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Renewable Energy from Palm Oil Biomass in Malaysia
Mohd Shaharin Umar*, Philip Jennings, Tania UrmeeMurdoch University, Western Australia
World Renewable Energy Congress-Australia 2013
15 July 2013
• objectives of the research• methodology• resource availability• policy system• barriers• solutions in the FiT
• future strategies
An Overview
Objectives of the research
• To evaluate the sustainability of the oil palm biomass renewable energy downstream value chain components
• To design future strategies for a sustainable industry
3
Downstream Value Chain
Conversion
Technology
Conversion
Technology
ResourceSupply
ResourceSupply
Grid Extension System
Grid Extension System
Conventional Energy +
Renewable Energy
Conventional Energy +
Renewable Energy
Final ConsumersFinal Consumers
Palm Oil Mills Power Grid and End User
(Supply) Transmission Line (Demand)
Methodology
Literature Review
Survey Quantitative Analysis
Analysis
Qualitative Analysis
InterviewsFocus Group Meeting
Recommendations
8th Malaysia Plan (2001-2005)The 5th Fuel Diversification Policy & SREP
Renewable Share of 5% in Energy Mix 2005
9th Malaysia Plan (2006-2010)Renewable Share of 1.8% in Energy Mix
2010
10th Malaysia Plan (2011-2015) & BeyondRE Policy & Action Plan
RE Act 2011, SEDA 2011 & FiTRenewable Share of 5.5% in Energy Mix 2015
Source: Compilation from the various Policy Documents (2011)
Policy System
Barriers
• Policy - Economic & Social
• Industry - Decision making, economic factors and operational complexity
Solutions in the FiT
• Eliminate economic barriers - fixed price, purchase obligation, technology bonuses, long contract, RE fund
• Institutionalise the industry – establishment of SEDA
BUT
• Absence of definite solution to improve downstream components due to non-intervention approach by the regulators to facilitate small producers
Solutions in the FiT (continued….)
• The FiT system is not optimal due to lack of sustainable options
• Need a holistic market reform strategy
• to establish a fuel collection hub
• to explore the use of a variety of residues
• to enhance R&D and research budget
Strategies for sustainable industry
• to establish a large-scale biomass energy plant
• to explore the technology hub approach
• to increase the role of local technology providers
Strategies for a sustainable industry
• to promote a decentralised system
• to improve the interconnection scheme
• to explore utility-market entities cost-sharing model
Strategies for sustainable industry
Conclusions
• Massive conversion of oil palm wastes into clean energy would help in turning Malaysia into a low carbon economy
• Future modification of the FiT system by including sustainability strategies is essential, particularly in supporting the downstream components
Palm oil environmental impacts
• no long-term plantation expansion plan
• industry strategy is to replant low value crops with other export crops eg: rubber, cocoa
• sustainable forest management eg: international commitment during Conference of the Parties (COP) 15 in Copenhagen 2009 to keep 50% of its land as forested areas
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