Malaysia to boost coal-fired power generation

Malaysia aims to increase generation capacity by more than 6,000MW between 2015 and 2020.

This is meant to meet power demand, which is expected to grow at a rate of three to five per cent annually until 2020.

The country's current installed capacity is at 21,817MW.

Malaysia has one of the highest rates of power consumption per capita in the Asean region.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in its report, currently, the power generation mix in the country was heavily tilted towards natural gas (58 per cent), followed by coal (33 per cent), hydro (five per cent) and others (four per cent).

“In recent years, fuel availability to the power sector has been challenged by the tightness in the supply of natural gas,” it highlighted in its report.

“However, there is a notable shift in the generation mix to a heavier reliance on coal-fired power plants instead, due to high demand and continuous gas curtailment by Petroliam Nasional Bhd (Petronas)," it added.

The report anticipates an increase in coal-generated power from the current 33 percent to 45 per cent by 2020 and 50 percent by 2030.

The Malaysian government was focused on developing a diversified generation mix comprised of oil, natural gas, coal and hydro under the Four Fuel Policy and it added a fifth fuel, renewable energy, during the 8th Malaysia Plan.

For more.