art ic l e i nf o
a b s t r a c t
Article history:
Received 29 March 2014
Received in revised form
19 July 2015
Accepted 24 August 2015
In recent years, the Malaysian government has attempted to develop renewable energy (RE) through
newly introduced regulatory supports after 30 years of failure to achieve a greater than one percent nonhydroelectric RE share in the total power mix. The government is currently assessing the onshore wind
energy potential in Malaysia to determine the possibility of including wind energy in its FiT scheme.
However, wind energy development in this low-energy location is not as straightforward as it would
seem. Many previous wind studies in Malaysia have relied on poor data and simplistic or inadequate
methodologies, resulting in grossly inaccurate estimates of wind potential. Moreover, two wind turbine
generator demonstration projects executed by the government have failed. However, above all, the
greatest factor impairing the progress of RE development in Malaysia is the weak and uncertain political
support of these efforts. This lack of robust support is particularly true where fossil fuels are still heavily
subsidised amid the subsidy reform in 2013. A review of global wind energy development shows that
successful projects depend heavily on a sound and robust regulatory framework supported by strong and
consistent political will. This dependence is not observed in Malaysia, where the government continues
to subsidise private independent fossil fuel power producers but levies taxes on electricity consumers to
fund RE development. These levies do not effectively support RE development, given the magnitude of
the RE fund compared to fossil fuel subsidies. In the absence of strong and sincere political will, the
progress of RE development in Malaysia has been notably slow. As a result, the prospect of wind energy
development in Malaysia currently remains vague. This paper discusses the above issues in detail and
recommends selected regulatory mechanisms based on the global experience of supporting RE development in Malaysia.
& 2015 Elsevier Ltd. All rights reserved.
Keywords:
Wind energy
Energy policy
Renewable energy (RE)
Regulatory and Political framework
Global wind energy
Low wind speed region
Contents
1.
2.
3.
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Past and present wind studies in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1.
Previous wind energy studies in Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.
Wind mapping for Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global wind energy development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1.
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2.
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3.
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4.
Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5.
United Kingdom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6.
France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.7.
Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.8.
Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.9.
Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.10. Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.11. Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.12. European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
280
283
283
286
286
287
287
287
288
288
288
288
288
289
289
289
289
280
1. Introduction
The best way to halt or lessen the impact of power generation on
climate change is through divestment from fossil fuel-related
businesses or drastic reduction in electricity usage. However, such
actions seem impossible without practical alternative sources of
energy and are purposely made difcult by a behemoth fossil fuelbased energy industry that prots and will continue to prot from
the status quo. The economy and politics of fossil fuels, and in
particular the inuence of money and greed, seem to dictate the
future of climate change via control over power generation. Committing to the long, slow process of educating those, who do not
prot directly or nancially from fossil fuel power generation may
encourage some resistance to the status quo, at least where energy
demand is concerned; however, this seems unlikely given that net
world electricity consumption rose from 7,323.36 billion Kilowatthours (kWh) in 1980 to 19,396.64 billion kWh in 2011 [68].
Carbon dioxide (CO2) emissions from energy usage in Malaysia
have been on the rise since the 1980's [69]. Consequently, Malaysia
has one of the world's fastest growing CO2 emissions rates [48].
The United States Energy Information Administration (2013)
reported that in 1980, 26.330 million metric tons of CO2 was
released as a result of energy consumption in Malaysia (Fig. 1). This
gure climbed to 195.701 million metric tons in 2011 [69]. A
concomitant rise in net electricity consumption from 9.363 billion
kWh to 115.338 billion kWh (Fig. 1) also occurred over the same
period [67]. At the 2009 United Nations Climate Change Conference (UNCCC) (Conference Of the Parties, COP 15), the Prime
Minister of Malaysia made a voluntary commitment to reduce CO2
emissions by 40%, by 2020, relative to 2005 CO2 emissions levels
200
180
160
140
120
100
80
60
40
20
0
1980
1985
1990
1995
2000
2005
2010
Year
Fig. 1. Malaysia: Yearly total Carbon Dioxide emissions from the consumption of
energy (Million Metric Tons) and total net electricity consumption (Billion Kilowatthours).
Source: United States Energy Information Administration.
289
289
290
290
290
290
290
290
290
292
293
293
294
Table 1
Previous and on-going wind studies/development in Malaysia.
Year
Reviews
Mersing and Kuala Terengganu had the greatest wind power potential of all studied stations (annual mean power potential, 85.61 W/m2 and 32.50 W/m2,
respectively)
1995
In-situ testing
Island wind
hybrid system
testing
One WTG was installed in Terumbu LayangLayang (Swallow Reef), located at 72230 N and 1134930 E
2003
Malaysia
meteorological
service (VOS,
oilrigs and
lighthouses)
Kelantan and Terengganu offshore received the highest annual wind speed (4.1 m/s)
2006
Coastal wind
speed study
Megabang Telipot, Kuala Terengganu, 20052006 annual mean wind speed was 3.70 m/s
2007
Island wind
hybrid system
testing
In-situ anemometer
measurements
In-situ testing
2009
2010
Tawau, Sabah. 5182 km2 land area required to install a 2740 MW capacity wind farm
Two WTGs (hybrid system) were installed at Small Perhentian Island, Terengganu, located at 55535 N and 1024312 E
281
282
Table 1 (continued )
Year
Kudat and Labuan (maximum wind power density 67.40 W/m2 and 50.81 W/m2, respectively)
2011
2011
Mersing (relatively the most persistent wind speed with the most potential for onshore wind energy)
2011
Island wind
power potential study
Malaysian
Meteorological
Stations
Penang Island (grid connected WTGs are not viable. A small-scale WTG system can be considered)
2011
nil
2011
Private and
public sector
collaboration
Legislature
nil
2011
Legislature
nil
2012
2012
Coastal wind
energy study
2012
Solar Energy
Research Institute, UKM
Onshore wind In-situ anemometer
mapping
measurements
(Malaysia)
2010
Reviews
Penang Offshore, from 4 to 6N and 99 to 10030 E: maximum wind speed 10.3 m/s, minimum wind speed 0.5 m/s
Malaysia
Meteorological
Service (VOS,
oilrigs and
lighthouses)
The present
study (Penang
offshore wind
speed study)
2013
2013
2014
Coastal areas like Kota Belud, Kudat, Gebeng, Kerteh and Langkawi Island are the best sites for wind energy generation
3Tier mesoscale
NWP modelling
NWP is limited by
our knowledge of
the physical phenomena and the
availability of data
at a xed reference
frame
VOS data: high
temporal and spatial variation validated. Insufcient
data to analyse the
wind energy
potential of
Penang offshore
Mersing, KualaTerengganu, Alor Setar, Chuping, Melaka and Bayan Lepas were studied
Malaysian
meteorological
stations
SIRIM is studying the rst solar and wind hybrid farm. Research outcome supposed to be available by June 2014
Onshore solar
and wind
hybrid study
Coastal and
onshore wind
energy potential study [3]
Coastal and
Island wind
energy potential study [44]
2012
nil
expected to be
complete by 2016
The study is still in
progress
283
284
Table 2
Wind classication.
Source: [45].
Wind class
10 m
80 m
2
1
2
3
4
5
6
7
100 m
2
120 m
2
Density (W/m )
Speed (m/s)
Density (W/m )
Speed (m/s)
Density (W/m )
Speed (m/s)
Density (W/m2)
Speed (m/s)
o 100
100/150
150/200
200/250
250/300
300/400
4400
o 4.4
4.4/5.1
5.1/5.6
5.6/6.0
6.0/6.4
6.4/7.0
47.0
o 240
240/380
380/490
490/620
620/740
740/970
4 970
o 5.9
5.9/6.9
6.9/7.5
7.5/8.1
8.1/8.6
8.6/9.4
49.4
o 260
260/420
420/560
560/670
670/820
820/1060
4 1060
o 6.1
6.1/7.1
71./7.8
7.8/8.3
8.3/8.9
8.9/9.7
4 9.7
o 290
290/450
450/600
600/740
740/880
880/1160
4 1160
o 6.3
6.3/7.3
7.3/8.0
8.0/8.6
8.6/9.1
9.1/10.0
410.0
Table 3
The location and height of Malaysian Meteorological Stations used in the previous studies.
Source: [33].
Location
Alor Setar
Bayan Lepas
Cameron
Highlands
Chuping
Ipoh
Kota Bharu
Kota Kinabalu
Kuala Terengganu
Kuantan
Kuching
Kudat
Labuan
Melaka
Mersing
Petaling Jaya
Tawau
Coordinate
Remark
Latitude N
Longitude E
6 12
5 18
4 28
100 24
100 16
101 22
4.0
3.0
1545.0
6
4
6
5
5
3
1
6
5
2
2
3
4
100 16
101 06
102 17
116 03
103 06
103 13
110 20
116 50
115 15
102 15
103 50
101 39
117 53
22.0
39.0
4.6
2.0
5.0
15.0
26.0
3.0
29.0
9.0
43.6
45.7
32.8
29
35
10
56
23
47
29
55
18
16
27
06
16
Inland station
1000 m from the airport runway
At the airport
At the airport
300 m from the airport runway
630 m from the airport runway
300 m from the airport runway
400 m from the airport runway
At the airport
250 m from the airport runway
Coastal station
Inland station
300 m from the airport runway
Table 4
Average monthly wind speed for Megabang Telipot and Small Perhentian Island
(2005).
Source: [73,10].
Month
January
February
March
April
May
June
July
August
September
October
November
December
4.44
3.47
3.16
2.54
2.24
2.25
2.18
2.13
1.91
2.40
2.38
4.58
7.90
6.85
7.56
6.78
6.91
nil
6.63
7.16
6.88
7.12
7.57
7.88
285
286
Country
934
12,858
3749
2535
134,007
8526
70,850
3874
PR China
91,413
India
20,150
Japan
2669
Taiwan
614
South Korea 561
Thailand
223
Pakistan
106
Philippines
66
Othera
167
Total Asia
115,968
World Total 318,644
7359
567
23,196
2315
130
18
47
150
150
26,007
51,473
78,124
4441
114,609
22,465
2789
633
609
223
256
216
167
141,964
369,597
287
3.2. India
India was the fth largest wind market globally and second
largest in Asia in 2014, with 60,000 MW total wind power planned
for installation by 2022. Though ambitious, this goal is feasible
because of existing regulatory supports, cost competitiveness and
generation-based incentive benets. In 2008, Indias National
Action Plan for Climate Change clearly outlined a minimum
Renewables Purchase Obligation (RPO) target of 15% by 2020.
However, weak enforcement and non-compliance with the RPO
initially pushed the country off-track from this target. Fortunately,
the new Indian government is keen to promote wind energy and
has introduced associated benets and incentives, including a
penalty for non-compliance with RPOs. At the state level, wind
industry is supported by preferential FiTs, site availability, rolling
charges on the state-owned grid and the banking of excess energy.
Furthermore, a tax-based Accelerated Depreciation incentive (80%
depreciation for the rst year of installation) or a Generation Based
Incentive (INR 0.5 /kWh) can be used for a minimum of four years
and a maximum of ten years to support the construction of wind
projects. The tax on coal was also increased to support the
National Clean Energy Fund (NCEF), which funds innovative projects and research into clean energy technologies. Moreover, wind
projects will be given preferential clearance in addition to full duty
exemption for parts and components used in the manufacturing of
WTGs (201415). The government is also looking at drafting a
National Wind Mission (NWM) related to both onshore and offshore wind power. In particular, offshore wind will be given more
attention through demonstration projects and EU's Facilitating
Offshore Wind in India (FOWIND) consultation.
However, poor nancial health of state level power sector utilities still makes it difcult for these organisations to comply with
the RPOs. This is due to the high cost of nance, which is a challenge the government cannot afford to overlook. It will be difcult
to tap into mass lower wind speed regions when nancing is
expensive. Moreover, the weak grid code together with noncompliance by grid operators and producers has made matters
worse. The government needs to ensure a better balance in the
supply chain through proper import duties administration. Finally,
there are logistical challenges that must be overcome, including
the creation of better routes and means of transportation for
WTGs. Though the new Indian government has shown signicant
interest in promoting wind energy, as well as other REs, many
issues will remain until a coordinated and strong regulatory framework is established.
3.3. Japan
Japan installed 2788.5 MW (0.5% of the total power supply) of
wind power capacity in 2014. FiT in Japan have remained steady at
USD 0.185 /kWh and were recently increased to USD 0.30 /kWh for
offshore wind projects that use jack-up vessels. The FiT programme is assessed on a yearly basis and is offered only for qualied projects, i.e., near Environmental Impact Assessment (EIA)
approval. This creates an element of uncertainty, as wind developers are not guaranteed a FiT, despite investing millions up-front.
As a result, only those with a very solid nancial background are
normally willing to undertake such a risk. Not surprisingly,
industry players have requested more certainty from the government. In response, the government has sped up the EIA process to
two years instead of the usual four, and it bears 50% of the EIA cost.
The government also created the Act for the Promotion of
Renewable Energy in Rural Districts (APRERD) in 2014. APRERD is
designed to help free up agricultural land for wind farm development. A wind power generation forecasting system for Japan is
also being prepared, which will inform the development of wind
288
(ECS) supports this goal. ECS is a trading tool as well as a measurement of the wind markets within the two countries. Technical
quota adjustments to balance the system can also be performed
based on the RE target. Nevertheless, Sweden must look into
continental grid integration within the EU to ensure long-term
wind power sustainability.
3.9. Denmark
As of 2014, Denmark had high wind power penetration of the
country's total power generation, with 4883 MW installed wind
power capacity (39.1%). The government has shown strong political support by setting a target of 50% electricity from wind by
2020. The installation of new WTGs will take place while old
WTGs need to be decommissioned. Denmark uses a feed-in premium (USD 0.04 /kWh for the rst 24,000 full load hours, a ceiling
of USD 0.09 for the sum of market price and premium, 1:1
reduction if the market price exceeds USD 0.05 /kWh) to support
onshore wind energy development for the rst 68 years,
depending largely on the WTG type and the wind resources
available at the specic location. A tendering system drives the
offshore tariff, which goes to the lowest bid for 50,000 full load
hours. The challenge for Denmark lies in properly regulating the
utilisation of 50% wind power in its power mix, as well as in its
technical capacity to sustainably integrate wind power into the
greater energy system via the grid.
3.10. Poland
Wind provided 4.59% (3834 MW installed capacity, generating
7.184 TWh) of all power generation in Poland in 2014. Wind
energy is the largest source of RE in Poland, accounting for
approximately 50% of all RE capacity. The wind capacity in Poland
depends very much on IPPs. Up until 2015, tradable green certicates and the obligation to purchase electricity from RE sources
has supported RE development. The EU Renewables Directive
target requires Poland to have a 15% RE share in its total energy
portfolio. Based on that, the government has set a target of 15.5%
RE share by 2020 and is working on developing full regulatory
support for this effort. To do so, the tradable certicate system will
be replaced by an auction based system that offers support for 15
years to the lowest bidders. There will be an annual energy purchase from eligible projects depending on demand for RE sources
and a cap on support. Investors will be required to obtain local
zoning approval in addition to any other approval required by the
law. Poland is at an early stage in the development of offshore
wind power, even though it has the highest potential in the Baltic
Sea region. This potential must be followed by regulatory support
related to maritime areas and grid connection. Delays and uncertainty in regulatory support could easily create an investment
barrier and affect the RE share target negatively.
3.11. Turkey
Turkey had 3763 MW of installed wind power capacity in 2014. It
is estimated to achieve 10.5 GW by 2025, double that if the right
regulatory framework is present. Turkey's Renewable Energy Law
sets its wind energy FiT at USD 0.073 /kWh for 10 years, which is
applicable for wind farms online before 1st January 2016. A bonus of
up to USD 0.037 cents for up to ve years is allowed for using locally
manufactured components. The law allows wind power producers
to either enter into bilateral power purchase agreements or sell
electricity to the national power pool. Nevertheless, the State provides an 85% discount for transmission and logistics on its land for
the rst 10 years of operation for new wind farms. The government
has even opened up environmentally sensitive protected areas for
289
290
3.15. Mexico
3.18. Australia
3.16. Brazil
Brazil had 5.9 GW (4.3% of total national electricity capacity) of
installed wind power capacity in 2014. The Brazilian government
aims to utilise wind power at approximately 12% of the national
generation capacity by 2023. In addition to the maturing supply
chain, regulated energy auctions provide the competition to push
for rapid wind energy expansion. This is also supported by the
expansion of transmission lines and a tax exemption scheme for
certain parts of the WTG. On the other hand, a new wind atlas of
Rio Grande do Sul was produced. It includes more advanced wind
resource assessment method to measure wind speeds at 150 m
height, and it indicated that Rio Grande do Sul has 240 GW of wind
power potential for areas receiving wind speeds over 7.0 m/s. The
latest Mexican regulatory framework addresses issues such as
exible environmental licensing process, guaranteed grid connection and tax exemption for some WTG components. However,
Brazil faces challenges in terms of transportation and logistics
related to the installation of wind farms. Furthermore, the supply
chain is threatened by the ability to sustain sufcient number of
energy auctions.
3.17. Chile
Chile had installed 836 MW (2.03% of the country's electricity
demand) of wind power capacity at the end of 2014 though the
Chilean Ministry of Energy reported there are approximately
37 GW of wind power remains untapped. The Chilean government
supports RE development by allowing variable energy sources to
compete equally. RE is able to secure 30% of the total contracts, at
an average price of USD 8 /MWh lower than contracts for conventional power plants. By the end of 2014, Chile's Energy Commission (CNE) introduced block hours into the supply tenders.
There are three blocks according to the time of the day and they
range from 11 pm to 8 am, 8 am to 6 pm and 6 pm to 11 pm (peak
demand). The passing of 2025 Energy Law in 2013 will ensure 70%
of new energy capacity installed from 2015 to 2018, shall from
renewable sources. On the other hand, the Chilean government
must addresses issues such as adaptability of conventional power
plants in light of the rising RE, transmission and grid connectivity
as well as its management, the cap of the RE targets, and importantly, the nancing of wind projects.
4. Discussion
4.1. Political and regulatory support for RE in Malaysia
Malaysia began its rst RE initiative in the 1980s to provide
non-grid solar photovoltaic electricity to remote areas and rural
communities [39]. In 1999, a strategy for RE as the fth fuel was
studied; and in the same year, the Prime Minister of Malaysia
announced that RE was the nation's fth fuel. By April 2001, RE
was incorporated into the 8th Malaysia Plan. The Malaysia Plan is a
ve-year periodic development planning system that has been
implemented in Malaysia since 1966 (First Malaysia Plan: 1966 to
1970). In May 2001, a Small Renewable Energy Power (SREP)
programme (10 MW capacity) was announced that allowed RE
producers to sell electricity to electricity suppliers. However, the
SREP faced many barriers that caused it to fail, including low tariffs, the non-sustainability of fuel supplies (biomass), a lack of
nancing and insufcient incentives from the government, and
unattractive terms for investors. Wind energy was not included in
the initial SREP. However, by the end of 2010 several RE projects
were reportedly supplying 65 MW to the grid, which was made
possible by changes to the initial SREP programme. The development of RE in the rst decade after it was set as a goal was slow
and suffered from the lack of a proper regulatory framework and
strong political support.
At the end of the Ninth Malaysia Plan (20062010), nonhydroelectric RE was relatively non-existent compared to the total
power generation fuel mix, a mere less than 1.0% [61,40] (Fig. 2).
Notwithstanding this small share of the fuel mix at the end of 2010,
Malaysia aimed to have RE contribute 11.0% [31,39,40] to its energy
mix by 2020. This may be achieved by including hydroelectric
power (5.8% as of 2010 [61]) in the fuel mix, but the controversial
environmental [14,42,72,70,66,1,58,56] and social [66,1,58,71,56,
63,12] impacts associated with the construction and operation of
5.6%
1.8%
0.2%
36.5%
55.9%
Oil
Coal
Gas
Hydro
291
achieve the above aims. While subsidies are useful for many purposes, including the promotion of efcient, readily available
energy, is common around the world; their damaging effects to
the environment often go unnoticed [52]. In the case of Malaysia,
subsidies are used to achieve the two aims above at the expense of
the environment.
If a third aim for Malaysia's energy policy is to be developed, it
should target environmental gains and be given the same importance as the goals mentioned earlier. To generate environmental
gains, electricity should be expensive whether it is generated from
renewable or non-renewable sources so the cost of development is
clear; costs should be put in place to protect the earth's resources,
to curb wasteful behaviour and to increase energy efciency. It is
common knowledge that fossil fuels are not environmental
friendly; and we can only rely on RE for truly environmentally
friendly energy sources. After 30 years of failure to increase the
targeted RE share in Malaysia's power mix, a sense of urgency
must exist to aggressively develop RE. The only fast track
mechanism available in Malaysia is through strong political will
coupled with proper regulatory mechanisms. All major utilities
and mega projects in Malaysia, such as the Bakun Dam and the
development at Putrajaya, so far have been initiated by the federal
government. By the same token, the development of RE would be
more successful if the government makes it a priority. It is interesting to note that the Economic Planning Unit (EPU) and the
Implementation and Coordination Unit (ICU), which are under the
direct control of the Prime Minister, supervise the energy policies
in Malaysia [36].
The Ninth Malaysia Plan states that fuel sources for power
generation will be diversied through greater utilisation of RE. The
identied RE sources were palm oil biomass waste and palm oil
mill efuents, mini-hydropower, solar power, solid waste and
landll gas. In addition, potential of wind, geothermal, waste and
agricultural gases were studied [39]. These available resources
indicate that Malaysia is undoubtedly blessed with signicant RE
potential, but its utilisation is still threatened by a disappointing
and insufcient government commitment as highlighted in [19].
The deadline to full the Prime Minister's RE pledge is 2020,
meaning that there are only about four and a half years left to
achieve its goal. This creates an urgent and pressing need to
develop all types of RE in Malaysia. This development is essential
to the creation of a better environment and sound economic
performance where energy consumption is concern.
The government should consider positive externalities and
fund or subsidise RE development. A rational consumer would not
pay for externalities, even if they were to result in added public
benets; therefore, the government, who is supposed to support
the public interest, must take charge. The government should
make every effort to reduce the share of fossil fuels in the power
generation mix by ending subsidies that result in negative
externalities to the environment. This is not to suggest that the
government abandon its social responsibility, but rather
acknowledges that it requires more than cheap energy to actually
improve the socio-economic well-being of the poor and isolated.
Energy should not be produced cheaply to the detriment of the
global climate, as this would create ever more dire situations for
the poor and isolated as climate changes. If the poor and isolated
are to be helped socially and economically, they should be given a
rst-class education and clean, off-grid utilities through government funding and support.
The passing of Renewable Energy Act of 2011 (Act 725) allows
for an improved FiT system [24,16] that will hopefully boost
wind energy development in Malaysia. In fact, FiT is not a new
RE support mechanism in Malaysia; it was rst introduced in
2001 through SREP. However, it failed to produce signicant
increase in the share of RE in the power generation mix by 2010.
292
consumers and producers in pollution. As a result, these monopolistic utility companies should at the very least be accountable
to pay for half of the pollution cost or RE fund. In the absence of
carbon or pollution taxes to reect negative externalities, fossil
fuels are under-priced [37]. The externalities are thus transferred
to society as pollution [54]. Furthermore, RE always seems more
expensive due to the false impression that fossil fuels are cheap,
especially when the negative externalities of fossil fuels are not
factored in. Therefore, the government should impose a pollution
or emissions tax on fossil fuels or, in lieu of that, solicit contributions to the RE fund that would be equivalent to such a tax.
RE stems from fuel sources with prices that do not uctuate
according to the market, unlike fossil fuel. For example, neither the
wind nor sunlight can become more expensive due to conicts in
the Middle East. A drastic switch to include RE as the dominant
producer in the power generation mix in the country would
immediately remove many economic/political/social considerations related to the need to cushion consumers from the uctuation of the price of fossil fuel in the market. The right thing to do is
to put a stop to the direct negotiation of IPPs' power generation
deals [74]. Subsequently, when RE becomes the main electricity
producer in the country, the monopoly of TNB should cease, as
there would be no worry about the raw material or fuel for the
RE generation requiring a price control mechanism to keep tariffs
low or at a politically/socially acceptable level. The electricity tariff
will fairer and better reected in the market when there is no
monopoly, but rather open tender and competition supported by
proper regulation. In conclusion, positive externalities should be
funded by the government, but negative externalities should be
levied to consumers; in other words, the RE fund should be funded
by the government and an emissions or pollution tax should be
levied to the producers and consumers of power from fossil fuel.
Linking the RE fund to pollution in the form of a levy is surely not
the most suitable way to promote RE in Malaysia, particularly after
30 years of failure in RE development. Instead, the RE fund should
be subsidised by a reduction in the fossil fuel subsidy.
4.2. Future of wind energy in Malaysia
The failure of WTG demonstration projects at Swallow Reef and
Small Perhentian Island serve as a warning that it is not easy to
install wind power capacity in Malaysia, which is located in an
Equatorial region with low wind speed, monsoons with seasonal
variability and also inter-monsoon periods with limited wind
coupled with high humidity. Previous studies have grossly and
inaccurately estimated the wind potential in this region and have
failed to include all areas, as commented by [44]. The NWP
method used by [44] has demonstrated that wind energy is an
underutilised RE in Malaysia, defying common beliefs that doldrums cannot produce wind power. The current wind mapping
exercise by SEDA Malaysia to determine whether wind energy
should be included in the FiT regime is in line with the Malaysia
plan to include RE in the energy generation mix. However, as
mentioned by IMPSA and [44], a proper wind resource assessment
in Malaysia should consider mesoscale winds rather than macroscale winds. Therefore, the wind mast used in any study should be
high enough to measure mesoscale winds. Recently, Brazil used
advanced technology to measure wind speeds at 150 m height to
unlock greater wind power potential. In light of the low wind
speed situation at the macroscale, Malaysia should use masts
higher than the current 60 m ones. Furthermore, installing taller
masts has been a lengthy process since 2013, but the expected
results by 2016, despite 12 months actual wind measurement
duration.
Regulatory support for RE in Malaysia is still very immature,
though it has been 30 years of RE development. Compared to the
293
5. Conclusions
Following conclusions can be drawn from this review:
Wind speed data from or near airports should not be used for
Acknowledgements
The author greatly appreciates the constructive comments from
the anonymous reviewers and the editorial team. The author
would also like to thank Ibrahim S. for going through the rst draft
of the paper, Che Omar C.M. for the encouragement related to the
research, Abdullah A.M. for the brief supervision of the research,
and those who have helped improve this paper.
294
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