MeetingPower Demand and

Emission Standards in Malaysia

ByNoor Asihin Surani

TNB Fuel Services Sdn Bhd

Indonesia Coal Mining 201918 – 19 September 2019

Jakarta International Expo

Contents

Objective

Energy Mix

Malaysia Electricity Supply

Procurement Principle

Emission Standard in Malaysia

Conclusion

12

3

54

6

Objective

To share on Malaysia electricity outlook and challenges from Economic, Environment and Economic Prospects.

Disclaimer

All information contained herein are solely for the purpose of this presentation only and cannot be used orreferred to by any party for other purposes without prior written consent from TNB. Information containedherein is the property of TNB and it is protected and confidential information. TNB has exclusive copyright overthe information and you are prohibited from disseminating, distributing, copying, reproducing, using and /ordisclosing this information.

Malaysia

PENINSULAR

MALAYSIA

40% of land area;

80% of population.

STATES OF

SABAH & SARAWAK

60% of land area;

20% of population.

Population Max Demand Capacity Access to Electricity

18,545MW32.66 Million

April 2019

(Peninsular Malaysia)

23,867MW

March 2019 (Peninsular Malaysia)

97.6%

Q1 2019 11th Malaysia Plan2016-2020

T E N A G A N A S I O N A L B E R H A D ( T N B )

9.65 Mil l ionCustomer Base 2018

118,814 GWhElectricity sales for 2018

About Us

(Customers & Sales in Peninsular Malaysia, Sabah and Labuan)

35,574Employees TNB Group

T N B F U E L S E R V I C E S ( T N B F )

85employees

100% owned by

TNB

Currently imports about

33 mtpa of coal

TNBF’s credibility proven internationally since its inception in 1998

Expected to be the largest single buyer in the Asia Pacific region by 2020

Expected to import

coal about 40 mtpa by 2020

Business Snapshot

Electricity Demand

-

5,000

10,000

15,000

20,000

25,0002

00

6

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

MW

Electricity Demand MW (2006-2025)

Historical Forecast

202520,651 MW

200612,990 MW

201918,545 MW

Malaysia High Impact Projects

Light Rail Transit 3

East Cost Rail Link

Mass Rapid Transit 2

Bandar Malaysia

Generation Mix

Historical (1990-2016)Major Generation Projects

As at Feb 2019

Gas

Coal

Hydro

Others

ac: aggregate capacity

Coal55.90%

Solar0.03%

Gas40.13%

Hydro3.89%

Others0.05%

2018

•Partially Completed

•1,000MWac

•COD:2020

•Construction

•1,440MW

•COD: 1st July 2020

•Construction

•2,400MW

•COD:31st Dec 2021

•Unit 1 : COD 15th June 19

•Unit 2 : Construction

•2,000MW

•COD:U2: 15th

Dec 2019JimahEast

Power

Large Scale Solar

EdraProject

Southern Power

Generation (SPG)

Janamanjung4100MW

Jimah East2000MW

(Commissioned 2020)

Jimah Energy 1400MW

Kapar1600MW

Tanjung Bin3100MW

Coal Fired Power Plant

System Generation

12,200 MW

(2020)

CFPP Design with Flexibility

IndonesiaAustralia

Russia

South Africa

2019 60%

2%

25%

13%

Country Diversification

The Balanced Generation Mix (Post 2020)

Environment

Economic

Security

To provide affordable,

reliable and sustainable electricity

Economic

Coal & Renewable Energy Complements Each OtherCoal is cheapest fuel source

Th-Coal

Hyd-base

CCGT

Th-Gas

Hyd-Peak

OCGT

Average Coal PriceLNG Average Distillate Average MFO

Security

5.3

5.5

4.7

6.0

5.0

4.2

5.9

4.74.5

3.1

4.3

3.8

2.52.2

2.5

2.5

2.6

2.6

FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19

GDP Demand Growth

PPA/SLA Expiry 2019-2025 : 4,774 MW (non-coal)

OCGT10%

CCGT68%

Hydro22%

Population Growth (est 1.1%)

10,497

8845

7820

4596

2540

820

S.Korea Singapore Japan Malaysia Thailand Indonesia

kWh

/Cap

ita

GDP & Rate of Demand Growth (2011-2019)

1st Coal Fired Power Plant to be expiredon PPA is Kapar Energy Ventures (1600MW) in July 2029, followed by TNBJanamanjung (2100 MW).

Options & Construction Lead Time

Power Plant Years

Coal Fired Power Plant 4-5

Gas/Combine Cycle Power Plant 2-3

IEA Statistics © OECD/IEA 2014

2019

32.7 Million

2025

35Million

The Asean Post April 2019 , KPMG

IEA Statistics © OECD/IEA 2018

Environment

• Nuclear

• Gas

• Coal

Options for Thermal

• Gas

• Coal

Medium Term

Country Target

Malaysia 20% Gen Mix by 2025 (Revised)

Singapore 1 GW Solar post 2020

Thailand 30% Gen Mix in 2036

Vietnam 12 GW Solar, 6 GW Wind by 2030

Indonesia 23% Gen Mix by 2025

Options for Renewables

• Solar PV

• Biogas (Agri Waste)

• Biomass/Solid Waste

• Small Hydro

Medium Term

• Renewables such as solar energy will grow

significantly.

Generation Mix Projection (2019-2023)

Single Buyer, 2019

53%

42%

4%0%

61%

35%

4%1%

56%

40%

4%1%

56%

40%

4%1%

56%

39%

4%2%

0%

10%

20%

30%

40%

50%

60%

70%

Coal Gas Hydro Solar/RE

2019

2020

2021

2022

2023

LSS increases from 0.4% in

2019 to 2% in 2023

0.4%

2020 Increase – new Plant

2021 Reduce – new Gas

2020 Reduce-Coal Plant

2021 Increase – new Gas

Electricity Reforms

Electricity Reforms

The Malaysian Electricity Supply Industry (MESI) has continuously undergone reforms over the past decades

MESI 1.0

MESI 2.0

Key Objectives of Electricity

Reform

(MESI 2.0)

Green

•environmentalsustainability

Security

•of supply and reliability

of the system

Efficiency

•for lowest cost of energy

Experience

•more choice from more

competition

Shaping Electricity Industry

Life Cycle Management for Power Plant

Nurture New Product & Supplier

Risk Management

Research & Development

Embrace New Technology

TNBF Strategic Procurement Principles

Economic

Quality

Security

Environmental Quality (Clean Air) Regulations 2014

Heat and Power Generation : Boilers

Pollutant Limit Value

Sum of SO2 and SO3 expressed as SOx 500mg/m³

Sum of NO and NO2 expressed as NO2 500mg/m³

Particulate Matter, PM 50 mg/m³

Clean Coal Combustion Technology

Pulverized Fuel Firing (PFF)

Flue Gas Desulphurization (FGD)

Electrostatic Precipitator (ESP) / Fabric Filter

Low Sulphur sub-bituminous grade coal

Low NOx burners

Provision of high chimney (200 m) for exhaust gas

Crushed and ground to 75 microns

for better combustion

Exit velocity 22 m/s

With FGD – 82 oC

Without FGD – 130 oC

SO2 absorbed by sea water and oxidized

into harmless sulfate

Dust/ash trapped and collected

Sold to cement industry

4800-6500 kcal/kg,

1% Sulfur, 15% ash, 27% moisture

High efficiency burner and low

generation of NOx

Technology – Emission Control

Nox is reduced by using Low Nox Tangential Firing System (LNTFS)and Separated Over Firing Air (SOFA)

So2 is reduced by using Seawater Flue Gas Desulphurizationwhich uses the reactivity of seawater

Particular capturing is done by using Fabric filter

Low Nox Tangential Firing Systems

1

Best Practices in Clean Coal Use and Technology Innovation

at Manjung Coal Fired Power Plant

Manjung Coal Fired Power Plant

TNBJ and M5 supplies 23%of Peninsular Malaysia’s electricity demand and is currently the largest Independent Power Producer (IPP) in Malaysia

Generating Facilities in Manjung

Generating Facility 1 (GF1) /

Manjung 123Generating Facility 2 (GF2) / Manjung 4

3 x 700 MW Subcritical Coal Fired

Net Capacity : 2100 MW

Commercial Operation Date : 2005

1 X 1000 MW Ultra Super Critical (USC) Coal

Fired

Commercial Operation Date : 14th April 2015

South – East Asia’s first 1000MW USC

Total Generation Capacity : 3100MW

Generating Facilities in Manjung

Manjung 5

1 X 1000 MW USC Coal Fired

Commercial Operation Date : 28th September 2017

Energy and Economy (Heat Rate Improvement)

Steam Plant - Benefits of High Efficiency

ParameterManjung 1,2,3

(SubC)Typical SC

PlantManjung 4

(USC)

Gross unit output (MWe) 765 660 1080

Main steam pressure (bar) 175 250 270

Main /reheat steam temperature (°C) 540/540 656/565 595/603

Heat rate (kJ/kWh) improvement Base +3.5% +6.2%

Annual coal Consumption (ton/year) Base -107,800 -192,000

Annual fuel cost savings (@100$/ton/year) Base + 11M$ + 19M$

Annual C02 emission (ton/year) Base -316,000 -563,000

Efficiency increase is key to reduce fuel consumption andemissions

Emission Limit Comparisons

Parameters

CAR 1978

mg/Nm3

max.

World Bank

mg/Nm3

max.

M 1,2 &3mg/Nm3

max.

M4mg/Nm3

max.

M5mg/Nm3

max.

CAR 2014

mg/Nm3

max.

Nitrogen Oxide 1700 650 650 500 500 500

Sulfur Dioxide 3500 750 750 500 500 500

Particulates / Dust 400 50 50 50 50 50

Carbon Monoxide NA 200 200 200 200 200

Opacity 40% 20% 20% 20% 20% 20%

Emission ControlEquipment

- - ESP, FGD

Bag Filter, FGD

Bag Filter, FGD

-

1

Continuous Emission Monitoring Systems

(CEMS)

Emission parameters are being monitored on-line by DOE

Monitoring Parameters: Smoke

density/opacity Particulate/dust Sulfur DioxideNitrogen Oxide

(NO2) Carbon Monoxide

(CO)

2

Ambient Air Quality around the power

plant is monitored at three locations :

Within the compound of the power plant as example in Manjung

Sekolah MenengahTeknik Seri Manjung(3km radius)

Pejabat TNB Distribution Seri Manjung(5km radius)

3

Air Quality Monitoring System

Monitoring Parameters :

Sulfur Dioxide (SO2)Nitrogen Oxide

(NOX, NO, & NO2) Carbon Monoxide

(CO)Ozone (O3) Total Hydrocarbon PM10 & PM2.5Wind Direction,

Wind Speed, Rain Fall & Visibility Index

4

Acid Rain Monitoring

Monitoring Locations :

Sek. Men. Teknik Seri Manjung (3km Radius)

TNB Distribution Seri Manjung (5km Radius)

Stesen JanakuasaSultan Azlan Shah, Manjung

Monitoring FrequencyWeekly

Monitoring Parameter pH

Emissions Air Quality Monitoring

Conclusions

Electricity demand increases as Malaysia vision to become high-income country and developed

nation.

Significant reduction on generation supply for post 2030.

Fossil fuel (Coal & Gas) become dominant in electricity generation.

Renewable (Solar PV) will grow significantly and Flexibility in procurement strategy

Conclusions

Major reform of electricity industry

Thank you