INGENIEUR
Strides in Energy Demand Management in Malaysia and Beyond ( Source : Energy Watch )
Countries across the world have been implementing demand-side energy management and mitigation solutions for decades . In neighbouring Thailand , demand-side energy management programmes during 2003-2017 resulted in more efficient power generation , reduced CO 2 emissions by 8.4 %, but encountered challenges of higher total system costs . On the other hand , Singapore ’ s Demand Response programme contributed to system reliability and market competition , yet faced challenges in their low consumer participation numbers .
In Malaysia , national utility Tenaga Nasional Berhad ( TNB ) has made energy demand mitigation efforts with programmes such as Smart Meter to foster better energy management practices in residential areas , and Time of Use ( ToU ) tariff scheme to drive energy efficiency among commercial and industrial users . The ToU scheme allows commercial and industrial energy consumers to manage their electricity consumption by using less electricity during peak demand times , and shifting their consumption to off-peak hours , when electricity rates are lower . While Malaysia ’ s electricity tariffs are set by the Government and energy regulators , the ToU scheme allows energy intensive commercial and industrial sectors to self-regulate their electricity usage and bills , and eventually reduce the overall strain on the central grid during peak hours .
As an extension of this scheme , after the success of the initial pilot , TNB went on to introduce the Enhanced Time of Use ( EToU ) tariff scheme with more energy usage time zones for consumers to have better control over their electricity consumption . These services seem to show positive results , with the utility receiving a rating of 86 % on their Customer Satisfaction Index ( CSI ), according to their Integrated Annual Report 2020 . The utility is now even planning to roll out a similar time of use programme for residential consumers , opening up the energy management opportunity to more Malaysians .
Managing Demand-Side Energy is a task for all Demand-side energy management has the potential to reduce energy costs , lower carbon emissions associated with energy consumption and increase resiliency of energy grids . These factors will be key to countries in achieving their emissions goals as set by the Paris Agreement . It provides unique benefits of easier , cost-effective solutions to meeting global projected energy needs , while offering the chance to mitigate demand growth in coming years .
Continued and increased co-operation is needed across multiple stakeholders to implement a successful demand-side management roadmap for Malaysia . While regulators and utilities roll out programmes to incentivise energy demand management and energy efficiency , it will also be down to end users to change ingrained energy consumption behaviour .
PetGas looks beyond Malaysia ’ s Gas Needs ( Source : The Edge Malaysia )
The gas infrastructure and utility player , Petronas Gas Bhd ( PetGas ) increased its pipeline and regasification capacity as Malaysia ’ s natural gas consumption rose by more than 80 %. It also gained experience in the utility sector , including electricity , steam and gas products generation .
However , this decade may very well present a different landscape . For one , Malaysia ’ s gas industry market is expecting full liberalisation in the distribution segment in 2022 , with another regulatory review in 2023-2025 . While PetGas ’ monopoly in the gas infrastructure space remains unchanged , policy changes may set the tone for future returns from its regulated businesses of gas transport ( pipeline ) and regasification .
Second , Malaysia may not require huge additions to its existing gas infrastructure capacity in the medium term . This is because the mismatch between domestic gas prices for the power sector and international prices is pulling back new entrants and , subsequently , new infrastructure utilisation , particularly for liquefied natural gas ( LNG ) regasification terminals .
For the regulated segments ( gas transport and regasification ), some analysts are already anticipating weaker rates of returns during Regulatory Period 2 ( RP2 ) 2023-2025 , taking note of the moving parts including base tariff and regulated asset valuation
76 VOL 91 JULY-SEPTEMBER 2022