MALAYSIA has the opportunity to save over RM150 bil of expenditure in coal imports by the end of the decade by switching from coal combustion into gas turbines (CCGT) for 10,580MW, which would cost 15x less from the amount that could potentially be saved.
While it might be impossible for the Government to control foreign coal prices, it can still control the domestic gas prices for electricity generation under the Gas Supply Act 2016 to insulate Malaysians from global fuel inflations.
“The savings in cost is made possible due to CCGT’s capability of generating 50% more electricity (thermal efficiency) per unit fuel compared to coal leading to lower overall fuel consumption for electricity generation,” explained Parti Sosialis Malaysia (PSM) central committee member Sharan Raj.
The shocking fact of coal-generated electricity: Costs
Raj pointed out that Tenaga Nasional Bhd (TNB) will reportedly import a 374 million metric tonne (MMT) of coal worth about RM150 bil, from now until 2030.
By 2020, TNB generated 66% of the Peninsula electricity demand from fully-imported coal.
“Dependency on foreign coal is a serious threat to our national economy, the Ringgit, energy security and the environment,” Raj said.
He also mentioned that even though the currently-40-year-old Kapar Energy Venture in Selangor can be shut down immediately, a termination of the newer coal power plants is not a financially viable option.
“Fuel switching from foreign coal to domestic gas is a promising option for the newer coal powerplants,” Raj opined.
Fuel switching requires replacing the coal combustion chamber with a CCGT and piped connections to the peninsula gas pipeline.
On average, new gas powerplants (CCGT) cost approximately US$550,000 per MW with gas turbines making up to 40% of the cost.
Additionally, these powerplants would require a 38km extension of the natural gas pipelines that will cost around RM500 mil to build.
According to a report from the Energy Commission (2018), the current coal powerplants are four times more prone to breakdowns compare to CCGT.
Gas also produces about half the carbon dioxide compared to coal which will lead to an overall reduction in our national greenhouse gases (GHG) by 10%.
Therefore, the Government is urged to modify coal powerplants into combined cycle gas turbine powerplant to improve our national economy. – Feb 26, 2021
