Figure 10 : Evolution of Generation Mix by Fuel Type over period 1970 - 2010 Source : TNB [ Ref . 5 ]
players ( TNB / IPPs and other industrial users ), and
2 . Clear policy commitment on guaranteed indigenous gas volume for power generation .
If these two additional policies on resource accessibility of indigenous gas supply are incorporated into the existing energy policy , this will facilitate national planning for strategic decisions on domestic gas utilisation ( that is , export vs . local use ) and on gas purchasing from the global market . This in turn will ensure security of supply in the longer term and minimise uncertainties in the planning for competitive , clean and secure electricity supply for the nation .
( b ) Gas Pricing Policy / Acceptance of Price Risk Malaysia also does not have a clear gas pricing policy with regard to the principle of ‘ market price ’ for power generation . The definition of market price can either be based on :
● A weighted average of all gas sources , that is , indigenous , imported via pipeline , and LNG ;
● Pegged to international indices or competing fuel such as coal ; and
● Pegged to fuel oil which could result in high prices .
Countries such as Thailand , Indonesia and Vietnam practise the so-called Government administrative price with a pricing formula that balances local indigenous gas with high imported
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