PROMOTION OF COGENERATION UNDER NATIONAL ENERGY EFFICIENCY ACTION PLAN

(NEEAP)

By

Datuk Ir. Ahmad Fauzi Hasan

Energy Commission, Malaysia

16 November 2015

Workshop on Cogeneration in MalaysiaPutrajaya

The need for Energy Efficiency (EE) is embedded in Malaysia’s National Energy Policy

• To ensure adequacy, security and cost-effectiveness of energy supply

• To promote efficient utilization of energy

• To minimize negative environmental impacts in the energy supply chain

Five-FuelDiversification Strategy 2001

Four-FuelDiversification Strategy 1981

National DepletionPolicy 1980

NationalEnergyPolicy 1979

National PetroleumPolicy 1975

PetroleumDevelopment

Act 1974

• Vested on PETRONAS the exclusive rights to explore, develop and produce petroleum resources of Malaysia

• To regulate downstream oil & gas industry via the Petroleum Regulations 1974

• To prolong lifespan of Malaysia’s oil reserves for future security & stability of oil supply

• To pursue balanced utilization of oil, gas, hydro and coal

• Renewable Energy included as the “fifth fuel” in energy supply mix

EE Promotion Initiatives In Malaysia Over The Years

• Energy efficiency promotion in the Seventh Malaysia Plan (1996-2000)

• UNDP-GEF Malaysian Industrial Efficiency Improvement Programme (MIEEP) (1999)

• Fiscal incentives for EE (2001)

• Development of Malaysian Standard MS 1525 (2001)

• DANIDA Capacity building on EE and DSM for key institutions (2002)

• Energy audit on government buildings (2002)

• EE and RE in education curriculum and university courses (2002)

• Energy efficient building demonstration projects (2004)

• Development of EE guidelines for Malaysian industries (2006)

• Efficient Management Of Electrical Energy Regulations (2008)

• Green Building Index (GBI) (2009)

EE Promotion Initiatives In Malaysia Over The Years

• EE rating and labelling of equipment (2009)

• Green Technology Financing Scheme (2010)

• Subsidy rationalisation plan (2010)

• Competitive bidding for new generation capacity plant-ups (2011)

• EE equipment rebate scheme (2011)

• UNDP-GEF Building Sector Energy Efficiency Project (BSEEP) (2011)

• MS 1525 provisions in Uniform Building By-Laws (2012)

• Minimum energy performance standards (MEPS) regulations (2013)

• UNIDO-GEF industrial energy efficiency project (2013)

• Energy Performance Contracting (EPC) for government buildings (2013)

• Incentive-based tariff regulation (2014)

• 5% energy reduction target for government buildings (2014)

• Sales Tax Exemption for 5 Star Rated Products

Local Manufacturer

• Duty Import Exemption for energy efficient products which are not available in the local market

Importer

• Investment Tax Allowance or Pioneer Status for companies embarking on energy conservation or energy efficiency projects

Industry player and ESCO

EE Fiscal Incentives since 2001

Electrical Energy Equipment:

• Transformers

• Motors

• Chillers

• Cooling Towers

• Fans and Blowers

• Pumps

• Air Compressors

• Lighting

EE Standards and Guidelines since 2001

Thermal Equipment :

• Boilers and Furnaces

• Thermal Oil Heaters

• Absorption Chillers and

• Heat Recovery

• Equipment

• Cogeneration System

EE In The Electricity Supply Legislation since 2008

8

Energy Commission Act 2001

Electricity Supply Act 1990

Licensee Supply Regulations 1990

Electricity Regulations 1994

Electricity Supply (Compounding of Offences) 2001

Efficient Management Of Electrical Energy Regulations 2008

Electricity (Amendment) Regulations 2013

Minimum Energy Performance Standards (MEPS)

The New Energy Policy launched under the 10th Malaysia Plan provides new direction for energy sector development

Market Pricing

• Gradual removal of subsidies

• Decoupling

Supply side

• Portfolio development to increase use of sustainable technologies

• Maintain depletion policy

Energy Efficiency

• Minimum Energy Performance Standards

• Tax incentives

• Support for co-generation

Governance

• Improve transparency

• Allow option for full market

• Achieve market price

• Improve economic performance

Change Management

• Organise and manage implementation of initiatives

• Proper sequencing to achieve objectives

• Integrated approach mechanism

Economic Efficiency, Security of Supply, Social and Environment

Current Dispatch Arrangement

New Enhanced Dispatch Arrangement

New Enhanced Dispatch Arrangement (NEDA)

Introduction of Price-based

Bidding to complement current

PPA/SLA arrangements:

Generators with PPA/SLA can offer optional reduced heat rates & VOR. If dispatched, generators will be paid at cost using the lower of the PPA/SLA or optional offer of heat rates & VOR.

Non-PPA generators bid to sell energy to the Single Buyer. If dispatched, generators will be paid at Price as Bid.

In addition to sales of energy, non-PPA generators can offer term-based capacity for short-term system reserve, if required by regulator

Single Buyer Single Buyer

Generators with

PPAs/SLAs

Generators with

PPAs/SLAs

Price

Non-PPA Generators

PPA/SLA ratesPPA/SLA rates

or optional offer of reduced rates

EE Programmes under the National EE Action Plan (NEEAP)

Initiatives for Appliances and Equipment:

5-Star Refrigerator Campaign

EE lighting Campaign

5-Star Air Conditioner Campaign

High Efficiency Motors

Initiatives for Commercial Buildings:

Energy Audit and Management in Large Commercial Buildings

Energy Audit and Management in Medium Sized Commercial Buildings

Energy Efficiency in New Buildings

Initiatives for Industry:

Energy Audit and Management in Large & Medium Sized Industries

Initiatives for Government Facilities:

Energy Audit and Management in Government Facilities

Initiatives for Cogeneration:

Cogeneration in Industries and Commercial Buildings

Impact of NEEAP Implementation

Summary

Item Unit 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Lifetime

Annual Savings GWh 87 386 1,097 2,278 3,772 5,460 7,142 8,886 10,626 12,361 52,094 122,099

Residential GWh 58 142 253 404 600 819 1,061 1,362 1,689 2,042 8,428 16,677

Commercial GWh 20 88 272 571 937 1,349 1,761 2,209 2,658 3,109 12,973 31,568

Industrial GWh 9 156 571 1,304 2,235 3,293 4,319 5,315 6,280 7,210 30,693 73,853

Cumulative Savings GWh 87 473 1,570 3,848 7,619 13,079 20,221 29,107 39,733 52,094 52,094 122,099

Demand Savings GW 14 145 292 463 688 920 1,157 1,398 1,643 1,893 1,893

Capacity Savings GW 18 79 224 464 769 1,113 1,456 1,811 2,166 2,520 -

Total fuel savings TJ 964 4,225 11,887 24,450 40,080 57,450 74,400 91,653 108,520 124,981 538,611 1,262,399

Gas Savings TJ 443 1,943 5,468 11,247 18,437 26,427 34,224 42,160 49,919 57,491 247,761 580,704

Coal Savings TJ 395 1,732 4,874 10,025 16,433 23,554 30,504 37,578 44,493 51,242 220,831 517,584

GHG savings ktCO2eq 67 295 830 1,707 2,798 4,011 5,194 6,399 7,576 8,725 37,602 88,132

BAU GWh 117,110 121,431 125,885 130,474 134,830 139,206 143,326 145,492 150,657 154,142 1,362,553

NEEAP GWh 117,023 121,045 124,788 128,196 131,058 133,746 136,184 136,606 140,031 141,781 1,310,459

Savings Pct 0.1% 0.3% 0.9% 1.7% 2.8% 3.9% 5.0% 6.1% 7.1% 8.0% 3.8%

100,000

110,000

120,000

130,000

140,000

150,000

160,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Energy Consumption: BAU vs NEEAP

BAU NEEAP

GWh

Breakdown of Total Expenditure

30%

6%

32%

1%

12%

7%

0%

2% 1%9%

Total Expenditure (RM)

5 star Refrigerator Campaign

EE lighting campaign

5 star Aircond Campaign

Energy Audit and management in LargeCommercial Buildings

Energy Audit and management in Large &Medium Industries

High Efficient Motors

Energy Audit Gov't Bldngs

Energy Audit and management in MediumCommercial Buildings

Energy Efficiency in New Buildings

Cogeneration in Industries and commercialbuildings

0

2000

4000

6000

8000

10000

12000

14000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

GW

h

Year5 star Refrigerator Campaign EE lighting campaign

5 star Aircond Campaign Energy Audit and management in Large Commercial Buildings

Energy Audit and management in Large & Medium Industries High Efficient Motors

Energy Audit Gov't Facility Energy Audit and management in Medium Commercial Buildings

Energy Efficiency in New Buildings Cogeneration in Industries and commercial buildings

Projected EE Savings Under NEEAP

TitleCogeneration in Industries and commercial buildings

TypeRemoval of barriers

Design The cogeneration system's primary function is to meet the heating or cooling demand in the facility and power generation willbe secondary. The systems must be fully cogeneration and can include thermal energy storage tanks1.The programme is to promote cogeneration in industries and buildings.2. This will be done by reducing barriers, including :

a. Standby and top-up chargesb. Gas tariff pricing (TPA)c. Unattractive Incentivesd. Technical hurdles – lack of capability to locally manufacture some energy supply equipment which leads to higher

investmentse. Connection to the grid – implication on the reserve margin for the utilitiesf. Lack of awareness on benefits of cogeneration

3. To overcome the above barriers, a couples of key strategic measures need to be implemented, such as:a.Design of standby, top-up and load connected charges that are cogen friendly

- Lowering the amount of charges- Non-Firm standby charges (offering daily or monthly as used charges)

b. Open bidding for special package of cogen plants with special gas tariff pricing.c. Promoting the existing incentives such as low cost financing by MGTC and etc.d. Local manufacturers' capacity buildinge. Regulatory framework for grid-connected cogen and sale of excess powerf. Awareness enhancement on the benefits of cogen

Total Market

The market is facilities with high demand for heating or cooling. The preliminary market is only considered to be the supported projects in this programme. By the end of the plan period, it is targeted to have 100 operating cogeneration plants.

Cogeneration in Industries and Commercial Buildings

Annual Market It is envisaged that with the reduction of barriers and the increase in electricity tariffs in the country, about 12 MWe of cogeneration (about 12 installations) will be installed per year in the country from the year 2017 onwards.

Savings The savings are in terms of natural gas savings, as cogeneration will utilise the fuel more efficiently. The power generation will save power generation in central power plants.

The value of the savings is not the full tariff savings, but the tariff savings minus the additional fuel cost and O&M cost. The tariff savings is about 50% of the tariff.

(Distribution and transmission lossess are not considered. 1 MWe cogeneration plant is expected to generate 7 GWh/year (at the load factor of 0.8, GWh generated = 1 MW x 8hr x 365 days x 0.8 load factor = 7 GWh / year). Thus the electricity savings are 7 GWh/MW-year.)

Lifetime 15 years

Penetration The programme will be introduced in 2017 and it is expected that 12 MWe of capacity will be installed per year over the remaining plan period which is till 2025

Fund Support Nil -

Technology Cost The facility owners must pay for the cogeneration plant

Cost of 1 MWe cogeneration plant 5,000,000

Total Savings Total Energy Savings for 2016 to 2025 period (GWh) 3,150

Total lifetime savings based on the 10-year programme and lifespan of 15 years (GWh) 10,500

Total GHG reduction for 2016 to 2025 period (ktCO2eq) 2,432

GHG reduction (ktCO2eq) (lifetime) 8,106

Cogeneration in Industries and Commercial Buildings

Changes in grid electricity tariff and gas price to non-power sector have implications on the viability and attractiveness of cogeneration

Base tariff under IBR

for first regulatory

period

A Way Forward For Cogeneration

Implement National Cogeneration Action Plan with SMART targets

Minimize costs and price distortions in energy supply

Strengthen capacity of industry players in cogeneration

Establish effective funding mechanism for cogeneration projects

Intensify enforcement of EE legislation

Streamline policy framework for cogeneration

Foster EE culture among industry players

Thank You

Workshop on Cogeneration in Malaysia

TECHNICAL CHALLENGES IN

INTEGRATING COGENERATION

INTO THE ENERGY NETWORK16/11/2015

Tenaga Nasional Berhad

Definitions

Connection Modes

Technical Issues

Application Process

CONTENTS

Malaysian Distribution Code (MDC) terms cogeneration

as Distributed Generation

Consumer With Own Generation

MDC limits: 50kV, 30MW

Definitions

m

TNB substation

~~ Consumer

load

Consumer

load

TNB

Customer

Feeding methods

Direct feed Connection point at TNB

In-direct feed Connection point at consumer side

Consumer

loadDG

TNB grid

Consumer

loadDG

TNB grid

m1m2

m1

Top-up

Standby

Connection Profile:

G2

G3

G4

G1

Peak load

Base load

Import

mode

Cogen

capacityProfile

Top-up

G1 Import from TNB at all times

G2 Import from TNB most of the times

G3 Import from TNB during peak usage

Standby G4 Import from TNB during generator outage/shutdown

Time

MW

Fault current contribution

Islanding

Voltage rise

Reactive power

Load forecast

Metering

Overloading

Nuisance tripping

Technical Issues:

Technical Requirements:

Declared demand

requirements

Boundaries & responsibilities

Liaison

Safety procedure

Interconnection Operation

Manual (IOM)

OPERATIONAL

REQUIREMENTS

Top up

Standby

SUPPLY REQUIREMENT

pf range ±0.9

Reactive power requirements

POWER FACTOR

Developer to provide full

details

Power System Study

Harmonics generation limit

GENERATOR SPECS

Switchgear requirements

Metering

Interlocking

Boundary

Ownership

CONNECTION POINT &

OWNERSHIP

Maximum clearance times

Anti islanding

Reconnection

No export to TNB

PROTECTION

REQUIREMENTS

Power System Study

Voltage control

Fault levels

Network capacity

Zero Export/Import limits

Supply quality

Protection

Control/SCADA facilities

Earthing

Stability

Synchronizing arrangements

Operation and safety

Anti islanding

CONNECTION

REQUIREMENTS

Upgrading of TNB interconnection feeder

RMU to VCB, or

Upgrade existing VCB

Reverse power protection, to disconnect from TNBduring TNB loss of main

Protection coordination,

to isolate internal fault within customer,

avoid disturbance to nearby TNB customers

SCADA/RTU

Provide monitoring & control of interconnection feeder toRegional Control Centre

Typical Upgrading Requirements

Cogeneration Connection Process

PLANNING

Discussion

Exchange of information

Preliminary information

PSS

TECHNICAL ASSESSMENT

DG developer to conduct PSS

Load flow analysis

Short Circuit Analysis

Transient stability

DESIGN OF

INTERCONNECTION

Interconnection

scheme

Upgrading

Project costing

CALCULATION OF CC

Connection charges

based on upgrading

costs & declaration

top up,

standby

PAYMENT OF CC

DG developer pays

connection charges

and agrees to

interconnection

agreement

INTERCONNECTION

UPGRADING

Construction of cogen

plant and upgrading of

interconnection

Project coordination

PROJECT TESTING &

COMMISSIONING

Pre-commissioning

coordination

OPERATION & CONTROL

Both DG developer and

TNB to coordinate

operation of the plant

according to the

Connection Operation

Manual

TERIMA KASIH

Confidential

Implementing of Cogeneration-Experience from Japan-

November 2015

Tokyo Gas Co. LTD.

Asia Pacific Regional Office

Yasushi Sakakibara

Confidential

1. Cogeneration Installation in Japan

2. Key factors for Cogeneration Installation

3. Cogeneration Market in Malaysia

Table of Contents

32

Confidential

1. Cogeneration Installation in Japan

33

Confidential34

（Cases [L

ine G

raph]

）

（Cap

acity M

W [B

ar Chart]

）

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

81 84 87 90 93 96 99 02 05 08 11 14

FY

Residential（MW）

Indusrial（MW）

Commercial（MW）

Commercial（# of cases）

Industrial（# of cases）

Gas Cogeneration Installation in Japan

Cumulative Total ５０５MW, 230,376 Cases (as of end FY2014)

５０５MW

6,148

1,046

223,542(Residential)

Confidential

Future Growing Potential due to (1) Energy Cost Reduction(2) Energy Saving & CO2 Reduction (3) Energy Safety

Future Outlook of Cogeneration Installation

35

Confidential

2. Key Factors for Cogeneration Installation

36

Confidential37

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

81 84 87 90 93 96 99 02 05 08 11 14

FY

Resdientila（MW）

Indusrial（MW）

Commercial（MW）

Commercial（# of units）

Industrial（# of units）

<Gas>LNG Market Price

<Electricity>Market Price of Oil, LNG, Coal

<Power Generation Mix>

(1) Gas/Electricity Price

0

2

4

6

8

10

12

14

16

18

20

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Ele

ctr

icity P

rice(J

PY/k

Wh)

Red L

ine

Gas P

rice (

JPY/M

MBtu

) Blu

e L

ine

FY

<Gas/Electricity Price>

Gas(LNG) Price

Electricity Price (Industrial & Commercial average)

Confidential

①Power Generation Efficiency Improvement

(2) Technological DevelopmentEff

icie

ncy

Output

~1980

~2000

1980~2000

Lean Burn

Efficient Lean Burn

Mirror Cycle

Combustion Control Optimization

7

Gas Engine

Gas Turbine

Source: The Japan Gas Association

Confidential39

Efficiency Cost Reduction

Gas Engine Small Current 2020 2030

３４％ → Over ４２％ → Over ４５％

2020

▲２５％～▲３０％（Based on 0.2～1.50MW

Annual production）

Mid Current 2020 2030

40％ → Over ４5％ → Over 50％

Large Current 2020

４８％ → Over ５０％

Gas Turbine Current 2020 2030

33％ → Over 36％ → Over 38％

2020 ▲２０％（Based on 1MW

Annual production）

<Future Target>

(2) Technological Development①Power Generation Efficiency Improvement

Source: The Japan Gas Association

Confidential

Electricity

Waste

Hot

Wate

r

Chilled Water

Gas

GasElectricity

Electricity

・Priority Utilization of Gas Engine Waste Hot Water・Higher efficiency due to technology development

Genelink(Waste Heat Recovery

Absorption Chiller)

・Power Generation by temperature gap between Waste Hot water and normal water・Under development for cost reduction and efficiency improvement

Binary Power Machine

Binary Power Machine

Genelink

Developed

Under Development

② Newly Developed System to enhance Waste Heat Recovery

(2) Technological Development

Waste

Hot

Wate

rOther types of chiller,Hummidity Control etc.

40

Confidential41

(2) Technological Development

③ Common System Package for cost reduction

Confidential

Total Floor Space：40,000m2 （3buildings）Project Period：9yrs from 2006FY

Installation：350kW Gas CHP

・Power, Hot & Cold Water Circulation

・Efficient Operation by Aggregation of Energy Demand

新横浜地区3施設

42

(3) Business Scheme – Energy Circulation –

Hot Water

Cold Water

○Efficient Operation by Area Energy Circulation among 3 buildings○Subsidized by Government

11

<3 Buildings in Shinyokohama>

Sports Center

Rehabilitation Center Medical

Center

Before After

Circulation

Sports Center

Sports Center

Rehabilitation Center

Rehabilitation Center

MedicalCenter

MedicalCenter

ON Off ON Off ON ON Off Off Off OffON ON

Confidential43

C重油ボイラ C重油ボイラ　　　５０ｔ（予備） 　抽気排圧タービン

　復水タービン

ﾃﾞｨｰｾﾞﾙ発電機

構内電力

　ガスタービン

65t/h(最大) 　　復水タービン

　ガスタービン 33t/h(最少) 11t/h(最大)

7t/h(最少)

廃熱ﾎﾞｲﾗ（排気再燃ｼｽﾃﾑ)

S T

S T

S T

小売電力(ｴﾈｯﾄ)都市ガス

G T

G T

9 0 t9 0 t5 0 t(予備)

蒸気 8 .8 2 M P a蒸気 0 .2 5 M P a

吸気冷却(吸収式冷凍機）

低圧蒸気 0 .2 5 M P a

高圧蒸気 1 .0 0 M P a

５,０００kW×５台

２８,５００kW

２８,５００kW

１３,０００kW

１,６００kW

９０ｔ、９８ｔ(予備)

５,２００kW

設備廃棄

余剰電力販売

導入設備

LocationKyoto, Uji-city（Area 311,781m²）

Installation FacilitiesGas Turbine（57,000kW）、Steam Turbine（5,200kW）Heat Recovery Boiler（152t/h）

●Chemical Factory－Yunichika in Uji

CO2 Reductionby

３８％

(3) Business Scheme – Selling Excess Power to Grid –

Limited Cases due to not attractive selling price to grid

12

Excess Power Sales to Grid

Gas Turbine

Gas Turbine

Gas

Primary Energy Reduction by

１９％

Steam

Steam Turbine

Steam Turbine

Steam

Steam Turbine

Absorption Chiller

～

～

Heat Recovery Boiler

Oil Boiler Oil Boiler

Diesel Generator

Disposal

Installation

Confidential

Contents of Energy Service

Gas

Company

Power

CompanyCustomer

Tokyo Gas Group

CGS、Boiler、OtherUtility Facilities

SteamPower

Consulting

O&M

EPC

44

(3) Business Scheme – Energy Service –

Finance

One-stop Service

No investment on energy facilities

Improves ROA by off-balance sheet energy equipments

Labor cost savings in energy service facilities by outsourcing EPCC engineer

Operation, Maintenance & Management operator

Tax payment procedure

Energy and operational cost savings enabled by expertise and know-how of ES provider

Benefits of Energy Service

Ownership

Confidential

◆ Number of customers of energy service ◆ Power generation capacity (kW) of energy service

45

Track Records : Growth of On-Site Energy Service of Tokyo Gas Group

(3) Business Scheme – Energy Service –

Aournd 500 customers with 350 MW (around 20% of Tokyo Gas CHP)

Confidential46

(4) Government Support

Confidential

3. Cogeneration Market in Malaysia

47

Confidential

Example of Co-Generation System Utilization

48

Confidential

Establishment of GMEA in 2014

New Join Venture between GMB[66%] and ENAC (100% TG subsidiary)[34%]Marketing of Energy Service with CHP systems in MalaysiaFirst Energy Service Contract with Toray in Penang（１６MW×２Gas Turbine）

ＧＭＢ

City Gas

GMEA

PFR TPM PAB

Electricity Steam

Fixed FeeVariable Fee

Toray

One Stop Energy Service with Finance,

Ownership, EPC, Maintenance

New Energy Service Company in Malaysia

19

Confidential

Energy Service

Business know-how

Waste Heat Recovery

Improvement Skill

Various CHP

Experiences in Japan

Experiences for

Best Proposal to

each industry

CHP Evaluation Skill

(life cycle efficiency,

Reliability)

50

GMEA

Energy Saving & Energy Cost Reduction ＆CO2 saving in Malaysia

Towards Advanced Nations

Energy Service in Malaysia

Confidential

Promotion of Sustainable Development in Malaysia

-+

【Energy Policy】

- Increase of gas and electricity prices to reduce energy subsidies

- Promotion of energy conservation

Sustainable Development of Energy Market and Economy

Market

- Concerns on energy costs increase

- Risk to lose competitiveness of industries in Malaysia

Technology Measures

- CHP

- High-efficiency equipment

Business Approaches

- Engineering & risk management services

- Energy Service business

Institutional Measures

- Tax incentive/Capital grant

- De-regulation

- Moderate spark spread

51

Importance of policy making to promote introductions of CHPs and energy saving systems

Confidential

2014-

Jan

2014-

Nov

2015-

Apr2015-Jul

Future-

case1

Future-

case2

Simple Pay Back Period 3.05 3.11 3.50 3.86 7.36 5.03

Gas Price 88 91 91 100 150 150

Electricity Price 106 106 100 100 100 110

0

20

40

60

80

100

120

140

160

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

EN

ER

GY

PR

IC

E C

HA

NG

E

SIM

PLE P

AY

BA

CK

PER

IO

D(Y

RS

)

Simple Pay Back Period Gas Price Electricity Price

52

CHP Economics

Capital cost Energy cost saving - Maintenance costSimple Pay Back ＝

Model : 6.5MW Gas Turbine with 14.8 t/h steam(18 bar.g)

Economics is changing due to current tariff changes Appropriate balance of gas/electricity tariff is necessary

Current=3.9 Yrs

Confidential53

Our Concerns

Malaysia Japan

Tariff(Fuel

Portion)

Controlled by Government

⇒ Appropriate balance between gas and power

(ex.CHP/IPP Same tariff)

Market Price

Clear CHP Policy

Necessity of Clear statement on Future

Price or any other support

(Special tariff on excess power /Mitigation for necessary

qualification [B4 charge-man] etc)

Support Capital Grant, etc

Confidential

Thank You!

54

Confidential55

What is CHP?

Confidential56

Japan = 0.69(Thermal Power Generation)

Malaysia

Why CHP?

Confidential57

<Japan><Malaysia>

CHP Energy Efficiency

Conventio

nal S

yste

mCH

P S

yste

m

Confidential58

CHP Incentives

Confidential59

Gas Engine

Gas Turbine

Steam20%

Hot Water20%

Electricity20%

Electricity30%

Steam40%

For High Electricity Demand(Car Engine)

For High Steam Demand (Airplane Engine)

Gas Engine/ Gas Turbine