natural resources and respond to Government’s efforts for a secured and environmentally sustainable energy supply in the long term

Wholly-owned Subsidiary

Implementor of TNB’s Green Initiatives

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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Support Functions

• Undertake / implementer of TNB’s green initiatives

• Solution provider for rural electrification program

• Supporting TNB in increasing power generation mix from RE

• Supporting/facilitating RE industry players/developers in REPPA, PSS and grid connection

Business Activities

• End-to-End integrated services in Green Energy and Energy Efficiency

FOCUS AREAS

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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Green Energy

Renewable Energy

Solar Mini Hydro Biomass Biogas Other RE

Energy Efficiency

EE Integrated Solution Power Quality

Equity Developer JV

End-to-end integrated

services PMC EPCC O&M Consultancy

EE integrated

services

Energy Management

solution

Power Factor improvement

EE Manager

Power quality services

Consultancy services

BUSINESS FOCUS

The Solution Provider in the field of green energy and related activities

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD

12

PROJECTS OPERATIONS & MAINTENANCE

ENGINEERING & CONSULTANCY

SOLAR HYDBID SYSTEM (OFF-GRID)

SOLAR FARM

MINI HYDRO STATION REHAB/REDEVELOPMENT

SOLAR HYBRID SYSTEM

MINI HYDRO STATION

ENERGY EFFICIENCY (EE)

POWER QUALITY (PQ)

POWER SYSTEM STUDY (PSS) & INTERCONNECTION FACILITY

RENEWABLE ENERGY (RE) PROJECT CONSULTANCY

10MW BIOMASS PLANT

2X2MW BIOGAS PLANT POME BASED

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD – 850kW Solar Hybrid System, Perak (Commissioned Nov 2012)

Solar Panel

Quarters Powerhouse

15 Villages 2 Schools

Public Amenities

Clinics, Local Offices

Commercial Use

Solution provider for rural

electrification program

Parameters

Solar Farm Capacity 850kW

Battery Capacity 1000kW

Current Demand 450kW

Exp.Demand Growth 10% per year

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD – 19 Solar Hybrid Systems, Rural Schools (Commissioned 2011)

SK Pos Lenjang K Lipis Pahang SK RPS Dala, Gerik Perak

SK Pos Balar Gua Musang Kelantan SK Ladang Mutiara, Kluang Johor

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD – 5MW Solar Farm, Melaka

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD – O&M (Mini Hydro)

28 Mini Hydro Stations with

total installed capacity of

23.5MW (each station ranges

between 120kW up to 1100kW)

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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TRACK RECORD – O&M (SOLAR HYBRID SYSTEM)

41 Solar Hybrid

Systems in

Peninsular

Malaysia

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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EXPANSION AND GROWTH STRATEGY

1. Strengthening domestic presence as THE Solution Provider in Green Energy:

- End-to-end service provider & project implementer

- Smart partnership with GE industry players

- Competency building - acquiring technology know-how.

2. Venturing into Regional markets (South East Asia)

- Smart partnership with renowned regional partners

- Collaboration with International Players

- Joint marketing with relevant Govt & Agencies

3. Middle East expansion

- Extending regional efforts to seek for Middle East opportunities

2012 2013 2014 2015 & Beyond

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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STRENGTHENING DOMESTIC PRESENCE End-to-end service provider & project implementer

BIPV 137kW & 30kW EPCC TNB RM1.5 mil Ongoing (9/2013 )

5MW Solar Farm Melaka (Interconnection, comiss’ning)

EPCC PV Hitech/KMB RM2.0 mil Ongoing (5/2013)

Mini Hydro Rehab - 15 stns EPCC TNB RM52.0 mil In progress (2015)

Solar Hybrid System - 40 stns O&M TNB/Govt RM10.0 mil LTSA

Mini Hydro - 36 stns O&M TNB RM5.0 mil LTSA

Biomass 1 x 12MW O&M FTJ RM4.0 mil LTSA (6/2013)

Power System Study Consultancy & services

RE developers RM2.0 mil Completed & Ongoing

Power Quality Services Consultancy & services

Large power consumers

RM2.1 mil Ongoing

Energy Efficiency Audit & solution, visiting engineer

Consultancy & services

TNB & commercial buildings

RM2.5 mil Ongoing

DESCRIPTION Scope CUSTOMER Value STATUS

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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STRENGTHENING DOMESTIC PRESENCE - Partnership with RE industry players

BIOGAS

SOLAR

MINI HYDRO

BIOMASS

2 x 3MW Solar Farm, Kedah Amcorp Power NDA signed

5MW Solar Farm, Kedah Kedah Sato NDA signed

2 x 5MW Solar Farm, Ipoh Maju Perak NDA to finalise

5MW Solar Farm, Bkt Jalil Tech Park NDA to finalise

5MW Solar Farm, location TBD Petronas NDA to finalise

5 MW Solar Farm, Kedah Kedah State NDA to finalise

100 MW Solar Farm OEM Prelim / Due D

20MW, Sg Liang, Pahang Amcorp Power COD 2015

50MW, Nepal Amcorp Power NDA signed

19.6MW Sg Telom, Pahang Kons.Binwang NDA signed

MH Projects, Kedah Kedah Sato NDA signed

2 x 2MW Biogas Sime Darby Plant’n COD 2014

10MW FTJ Jengka Felda COD 6/2013

DESCRIPTION PARTNER STATUS

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

21

NEW VENTURE – BIOMASS (POME)

Parameters

Power Plant Capacity 10MW (net capacity)

Empty Fruit Bunch Supply 300,000 tonne/year

Revenue Stream Sales of Electricity, FiT at 32SEN/kWh

Project Cost RM125Million

Project IRR 11%

Target COD Sept 2013

JV

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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NEW VENTURE - BIOGAS

JV Parameters Size & Capacity

Power Plant Capacity 2x 2MW (EFB)

Mill Capacity 60 tonne/year

Revenue Stream Sales of Electricity, FiT at 32sen/kWh

Project Cost RM35Million

Project IRR 10-12%

Target COD Sept 2014

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ABOUT TNBES

TNB/TNBES Roles In Renewable Energy

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NEW VENTURE – MINI HYDRO

JV SCHEMES UPPER LOWER

Capacity 10MW 10MW

Load Factor 49.7% 54.8%

Project Cost (RM): 68 Mil 63 Mil

Project Returns 12% (average)

Payback Period 9 years 9 years

Target COD June 2015

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WAY FORWARD

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WAY FORWARD

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FACING THE CHALLENGES – ISSUES TO BE ADDRESSED

High Capital Cost

Reliability

Transmission and Distribution

Integrating Renewables On the Power Grid

RE development is not straightforward

At this point of time, support mechanism

is still required

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WAY FORWARD

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HARNESSING CLEAN, GREEN ENERGY IN THE MOST EFFICIENT WAY

• Low capacity factor of RE remains an issue

FOSSIL

Gas (CCGT)

Coal

Nuclear

RENEWABLES

Hydro

Wind, onshore

Wind, offshore

Geothermal

Wave

Tidal

Solar thermal (CSP)

Solar PV

0 10 20 30 40 50 60 70 80 90 100

Capacity factor, %

MinimumRange

Wind

Geothermal

PV

Nuclear

Large CCGT

Micro GT

Clean coal

Large coal

0 200 400 600 800 1,000Emissions, g/kWh

Minrange

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LEADING ROLES IN SUPPORTING THE GROWTH

Driven by parent company’s policy In-house capability Proven track record

Collaboration with industry players

TNBES is well-positioned to support Government initiatives and lead the RE industry

Establised 1997

Staff > 100

End-to-end integrated

services Support by

TNB’s pool of expertise

TNB is committed to support the national green

agenda and minimise the

environmental impact of our

business

WAY FORWARD

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WAY FORWARD

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Industry players need put concerted effort and support each other towards achieving sustainable growth in Renewable Energy…

Chasing the sun tracking the wind…

Tapping the water …Optimising the waste. Riding the wave..

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TNBES Making it Happen, getting it Done

Thank you

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• Importance of Government’s support

– Implementation of F.i.T – reimbursement of paid up capital and also O&M costs.

– Green Technology Financing Scheme – to spur the

development and construction of renewable energy resources

• There are abundance potential of renewable resources in Malaysia

• All kind of waste can be traded into wealth!

CONCLUSION

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