SESB PLANNING-Sabah Energy Scenarios

SABAH ENERGY SCENARIOS

Content

• Background• Overview of SESB System

• Overall System Performance• Interruption Index (SAIDI)

• Why Major Power Plant Is Badly Needed In East Coast Of Sabah

• Energy Option In East Coast Of Sabah

ELECTRICITY COVERAGE IN SABAHELECTRICITY COVERAGE IN SABAH

3

BACKGROUND

4

SANDAKANKOTA KINABALU

LAHAD DATU7MW

TAWAU

SEMPORNA2MW

KUDAT6MW

KOTA BELUD2MW

BEAUFORT

WP LABUANKENINGAU

4MW

PANGI

PAPAR

TENOM

TENOM PANGI HYDRO 66 MW

LABUAN 28MW

SANDAKAN42 MW

TAWAU 41 MW

TG.ARU 95MW

• SMALL ISOLATED SYSTEM• MAINLY DIESEL GENSET WTH TENOM HYDRO

• LIMITED GRID IN WEST COAST ONLY• <50% COVERAGE

SABAH SYSTEM 1984

4

5

SANDAKAN

KOTA KINABALU

LAHAD DATU7MW

SEMPORNA2MW

BEAUFORT

WP LABUANKENINGAU

PANGI

PAPAR

TENOM

LLS

IPP

Mini Hydro

TENOM PANGI HYDRO66 MW

PATAU-PATAU (112 MW)

MELAWA 44 MW

ARL 50 MW

GANTISAN38 MW

SANDAKAN41 MW

LIBARAN60 MW

TAWAU50 MW

SERUDONG37.5 MWTAWAU

TG.ARU 27 MW

POWERTRON136 MW

MELANGKAP1 MW

KIAU0.4MW

CARABAU2 MW

BOMBALAI1 MW

MEROTAI1.3 MW

SAYAP1 MW

KUDAT6MW

KOTA BELUD2MW

• EXPANDED SYSTEM• GEN MIX OF GAS, HYDRO & DIESEL

• IPPs INTRODUCED -• LIMITED GRID IN WEST COAST ONLY

SABAH SYSTEM 1998

5

SANDAKAN

KOTA KINABALU

LAHAD DATU

TAWAU

SEMPORNA

KUDAT

KOTA BELUD

BEAUFORT

WP LABUANKENINGAU

PANGI

KOTA MARUDU

KUNAK

PAPAR

TENOM

KOTA KINABATANGAN

SEGALIUD

DAM RD

TNPG (44 MW)

(FIRM CAPACITY)

PTAU (99 MW)1 X 30 MW GT2 X 28 MW GT1 X 13 MW ST

MELA (31.4 MW)2 X 5 MW DG2 X 4.4 MW DG1 X 17MW GT

ARLT (50 MW)4 X 12.5 MW DG

SBPC (100 MW)2 X 33 MW GT 1 X 34 MW ST

GANT (32 MW)2 X 16 MW GT

BSPS (32.5 MW)1 X 6 MW DG1 X 5.5 MW DG1X 12 MW DG1 x 9 MW DG

LBUK (7 MW)2 X 3.5 MW DG

SPC (32 MW)4 X 8 MW DG

LBRN (60 MW)4 X 15 MW DG

TWPS (36MW)3 X 4 MW DG1 X 9 MW GT1 X 15MW GT

SERU (36 MW)3 X 12 MW DG

TSH (10 MW)1 X 10 MW ST

SESB

IPP/SREP /

Temp. Gen.

Hydro SUTERA HARBOUR (27MW)

3 X 9 MW DG

TESA (190MW)4 X 30 MW GT 2 X 35 MW ST

Seguntor

Bioenergy

(10 MW)1 X 10 MW ST

Kinabio

Power (10 MW)1 X 10 MW ST

SREP MinihydroSg. Kadamaian

(2.0MW)

Sabah’s

power shortage problems must be assessed based on

EAST

and WEST

coasts Supply and Demand situation.

SABAH GRID (Jun 2010)RPII (130 MW)2 X 65 MW ST

7

OVERVIEW OF SESB SYSTEM

Sabah Grid Interconnection & Power Station• The forecast demand growth of electricity is in a region of 7.7% per annum.• A fully integrated grid connecting the West Coast Grid to the East Coast Grid was completed on 28 July 2007, and about 80% of the customers are now connected to this integrated grid

8

KudatPitas

Mengaris

Sandakan

Lahad Datu

Tawau

Semporna

Kota Belud

Kota Kinabalu

Sipitang

Keningau

Penampang

Segaliud

Dam Road

Kalumpang

Tenom Pangi

Beaufort

Labuan

Kolopis

Papar35.5km

113km

5.3km

90km

33km 50km

255km

132 kV

275 kV

46.5km

55km

76km

31.5km

51km

35.5km 40km68.5km

WEST COASTGRID

EAST COASTGRID

Ranau

30km

40km

57km

Upper Padas

TambunanKimanis 45km

G

G

G

90km

Coal Fired IPP Ph 1 150MW (2014)Coal Fired IPP Ph 2 150MW (2015)

G

Upper Padas 150MW (2017)

G

Liwagu 150MW (2018)

Ranhill Powertron 190MW (2010)

Committed Plant

Planned Plant

Lok Kawi

STRENGTHENING OF THE GRID CONTINUES..

8

Kimanis 200MW +100MW (2013/2014)SPR 100MW (2013)


9

SYSTEM PERFORMANCE

1010

OVERVIEW

SESB STATISTICS

ANNUAL REVENUE (FY2009) RM 954m

AVERAGE SELLING PRICE (FY2009) (Cent/kwh)

25.55

COST PER UNIT (FY2010) (CENT/KWH) (including Finance Cost)

43.70 (w/o subsidy)32.30(with subsidy)

GENERATION INSTALLED CAPACITY

SESB IPP TOTAL

436.5 MW 659.3MW 1,095.8MW

MAXIMUM DEMAND 772.8 MW

Negative margin of

-6.75 cent/kwh

41093849

2717

1947

2284

700

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2005 2006 2007 2008 2009 2010

min

ute

s p

er c

ust

omer

FY

11

Under Sabah

Integrated

Master Plan, and with full

completion of the proposed

initiatives, SESB is targeting

a statewide SAIDI of 700

minutes by the year 2010.

Target Performance for :

Sector 1 : 240 mins.



Progressive Improvement for SAIDI (Statewide)

Improving trend of SAIDI

Actual Target

TNB SAIDI : 73 min

IMPROVED SYSTEM PERFORMANCE

201.41

11.46

54

265.34134.69

19.25

56

209.69

210.41

8.08

37

255.22

238.37

7.05

52

297.48

34.11

3.27

45

82.75

24.25

0.02

33

57.57

17.16

0.18

49

66.63

40.21

9.23

35

84.26

72.67

2.42

63

138.4

28.31

10.92

45

83.86

0

50

100

150

200

250

300

Sep‐09 Oct 09 Nov‐09 Dec 09 Jan‐10 Feb‐10 Mar 10 Apr‐10 May 10 Jun‐10

SAIDI SESB ( SEP 2009 ‐ JUN 2010)

Generation Transmission Distribution SESB Linear SESB

WEST COAST VS EAST COAST SAIDI for FY 2010 (Major Towns)

WEST COAST VS EAST COAST SAIDI for FY 2010 (Major Towns)

1,155 1,161

408

1,352

731

2,2102,386

2,117

2,553

1,175

0

500

1000

1500

2000

2500

3000

Tuaran KK LBN KGAU PPAR TWAU SDKN LHDU BLRN KBTG

West Coast Town East Coast Town

min

utes

per

cus

tom

er

Less reliable system in the East Coast & rural areas having higher

frequency of interruptions

SAIDI yang tinggi disebabkan kekurangan kapasiti penjanaan & kadar Unplanned Outage Rate(UOR) yang tinggi dari set penjanaan yang telah uzur


14

WHY MAJOR POWER PLANT IS BADLY NEEDED IN EAST

COAST OF SABAH

15

SBPC (IPP)

ARLT (IPP)

TENOM PANGI

Sutera

Harbour

PATAU‐PATAU P/S

POWERTRON (IPP)

MELAWA P/S

WEST COAST: AVAILABLE CAPACITY*WEST COAST: AVAILABLE CAPACITY*

T.ARU

• Definition Available Capacity (MW) = Day to day capacity after taking into account any deration

• ** Sutera Harbour (SH) - SESB is temporary buying energy from SH and since there is no PPA signed thus it is not considered as an IPP.

SESB Plants

IPP Plants

Plant Type Plant Name Available Capacity

Gas Plants 1. SESB Patau-Patau P/S 2. IPP SPBC 3. IPP Powertron I4. IPP Rahill Tuaran (GT 1 x 65MW)

57MW 100MW190MW65MW

Hydro Plants 1. SESB Tenom Pangi2. SREP Sg. Kadamaian

66MW1MW

Oil/Diesel Plants

1. SESB Melawa2. SESB Mobile Melawa (12MW) & Tg Aru (8MW))3. IPP ARLT4. Sutera Harbour** (Temporary)5. Others

19.1MW20MW22MW17MW4.8MW

Total Available Capacity as at 21 May 2010 561.9 MW

Total Maximum Demand in West 548.4 MW

Excess Available Capacity 13.5 MW

West Coast Grid Reserve Margin 2.5%

16

SBPC 100MW

ARLT 50MW

TNPG 66MW

Sutera

Harbour

38MW

PTAU 112MW

TESA 190MW

MELA 44MW

LIBARAN (IPP)

SPC (IPP)

LABUK P/S

BATU SAPI P/S

LAHAD DATU P/S

GANTISAN P/S

TWAU P/SSEMPORNA P/S

SERUDONG (IPP)

SESB Plants

IPP Plants

EAST COAST: AVAILABLE CAPACITYEAST COAST: AVAILABLE CAPACITY

Definition Available Capacity (MW) = Day to day capacity after taking into account any deration.

KINA BIO

SGTR BIO

TSH

Plant Type Plant Name Available Capacity

Gas and Hydro Nil Nil

Biomass SREP TSHSREP KINA BIO SREP SGTR

9 MW9 MW*9 MW*

Oil/Diesel Plants SESB Labuk P/SSESB Bt. Sapi P/SSESB Gantisan P/SSESB Lahad Datu P/SSESB Semporna P/SSESB Tawau P/SIPP SPCIPP LibaranIPP SerudongSim-Sim MobilePasir-Putih MobileOthers

6 MW9 MW

17 MW6.3 MW0.5 MW36.6 MW24 MW45 MW36 MW

17.2 MW17.5 MW1.8 MW

Total Available Capacity as at 21 May 2010 243.9 MW

Total Maximum Demand in East Coast 224.4 MW

Shortage in Available Capacity 19.5 MW

East Coast Reserve Margin (%) 8.69%* Not very reliable due to fuel issues.

17

WEST

COAST

GRID(WCG)

EAST

COAST

GRID

(ECG)Daily Power Transfer = 50 ‐

100 MW

Dependable Capacity : 661.8 MW Average Daily Availability : 520.5 MW

Max Demand : 548.4 MW

Dependable Capacity : 359.7 MW Average Daily Availability : 214.5 MW

Max Demand : 224.4 MW

25%-50% of East Coast demand is supported by

West Coast Grid

In the case when

EWG

interconnection is

lost OR, no excess

capacity availbale

from West Coast

Grid, East Coast will

be operated in

islanded mode with

unserved

load of 50‐

100MW (25%‐50%)

As of 21 May 2010

(Dependable Capacity are taking into account of L.D, Semporna. Sim‐

Sim, Pasir

Putih, POIC, Melawa and Tg

Aru

Mobile.)

SABAH GRID – POWER TRANSFER

17

183MW is the

maximum power

transfer to East

Coast by Year 2013.

(14.7MW

Transmission line

losses) .

How the Demand in the East of Sabah is met in 2013

Base load plant 150MW

•By

adding

additional

capacity

in

the

West

Coast,

it

will

not

address

the

shortage

of

power

in East Coast.

• What

Sabah

really

needs

is

a

major plant in

the

East

Coast

to

meet the demand.

How the Demand in the East of Sabah is met in 2015


20

ENERGY OPTIONS AVAILABLE

CCGas OCGas Hydro Biomass Coal Solar Wind Fuel Cell

Geo- Thermal

Technologically feasible

Financing viability

Insurability

Economic fuel option in East

Coast Of Sabah

Economic fuel option in West Coast Of Sabah

Environmentally compliant

Construction Duration for 1 unit (month)

24 20 18 to 60

18 to 36

30 7 to 12

6 to 12

36

Unit MW Range 150 to 750

10 to 250

0.05 to 700

5 to 50 30 to 1000

Up to 14

Up to 3.6

Up to 100

Up to 60

Energy Options In Sabah

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

EFFICIENCY (%)

GE

N C

OS

T (U

SD

Cen

t/kW

h)

Micro Hydro Hydro

Geothermal

Biomass Oil

Coal

Nuclear

Gas

Source:Paper ‘The Economics of Generation Tecnologies’ (Lockwood Greene consulting study)

Coal Price: USD1.2 / MBtuOil Price : USD 2.0 / MBtu

Wind

Solar

Renewable Technology Offers Efficiency But Not CheapRenewable Technology Offers Efficiency But Not CheapInexpensive electricity is essential to maintaining a dynamic Sabah economy and our standard of living. Gen Cost Influence ~ Tariff Price

Comparative Generation Cost Per kWh

Source:Paper ‘The Economics of Generation Technologies’ (Lockwood Greene consulting study)

Economics-Cost Of Electricity (Busbar Cost)Economics-Cost Of Electricity (Busbar Cost)

• Potential

power

from

palm

oil

mill

biomass

after

deducting

competitive

uses

of

EFB

and on‐going projects is 256MW.

• However, mesocarp

fibre

and palm kernel shell are currently being used

to

generate

steam for POM process.

• Therefore,

only

EFB

is

available

to

be

considered

as

a

fuel

source

and

taking

into

account the 50% non‐energy uses of EFB, potential power to be generated is around

70MW.

• Potential power to be generated from biogas is shown as follows:

Electricity Generation Potential From Palm Oil Wastes(Biomass and Biogas) in Sabah

FFBFFB processed

@70%Calorific value Potential Power

tonne/yr tonne/yr m3/yr m3/hr kJ/m3 MW

29,333,200 20,533,240 328,531,840 41,671 22,000 102

Biogas production

• Total

potential

power

that

can

be

harnessed

from

POM’s

biomass

(EFB)

and biogas is 70MW + 102MW = 172MW

Source: Energy CommissionBack

Opsyen Kadar Penggunaan Bahan Api

Keperluan Logistik

300 MW Loji Engin Diesel(20 x15 MW)

Purata kecekapan3.7kWj/Liter atau

1,945,946 liter sehari

Kapasiti satu bozer diesel adalah 20,000 liter

Loji Turbin Gas Kitar Padu(10x30MW)

Purata Kecekapan3.1kWj/Liter atau

1,600,000 liter sehari

Kapasiti satu bozer diesel adalah 20,000 liter

Loji Biomass(30x10MW)

Purata kecekapan400 kWj/Ton atau

18,000 Ton sehari

Kapasiti satu lori angkut adalah 20 ton

Loji Arang Batu(4x75MW)

Purata kecekapan1,859 kWj/Ton atau3,872 Ton sehari

Kapasiti satu kapal barge adalah 10,000 ton

PERBANDINGAN KEMUDAHAN LOGISTIK

X 80

X 97

X 900

X 0.3872

Geothermal Energy in TawauGeothermal Energy in Tawau

Potential of geothermal energy was discovered through a study carried out by Jabatan Mineral & Geosains via magneto telluric study in 2007 located in Appas Kiri, TawauThe initial survey identified a reservoir of 2000~3000m depth with 220~236ºC temperature, which will provide an estimated potential capacity of 67MWThis study is at its early stage, the second phase study on isotope studywill be conducted under 10th MP to achieve a more credible results.The project can be categorized as cost effective, environmental friendly and reliable, despite its initial high capital investment.

Source: Jabatan Mineral & Geosains, Malaysia

Facts:•Energy source : Geothermal•Location : Appas

Kiri,Tawau•Reservoir depth : 2000 ~ 3000m

•Temperature : 220 ~ 236ºC•Capacity : 67MW

•Life‐span : 25 years

Back

Solar EnergySolar Energy

Solar Panel Size 994 mm x 1318 mm – Mitsubishi (180 w)Size 834 mm x 1658 mm – Sharp (180 w)

1 MW required 6 acres of land equivalent to 3 football field.

300MW required 1,800 acres of land

Back

INSTALLATION DI SABAH KALABAKAN – 150KWPULAU BANGI – 150KW

•Average Sabah Wind Speed 0.3-5.4 m/s(source: http:/www.townplanning.sabah.gov.my/iczm/reports)

•Required about 14 m/s for a rated 3.6MW wind turbine. For 1.5MW require rated wind speed 8 m/s.(source: GE website)

•If smaller scale of wind turbine is feasible. It may require estimated land mass > 30km2 @ 7413 acres

Wind Energy

Wind Turbines Technical Info

• Onshore – Typically rated at 1.5 to 2.3MW per turbine

• Offshore – Currently 3 or 3.6MW rating per

turbine

• Some Offshore turbines in development up to

5MW rating

• Onshore turbines typically 60 to 80m hub

height with 70m to 90m diameter rotors

• Typically have availabilities of 97% and yields

of around 25 to 30% of rated capacity

• Turbine spacing requirements mean that each

turbine requires approx 0.1km2 clear of other

turbines

Back

Back

Gas Allocation for Sabah and WP LabuanGas Allocation for Sabah and WP Labuan

OFFSHORE SABAH PSC OFFSHORE SABAH PSC

Labuan GAST(250mmscfd)

Sabah GASTSepangar

Bay (150mmscfd)

SOGT Kimanis (1250mmscfd)

PowerPower

Non-PowerNon-Power

PowerPower

Non-PowerNon-Power

SSGP (750mmscfd)

SSGP (750mmscfd)

SESB

Ranhill Powertron II

Industrial

Sepanggar Bay Power

Industrial

Ranhill Powertron I

MLNG

Non-Power

18 mmscfd

17 mmscfd

230 mmscfd

36 mmscfd

29.5 mmscfd

31 mmscfd

500 mmscfd

100 mmscfd

Power 60 mmscfd

Back

Back

Back

Back

Long Term Generation Study by HAPUA Working Group

Long Term Generation Study by HAPUA Working Group

36

Summary Of (SREP) Project In SabahSummary Of (SREP) Project In Sabah

• SREP POWER PLANTS REQUIREMENTS ARE:•

• MAXIMUM EXPORTABLE CAPACITY SHALL NOT BE MORE THAN 10MW

• TO BE SITED WITHIN 10KM FROM THE NEAREST GRID INTERCONNECTION POINT

• TARGET 5% OF TOTAL ELECTRICITY GENERATION

• SREP PROJECT DEVELOPER TO NEGOTIATE RENEWABLE ENERGY PURCHASE AGREEMENT (REPA) WITH POWER UTILITY (EG. SESB, TNB)

• REPA IS STRUCTURED BASED ON TAKE AND PAY CONCEPT

37

Summary Of Small Renewal Energy Program (SREP)Project In Sabah


No DescriptionExportable Capacity

Biomass (MW) Hydro (MW)

1 Completed SREP Projects 30.0 2.0

2 SREP Under Construction 5.0 7.0

3 Approved SREP Projects 40.0 18.6

Total 75.0 27.6

Potential total exportable capacity of 102.6MW for electricity generation

38

Station Type Installed Capacity (kW)

Commissioning Year

Melangkap, Kota Belud

Pelton, Jyoti 600T-500Pelton, Xian CJ-W-90/1x11

500500

19901992

Sayap, Kota Belud

Pelton, Xian CJ-W-90/1x11Pelton, Xian CJ-W-90/1x11

500500

19911991

Carabau, Ranau

Pelton BiwaterPelton Biwater

1,0001,000

19911991

Merotai, Tawau

Francis, Gilkes G-150 1,100 1992

Kiau, Kota Belud

Wassercraft TD50H 330-1 375 1994

Bombalai, Tawau

WKV Turgo Impulse TT-285-180-1 1,100 1996

Naradau,Ranau

Wassercraft Turgo SETTT-120-480Wassercraft Turgo SETTT-120-480

880880

19991999

Pulau Bangi Mitsubishi Electric (Solar Hybrid) 150 2008

Kalabakan Mitsubisihi Electric (Solar Hybrid) 150 2009

SESB Owned Minihydro with Total Installed Capacity of 8335 kW

Small Renewal Energy In Sabah(SESB Mini Hydro & Solar Hybrid Power Plant )

SESB Owned Solar Hybrid in Total Installed Capacity of 300 kW

Other SREP DeveloperOther SREP DeveloperNo. Developer Location Area Energy

ResourceInstalled Capacity

[MW]

Capacity (On-Grid)

[MW]1 TSH Bioenergy Sdn Bhd Tawau East Coast EFB 12 10

2 Seguntor Bioenergy Sdn Bhd Sandakan East Coast EFB 11.5 10

3 Kina Biopower Sdn Bhd Sandakan East Coast EFB 11.5 10

4 Esajadi Power Sdn bhd Tambunan West Coast Mini hidro 2.1 2Operational on-grid SREP projects : 32MW

5 Esajadi Power Sdn Bhd Kundasang, Kota Marudu

West Coast Mini hidro 7.5 7

6 Alaf Ekspresi Sdn Bhd Lahad Datu* East Coast EFB 12 10

7 Kalansa Energy Corp. Sdn Bhd Sandakan East Coast EFB 6.5 5

8 Warisan Harta Sdn Bhd Ranau West Coast Mini hidro 6 5

9 Cash Horse Sdn Bhd Lahad Datu East Coast EFB 12 10

10 Mistral Eng. Sdn Bhd Lahad Datu East Coast Biogas 3 2

11 K.K Powergreen Sdn Bhd Kedamaian West Coast Mini hydro 4.8 4.5

12 Afie Power Sdn Bhd Tuaran West Coast Mini hydro 9.5 9

13 Eco Biomass Power Sdn Bhd Lahad Datu East Coast EFB 23 20Potential on-grid SREP projects : 72.5MW

SREP PerformanceSREP Performance

No. Developer Area Energy Resource

Installed Capacity

[MW]

Capacity (On-Grid)

[MW]

Availability%

1 TSH Bioenergy Sdn Bhd, Tawau

East Coast

EFB 12 10 87%

2 Seguntor Bioenergy Sdn Bhd , Sandakan

East Coast

EFB 11.5 10 68%

3 Kina Biopower Sdn Bhd, Sandakan

East Coast

EFB 11.5 10 50%

4 Esajadi Power Sdn Bhd, Kota Belud

West Coast

Mini hidro 2.1 2 60%(400kW dry

spell)Operational on-grid SREP projects : 32MW

Liwagu

Upper Padas

Kalumpang

Dam Road

Segaliud

Menggaris

Tenom

Pangi

Kunak

East West

Interconnection

Southern Grid

West Coast

Grid

Northern Grid

East Coast Grid

MH1

MH2

MH3

MH4

MH5

MH6MH7

Station No.

Mini Hydro Melangkap MH1

Mini Hydro Kiau MH2

Mini Hydro Sayap MH3

Mini Hydro Carabau MH4

Mini Hydro Naradau MH5

Mini Hydro Merotai MH6

Mini Hydro Bombalai MH7

Pulau

Bangi

(Solar Hybrid) 200kW S1

Kalabakan

(Solar Hybrid) 200kW S2

S1

S2

42

SANDAKANK..KINABALU

LAHAD DATU

TAWAU

SEMPORNA

KUDAT

KOTA BELUD

BEAUFORT

WP LABUANKENINGAU

PANGI

KOTA MARUDU

KUNAK

PAPAR

TENOM

SEGALIUD

DAM RD

SIPITANG

SREP Kina Biopower, Sandakan (10MW) COD = January 2009

SREP Seguntor Bioenergy Sandakan (10MW) COD =March 2009

SREP Alaf Expresi (10MW) POIC Lahad Datu

Status : REPA Main Body submitted to developer on Feb 09.

SREP Kalansa, Beluran (5.0MW) End : 2010

Status : Under Construction

KALUMPANG

RANAU

SREP by Esajadi Power Sdn Bhd-Sg.Kaingaran, Tambunan (2.5MW )

SREP UNDER NEGOTIATION/UNDER IMPLEMENTATION & COMPLETED PROJECT

SREP by KK Powergreen Sdn BhdSg Kadamaian, Kota Belud (4.5MW)

Status : Technical Discussion ongoing

SREP Eco-Biomass (20MW) POIC Lahad Datu

Status : KTAK issued project implementation letter on 22 June 09

SREP by Afie Power Sdn BhdSg Mulau & Sg. Mantaranau, Kiulu (8.9 MW)

Status : Pending submission of Interconnection proposal by developer

SREP Warisan Harta, Sg. Mantaranau, Ranau (5.2MW)

Status : Technical discussion ongoing

SREP TSH Bioenergy, Kunak (10MW) COD = Feb 2005

SREP Cash Horse Sdn. Bhd (10MW)) KM38-40 Sandakan-Kota Kinabatangan Road

Status : REPA Negotiation Ongoing

Completed Projects

Under Construction

Approved Projects

32.0MW

12.0MW

58.6MW

Total Exportable Capacity 102 .6MW

SREP by Esajadi Power Sdn BhdSg Kadamaian, Kota Belud (2.0MW )

COD : 02 August 2009

SREP by Esajadi Power Sdn BhdSg Pangapuyan, Kota Marudu (4.5MW)

SCOD : End 2009

LEGEND :

OPERATIONAL SREP PROJECTS

Biomass PlantMini Hydro Plant

30MW2MW

Exportable Capacity

43



• SESB is currently the leading off-taker in the country on Renewable Energy (RE) initiatives, with contracts of more than 30MW capacity representing about 3% of Sabah Energy Generation share, against the national average of less than 0.5%.

• We will continue to play major role in encouraging such RE initiatives, in line with the national Five-Fuel Policy which also aim to minimise the impact of power generation on environment.

PROJECTED GENERATION MIX (MWh) PROJECTED GENERATION MIX (MWh)

Gas

Oil

Hydro

LEGEND :

Renewable Energy (RE)

Increasing trend of RE Contribution in

Generation Mix (MWh)

SREP – Issues & ChallengesSREP – Issues & Challenges

• Biomass PlantAvailability of Fuel Reliability & Technology ChallengesNon – regulated fuel priceTransportation Cost for Non Palm Oil Mills DeveloperShort term contract for Fuel Supply Agreement

• Interconnection PointProject economically viable (reasonable tariff) if the transmission line less than 10km from SESB existing line

• Institutional SupportGovernment Subsidies/IncentivesBank Financing SupportClean Development Mechanism (CDM)


46

WHY COAL PLANT IN EAST COAST OF SABAH

• To maintain the Voltage Regional Balance in the East Coast of Sabah.

• Crucial to provide system voltage stability support.

• Diversify Generation Fuel Mix in line with Five Fuel Policy

• Provide balanced generation between East and West Coast.

• Coal fired power plants have overcome the pollution challenges that face them and, with continued research and development (R&D) it can overcome future environment challenges.

• Coal fired power plants provide low cost base loaded power to the grid now and into the future

• Coal fired power plants have been continuously upgraded to provide more reliable power

• Coal fired plants provide a much needed base to the needs of the power grid now and into the future

Why Coal Power Plant

• New base-load electric power generating plants are needed to meet the demand for capacity growth and GDP growth - and to replace aging, inefficient plants. Clean coal technologies and more efficient energy conversion cycles are now available for use in economical and reliable coal-fired plants. This will significantly reduce overall emissions of SO2, NOx, and particulate pollution, and the emissions of CO2.

• Compared to other alternative energy sources, coal fired power plant provides the ONLY effective option.

• Renewable Energy (RE) is not a feasible option to totally solve the generation availability because;

1. RE does not produce continuously & consistent power 2. The Cost Per Unit (CPU) is on the high side.3. The size in terms of MW for a RE plant is small

•

Why Coal Power Plant

Technology Why Not?

Gas

• Gas is not available in East Coast. Very costly to lay gas pipeline all the way from west coast (300km); ‘Shipping’ gas (LNG) from West Coast requires the construction of expensive gas liquidification/expension facilities. At the rate we are using natural gas our children will see the price rise so much that it will no longer be economical as a fuel.

Hydro• No known suitable water source or river in East Coast - high gradient for required head pressure

Biomass• A large area of farmland is required for the supply of the ‘fuel’(eg. fruit bunch). This method of generation can never generate enough power to satisfy a major part of current demands.

Solar• Yes for 30kW but for 300,000kW (300MW) - still not cost effective for large scale power generation. While the technology has great promise it has not yet been proven to be cost-competitive on a large scale.

Wind• Does not produce power when the wind isn't blowing. Need consistent wind . If a large proportion of a power system's electricity is wind power then there may be a need for a large 'spinning reserve' backup power supply.

Geo Thermal

• Potential of geothermal energy was discovered through a study carried out by Jabatan Mineral & Geosains via magneto telluric study in 2007 located in Appas Kiri, Tawau. Further study on isotope study need to be conducted to achieve a more credible results.

Other Alternative Sources

50

2007

2011 2015

OVERDEPENDENT ON EXPENSIVE DIESEL

INTRO OF COAL FOR BALANCE FUEL SOURCE

INCREASED SHARE FROM RE

2009

FIVE-FUEL STRATEGY : SABAH GENERATION MIX

51

2015

WITHOUT COAL INTRO OF COAL FOR BALANCE FUEL SOURCE

INCREASED SHARE FROM RE

2015

FIVE-FUEL STRATEGY : SABAH GENERATION MIX

Over Dependency

On Gas

CONCLUSIONCONCLUSION

• East Coast of Sabah needs a base load plant for:• Grid system security and reliability.• Grid system stability. • Future power demand.

• To meet Sabah socio-economic and infrastructure development. The economic competitiveness of the nation requires low cost, reliable electric power.

•The most technically and economically feasible option is a COAL FIRED PLANT that meets the stringent DOE and World Bank requirements.

• SESB will continue to pursue Renewable Energy as an integral part of its energy option and thus meeting the government five- fuel policy.

More info and FAQs

on Coal Plant facts are available @

www.sesb.com.my

More info and FAQs

on Coal Plant facts are available @

www.sesb.com.my

SESB

Thank YouThank You

SESB

Documents

SESB PLANNING-Sabah Energy Scenarios