Development Of Solar Energy In Malaysia

Published Date: 02 Nov 2017

Teoh Jun Seng, Lim Jiun Howe, and Shee Foo Ngen

Abstract

To overcome the negative impacts on the environment and other problems associated with fossil fuels have forced many countries to inquire into and change to environmental friendly alternatives that are renewable to sustain the increasing energy demand. Energy is important in all aspects of development to support population growth, urbanization, industrialization as well as tourism industry. Energy consumption is also increasing and several alternative green energy sources are seriously taken into consideration to fulfill Malaysia’s energy demand. As we are facing energy resource shortages around the world, there is an urgent need to develop a more sustainable energy system to cater for growth. Solar energy is one of the best renewable energy sources with least negative impacts on the environment. Solar technology is becoming increasingly popular. For example, the production of solar cells quadrupled in the 1999-2004 period, with a capacity of four gigawatts worldwide. Malaysia is situated at the equatorial region with an average solar radiation of 400–600 MJ/m2 per month. It has a promising potential to establish large scale solar power installations. In Malaysia, the climatic conditions are favourable to the development of solar energy, with abundant sunshine throughout the year. The Malaysian Government recognizes the potential of solar energy as an alternative to ensure the sustainability of energy resources. Thus, the green technology policy was launched to promote the utilization of solar energy technology to reduce dependence on fossil fuel and adopt a green economy for sustainable future in Malaysia. The Malaysian government is keen to develop solar energy as one of the significant sources of energy in the country. The paper will look in detail at the development of solar energy in Malaysia.

Keywords: Solar Energy, Malaysia, Development, Applications, Challenges

1.0 Introduction

There is sufficient evidence to conclude that global warming is mostly due to green house gasses stemming from the burning of fossil fuels. Such climate change is presently having, and will continue to have, a drastic impact worldwide. The use of fossil fuels creates a number of local environmental health problems and is likely to cause catastrophes on a global scale. Furthermore, massive harm to the biosphere is a likely result from the change in climate due to green house gasses. The increased temperatures are not only melting icebergs and glaciers, it is also causing animals to migrate to different areas or die, upsetting ecosystems, and it is also ,changing precipitation patterns. Thus, it seems imperative to reduce the production of green house gasses, and support research or alternative technologies that might aid this goal.

Solar energy is considering as one of the most promising source of clean, renewable energy does not compromise or add to the global warming and it has the greatest potential of any power source to solve the world’s energy problems. Availability of cheap and abundant energy with minimum environmental and ecological hazards associated with its production and use is one of the important factors for desired improvement in the quality of life of the people. The growing scarcity of fossil fuels has raised global interest in the harnessing of solar energy. Solar power is a type of energy with great future potential even though at present it covers merely a minor portion of global energy demands due to solar power still being considered the most expensive type of renewable energies.

The Malaysian energy sector is still heavily dependent on non-renewable fuel such as fossil fuels and natural gas as a source of energy. With uncertainties in prices, depletion and environmental issues surrounding the non renewable energy resources, the renewable energy approach through solar energy plays a meaningful role as a country's fifth fuel. In Malaysia, the climatic conditions are favourable for the development of solar energy due to abundant sunshine throughout the year. In addition, it is also considered as a clean energy source that does not emit CO2 in the process of electricity generation. The annual average daily solar radiation is 4.21-5.56 kWh/m2. The highest solar radiation is estimated to be at 6.8 kWh/m2 in August and November, and the lowest is 0.61 kWh/m2 in December. The northern region and a few places in eastern Malaysia have the highest potential for solar energy application, with particularly high solar radiation throughout the year.

Malaysia lies entirely in the equatorial region and has a very high potential for utilizing electricity from photovoltaic system but currently the development is still in the early stage. Malaysia National Policy (1979) aims to have an efficient, secure and environmentally sustainable supply of energy in the future as well as to have an efficient and clean utilization of energy. In order to promote and ensure the rapid, effective and smooth development of renewable energy, the Malaysian government has formulated a series of policies on renewable energy development. These policies provide significant motivation and interest for the development and use of renewable energy technologies. For this, the Malaysian government has taken various efforts to encourage individuals and companies to invest in solar PV projects. Although Malaysia’s renewable energy development policy has a few limitations but the solar PV installation has grown considerably in Malaysia since the year 2000. Therefore, solar energy is expected to have a great potential in Malaysia. As the main catalyst to accelerate the solar PV penetration in Malaysian residential houses, the MBIPV (Malaysia Building Integrated Photovoltaic) project was initiated with a growing number of funding for R&D activities, and supported by numerous government policies, the solar energy could become one of the major renewable energy sources for Malaysia in coming future. With environmental issues and a worldwide energy crisis looming, solar technology is surely one of the ways forward to a greener and more sustainable development in the future.

2.0 Impact of Global Warming

The average temperature of the Earth has been on a steady uphill climb ever since the beginning of the Industrial Revolution, when societies began burning fossil fuels for energy. Increased greenhouse gases and the greenhouse effect has contributed to an overall warming of the Earth’s climate, leading to a global warming. Global warming is not something whose effects will be felt centuries later, it is already affecting our lives. The recent scorching weather is not purely an act of nature. Neither is the increasingly volatile weather that is wreaking havoc in certain parts of the globe. Humans are causing global warming and we are suffering as a result, and the consequences will only get heavier.

The effects of global warming are strongest at the poles. Polar ice caps is melting at an alarming rate as the earth warms. Ice all over the world is melting. This includes the ice on mountain glaciers, Arctic sea ice and ice sheets covering West Antarctica and Greenland. Low lying land may eventually become flooded as the sea level rises. When snow and ice melt, their ability to reflect sunlight is lost, escalating global warming even further.

Cities such as Venice are starting to sink. Rising sea levels is already affecting many small islands. Small islands such as Guyana are also starting to becoming submerged. Although climate change is complex to predict, sea level is expected to rise between 28cm and 79cm (11 and 31 inches) by 2100. Floods will become more common in the future. Rising sea levels will impact many coastlines, and a large mass of humanity lives near the coasts or by major rivers. 

Droughts are occurring in more and more places in the world due to higher temperatures. Droughts occur when rainfall is scarce and not able to support agriculture. Droughts mean there is no water for plants to grow. Agriculture would be severely affected. When there are no plants, humans have nothing to eat. There are also no plants to feed animals and so humans cannot eat animals either. The high temperatures can also cause heat-strokes and other illnesses to humans. Droughts will become more common. Rainfall in Ethiopia could decline by 10% over the next 50 years. Ethiopia is already often ravaged by droughts.

Precipitation in the form of rain and snow has on average, increased across the whole world. Irregular weather patterns have an effect on humans. Rain is not only an inconvenience for humans, but storms damage human property. The increase in heat will increase evaporation which is why there will be more rain. Plants and animals are also not spared of the adverse effects of global warming. Animals and plants cannot easily adapt to increased rainfall or snowfall and many animals migrate to other areas. Plants can die as a result and this can cause an ecosystem to collapse as plants are the main source of food in an ecosystem. At the end, the flora and fauna may not be able to adapt and they may face extinction. 

The world has had a food crisis and global warming may have been to blame for it. At the moment global warming does not have much of an impact on this, but in the future, there will be impacts. As temperatures around the world will increase, plants will find it harder to cope and they will die. Some of these plants are used by humans for food and so a food shortage may occur. Plants create food for themselves through a process called photosynthesis. The enzymes that are needed for photosynthesis die when exposed to high temperatures. Pests may also migrate to new areas and destroy the crops there. Pests may migrate from tropical countries to temperate countries.

With global warming on the increase and species’ habitats on the decrease, the chances for various ecosystems to adapt naturally are diminishing. Many studies have pointed out that the rates of extinction of animal and plant species, and the temperature changes around the world since the industrial revolution, have been significantly different to normal expectations. Animals have been migrating to different regions which are more favourable. Some butterflies, foxes and alpine plants have moved north to cooler areas. This migration destroys ecosystems and their biodiversity. As parts of the food chain are lost from an ecosystem, the whole ecosystem can easily collapse. Ecosystems and their biodiversity are important to humans. Humans get food, employment, raw materials and pharmaceutical products from the environment.

It is possible that symbiotic species (species that depend on each other) will become incompatible. For example, plants could bloom earlier than their pollinating insects become active. Ecosystems will definitely change. Some species will migrate to more suitable conditions while some will stay and try to adapt. Not all will succeed and many species will become extinct. It is predicted that 20% of all mammals will become extinct within the next century.

Rising temperatures have an effect on the health of humans and the diseases that they are exposed to. Human health will be affected. The world glimpsed this in 2003 when Europe was struck by heat waves and people died. Heat strokes are likely to increase as temperatures get hotter. Diseases such as malaria are likely to spread as the climate shift causes disease-carrying mosquitoes to move to new and different areas. Parasites that originate in tropical regions may migrate to temperate regions as they become warmer. Hence it is predicted that malaria will spread around the world. It is also predicted that asthma will increase around the world as allergens that cause asthma will become more common. Other diseases that we may have thought were eradicated are reappearing. Also, new diseases are showing up in the human population more and more. Many people may die before we find cures.

3.0 Application of Solar Energy

3.1 General Applications

3.2 Applications in other countries

3.3 Applications in Malaysia

4.0 Development of Solar Energy in Malaysia

5.0 Challenges

The issue of sustainable development about solar energy is frequently addressed, yet only a minority of Malaysia’s population are actually putting words into action. Like all new developments, solar technology in Malaysia faces several issues and challenges. Despite the aims of the fifth-fuel policy and green technology policy, there is a lack of comprehensive detail about it. These policies merely state their objectives and numerous approaches the government can use to create a greener, sustainable development in the future. Public interest and awareness at a national level can be considered as relatively low. Environmental and energy issues are generally ignored because the public take it for granted that the government will propose a solution when the problems arise. With fossil and other non-renewable fuels still available to the public, alternative technologies tend to be overlooked. The solar energy development in Malaysia could be hampered by several barriers which are financial and technical, which needs to be addresses for the viability of solar energy development in the country.

Presently, many green energy projects are implemented with the assistance of grants. This is because new technologies bear a certain amount of uncertainty, thus It creates a barrier for its development. This uncertainty results in high financing costs for research, development and deployment. This in turn artificially raises the price of clean energy options, delaying their full integration into the energy marketplace. Frequently, the initial cost for efficient equipment is substantially higher than the standard alternative and the payback period or economic return may be unacceptable. Renewable or green energy

projects generally face difficulty in getting financing and bank loan approval due to the high risk involved and also the lack of technical knowledge on the part of the financiers. Despite government incentives, funding is still insufficient for most of the projects in Malaysia to consider energy efficient buildings. There are no specific loans from the financial sector to encourage the development of solar technology, and the private sector is always more profit-conscious in the shorter term rather than the long term.

Despite rapid development in solar technology, it is still in its infancy in Malaysia. Firstly, there are uncertainties in some technologies that may not be suitable because of unreliable power supply of some developing countries. Also, being unproven technology, it may not be able to survive competitively with more established options. Secondly, there is limited local expertise on efficient practices and equipment handling. Installation of solar panels is very costly even for small projects, and there are only a few specialists or consultants who truly understand and know how to effectively save energy in the long term. Because of the high capital investment required and lack of expertise, developers in the private sector do not even consider solar technology in their projects. Finally, the nature of the electricity tariff undermines renewable energy efforts. Generation of energy from renewable resources is economically unattractive due to high cost of energy generation and availability of cheaper alternatives energy. The relatively high costs of energy generation from renewable resources, both in terms of investment costs and final energy costs, compared to conventional energy further restrain the efforts to promote the utilization of renewable energy.

6.0 Future Development

A future with limited amounts of non-renewable fuels is drawing nearer each day. All the issues raised should be dealt with comprehensively before it is too late. To ensure the sustainability of energy supply and subsequently of the country's sustainable economic development, the Malaysian government will have to intensify further the implementation of renewable energy (RE) and energy efficiency programs. As can be seen happening in a number of successful countries such as Germany, Denmark, and Japan, promoting RE require strong and long-term commitment from the Government which is crucial in implementing any kind of policies which will lead to RE development.

By making investments in the early stages of renewable energy development, Malaysia is well positioned to prepare towards the time when its own reserves of hydrocarbon energy are depleted or become too expensive to exploit. Malaysia has instituted various initiatives to promote renewable energy. However, in charting the path forward, collaborative partnerships are vital. The Government leadership is essential in charting appropriate RE policies, but there is equally a need to provide solutions and support to individual entrepreneurs, industries and the business community in supporting the sustainable energy agenda. This requires broad understanding and involvement at various levels. Meanwhile, the newly launched National Green Technology (GT) Policy on 24 July 2009 helps to spearhead Malaysia’s transformation into a green nation and embrace sustainable development. This policy seems to indirectly accelerate the development of RE through its green technology criteria. The policy covers four key main sectors such as Energy, Buildings, Water and Waste Management and Transport sectors. In promoting GT, the Government has establish a fund called Green Technology Financing Scheme (GTFS) amounting to RM1.5 billion that will provide soft loans to companies that supply and utilise green technology. This scheme has commenced on 1 January 2010 and expected to benefit 140 companies. According to Pusat Tenaga Malaysia (PTM), the feedback is overwhelming and so far nine (9) projects have been certified with GTFS that majority comes from Waste & Water sector followed by Energy sector. As environmental awareness is growing, many consumers will eventually choose the technology option that delivers energy services in a manner more compatible to the environment. Therefore, through GT policy it is suggested that companies in the country’s energy sector should drive forward GT and deployment to benefit the nation. In order to implement solar technology in buildings, acts and policies regarding incentive subsidies should be passed for all future developments. The legislation should include incentive subsidies for: 1) solar technology such as the BIPV system connected to the grid supply for large-scale developments; 2) thin-film solar panels to be incorporated in residential buildings or small projects; and 3) renewable energy as a preferred component of electricity generation for use in homes and other buildings.

In terms of project financing that often hinders application of RE technologies, Clean Development Mechanism (CDM) appears as a tool that can provide financial contribution to support RE projects from the sale of Certified Emission Reductions (CERs). According to PTM study, the direct benefits of CDM are linked to the income from the sale of CERs. With the price level of 5 USD/ton CER and the calculated potential sale of 17.8 million ton CERs per year the annual income will be in the order of RM300 million per year or a total of RM1.5 billion before 2012. The indirect benefits of participating in the CDM contribute to the implementation of environmentally friendly technologies in Malaysia and reducing the dependence on fossil fuels.

Furthermore, the newly restructured Ministry of Energy, Green Technology and Water, is at its final stage in developing a comprehensive RE Policy that complements the National Green Technology policy. The RE policy provides the direction and funds to make RE an important component of the country’s energy mix, overcome technological barriers, address existing market failures, and drive down costs. As high cost of RE is the key stumbling block that prohibit the RE implementation, the new RE policy will introduce feeding tariff as a pricing mechanism. Presently, there is still massive support for conventional energy sources in the forms of subsidies. If RE were to be competent economically, it is important that RE receives the same treatment as fossil fuels. Otherwise, such subsidies should be removed or made transparent in order to create a level playing field. This can be partly overcome through a mandatory feed-in tariff, which has shown positive results in some countries such as in Germany, Spain and Portugal. Under the scheme, which might be part of the RE policy, electricity utilities must buy renewable electricity at above-market rates set by the government. The higher price helps overcome the cost disadvantages of RE sources. Like successful policies elsewhere, the proposed feed–in tariff will includes all renewable energy, differentiates tariff by technology and derives the tariff based on the cost of generation. Under the feed-in tariff, PTM has proposed that consumers who use electricity beyond a certain minimum point are required to contribute 2% of their bill towards a RE fund, which will then be used to equalize the price between non-renewable and renewable sources of energy. The scheme could change the mindset of consumers as it is based on the ‘‘polluter-pays’’ principle . The role for government in this principle is to discourage environmental harms and to ensure that polluters pay for the damage they cause and are enjoined from causing harm in the future. From this principle, if individuals or companies paid a price for polluting, it is believe that they would be less likely to do it.

Private developers and financial institutions are very influential in the construction industry and can potentially affect the solar technology market. Developers should be instilled with the awareness of environmental issues and the need for energy efficiency in buildings, while self-motivation to use solar technology in their projects should be encouraged. Financial institutions could offer developers loans with special interest rates for developments incorporating solar technology. A ‘national solar technology fund’ could be set up in a campaign to create more awareness among the public and to encourage people to seek out solar technology for domestic purposes. In addition, the government plays a key role in encouraging the public to enter the solar technology market by giving tax relief or rebates to those who implement solar energy conversion. Tax relief can appeal to the public and create an interest. Furthermore, rebates can be given on electricity bills if their daily energy generation and consumption are from a renewable energy source.

Local PV companies and universities shall be given the opportunity to network with suitable international PV companies and manufacturers. Eventually, companies would be able to upgrade their capabilities and enter into transfer technology agreement with their counterpart. This would then encourage knowledge sharing, joint ventures and foreign direct investment between local and foreign companies. International collaboration and joint ventures will upgrade the local industry to a competitive level. Business meetings will be organized to provide matchmaking opportunity between international and local industry. With regard to the awareness and understanding of PV technology, educational programmes should be introduced not only at universities and college level, but also primary and secondary school level. In addition, to encourage rapid widespread of BIPV adoption, the media play an important role. Mass media should have special segment to focus more on solar technologies.

Undoubtedly, skilled manpower or labour in this industry is crucial and will play an important role in the future progress of the construction projects. Malaysia seems to be lacking in specific programmes; most educational institutions regard solar technology as a part of a wider subject, and not as a programme in its own right. The scope of solar technology is wide and there is much to explore and develop, but the provision of skilled manpower is not keeping pace. One way to overcome this is to propose more programmes on the subject at a higher educational level. Technical or vocational schools and comprehensive diploma programmes in universities can produce the required expertise in this field. Workshops and courses can be organized on a weekly basis for professionals such as building surveyors, engineers and architects.

Detailed assessments of local industry and manufacturer will be conducted. Based on the industry interest and level of capabilities six business models will be developed to provide direction in local BIPV industry development. Three business models are design for manufacturers interested to enter the PV business and three business models are for PV service providers to build their capabilities and competencies to sustain their business. Business matchmaking and industry trend events will be organized. The overall objective of this initiative is to prepare local companies and industry players with the relevant knowledge, skills and experience for the industry. Next, to ensure a high reliability of the PV system, imported products must have IEC, UL, EN or other international recognized certificates or thoroughly tested to ensure that products meet local requirements under local conditions. Two Quality Control Centres (QCC) are established to evaluate and to test the quality of the products. Inverters will be tested at Universiti Teknologi Malaya (UTM) in Skudai (Johor) and mounting structures are tested at IKRAM, Kajang (Selangor). Both centres will further enhance the capabilities and competencies of local companies. And additionally, the centres can also function as testing facility for any international products wanting to enter the local market.

There are numerous issues of RE development at present but reliable and implementable RE solutions is appropriate for Malaysia in moving towards sustainable development. While RE Roadmap Action Plan is a welcome move, the successful policies require buy-in from all agencies and the general public, of which it will require some time for it to be implemented. The government agencies are not the only ones who should make the efforts but the private sector should also be more corporate social responsible and make compromises for instance by accepting longer payback periods in RE projects. If Malaysia is to introduce feeding tariff, user acceptance to pay for higher cost of RE would be a major challenge. Nevertheless, a breakthrough is needed to overcome the high cost by means of creating a market and forcing the renewable industry to grow that will ultimately lower the cost of technology. Obviously, if Malaysia is to make headway in building a low-carbon society, renewable law and legal instruments need to be instituted that allow all players to invest.

 

7.0 Conclusion

Malaysia has a strong potential to build large scale solar power due to its location at the equatorial region. The continuous supply of sunlight, silent in operation, low maintenance cost, independent of fuels source, the environmental friendly factors, and contributions to lower carbon emissions, made solar the best choice for future energy power generation. In order to ensure the sustainability of energy supply and subsequently of the country’s sustainable economic development, the government has to intensify further the implementation of renewable energy and energy efficiency programs. Over the past 10 years, Malaysia has instituted various efforts and initiatives to promote solar energy. The progress on solar energy generation has been slow but over time the growth rate of solar energy in Malaysia has shown an upward trend as more energy users took advantage of the incentives provided by the government. In line with any radical change, the way Malaysia perceives its energy development must be on a gradual basis. Malaysia has taken a step forward towards a more proactive approach and the soon to be introduced national renewable policy will hopefully create a level playing field for renewable energy technologies providers or investors and provide conducive regulatory framework that would allow more participation from the government agencies, non-government organizations as well as the general public. It is forecast that renewable energies in Malaysia will take fundamental role in the years to come as country prepares to substitute fossil fuel towards novel fuel sources which are truly clean, renewable and safe.