PREPARATORY SURVEY REPORT P G E P M (PPP I P ...Malaysia PREPARATORY SURVEY REPORT FOR PHOTOVOLTAIC...

Malaysia

PREPARATORY SURVEY REPORT FOR

PHOTOVOLTAIC POWER GENERATION - ECONATION - PROJECT

IN MALAYSIA

(PPP INFRASTRUCTURE PROJECT)

(PUBLIC VERSION)

February 2016

Japan International Cooperation Agency

Panasonic Corporation NEWJEC Inc. O S

JR（先）

16-034

Table of Contents Preparatory Survey Report List of Figures and Tables / Abbreviations

- i - Preparatory Survey on Econation Solar Project

in Northern States of Malaysia

Table of Contents

Chapter 1 Socio-economic Conditions in Malaysia and Northern States Socio-economic Status of Malaysia ............................................................................... 1 - 1

1.1.1 Population ......................................................................................................... 1 - 1 1.1.2 Economy ........................................................................................................... 1 - 1 1.1.3 National Development Policy ........................................................................... 1 - 4

Northern States and NCIA ............................................................................................. 1 - 9 1.2.1 Outline of Northern States (from NCIA's Brochure) ........................................ 1 - 10 1.2.2 Socio-economic Status of Northern States ........................................................ 1 - 10 1.2.3 Northern Corridor Implementation Authority (NCIA) ..................................... 1 - 15

Brief history of the Project ............................................................................................. 1 - 16 1.3.1 Activities of Panasonic Group in Malaysia ....................................................... 1 - 16 1.3.2 Evolution of the Project .................................................................................... 1 - 17

Chapter 2 Power Sector and Use of Renewable Energy in Malaysia 2.1 Power Sector Policy ....................................................................................................... 2 - 1

Energy Policy .................................................................................................... 2 - 1 Electricity Policy ............................................................................................... 2 - 2

2.2 Organizations of Electricity Sector ................................................................................ 2 - 2 Administrative Bodies....................................................................................... 2 - 2 Private Companies ............................................................................................ 2 - 4 Private Initiative in Electricity Sector ............................................................... 2 - 5

2.3 Power Market in Peninsular Malaysia ........................................................................... 2 - 11 Current Situation of Power Market ................................................................... 2 - 11

2.4 Promotion of Renewable Energy and Feed-in-Tariff ..................................................... 2 - 16 Government Policy on Use of Renewable Energy ............................................ 2 - 16 Feed-in-tariff (FIT) Measure ............................................................................. 2 - 18 New Framework to Promote PV Generation Development .............................. 2 - 21

Chapter 3 Project Formation 3.1 Project Background and its Necessity ............................................................................ 3 - 1

3.1.1 Local Development Issues and Necessity of Business...................................... 3 - 1 3.1.2 Project Overview and Basic Scope ................................................................... 3 - 1 3.1.3 Expected Business Effect .................................................................................. 3 - 2

3.2 Site Selection.................................................................................................................. 3 - 2 3.2.1 Site Selection Policy ......................................................................................... 3 - 2 3.2.2 Site Selection Process ....................................................................................... 3 - 2

3.3 Project Formation based of PPP ..................................................................................... 3 - 4 3.3.1 Special Purpose Company (SPC) as a main player of the project .................... 3 - 4 3.3.2 Operation and Maintenance Organization ........................................................ 3 - 4 3.3.3 Econation Sub Committee ................................................................................ 3 - 5 3.3.4 Facility after 25 Years of the Project Period ..................................................... 3 - 5

Table of Contents List of Figures and Tables / Abbreviations Preparatory Survey Report

Preparatory Survey on Econation Solar Project - ii - in Northern States of Malaysia

Chapter 4 Outline Design and Project Cost 4.1 Site and Capacity of Solar Farm..................................................................................... 4 - 1

4.1.1 Acquisition Process for the Land (Business Site) ............................................. 4 - 1 4.1.2 System Size Study ............................................................................................. 4 - 1 4.1.3 Installation Site .................................................................................................. 4 - 2 4.1.4 Characteristic of the Surrounding Area ............................................................. 4 - 3 4.1.5 Necessity of Site Preparation Work .................................................................. 4 - 3

4.2 Outline Design................................................................................................................ 4 - 4 4.2.1 Outline Design of Power Generation Equipment and related Equipment ......... 4 - 4 4.2.2 Estimate of Power Generation Amount............................................................. 4 - 8 4.2.3 Grid Interconnection ......................................................................................... 4 - 12 4.2.4 Transmission Line Equipment .......................................................................... 4 - 18 4.2.5 Construction Plan .............................................................................................. 4 - 24

Chapter 5 Project Scheme and Financing of the Project 5.1 Business Scheme ............................................................................................................ 5 - 1

Chapter 6 Environmental and Social Consideration Overview of the Project Component that causes Environmental and Social Impacts .... 6 - 1

6.1.1 Project Site ........................................................................................................ 6 - 1 6.1.2 Project Outline .................................................................................................. 6 - 1 6.1.3 Installation Work Plan ....................................................................................... 6 - 7

Environmental and Social Baseline ................................................................................ 6 - 8 6.2.1 Natural Environment ......................................................................................... 6 - 8 6.2.2 Social Environment ........................................................................................... 6 - 16

System and Organization related to Environmental and Social Consideration in Malaysia ..................................................................................................................... 6 - 21 6.3.1 Legal Framework related to Environmental and Social Consideration ............. 6 - 21 6.3.2 Organization related to Environmental and Social Consideration .................... 6 - 21 6.3.3 EIA System in Malaysia .................................................................................... 6 - 22

Comparative Study on Alternatives ............................................................................... 6 - 24 6.4.1 Comparison of Site Location ............................................................................. 6 - 24 6.4.2 Zero Option ....................................................................................................... 6 - 24

Scoping and TOR of Environmental and Social Consideration Study ........................... 6 - 25 6.5.1 Scoping .............................................................................................................. 6 - 25 6.5.2 TOR ................................................................................................................... 6 - 26 6.5.3 Methods of Site Survey ..................................................................................... 6 - 27

Result of Environmental and Social Consideration Survey ........................................... 6 - 28 Environmental Impact Assessment ................................................................................ 6 - 31 Mitigation Measures and Cost ........................................................................................ 6 - 33

6.8.1 Mitigation Measures .......................................................................................... 6 - 33 6.8.2 Cost for Mitigation Measures ............................................................................ 6 - 33

Monitoring Plan.............................................................................................................. 6 - 33 6.9.1 Implementing Organization ............................................................................... 6 - 33 6.9.2 Monitoring Plan ................................................................................................ 6 - 34

Stakeholder Meeting ...................................................................................................... 6 - 35 6.10.1 Attendance ......................................................................................................... 6 - 35 6.10.2 Jabatan Kerja Raya – Public Works Department, Subject of Discussion ......... 6 - 35


- iii - Preparatory Survey on Econation Solar Project


Chapter 7 Project Execution Plan Schedule ......................................................................................................................... 7 - 1 Construction Schedule of Solar Power Plant ................................................................. 7 - 1

Appendices Appendix 1 Memorandum of Understanding between the Northern Corridor Implementation

Authority and Panasonic Eco Solutions (M) Sdn. Bhd. Appendix 2 Sample of License for Generation and Supply of Electricity Appendix 3 Topographic Map of the Site Appendix 4 Specifications of Photovoltaic Module Appendix 5 PSS Report Appendix 6 Minutes of the Stakeholder Meeting Appendix 7 Monitoring Form Appendix 8 Environmental Checklists


Preparatory Survey on Econation Solar Project - iv - in Northern States of Malaysia

List of Figures Figure 1-1 Population of Malaysia ............................................................................................. 1 - 1 Figure 1-2 Malaysia's GDP Growth and Per Capita GDP .......................................................... 1 - 2 Figure 1-3 Malaysia's GDP Growth by Sectors .......................................................................... 1 - 2 Figure 1-4 Malaysia's Export/Import Values (nominal) .............................................................. 1 - 3 Figure 1-5 Components of Malaysia's Export (nominal) ............................................................ 1 - 3 Figure 1-6 Productions of Crude Oil and Natural Gas in Malaysia ............................................ 1 - 4 Figure 1-7 Malaysia's National Development Planning Framework .......................................... 1 - 4 Figure 1-8 Generation Mix Target in 11MP ................................................................................ 1 - 6 Figure 1-9 Renewable Energy Development Plan in 11MP ....................................................... 1 - 7 Figure 1-10 Target of Increase of Reliability of Electricity in 11MP ........................................... 1 - 7 Figure 1-11 Economic Corridors in National Development Plan ................................................. 1 - 9 Figure 1-12 Comparison of State Population, 2000 and 2010 ...................................................... 1 - 11 Figure 1-13 Change of GDP by State ........................................................................................... 1 - 12 Figure 1-14 GDP per capita by State [2014] ................................................................................. 1 - 13 Figure 1-15 Four State GDP by Sector ......................................................................................... 1 - 14 Figure 1-16 Organization Structure of NCIA ............................................................................... 1 - 15 Figure 1-17 Geographical Linkages of Major Economic Activities in Northern Corridor ........... 1 - 16 Figure 1-18 Locations of Malaysian Companies under Panasonic Group .................................... 1 - 17 Figure 2-1 Vertical Structure of Energy Supply Industry ........................................................... 2 - 5 Figure 2-2 Application Process for Power Sector Business License .......................................... 2 - 6 Figure 2-3 Power Infrastructure of Peninsular Malaysia ............................................................ 2 - 12 Figure 2-4 Primary Energy Mix in Peninsular Malaysia ............................................................ 2 - 14 Figure 2-5 Change of Energy Sales by Customer Category ....................................................... 2 - 15 Figure 2-6 Change of Tariff by Customer Category ................................................................... 2 - 15 Figure 2-7 Target Capacity of Renewable Energy Development ............................................... 2 - 17 Figure 3-1 Locations of Proposed Candidate Sites ..................................................................... 3 - 3 Figure 4-1 Location of Perlis Site ............................................................................................... 4 - 2 Figure 4-2 Current Status of Project Site .................................................................................... 4 - 3 Figure 4-3 Topographic Map of the Site ..................................................................................... 4 - 4 Figure 4-4 Solar Radiation Distribution in Malaysia .................................................................. 4 - 9 Figure 4-5 Estimation of Monthly Energy Generated ................................................................ 4 - 10 Figure 4-6 Probability Distribution of Annual Generated Energy .............................................. 4 - 10 Figure 4-7 Key Map with Nearest TNB Substation Location .................................................... 4 - 14 Figure 4-8 Kangar Substation ..................................................................................................... 4 - 14 Figure 4-9 Single Line Diagram for Grid Connection between PV Plant

and Kangar Substation .............................................................................................. 4 - 15 Figure 4-10 Calculation Method of Inductance and Reactance of Transmission Line ................. 4 - 16 Figure 4-11 Variability of Load at Kangar Substation .................................................................. 4 - 17 Figure 4-12 Transmission Route ................................................................................................... 4 - 20


- v - Preparatory Survey on Econation Solar Project


Figure 4-13 33kV Transmission Underground (UG) Segment (Part 1) ........................................ 4 - 21 Figure 4-14 33kV Transmission Underground (UG) Segment (Part 2) ........................................ 4 - 22 Figure 4-15 Location of PV Module Production Site and Power Plant Site ................................ 4 - 27 Figure 6-1 Project Site Location ................................................................................................. 6 - 1 Figure 6-2 Conceptual Design of the System ............................................................................. 6 - 2 Figure 6-3 Components along the Transmission Line ................................................................ 6 - 4 Figure 6-4 Detailed Transmission Line Route (1) ...................................................................... 6 - 5 Figure 6-5 Detailed Transmission Line Route (2) ...................................................................... 6 - 6 Figure 6-6 Distance from Chuping Meteorological Station to the Project Site .......................... 6 - 8 Figure 6-7 Average Monthly Rainfall over 11 Years Period (2003 to 2013) .............................. 6 - 9 Figure 6-8 Average 24-hour Mean Temperature from Year 2003 to 2013 ................................. 6 - 10 Figure 6-9 Wind Rose Summary of Chuping from Year 2003 to 2013 ...................................... 6 - 10 Figure 6-10 Geological Map of Peninsular Malaysia ................................................................... 6 - 12 Figure 6-11 Soil Type Map of Perlis ............................................................................................ 6 - 13 Figure 6-12 Protected Area Map .................................................................................................. 6 - 14 Figure 6-13 Forest Type Map ....................................................................................................... 6 - 15 Figure 6-14 Distance from Project Site to Timah-Tasoh Dam ..................................................... 6 - 15 Figure 6-15 Project Site Location within the Perlis State ............................................................. 6 - 17 Figure 6-16 Project Site and the 3km Radius Surrounding .......................................................... 6 - 19 Figure 6-17 Current Site ............................................................................................................... 6 - 20 Figure 6-18 EIA Procedure in Malaysia ....................................................................................... 6 - 23 Figure 6-19 Location of Measurement Sites for Air and Water Quality, Noise Level.................. 6 - 28 Figure 6-20 Stakeholder Meeting on 6th August, 2015 ................................................................ 6 - 36


Preparatory Survey on Econation Solar Project - vi - in Northern States of Malaysia

List of Tables Table 1-1 Proportions of Population of Northern Four States ................................................... 1 - 11 Table 1-2 Proportions of GDP of Northern Four States ............................................................ 1 - 12 Table 1-3 Malaysian Companies owned by Panasonic Group .................................................. 1 - 16 Table 2-1 Type of Licenses in Power Sector Businesses .......................................................... 2 - 6 Table 2-2 IPP Operator's Generation Type, Capacity, Generated Energy [2014] ...................... 2 - 8 Table 2-3 Issues PPAs in the Past and Improvements Made ..................................................... 2 - 10 Table 2-4 Energy Balance in Peninsular Malaysia .................................................................... 2 - 13 Table 2-5 Generation Capacity in Peninsular Malaysia [2013]................................................. 2 - 13 Table 2-6 Primary Energy Mix in Peninsular Malaysia ............................................................ 2 - 13 Table 2-7 Number of Customers of Electricity in Peninsular Malaysia .................................... 2 - 14 Table 2-8 Energy Sales by Customer Category in Peninsular Malaysia ................................... 2 - 14 Table 2-9 Average Selling Price of Energy of TNB .................................................................. 2 - 15 Table 2-10 Electricity Demand Forecast for Peninsular Malaysia .............................................. 2 - 16 Table 2-11 Change of FIT Tariff for PV Power Generation [RM per kWh] ............................... 2 - 19 Table 2-12 Capacity of Renewable Plant based on FIT Measure [as of Jan. 2016] .................... 2 - 19 Table 2-13 Generated Energy of Renewable Plant based on FIT Measure [as of Jan. 2016] ..... 2 - 19 Table 2-14 Reduction of CO2 Emission due to Renewable Plant based on FIT Measure

[Jan. 2016] ................................................................................................................. 2 - 20 Table 2-15 FIT-Applicable Capacity Quota of Renewable Energy [Jan. 2016] .......................... 2 - 21 Table 3-1 Proposal on Candidate Sites by Four States .............................................................. 3 - 2 Table 3-2 Results of Site Reconnaissance ................................................................................. 3 - 3 Table 3-3 Possible Substations for Interconnection and Their Conditions ............................... 3 - 3 Table 4-1 Possible Substations for Chuping Valley (Perlis) Project (Detail) ............................ 4 - 1 Table 4-2 List of Major Equipment ........................................................................................... 4 - 7 Table 4-3 Certification of the Model of PV Module ................................................................. 4 - 7 Table 4-4 Solar Radiation in Malaysian Cities .......................................................................... 4 - 8 Table 4-5 Monthly Radiation, Temperature and Estimated Generated Energy ......................... 4 - 11 Table 4-6 Monthly Radiation, Temperature and Estimated Generated Energy

for NASA-SSE .......................................................................................................... 4 - 11 Table 4-7 Candidate Substations and Their Outlines ................................................................ 4 - 13 Table 4-8 Power Loss and Voltage Drop due to Transmission .................................................. 4 - 15 Table 4-9 Inductance and Reactance of Transmission Cable .................................................... 4 - 16 Table 4-10 Selection of Cable for Transmission Line ................................................................. 4 - 17 Table 4-11 33kV Overhead Line Equipment............................................................................... 4 - 19 Table 4-12 33kV Underground Line Equipment ......................................................................... 4 - 19 Table 4-13 Voltage Drop ............................................................................................................. 4 - 23 Table 4-14 Concrete Poles ........................................................................................................... 4 - 23 Table 4-15 33kV Overhead Line OC-W 150mm2 ....................................................................... 4 - 23 Table 4-16 33kV Underground Line CVT 200mm2 .................................................................... 4 - 23


- vii - Preparatory Survey on Econation Solar Project


Table 4-17 33kV Overhead Ground Line AW 25mm2 ................................................................ 4 - 23 Table 4-18 33kV Overhead Line Insulator .................................................................................. 4 - 24 Table 4-19 33kV Transmission Line Construction Schedule ...................................................... 4 - 24 Table 4-20 Installation Work Schedule ....................................................................................... 4 - 25 Table 6-1 System Overview ...................................................................................................... 6 - 1 Table 6-2 33kV Overhead Line Equipment .............................................................................. 6 - 3 Table 6-3 33kV Underground Line Equipment ......................................................................... 6 - 3 Table 6-4 Installation Work Schedule ....................................................................................... 6 - 7 Table 6-5 Summary of Meteorological Data (2003-2013) ........................................................ 6 - 9 Table 6-6 Percentage Frequencies of Occurrence for Concurrent Wind Direction (degrees)

and Speed (m/s) within Specified Ranges (%).......................................................... 6 - 11 Table 6-7 Record for Maximum Surface Wind Speed from the Year 2003 to 2013 ................. 6 - 11 Table 6-8 Population of Perlis state, Sub-district of Chuping, 2010 ......................................... 6 - 18 Table 6-9 Ethnic Composition of Perlis state, Sub-district of Chuping, 2010 .......................... 6 - 18 Table 6-10 Land Use Surrounding the Proposed Site ................................................................. 6 - 19 Table 6-11 Laws and Regulations ............................................................................................... 6 - 21 Table 6-12 Organizations of the MONRE .................................................................................. 6 - 22 Table 6-13 Comparison with Site Location ................................................................................ 6 - 24 Table 6-14 Scoping ..................................................................................................................... 6 - 25 Table 6-15 TOR .......................................................................................................................... 6 - 27 Table 6-16 Measurement Items and Sites for Air and Water Quality, Noise Level .................... 6 - 27 Table 6-17 Result of the Environmental and Social Consideration Survey ................................ 6 - 28 Table 6-18 Environmental Impact Assessment ........................................................................... 6 - 32 Table 6-19 Mitigation Measure ................................................................................................... 6 - 33 Table 6-20 Environmental Management Responsibilities .......................................................... 6 - 34 Table 6-21 Monitoring Plan ........................................................................................................ 6 - 34 Table 6-22 Main Opinions from Stakeholders ............................................................................ 6 - 35


Preparatory Survey on Econation Solar Project - viii - in Northern States of Malaysia

Abbreviations

DL Distribution Licensee DSCR Debt Service Coverage Ratio EC Energy Commission EPC Engineering Procurement Construction EPU Economic Planning Unit EqIRR Equity Internal Rate of Return EXCO Executive Committee FIT Feed In Tariff IPP Independent Power Producer IRR Internal Rate of Return KeTTHA Kementerian Tenaga, Teknologi Hijau dan Air LLCR Loan Life Coverage Ratio MIDA Malaysian Industrial Development Authority MP Malaysia Plan NCIA Northern Corridor Implementation Authority NEM Net Energy Metering O&M Operation and Maintenance PESMY Panasonic Eco Solutions Malaysia Sdn. Bhd. PPA Power Purchase Agreement PPP Public Private Partnership PSS Power System Study PV Photovoltaic RE Renewable Energy RM Malaysia Ringgit SEDA Sustainable Energy Development Authority SPC Special Purpose Company ST Suruhanjaya Tenaga TNB Tenaga Nasional Berhad UPEN Unit Perancan Ekonomi Negeri USS Utility Scale Solar

Chapter 1 Preparatory Survey Report Socio-economic Conditions in Malaysia and Northern States

- Preparatory Survey on Econation Solar Project in Northern States of Malaysia

CHAPTER 1

SOCIO-ECONOMIC CONDITIONS IN MALAYSIA AND NORTHERN STATES


1 - 1 Preparatory Survey on Econation Solar Project in Northern States of Malaysia

Chapter 1 SOCIO-ECONOMIC CONDITIONS IN MALAYSIA AND NORTHERN STATES

Socio-economic Status of Malaysia

Federation of Malaya became independent after WWII in 1957. In 1963 it became Malaysia with Sabah, Sarawak and Singapore. Singapore later departed to be a sovereign state in 1965.

1.1.1 Population

Population in Malaysia was around 10 million in 1965 when it became independent. Since then it has grown three folds into 30 million in 2013. The growth rate of population is slightly falling, from 2% plus to less than 2 % in the 2000s.

Source: Malaysia EPU

Figure 1-1 Population of Malaysia

Major ethnicity components are approximately; Malay 60%, Chinese 20%, and Indian 10%. The comparison between the surveys in 2000 and 2010 shows that the proportion of Malay has been slightly increasing.

1.1.2 Economy

Time series of GDP since 2000 (2005 base real value) and GDP per capita of Malaysia are shown in the figure below. Except for the period of World Financial Crisis in 2008 - 2009, GDP continuously grew at a rate around 5 to 6% p.a.

In sector GDP, Manufacturing has the largest proportion at 25 %, followed by Financial Services 16%, Commercial and Services 15%, Transport and Communication 7.5%. The growth of GDP is mostly led by Commercial and Services, and Financial Services while the largest Manufacturing sector growing at a lower rate.

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Chapter 1 Socio-economic Conditions in Malaysia and Northern States Preparatory Survey Report

Preparatory Survey on Econation Solar Project 1 - 2 in Northern States of Malaysia

Source: Department of Statistics, Malaysia

Figure 1-2 Malaysia's GDP Growth and Per Capita GDP


Figure 1-3 Malaysia's GDP Growth by Sectors

Malaysian economy has characteristically high export/import values in comparison with GDP. As shown in the figure below, current account has been continuously positive with the volume of export as large as the GDP.

The largest export items are Machineries and Transport Equipment, whose growth, however, did not keep up with the growth of other items. Meanwhile, the export of Mineral Fuels and Lubricants and other Manufactured Goods have been growing rapidly.

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Figure 1-4 Malaysia's Export/Import Values (nominal)


Figure 1-5 Components of Malaysia's Export (nominal)

As seen in the above figures, the export of crude oil and natural gas, which are primary sources of power generation in many countries, is not very large in proportion. The production volumes of crude oil and natural gas are shown in the figure below. The growth of production of crude oil peaked out at around 1990, and turned downward in mid 2000s. Meanwhile the production of natural gas developed rapidly since the 1980s. It is still growing although the pace has slowed down around in 2005.

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Figure 1-6 Productions of Crude Oil and Natural Gas in Malaysia

1.1.3 National Development Policy

Malaysia's national development policy consists of three layers, local, regional/state, and national levels from the bottom, to realize the future depicted in VISION 2020.

Source: The Second National Physical Plan

Figure 1-7 Malaysia's National Development Planning Framework

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(1) VISION 2020

VISION2020 is a statement on the national development vision made by the President then, Dr. Mahathir in 1991. It advocated Malaysia to be a fully developed advanced nation with all dimensions; economically, politically, socially, spiritually, psychologically and culturally. There were nine elements pointed out which would be building components to realize this vision, as follows;

1) Nationals integrated with an emotion that they share a destiny, 2) Malaysian society well-developed, psychologically liberal and confident, 3) Matured democratic Society, 4) Society with morality and ethics, 5) Matured, liberal and tolerant society 6) Scientific and progressive society, 7) Considerate society and helpful culture 8) Society with economic justice 9) Society with prosperity

(2) National Plan - The Eleventh Malaysia Plan

Malaysia Plan is a national development policy formulated every five years. The latest Malaysia Plan was published in 2015 as The Eleventh Malaysia Plan (11MP). The plan covers the last five year period toward the target year of VISION 2020, confirming the nation's intention to become a fully developed advanced nation with all dimensions; economically, politically, socially, spiritually, psychologically and culturally. Malaysian National Development Strategy, MyNDS is currently under planning in line with 11MP, and the government is discussing such policy issues as the optimal usage of limited resources, focuses on high-impact projects at low cost including efficient yet rapid implementation, making Budget 2016 the start to the final five years of Malaysia’s progress to a high-income advanced economy by 2020.

11MP summarizes the national development plans since 1970s as below;

New Economic Policy 1971-1990 focused on poverty eradication irrespective of ethnicity and eliminating identification of ethnicity by economic function,

National Development Policy, 1991-2000 focused on ensuring the balanced development of major sectors of the economy and regions, as well as reducing socio-economic inequalities across communities,

National Vision Policy, 2001-2010 focused on building a resilient and competitive nation,

National Transformation Policy, 2011-2020 maintains the people-centric focus through the New Economic Model, which sets the goal of becoming a high-income economy that is both inclusive and sustainable.

11MP also sets six strategic pillars as shown below;

- Pillar1: Enhancing inclusiveness towards an equitable society - Pillar2: Improving wellbeing for all - Pillar3: Accelerating human capital development for an advanced nation



- Pillar4: Pursuing green growth for sustainability and resilience - Pillar5: Strengthening infrastructure to support economic expansion - Pillar6: Re-engineering economic growth for greater prosperity

Energy related strategies are included in Pillar 4 and Pillar 5. Pillar 4 covers adaptations and mitigations of climate change, the latter of which announces the goal of 40% reduction of carbon dioxide emission intensity, and the expansion of renewable power production capacity up to 2,080MW in 2020.

Source: 11th Malaysia Plan, EPU Malaysia

Figure 1-8 Generation Mix Target in 11MP

According to the figure below, the strategies put emphasis on the expansion of biomass, biogas, mini-hydro and solid waste while PV expansion target is set at modest 30MW in 6 years.



Source: 11th Malaysia Plan, EPU Malaysia

Figure 1-9 Renewable Energy Development Plan in 11MP

Pillar 5 proposes the strengthening of stakeholder cooperation in energy sector, including advancement of emission control at power stations, renewable energy power generation. It also stresses the importance of power supply security, referring to the possibility of nuclear power development and ultra-high voltage power network expansion.

Figure 1-10 Target of Increase of Reliability of Electricity in 11MP



(3) National Physical Plan 2 (Ministry of Housing and Local Government)

National Physical Plan is placed between Malaysia Plan and sectoral policies/plans, and depicts geography-specific plans such as the land use and spatial development. The first edition of the plan was formulated in 2005, and the second in 2010. The purpose of National Physical Plan is to make the ideas proposed in VISION 2020 more concrete, and prepare necessary quality and efficient environment in cities, towns and rural areas.

The goal of National Physical Plan 2 is set as below,

The establishment of an efficient, equitable and sustainable national spatial framework to guide the overall development of the country towards achieving a developed and high-income nation status by 2020.

And there are five objectives arising from the goal,

i. To rationalise and consolidate the national spatial planning framework supported by key strategic infrastructure for economic efficiency and global competitiveness.

ii. To optimise utilisation of land and natural resources for sustainable development and biodiversity conservation.

iii. To promote more balanced regional development for national economic integration and social unity.

iv. To enhance spatial and environmental quality, diversity and safety for a high quality of life and liveability.

v. To facilitate efficient integrated inter-state connectivity and public common users’ space provision for social interaction and sustainable communities in line with the 1 Malaysia concept.

Concerning the electricity sector directly related to this project, the following matters were discussed in National Physical Plan 2,

- To meet the electricity demand growth, more new efficient power plants will be built and proposed to be located at the peripheries of the main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan.

- In line with the national aspirations of green energy, more hydro power plants will be constructed to reduce the use of fossil fuels.

- The steady growth in demand will require the transmission and distribution of electricity being strengthened to improve the adequacy and reliability of supply. 500kV and 275kV transmission will form the backbone of transferring large amounts of power from the power plants to the load centres in Peninsular Malaysia,

- Cross-border power interconnections with neighbouring ASEAN countries have been in place since 1981 and today the power systems of Peninsular Malaysia, Singapore and Thailand are interconnected to enable exchange of power. The high voltage direct current (HVDC) transmission links between Peninsular Malaysia and Sarawak and also between Peninsular Malaysia and Sumatra will ultimately pave the way for the establishment of the ASEAN power grid.



Northern States and NCIA

The subject areas for this study where the solar power plant(s) will be located is the northern four states of Malaysia, called Northern Corridor of Koridor Utara in Malay, covering four states, Perlis, Kedah, Penang (Pulau Pinang), Perak (northern part only). It includes 21 administrative districts and is 17,816 km2 in area.

Source: The Second National Physical Plan

Figure 1-11 Economic Corridors in National Development Plan



1.2.1 Outline of Northern States (from NCIA's Brochure)

(1) Perlis State

Perlis is the smallest state in Malaysia. It lies in the northern part of the west coast of Peninsular Malaysia, and has the Satun and Songkhla provinces of Thailand on its northern border. The capital of Perlis is Kangar, while the royal capital is Arau. Another important town is Padang Besar, at the Malaysian-Thailand border. The main port is the small village of Kuala Perlis, linking mostly to Langkawi Island.

(2) Kedah State

The state of Kedah is located in the northwestern part of Peninsular Malaysia, and covers a total area of 9,425 square kilometers, including the island of Langkawi. It consists mostly of flat rice growing areas, and was called Syburi by the Siamese when it was under their influence.

(3) Penang (Pulau Pinang) State

Penang is located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is the second smallest state in Malaysia after Perlis. Penang, known as “Pearl of the Orient” to many people, is one of the famous islands in South-East Asia. It is renowned for its culture, food and heritage. In order to preserve the heritage of Penang, modern structures are built surrounding these pre-war buildings. Some of these structures are built more than 100 years ago. Penang was formally inscribed as a UNESCO World Heritage Site on 7th July 2008.

(4) Perak State

Perak is the second largest state in Peninsular Malaysia, bordering Kedah and the Yala Province of Thailand. Ipoh, the state capital of Perak, is known historically for its rich tin-mining activities until the drop of tin prices, which had severely affected the state economy. The royal capital is set in Kuala Kangsar, where the palace of the Sultan of Perak is located.

1.2.2 Socio-economic Status of Northern States

(1) Population

In the statistical system of Malaysia the territory is divided into 13 states and two Federal Territories. The populations of these states and Federal Territories in the years 2000 and 2010 are compared in the figure below. Perlis is the smallest in population among 13 states.




Figure 1-12 Comparison of State Population, 2000 and 2010

The proportions of the northern four states to the national populations are tabulated below. In Perlis and Kedah the proportions remain the same for two periods, but in Penang and Perak they show a slight decline.

Table 1-1 Proportions of Population of Northern Four States

Perlis Kedah Pulau Pinang Perak 4 states

2000 0.9% 7.3% 5.8% 9.2% 23.2%

2010 0.9% 7.3% 5.7% 8.7% 22.5% Source: Study Team edited using Department of Statistics material

(2) Production

The change of GDP by state, and the proportions of four state GDP to the national figures are shown in Figure 1-13 and Table 1-2. The four state GDPs seem to have been moving with other states. However, the proportion figures reveal that the recovery from 2008-2009 World Financial Crisis was a little slower in the four states than the national average.

0

1,000

2,000

3,000

4,000

5,000

6,000

Perlis

Keda

h

Pulau

Pina

ng

Pera

k

Selan

gor

W.P

. Kua

la Lu

mpur

Nege

ri Sem

bilan

Joho

r

Paha

ng

Tere

ngga

nu

Kelan

tan

Sara

wak

Saba

h

W.P

. Lab

uan

Pup

ulat

ion

(1,0

00)

2000

2010




Figure 1-13 Change of GDP by State

Table 1-2 Proportions of GDP of Northern Four States

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Perlis 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.4% Kedah 3.3% 3.4% 3.4% 3.3% 3.3% 3.3% 3.3% 3.4% 3.4% 3.4% Pulau Pinang 7.2% 7.6% 7.6% 7.6% 6.9% 7.1% 7.0% 7.0% 7.0% 7.1% Perak 5.1% 5.2% 5.1% 5.2% 5.2% 5.1% 5.2% 5.3% 5.3% 5.3% 4 states 16.1% 16.6% 16.6% 16.6% 16.0% 16.0% 16.1% 16.1% 16.1% 16.2%


GDP per capita by state is shown in Figure 1-14 below. Penang State was placed in the fourth, while Perak in the eleventh, Perlis the thirteenth, and Kedah in the Fourteenth.

-

100

200

300

400

500

600

700

800

900

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GD

P [R

M b

illion

, 200

5 co

nsta

nt p

rice]

Supra

WP Labuan

Sabah

Sarawak

Melaka

Kelantan

Terengganu

Pahang

Johor

Negeri Sembilan

WP Kuala Lumpur

Selangor

Perak

Pulau Pinang

Kedah

Perlis



Source: Malaysia Department of Statistics

Figure 1-14 GDP per capita by State [2014]

Next, GDP by industry for four states are shown in Figure 1-15.

Perlis has the largest proportion of agriculture among four states, and the lowest manufacturing. The largest sector is services and the growth of state GDP for the past decade depended mostly on the services sector.

Kedah State has a similar structure of industry composition of GDP as Perak, while the manufacturing is larger and the services smaller than in Perak. GDP growth is again supported by services sector, with manufacturing growing at a slower pace.

Penang State GDP characteristically consists entirely of manufacturing and services. Manufacturing seems not to have recovered entirely after World Financial Crisis in 2009, while services sector increased the growth rate thereafter.

Perak State has a similar structure as Kedah, with smaller manufacturing and larger services sectors in comparison. Like other states, growth is slower in manufacturing and faster in services.

020406080

100

Perlis

Keda

h

Pulau

Pina

ng

Pera

k

Selan

gor

WP

Kuala

Lump

ur

Nege

ri Sem

bilan

Joho

r

Paha

ng

Tere

ngga

nu

Kelan

tan

Melak

a

Sara

wak

Saba

h

WP

Labu

an

GDP

per C

apita

[100

0 RM]




Figure 1-15 Four State GDP by Sector

0500

1,0001,5002,0002,5003,0003,5004,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP

[RM

millio

n, 20

05 C

.Pric

e]

• Plus : Import Duties

• Services

• Construction

• Manufacturing

• Mining and Quarrying

• Agriculture

0

5,000

10,000

15,000

20,000

25,000

30,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP

[RM

millio

n, 20

05 C

. Pric

e]

Plus : Import Duties

Services

Construction

Manufacturing

Mining and Quarrying

Agriculture

0

10,000

20,000

30,000

40,000

50,000

60,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP

[RM

millio

n, 20

05 C

.Pric

e]

Plus : Import Duties

Services

Construction

Manufacturing

Mining and Quarrying

Agriculture

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP

[RM

millio

n, 20

05 C

.Pric

e]

• Plus : Import Duties

• Services

• Construction

• Manufacturing

• Mining and Quarrying

• Agriculture

Perlis

Kedah

Pulau Pinang

Perak



1.2.3 Northern Corridor Implementation Authority (NCIA)

The Northern Corridor Implementation Authority (NCIA) was established under the Northern Corridor Implementation Authority Act 2008 (Act 687) as the authority responsible for providing direction and for devising policies and strategies in relation to socio-economic development in the Northern Corridor Economic Region (Koridor Utara), which encompasses 21 districts in northern Peninsular Malaysia in the states of Kedah, Perak, Perlis and Penang.

The objectives of the Northern Corridor Implementation Authority are:

• To promote and accelerate the development of the Koridor Utara into a world-class economic region and a choice destination for investment, work and living; and

• To ensure that social development and sustainable development are kept as priorities whilst driving economic growth in the Koridor Utara.

NCIA's organization structure is illustrated below.

Figure 1-16 Organization Structure of NCIA

NCIA's income comes from support from the federal government, grant and the management of fund, and its expenses go to projects that support four key sectors and education and human capital development activities. In 2013, NCIA spent RM 81 million for Manufacturing Sector (R&D support in biotechnologies, solar technologies, etc.), RM 25 million in Agriculture Sector (development of seeds, greenhouses, etc.) and RM 22 million in education and human capital development (training programs in agriculture, health services, tourism, car-manufacturing, etc.).

Council

Chief Executive

Agriculture Manufacturing Tourism & Logistics

Marketing & Investor

Relations

Corporate Services

Education & Human Capital



Source: Northern Corridor Economic Region Socioeconomic Blueprint, NCIA

Figure 1-17 Geographical Linkages of Major Economic Activities in Northern Corridor

Brief history of the Project

1.3.1 Activities of Panasonic Group in Malaysia

Panasonic Corporation started its investment activities in Malaysia as early as 1965. In 1970, it opened its first Malaysian company, Matsushita Electric Malaysia. Since then, it has developed manufacturing and sales bases and today, owns 20 companies as shown in Table 1-3.

In the northern states, multiple business bases have been established as shown in the figure below.

Table 1-3 Malaysian Companies owned by Panasonic Group

Type of Business Number of companies

Manufacturing Sales Research & Development Logistics/Trade Finance Insurance Management Engineering

10 4 1 1 1 1 1 1

total 20



Figure 1-18 Locations of Malaysian Companies under Panasonic Group

1.3.2 Evolution of the Project

Panasonic has developed a relationship with NCIA along with efforts to contribute to the regional societies according to its company motto. In particular in 2013 it opened a new factory in Kedah, which gave it a focus in the northern states. The discussion with NCIA started with such an idea as providing low-income households with a solar generation system and financial scheme in a package, using Panasonic's locally manufactured solar modules.

At the same time, one of group companies of Panasonic Corporation was undertaking EPC contract works for solar generation projects with a few MW size. These two were eventually merged to become a plan to build MW-class solar power stations in northern states.

NCIA and Panasonic in collaboration further developed the plan in October 2013 into a scheme illustrated as; the projects

- have objectives which is not to seek for short-term financial profit, but mid- to long term regional benefit,

- to construct and operate solar farms in northern states with public and private funds,

- to utilize its financial surplus to such projects and activities as environmental protection,

Panasonic Manufacturing Malaysia Panasonic AVC Networks Kuala Lumpur Malaysia Panasonic Appliances Air-Conditioning Malaysia Panasonic Industrial Devices Malaysia Panasonic Malaysia Panasonic System Engineering Malaysia Panasonic Industrial Devices Sales Malaysia PanaHome Malaysia Panasonic Appliances Air-Conditioning R&D MY Panasonic Procurement Malaysia Panasonic Financial Center Malaysia Panasonic Insurance Services Malaysia Panasonic Management Malaysia Panasonic Eco Solutions Malaysia

Panasonic AVC Networks Johor Panasonic System Networks

Panasonic Appliances Foundry Malaysia Panasonic Appliances Refrigeration Devices Malaysia

Panasonic Automotive Systems MY

Panasonic Energy Company MY



human resource development, realization of low-carbon societies, development of local industries, etc.

In February 2014, the project was named as Econation Project after Malaysian Government's initiative to build an environmentally friendly economy and nation. NCIA made public its commitment to collaborate with Panasonic Eco Solutions Malaysia (PESMY) and cooperate with him undertaking a feasibility study for the projects, which was confirmed in a form of Memorandum of Understanding (MOU) signed by these two parties. A copy of MOU is attached as Appendix 1.

Chapter 2 Preparatory Survey Report Power Sector and Use of Renewable Energy in Malaysia


CHAPTER 2

POWER SECTOR AND USE OF RENEWABLE ENERGY IN MALAYSIA



Chapter 2 POWER SECTOR AND USE OF RENEWABLE ENERGY IN MALAYSIA

2.1 Power Sector Policy

Energy Policy

National Energy Policy National energy policy placed above the power sector policy is prescribed in the National Energy Policy established in 1979. The National Energy Policy defines three policy objectives as below; Supply Objective

- To ensure adequate, secure and cost-effective energy supply through developing and utilizing alternative sources of energy (both non-renewable and renewable) from within and outside the country.

- To ensure the realization of the supply objective, the focus of policy initiatives, particularly with respect to crude oil and gas, were aimed at both extending the life of domestic depletable energy resources, as well as diversifying away from oil dependence to include other forms of fuel resources.

Utilization Objective

- To promote efficient utilization of energy and discourage wasteful and non-productive patterns of energy consumption.

- The Government's approach to realize this objective is through the implementation of various awareness programmes, the energy efficiency regulation, energy auditing program, support programmes and technology demonstration programmes, etc.

The Environmental Objective

- To minimize the negative environmental impacts of the energy supply chain i.e. energy production, conservation, transportation and utilization.

To realize these objectives it states that regulatory approach has to be in place to supplement the market approach.

National Depletion Policy National Energy Policy was already conscious of the importance of extending the life of domestic depletable energy reserves as well as the need for alternative energy options to sustain a future that is self-sufficient for energy. National Depletion Policy was implemented in 1980 to avoid over-exploitation and depletion of oil reserves by controlling the rate of crude oil production.

Four-Fuel Diversification Policy Four-Fuel Diversification Policy implemented in 1981 was, in a way, supplementing the National Depletion Policy, to ensure reliability and security of energy supply by reducing over-dependency on crude oil by diversifying with coal, natural gas and hydropower, to broaden

Chapter 2 Power Sector and Use of Renewable Energy in Malaysia Preparatory Survey Report


the national energy base and secure long-term supply of domestic energy resources.

Electricity Policy The foundation of electricity policy of Malaysia was laid by Electricity Supply Act of 1990. The act was amended in 2001 reflecting a new framework introduced by Energy Commission (Energy Commission Act 2001). The structure of Electricity Act (amendment 2001) is shown below. PART I Preliminary Section PART II Establishment (Deleted) PART III Functions, Duties and Powers of Commission PART IV Licensed and Registered Installations PART V Competent Control PART VA Efficient Use OF Electricity PART VI Supply by Licensee PART VII Notification of Accident OR Fire PART VIII Enquiry and Arbitration PART IX Offences and Penalty PART X General PART XI Power to Make Regulations PART XII Miscellaneous SCHEDULE In particular, Part IV contains such topics as license required for use of installations and inspection, Part VI duty to supply and fixing tariffs, and Part IX offences, penalty and compensation. From these titles and contents, it is clearly understood that the electricity supply industry is the licensed industry, and the market is basically open to private enterprises. It is the Energy Commission who gives related licenses to, regulates and observes the licensees, which is discussed in the next section.

2.2 Organizations of Electricity Sector

Administrative Bodies

Economic Planning Unit (EPU) The energy policies in Malaysia are formulated by the Energy Section of EPU under the Prime Minister's Department. It is renewed every five years as part of the Five Year Malaysia Plan. EPU is responsible for formulating, regulating and implementing policies, regulations, legislations, programmes and projects to improve the economy and also coordinate functions of other energy related institutional bodies responsible for a specific sector.

Energy Commission The power sector of Malaysia is regulated, observed and managed by the Energy Commission established by Energy Commission Act 2001.



The purpose of the commission is;

- To advise the Minister regarding any matters in the power supply businesses, - To formulate and execute regulations (economic, technical, safety and customer protection) for

the power supply businesses, - To implement policies for the power supply businesses. The commission thus controls the businesses and services of power supply companies.

Ministry of Energy, Green Technology and Water: KeTTHA KeTTHA, as its name represents, consists of three departments, energy, green technology and water services. Energy Department's role is to formulate energy related policies and strategies, and implement plans related to power supply industries. In particular, it includes,

- To improve energy efficiency and promote renewable energy use, - To Review the tariffs imposed by electricity utilities, - To Monitor standards of service provided by the electricity utilities, - To administer and monitor the implementation projects funded by the Malaysian Electricity

Supply Industry Trust Account (MESITA), etc., and its objectives are;

- To provide quality, efficient, and adequate supply of electricity, - To promote the efficient utilization of electricity usage, - To minimize the negative environmental impact arising from production/generation,

conversion, transportation and utilization of electricity, - To improve the electricity supply industry for economic development, - To increase the contribution of RE to the generation mix. There are four sections under the energy department,

Sustainable Energy Division

: administer the use of renewable energy and energy efficiency improvement,

Electricity Supply Section

: formulate national energy policy, analysis and policy proposal for electricity supply

Industry Development & Regulation Section

: analysis and policy proposal on laws and regulations for energy supply industries, monitoring the level of services of power supply industries, arrangement and management of matters related to Energy Commission,

MESITA Fund Management Section

: management of MESITA (Malaysian Electricity Supply Industry Trust Account), monitoring and management of projects funded by MESITA

Also, KeTTHA administers economic incentive measures to promote the use of renewable energy and improvement of energy efficiency. The incentive measures are discussed later in Section 2.4.1 below.



Sustainable Energy Development Agency (SEDA) SEDA is an organization set up by Renewable Energy Act 2011. Its mail role is to implement and manage FIT measures introduced by the same act. In particular, the following tasks were given to SEDA;

- To advise the Minister and relevant Government Entities on all matters relating to sustainable energy including recommendations on policies laws and actions to be applied to promote sustainable energy,

- To promote and implement the national policy objectives for renewable energy,

- To promote, stimulate, facilitate and develop sustainable energy,

- To implement, manage, monitor and review the feed-in tariff system including to carry out investigations, collect, record and maintain data, information and statistics concerning the feed-in tariff system, and to provide such data information and statistics to the Minister as he may from time to time require,

- To implement sustainable energy laws and to recommend reform to such laws to the Federal Government,

- To promote private sector investment in the sustainable energy sector including to recommend to the relevant Government Entities incentives in relation to taxes, customs and excise duties and other fiscal incentives applicable to such investment,

- To carry out or arrange for the conduct of researches, assessments, studies and advisory services, collate, analyses and publish information, statistics and factors influencing or relevant to the development of sustainable energy and to disseminate such relevant information, statistics and factors to Government Entities, the public and investors or potential investors investing in sustainable energy,

- To conduct promote and support, in such manner as SEDA Malaysia deems fit, research and innovation activities relating to sustainable energy,

- To conduct, promote and support, in such manner as SEDA Malaysia deems fit, training or other programmes relating to the development of human resources and capacity building in the sustainable energy sector,

- To implement measures to promote public participation and to improve public awareness on matters relating to sustainable energy;

Private Companies The main power utility in Peninsular Malaysia is TNB (Tenaga Nasional Berhad). TNB was formerly a state power company of Malaysia. In 1990s, it was privatized and divided horizontally, TNB for Peninsular Malaysia, SESCO (Syarikat SESCO Berhad) for Sarawak and SESB (Sabah Electricity Sdn. Berhad) for Sabah State. It is only these three companies which deal in all of power generation, transmission and distribution integrated vertically. Transmission business is regionally monopolized by these three companies, while power generation and distribution are opened for private companies. The structure is illustrated in a figure below.



Generation

Transmission

Distribution

Source: edited by Study Team based on Energy Commission materials

Figure 2-1 Vertical Structure of Energy Supply Industry

According to the Energy Commission publication, there are 200 strong distribution licensees in Peninsular Malaysia. Airport, sea port, large factory, industrial estate, university and large commercial complex are the examples of distribution licensees which supply power to its own facilities and/or its tenants. There is a large variation of capacities of supply among these distribution licensees; small of a few hundred kW to as large as a few hundred MW.

Private Initiative in Electricity Sector

Regulations As mentioned above, power generation and power distribution businesses are opened to private companies. They all have to obtain license for their business. For generation companies, there are different types of licenses issued by the Energy Commission as summarized in the table below.

TNB DLs DLs

TNB

RE Energy Companies IPP TNB



Table 2-1 Type of Licenses in Power Sector Businesses

1. Public License For the licensee to

operate a public installation to supply energy to others.

Activities allowed under this license include:

a. Supplying electricity to consumers.

e.g. Tenaga Nasional (TNB) and Sabah Electricity (SESB)

b. Generating electricity to supply/sell to utilities.

e.g. Independent Power Plants (IPPs)

c. technology such as co-generation for own use and selling excess energy to others within the licensed area.

e.g. Gas District Cooling in KLIA

d. Supplying/selling electricity and providing other services to users in a complex or high rise building using electricity purchased from utilities.

e.g. Malakoff Utilities in the KL Sentral Complex

e. Generating electricity using Renewable Energy to be sold to utilities.

e.g. Projects benefiting from the Feed-in-Tariff Scheme

2. Private License For a licensee to operate

a private installation to generate electricity for their own use or at their own property.

Activities allowed under this license include:

a. Managing own power lines or underground cables which traverse across roads /rivers /bridge /telecommunication lines /railways owned by others.

b. Managing electricity generation for own use in an area that does not supply electricity.

c. Managing temporary electricity generation for own use in construction sites, funfairs, exhibition sites etc.

d. Managing electricity generation for own use using efficient technologies such as co-generation or power generation using Renewable Energy sources.

Source: Energy Malaysia, Energy Commission

Meanwhile, the process to apply for and obtain licenses is common to all power licenses, which is illustrated in the figure below. The application shall be submitted through On-Line process, debated by the Licensing Committee of EC, approved by the Minister of KeTTHA, and made effective by the applicant paying the License Fee. According to EC’s document (Guidelines on Procedures for Licensing Electricity Supply 2015), there are other agencies and their approval involved in the process, such as EPU, local government, TNB, financial institutes, etc. Considering this requirement, it seems that, when the application is submitted, prior consultation and unofficial approval must have been obtained.


Figure 2-2 Application Process for Power Sector Business License



Energy Commission considers the applications in light of Electricity Supply Act 1990 and Energy Commission Act 2001. The following matters are among the items to be considered; 1. Promote competition in generation and supply of electricity to ensure it is offered at

reasonable prices. 2. Promote and encourage the generation of energy for the economic development of Malaysia. 3. Ensure all reasonable claims for electricity supply are met. 4. Ensure consumer needs in terms of affordable prices, security, reliability of supply and

quality of services are met. 5. Ensure the licensee can finance the activities as set out in the licence. 6. Encourage efficient use and supply of electricity.

In addition to the above, the following matters are considered to reflect the government policy to create quality electricity supply industry; 1. To increase fuel diversity and reduce dependency on a particular fuel. 2. To use renewable energy such as biomass (e.g. palm oil waste, sawdust), industrial waste (e.g.

industrial waste gas) or solid waste (e.g. municipal waste and landfill gas). 3. To use efficient technology. 4. To use technology and methods that are efficient in energy management, and provide

value-added services to end-users. 5. To give efficient, economical and satisfactory service to the users. 6. To use environmentally friendly electricity generation technology. 7. To encourage the growth of new methods. A sample of License for generation and supply of electricity provided by EC’s Guidelines mentioned above is attached as Appendix 2.

IPPs in Power Generation Business Currently, there are twenty private companies in power generation business in Peninsular Malaysia. The total installed capacity of these IPP companies is 17.3GW, and generating energy of 92,000GWh a year. The type of generation mostly used by these IPP companies is combined cycle, but a few companies use conventional steam turbine, coal fired thermal, and small hydro.



Table 2-2 IPP Operator's Generation Type, Capacity, Generated Energy [2014]

Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia, Energy Commission



Issues Identified and Countermeasures At the start of IPP introduction, power purchase agreements (PPAs) had many flaws in retrospect. According to the Energy Commission literature, “As part of its efforts to ensure that the people are given access to a safe, secure, reliable and reasonably priced supply of energy, the Energy Commission ensures that the new power purchase agreements (PPAs) are more stringent. The latest generation PPAs are notably more balanced, with guidelines set in place to ensure efficiency and transparency, and to prevent exploitation. The new generation PPAs have also given way to a level playing field within the industry, with IPPs sharing costs among each other, and the elimination of the common occurrence of some IPPs getting financial gains from discrepancies. These changes ultimately result in benefits for everyone - power consumers, utilities and IPPs. Owing to the latest generation Power Purchase Agreements, consumers can enjoy more competitive rates of electricity. In addition, the Energy Commission’s introduction of the competitive-bidding exercise has also resulted in lower buying rates, thus cutting costs for the people. Thanks to its efforts in creating a system that is fair to all stakeholders – IPPs, utility and end-users – the Energy Commission is taking another important step in creating a world-class energy sector.” There have been efforts to correct such flaws, some samples of which are summarized in the table below.



Table 2-3 Issues PPAs in the Past and Improvements Made Area of Concern Previous Generation PPAs Latest Generation PPAs Significance Structure of Power Purchase Agreements

Under Take-or-Pay conditions, TNB has to either take the electricity generated by the IPPs even if they do not need it or they will need to pay compensation to the IPPs.

Take-or-Pay is not applicable and IPPs will be paid based on capacity and energy payment structure.

A more structured technical and commercial arrangement

Heat Rate Contracted heat rate is higher than the actual heat rate, resulting in IPPs receiving extra payment.

Contracted and actual heat rates are more in-line with each other.

Lower generation costs in the system

Sharing of Savings in Project Cost, Refinancing and Tax Exemption

No sharing mechanism for 1st, 2nd and 3rd generation IPPs.

Sharing of savings is provided for in the first bidding exercise under the capacity rate financial (CRF) revision in the financial model. The amount of savings will be reported to the Energy Commission for tariff review under Incentive- Based Regulation (IBR).

Sharing of savings allows for reduction of generation costs

Performance Requirements Availability Rate

85-87% 91-93% A higher availability rate signifies more efficient machines in place for lower electricity generation cost

Performance Requirements Outages

No distinction between forced (unexpected) and planned (scheduled) outages. Both are set at a tolerance threshold of 13-15%.

A distinction is made between forced and planned outages. The former has a tolerance threshold of 4-6% while the latter is 7-9%.

A lower tolerance threshold aims to increase efficiency in plant management

Power Plant Readiness

No conditions set for power plant readiness.

Conditions are clearly defined at each level, namely • When the agreement takes effect • Commencement date • Initial operation date (IOD) • Commercial operation

Clearly defined terms and conditions ensure that each step of the power purchase process from commencement to operation is monitored and adhered to properly

Liquidated Damages

Liquidated damages are applicable for failure to follow dispatch instruction.

Liquidated damages are clearly defined, and fixed monetary penalties will be imposed for • Failure to follow dispatch instruction • Failure to meet scheduled commercial

operation date (SCOD) • Failure to meet technical requirements • Failure to achieve Contractual Available

Capacity • Abandonment of project

Clearly defined conditions create greater transparency and accountability

Force Majeure TNB has to make capacity payments to IPPs even if there is a force majeure event.

Payment in force majeure events under latest generation PPAs is dependent on whether TNB or the IPP is affected. If the former and the commercial operation date (COD) is delayed beyond the scheduled commercial operation date (SCOD), TNB will pay the IPP the cost of servicing its debt. However, if the latter, TNB has no obligation to pay.

A fairer system is in place in the event of force majeure which ensure that TNB and IPPs are not being penalised for factors

Financing Arrangement

Financing is less competitive with expected DSCR (Debt Service Coverage Ratio) of 1.75 to 3.56.

Financing is more competitive with interest rates between 4.5 – 5.5%. Also DSCR is estimated at 1.2 to 1.25.

Lower generation cost in the system

Energy Price for Coal

Levelised tariff of 22-23 sen/kWh at a coal price of US$ 87.5/tonne.

Levelised tariff of 18-21 sen/kWh at a coal price of US$ 87.5/tonne. Conditions are clearly defined at each level, namely • When the agreement takes effect • Commencement date • Initial operation date (IOD) • Commercial operation date (COD)

The cost of purchasing power has gone down

Energy Price for Gas

Levelised tariff of 45-47 sen/kWh at a gas price of RM 44/mmbtu.

Levelised tariff of 34-35 sen/kWh at a gas price of RM 44/mmbtu.

The cost of purchasing power has gone down




2.3 Power Market in Peninsular Malaysia

Current Situation of Power Market Malaysia is a country well-endowed with primary energy resources such as oil and natural gas. However, the government of Malaysia was aware of future depletion of the energy resources and started diversification of primary energy as early as the 1980s. As a result, the dependency on oil decreased and the use of natural gas increased, in return. In the 1990s, deficiency of power supply capacity became evident and private investments in power development were promoted. There are many IPPs today and TNB’s share in power generation capacity fell to one third of total capacity in Peninsular Malaysia. Electrification in Peninsular is almost 100 %. The power system in Peninsular is interconnected with that of Thailand (EGAT: Electricity Generation Authority of Thailand) and of Singapore’s Power Grid. The power infrastructure in Peninsular Malaysia is depicted in the figure below.




Figure 2-3 Power Infrastructure of Peninsular Malaysia



Power balance in Peninsular Malaysia is summarized in the table below. Peak demand has been growing at about the rate of 3 % p.a. after the slump in 2008-09 World Financial Crisis. Energy consumption has been increasing at about the rate of 4% p.a. during the same period.

Table 2-4 Energy Balance in Peninsular Malaysia

2008 2009 2010 2011 2012 2013 2014

Maximum Demand (MW) 14,007 14,245 15,072 15,476 15,826 16,562 16,901

Total Units Generated (GWh, TNB) 27,691 29,608 27,689 24,018 26,329 24,914 28,409

Total Units Sold (GWh) 85,616 82,443 89,621 93,713 97,256 100,999 103,449

Sales of Electricity (RM Million) 22,555 26,388 28,020 29,273 32,464 33,857 40,202

Licensed Installed Generation Capacity (MW) 6,346 7,040 7,040 7,054 6,986 6,866 6,616

Total Purchased Units (GWh) 68,091 63,156 73,830 76,887 81,733 86,767 86,335

Total Units Exported (GWh) 1,152 166 88 73 13 17 17

Total Units Imported (GWh) 0.11 0.06 0.03 225 100 220 22 Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia, Energy Commission

Generation capacity is shown in the table below, with TNB’s own capacity along with other entities’ capacities (IPP, co-generation, captive and FIT license holders).

Table 2-5 Generation Capacity in Peninsular Malaysia [2013]

Hydro N.Gas Coal Heavy oil Diesel Biomass others Total

TNB 1,911 4,955 - - - - - 6,866

IPPs 20 8,069 7,200 - - - - 15,289

Co-Generation - 806 - 3 84 - 893

Self-Generation - 31 - - 577 307 1 979

SREP/FIT 9 - - - - 2 67 78

SUBTOTAL 1,940 13,861 7,200 - 580 455 68 24,105 Source: Malaysia Energy Statistics Handbook 2014, Energy Commission

Compositions of primary energy for the last 6 years are shown in the table below.

Table 2-6 Primary Energy Mix in Peninsular Malaysia

Fuel Type 2008 2009 2010 2011 2012 2013 2014

Hydro 6,669 24% 5,916 20% 5,227 19% 5,950 25% 5,524 21% 5,392 22% 4,111 14%

Natural Gas 20,979 76% 23,658 80% 22,337 81% 15,915 66% 19,558 74% 19,394 77% 24,298 86%

Medium Fuel Oil - - 6 0% 686 3% 86 0% 128 1%

Diesel 43 0% 34 0% 119 0% 1,468 6% 1,161 4% - -

Total 27,691 29,608 27,689 24,018 26,329 24,914 28,409




Figure 2-4 Primary Energy Mix in Peninsular Malaysia

The numbers of customers by category have been increasing as well, faster in domestic and commercial categories.

Table 2-7 Number of Customers of Electricity in Peninsular Malaysia

2008 2009 2010 2011 2012 2013 2014 Domestic 5,750,325 5,938,095 6,128,224 6,288,281 6,456,647 6,503,417 6,710,032 Commercial 1,110,718 1,164,959 1,224,414 1,281,108 1,334,371 1,334,856 1,404,501 Industrial 25,330 25,663 25,580 26,203 27,599 27,954 24,852 Public Lighting 45,037 47,715 50,122 53,075 56,715 61,121 63,340 Mining 13 15 17 20 22 27 29 Agriculture 906 996 1,080 1,166 1,241 1,494 1,574 Free Units n/a n/a 2,218 2,264 2,271 - - TOTAL 6,932,329 7,177,443 7,431,655 7,652,117 7,878,866 7,928,869 8,204,328


Energy sales has been increasing, in a similar way as in the number of customers, at a rate of 6-7 % for domestic and commercial categories.

Table 2-8 Energy Sales by Customer Category in Peninsular Malaysia

Sector 2008 2009 2010 2011 2012 2013 2014

Domestic 15,810 16,792 18,217 18,916 20,301 21,601 22,350

Commercial 26,939 27,859 29,872 31,755 33,218 34,878 35,801

Industry 40,511 36,261 40,071 41,449 42,047 42,721 43,380

Public Lighting 956 1,078 1,046 1,139 1,235 1,302 1,370

Mining 34 47 62 75 98 121 133

Export (EGAT) 1,152 166 88 73 13 17 -

Others (Agriculture) 214 240 265 306 344 375 414

Total 85,616 82,443 89,621 93,713 97,256 101,105 103,449 Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia, Energy Commission

0%10%20%30%40%50%60%70%80%90%

100%

2008 2009 2010 2011 2012 2013 2014

Prop

ortio

n

Diesel

Medium Fuel Oil

Natural Gas

Hydro



Figure 2-5 Change of Energy Sales by Customer Category

Power tariff is tabulated in the table below. Tariff for domestic and industry customers are at about the same level, and a little higher for commercial and agriculture categories.

Table 2-9 Average Selling Price of Energy of TNB

2008 2009 2010 2011 2012 2013 2014

Domestic 28.0 27.7 27.7 27.6 28.8 29.2 31.23

Commercial 39.0 37.7 37.7 38.2 40.7 40.9 44.93

Industrial 29.4 28.8 28.4 28.9 30.9 31.0 34.17

Public Lighting 20.7 20.6 20.6 20.5 21.5 21.5 23.32

Agriculture 38.0 37.1 37.0 37.2 39.8 39.4 43.15

Average 28.8 31.5 31.3 31.7 33.7 33.9 37.13 Unit; sen per kWh Source: Malaysia Energy Statistics Handbook 2014, Energy Commission

Figure 2-6 Change of Tariff by Customer Category

0

20,000

40,000

60,000

80,000

100,000

120,000

2008 2009 2010 2011 2012 2013 2014

Sales

[GW

h]

Others (Agriculture)

Export (EGAT)

Mining

Public Lighting

Industry

Commercial

Domestic

05

101520253035404550

2008 2009 2010 2011 2012 2013 2014

Tariff

[sen

/kWh]

Domestic Commercial Industrial Public Lighting Agriculture



The Energy Commission published its power demand forecast up to year 2030. It was forecast to grow at a rate around 3% until 2023, and at around 1.5% thereafter until 2030.

Table 2-10 Electricity Demand Forecast for Peninsular Malaysia

Source: Peninsular Malaysia Electricity Supply Industry Outlook 2014

2.4 Promotion of Renewable Energy and Feed-in-Tariff

Government Policy on Use of Renewable Energy Malaysian Government’s effort to promote renewable energy was initiated by Small Renewable Energy Program in 2001, implemented on the basis of 8th Malaysia Plan (2001-2005). The program introduced reduction of taxes related to operation of renewable energy business. Later in 9th Malaysia Plan (2006-2010) the conditions of transaction of energy under Renewable Energy Power Purchase Agreement (REPPA) were prescribed. Further in 10th Malaysia Plan, the government enacted Renewable Energy Act introducing Feed-In-Tariff (FIT) measure, which was enforced in the same year. SEDA was established and has been managing the FIT measure since. Renewable Energy Act envisioned the targets of renewable energy proliferation as in the figure.



Figure 2-7 Target Capacity of Renewable Energy Development

To promote investment in renewable energy use, the government has implemented economic incentive measures. There are four types of such measures explained below.

a) Tax Incentives for Energy Generation Activities Using Renewable Energy Resources Companies undertaking generation of electricity using renewable energy resources such as biomass, biogas, solar photovoltaic, inorganic waste and, hydropower (not exceeding 30 megawatts) are eligible for the following incentives: 1. Pioneer Status with income tax exemption of 100% of the statutory income for ten

years. Unabsorbed capital allowances as well as accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company, or

2. Investment Tax Allowance of 100% on the qualifying capital expenditure (such as

expenditure on factory, plant, machinery or other equipment used for the approved project) incurred within a period of five (5) years This allowance can be offset 100% of the statutory income for each year of assessment. Any unutilised allowance can be carried forward to subsequent years until fully utilised.

b) Tax Incentives for Companies Providing Energy Conservation Services In order to reduce operation costs as well as to promote environmental preservation, companies providing energy conservation services are eligible for the following incentives: 1. Pioneer Status with income tax exemption of 100% of the statutory income for a period

of ten years. Unabsorbed capital allowances as well as accumulated losses incurred

Source: National Sustainable Energy Framework and Policy, 2nd International

Sustainable Energy Summit (ISES) 2014, March 2014



during the pioneer period can be carried forward and deducted from the post pioneer income of the company, or

2. Investment Tax Allowance (ITA) of 100% on the qualifying capital expenditure

incurred within five (5) years. The allowance can be offset against 100% of the statutory income for each year of assessment. Any unutilised allowance can be carried forward to subsequent years until fully utilised. The companies must implement their projects within one (1) year from the date of approval.

c) Tax Incentives for Companies Investing to Conserve Own Energy Use Companies intending to incur capital expenditure for conserving energy for own consumption are eligible for:

ITA of 100% of the qualifying capital expenditure incurred within a period of 5 years.

d) Tax Incentives for Building Obtaining Green Building Index Certificate In order to widen the usage of green technology, the Government has launched the green building index (GBI) on 21 May 2009. GBI is a green rating index on environment friendly buildings. As a measure to encourage the construction of buildings using green technology: (discontinued in December 2014)

Feed-in-tariff (FIT) Measure

Outline of FIT Measure As mentioned above, FIT measure was introduced by the Renewable Energy Act of 2011, and started in January 2012. It is similar to the preceding cases in countries such as Germany, distribution licensees are obligated to purchase energy produced by a Feed-in Approval Holder (FIAH) for a certain time. The period of purchase is pre-determined for types of generation; 16 years for biomass and biogas, and 21 years for mini-hydro and solar PV. The purchase prices are also determined by the government (SEDA) and are called FIT Rates. FIA (Feed-in Approval) is administered by SEDA by means of issuing a certificate to a successful applicant. FIT Rates for solar PV have been revised five times since the introduction of FIT measure, and they were always down-ward revision. Different rates are given for PV installation of different sizes, and there are special top-up rates to promote; - PV modules that are integrated into architectural materials, - PV equipment (modules and inverters) manufactured in Malaysia.



Table 2-11 Change of FIT Tariff for PV Power Generation [RM per kWh] Description of Qualifying Renewable Energy Installation Jan-12 Jan-13 Mar-13 Jan-14 Mar-14 Jan-15 Jan-16

(a) Basic FiT rates having installed capacity of : (i) up to and including 4kW 1.2300 1.1316 1.1316 1.0411 1.0184 0.9166 0.8249 (ii) above 4kW and up to and including 24kW 1.2000 1.1040 1.1040 1.0157 0.9936 0.8942 0.8048 (iii) above 24kW and up to and including 72kW 1.1800 1.0856 0.9440 0.7552 0.8496 0.7222 0.6139 (iv) above 72kW and up to and including 1MW 1.1400 1.0488 0.9120 0.7296 0.8208 0.6977 0.5930 (v) above 1MW and up to and including 10MW 0.9500 0.874 0.7600 0.6080 0.6840 0.5472 0.4651 (vi) above 10MW and up to and including 30MW 0.8500 0.782 0.6800 0.5440 0.6120 0.4896 0.4162

(b) Bonus FiT rates having the following criteria (one or more) : (i) use as installation in buildings or building structures 0.2600 0.2392 0.2392 0.2201 0.2153 0.1722 0.1550 (ii) use as building materials 0.2500 0.2300 0.2300 0.2116 0.2070 0.1656 0.1325 (iii) use of locally manufactured or assembled solar PV modules 0.0300 0.0276 0.0300 0.0300 0.0500 0.0500 0.0500 (iv) use of locally manufactured or assembled solar inverters 0.0100 0.0092 0.0100 0.0100 0.0500 0.0500 0.0500

Source: SEDA

Development of FIT-based Generation The development of renewable energy use after the introduction of FIT measure is summarized in the table below.

Table 2-12 Capacity of Renewable Plant based on FIT Measure [as of Jan. 2016]

Year Biogas Biogas

(Landfill / Agri Waste)

Biomass Biomass

(Solid Waste)

Small Hydro Solar PV Geothermal Total

2012 2.00 3.16 43.40 8.90 11.70 31.59 0.00 100.75 2013 3.38 3.20 0.00 0.00 0.00 106.84 0.00 113.63 2014 1.10 0.00 12.50 0.00 0.00 64.94 0.00 71.63 2015 0.00 5.40 12.00 7.00 6.60 20.90 0.00 51.90

Total 6.48 11.76 67.90 15.90 18.30 224.27 0.00 337.91 Unit: MW Source: SEDA

Also, the development of energy produced by FIT-based power plants is shown below.

Table 2-13 Generated Energy of Renewable Plant based on FIT Measure [as of Jan. 2016]

Year Biogas Biogas

( Landfill / Agri Waste)

Biomass Biomass ( Solid

Waste )

Small Hydro

Solar PV Geothermal Total

2012 98 7,465 101,310 3,235 25,630 4,714 0 142,452 2013 12,217 9,478 209,408 11,144 73,032 48,416 0 363,695 2014 19,772 31,844 226,196 4,348 64,550 178,330 0 525,040 2015 16,626 33,632 120,199 18,090 35,283 240,235 0 464,066

Unit: MW Source: SEDA

The estimation of reduction of CO2 emission due to the generation by FIT-based renewable power plants is shown below.



Table 2-14 Reduction of CO2 Emission due to Renewable Plant based on FIT Measure [Jan. 2016]

Year Biogas Biogas

( Landfill / Agri Waste)

Biomass Biomass

(Solid Waste)

Small Hydro Solar PV Geothermal

CO2 Avoidance

(tonne) 2012 68 8,009 92,820 2,232 17,751 3,750 0 124,629 2013 8,498 14,548 237,312 9,921 68,143 37,306 0 375,728 2014 22,140 36,521 393,387 12,921 112,682 160,354 0 738,006 2015 33,613 59,727 476,325 25,404 137,028 326,116 0 1,058,211


Latest Revisions to FIT Measure Since the implementation of FIT measure in January 2012, rapid expansion of installed capacity especially of solar PV has been observed. Call for application of FIT approvals for each period has been reportedly terminated soon every time because many applicants rush to apply. With this situation in the background, SEDA and KeTTHA are revising the practices of FIT measure operations. F/S Team met with SEDA officials in January 2015 to inquire about the latest situation of FIT. Although it had not been made public through media, there were some on-going changes being implemented;

- Capacities and generated energy have been increasing at a pace unexpected, and there is a concern now over the availability of RE Fund, which is the source of FIT payment,

- In particular, solar PV has been extremely popular and resulted in large number of applications, possibly because the technology used is relatively easy to adopt for anybody,

- At the moment, the capacity quota for solar PV published is meant for applications up to 1MW in size,

- And the PV quota for 2016 will be the last one. There will not be a quota for 2017 onwards,

- SEDA is now handling applications up to 1MW in size. It is KeTTHA which is dealing with over-1MW project proposals. This category is not inside the PV quota published. Proponents of over-1MW projects should meet directly with KeTTHA.

Presently, FIT capacity quota posted on SEDA's homepage is as shown below.



Table 2-15 FIT-Applicable Capacity Quota of Renewable Energy [Jan. 2016]

2015 2016 2017 2018 2019 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

PV

Available for FiT Applications Community 0 6.46 0 0 0 0 0 0 TBA TBA Individual 0 0 0 0 0 0 0 0 TBA TBA Non-individual (≤ 500 kW) 0 0 0 0 0 0 0 0 TBA TBA Non-individual (> 500 kW) 0 0 0 0 0 0 0 0 TBA TBA Allocated Community 0.01 0.62 0 0 0 0 0 0 0 0 Individual 3.92 16.93 3.24 15.56 0 0 0 0 0 0 Non-individual (≤ 500 kW) 0 17.27 0 0 0 0 0 0 0 0 Non-individual (> 500 kW) 0 29.99 0 0 0 0 0 0 0 0

Biogas

Available for FiT Applications Biogas 0 0 0 0 0 0 0 0 TBA TBA Biogas (Landfill / Agri Waste) 0 1.97 0 0.33 0.99 1.38 0.21 0 TBA TBA Allocated Biogas 0 0 0 0 0 0 0 0 0 0 Biogas (Landfill / Agri Waste) 0 43.17 37.95 8.67 22.17 8.70 5.85 0 0 0

Biomass

Available for FiT Applications Biomass 0 0 0 0 0 3.53 1.79 0 TBA TBA Biomass (Solid Waste) 0 0 0 0 0 1.80 0 0 TBA TBA Allocated Biomass 16.00 22.00 9.95 46.74 15.00 25.00 13.0 0 0 0 Biomass (Solid Waste) 0 0 0 0 22.20 1.00 0 0 0 0

Small Hydro

Available for FiT Applications 0 0 0 0 0 77.84 31.84 0 TBA TBA Allocated 41.94 0 0 118.85 39.00 0 25.80 0 0 0

Geo- thermal

Available for FiT Applications 0 0 0 0 0 0 TBA TBA TBA TBA Allocated 0 0 0 0 0 30.0 0 0 0 0


New Framework to Promote PV Generation Development

As discussed in the previous section, there is already a limitation of availability of RE Fund which is a source of FIT payment, and the quota and actual approval of popular solar PV FIT license have been decreasing rapidly. On the other hand, the government of Malaysia has a reason to further push forward the development of PV generation. In AMEM (Asean Ministers of Energy Meeting) held in 2014, the following matters have been agreed by the participants; a) Large hydro and off-grid hybrid RE systems to be classified as RE b) Target RE capacity for 2020 increased to 30 % of installed capacity from old target of 15 % of

installed capacity by 2015. For Malaysia, this has two important implications. First for a), RE installed capacity has immediately shot up from < 300 MW to almost 4000 MW, by including Temengor, Bakun, and all the other existing large hydros and off-grid systems. For b), RE target for 2020 will be 9000 MW. Assuming here that RE installation by FIT reaches 1,000MW in 2020, and considering Expected new large hydro and off-grid RE to be 800 MW, we have a shortfall of new capacity of RE, 3,500MW. Meanwhile, biogas, biomass and small hydro resources that the government wanted to develop more have finite limits, there are an issue of distance of these resources from demand centers requiring further development of mid-voltage network, and the aforementioned limitation from RE fund. Therefore, it is only solar PVs that seem to have no finite limitation to develop in a



short period of time. The government decided to promote PV by means of NEM (Net Energy Metering) and USS (Utility Scale Solar) methods.

NEM Net Energy Metering is, simply said, a method to subtract the energy sent out to grid from the energy purchased from distribution network. The government expects that as PV prices continue to fall, and electricity tariffs rise, it will make sense for more consumers to reduce their bills and hedge further increases in tariffs by installing PV on their rooftops, which requires no additional land to secure. Utility company also benefits from more PVs in that the loss through transmission/distribution system becomes smaller, and the reserve capacity for peak hours, that will be secured. The government is also looking to reduce the subsidy expense on gas supplied to power stations by large scale introduction of solar PV in the power system. Some details of NEM method include; • Open to residential, commercial and industrial customers • Only for rooftop PV • Limited to 12 kW for residential and 75% of MD for commercial and Industrial or 1 MW,

whichever is lower • Any interconnection costs, changes to metering, etc., to be borne by the customer • The Distribution Licensees also allowed to participate in Net Metering –E.g. TNB can install on the office or PMU rooftops • After 500 MW has been reached, new NEM customers will have to pay a monthly fee to the DL

USS USS (Utility Scale Solar) is for a large scale installation of PV, while NEM is for a small scale installation. Still, PPA rate could be “expected to be lower than FiT rate, probably about 50 sen/kWh at today’s PV prices” (as of May 2015). Other than that the following matters are considered; • PV plants awarded by a bidding process • Plant capacity to be limited to 50 MW or less and spread throughout the Peninsula to mitigate

intermittency issues • Plants connected to Transmission voltages and meeting Grid Code requirements • PV power will help meet peak demand, making it competitive with OCGT, or even

unsubsidized CCGT • If utility cost does in fact rise, the cost will be passed through using the ICPT (Imbalanced

Cost Pass Through) mechanism, so no effect to utility finances – The actual effect may be the opposite, so tariffs may be adjusted downward due to lower

costs rising from use of PV power • Proposed 1000 MW by 2020

– 500 MW COD in 2017 – 500 MW COD in 2019

Chapter 3 Preparatory Survey Report Project Formation


CHAPTER 3

PROJECT FORMATION



Chapter 3 PROJECT FORMATION

3.1 Project Background and its Necessity

3.1.1 Local Development Issues and Necessity of Business

(1) Northern region’s development issues

The northern Malaysian region has big income gap between the other areas of peninsula part. In order to develop the economy of good balance of nation to overcome this situation, the government announced in 2007 the development of Northern Corridor Economic Region Initiatives.

Northern Corridor Economic Region includes Perlis, Pulau Pinang, Kedah, Perak and the purpose for this initiative promote the regional development and increase the income by enhancing the additional value of 4 sectors such as agriculture, manufacture, sightseeing and logistics. Malaysian government legislated Northern Corridor Enforcement Law (687) and established NCIA (Northern Corridor Implementation Authority). They started the development of northern region by delegating the policy and strategy of its region’s economical development.

(2) Necessity of business

This project started under the purpose of executing the 25 year long term regional economical development support to the northern 4 states together with NCIA. The window of Malaysian government is in charge of NCIA and Mr. Dato Redza, CEO and his colleague executed the adjustment with other ministries and government offices.

Especially, the development of Perlis is delayed compared with other states. Through this research, Perlis government and NCIA expressed to promote the industrial park under planning by utilizing this project.

This project is reported to Mr. Redza of NCIA and he expressed to realize this project and Malaysia government also requested earlier realization of the project.

3.1.2 Project Overview and Basic Scope

(1) The purpose of the project

The purpose of this project is to support the economic development to Perlis for the 25 year long term view based on the income from the electricity by installing the large scale solar power plant.

By constructing the solar power plant utilizing the public and private capital and operating its business together with proposer and NCIA, it is aimed to realize the regional contribution such as protecting environment, training the human resources, realizing the low CO emission society, and promoting the development of regional economy.

By utilizing the solar panel manufactured in the proposer’s factory in Kedah, it will realize the local production for local consumption for northern 4 states.

Chapter 3 Project Formation Preparatory Survey Report


(2) Project Overview

[ System Scale ] 16.744MW Panasonic solar panel installation [ Installation Area ] 50 acre (estimate) [ Total Construction Cost ] Approx. JPY 5 Billion [ Place ] Chuping Valley

3.1.3 Expected Business Effect

We estimate the annual generating power output of 25GWh when completing 16.744MW solar power plant.

Based on this power output, annual CO2 reduction will be estimated to 15,775t (which is the reduction of 0.63kg CO2 per 1kWh). Also, this project creates 20 maintenance employees locally.

3.2 Site Selection

3.2.1 Site Selection Policy

The purpose of this project is to construct and operate large-scale solar power plants in the northern four states in Malaysia, and is to contribute to the regional development on the basis of the fund obtained from the electricity sales revenue.

For this reason, F/S team decided as its selection policy to offer four states a fair chance to propose their candidate sites for the study. After their proposal F/S team conducted site surveys on the land proposed from the states. The process is explained in the following sections.

3.2.2 Site Selection Process

At the beginning, F/S team made an offer jointly with NCIA to the northern four states. F/S team then provided project briefing and requested each state to provide the proposal of candidate site if they agreed to the offer.

Following proposals were submitted by four states as a result.

Table 3-1 Proposal on Candidate Sites by Four States

Perlis Chuping Valley, Total 300 acre Perak Tasik Bukit Merah, Total 230 acre Kedah Sungai Ular, 400 acre Penang No proposal



Figure 3-1 Locations of Proposed Candidate Sites

F/S team made site reconnaissance and the results were as follows.

Table 3-2 Results of Site Reconnaissance

Perlis Enough space and no major issue found.

Perak There is a river inside the land and the area cannot be used in full, although the area was large enough. Top up soil would be required for 1-2m in depth, and this would have a significant impact on the construction cost.

Kedah Space is enough. There was no infrastructure and it would require construction of a bridge to access the site. It would take time to make the land usable.

Also, to identify substations to be connected, F/S team did the consultation with TNB of Perlis and Perak, and found the following situations.

Table 3-3 Possible Substations for Interconnection and Their Conditions

Perlis Able to connect a substation at Kanger at the voltage of 33kV. Distance to the substation was 23km and acceptable PV system size was up to 22MW.

Perak

Able to connect a substation at Bukit Merah at the voltage of 33kV. Distance to the substation was 20km, and acceptable PV system size was up to 20MW. However, the substations already received an application for connection by other project (small hydro).

Perak site was abandoned because TNB advised there had been a connection plan already applied to for the Bukit Merah substation and there was no extra capacity. As a result, the Chuping Valley site of Perlis was selected as the location for the solar power generation of this project.

Perlis

Perak

Kedah

Chapter 3 Project Formation Preparatory Survey Report


3.3 Project Formation based of PPP

The business scheme of this project as below .

3.3.1 Special Purpose Company (SPC) as a main player of the project

Special Purpose Company (SPC) will be established to operate this project.

The SPC’s business will involve such activities as;

Construction and possession of the solar power plant; the land will be leased from Perlis State for 25 years

Construction of Transmission line; at his own cost, connection between site and TNB’s substation in Kangar, modification of the substation, set up distribution panel and meter, where management of facilities between the plant and the interconnection point shall be SPC’s responsibility

Operation of Power Supply Business; as an IPP, contracts PPA with TNB and earns revenue.

The details of capital formation will be indicated in the Chapter 5.

3.3.2 Operation and Maintenance Organization

Although SPC will operate this project, mainly PESMY who will be the biggest capital share holder operate and manage the business. Also, PESMY will take over the operation and



maintenance of solar power plant from SPC. PESMY will hire the total 22 local residence including 2 managers, 5 engineers, 10 local staffs and 5 others, and plan to give a necessary training and maintain. In addition, about 50 number of temporary employment is expected.

3.3.3 Econation Sub Committee

Although originally the Committee inside of SPC who will manipulate the contribution, we found out that it will be favorable to be established outside of SPC.

Contribution from SPC will be managed in the Econation account under Perlis State Socioeconomic Development Trust Account in Perlis.

This account will be managed by Perlis government and be put under Perlis Executive Committee (EXCO). As purpose to operate and manage the Econation account, Econation Sub Committee (ESC) will be established under Perlis State Socioeconomic Development Trust Account and manipulated as Econation Fund.

The details will be explained at the Chapter 5.

3.3.4 Facility after 25 Years of the Project Period

SPC will be dissolved after the repayment of capital to the investors at the end of this project for 25 years. However, it will be estimated that solar power system can be operated continuously after 25 years although the output power guarantee period of the manufacture will be expired. Therefore, as of now, it is expected that the facility will be sold at reasonable price or contributed to Perlis. At this moment while creating this report, either clear discussion or decision has not been made between Perlis since this matter is relating to land loan fee negotiation.

Chapter 4 Preparatory Survey Report Outline Design and Project Cost


CHAPTER 4

OUTLINE DESIGN AND PROJECT COST



Chapter 4 OUTLINE DESIGN AND PROJECT COST

4.1 Site and Capacity of Solar Farm

4.1.1 Acquisition Process for the Land (Business Site)

This project is proceeded under study based on the land acquisition from the state government. As mentioned in the Chapter 3, since Perlis proposed the appropriate developed land, we considered to study the installation in Perlis.

This developed land is owned by Perlis and managed by State Economic Planning Unit (UPEN). In order to acquire the land, it is necessary to make the land use contract between Perlis after the approval of Perlis state government congress.

Generally, land use contract will be proceeded between Perlis as follows:

1. It is necessary to negotiate with UPEN and get the approval from UPEN.

2. UPEN will study various kinds of proposals and get the approval of business UPEN would like to execute after requesting to Perlis upper council called EXCO.

3. After this process, UPEN will officially propose the business to the state council and make decision. However, once getting the approval from EXCO, it usually will be the decision.

As of the end of this research, we negotiated and got the approval from UPEN executives. Also, we completed the official proposal to EXCO and state governor, and reached out to the agreement for this project from the state government related members. However, in order for the State Congress to make decision, we are requested from UPEN for the official confirmation that this project is objected to selling electricity from KeTTHA and State Congress could not make decision as of this report submission date.

4.1.2 System Size Study

The details of the information provided by TNB of Perlis concerning possible substation to be connected were summarized in the table below.

Table 4-1 Possible Substations for Chuping Valley (Perlis) Project (Detail)

Place Voltage (kV)

Distance (km)

Power demand (MW)

Existing renewable project (MW)

Connectable size

(MW) Chuping 275/132 15 12 1.5 8-10

Bukit Keteri 132/33/11 10 5 0 0

Bukit Keteri (South) 132/33 14 18 0 10-15

Kangar 132/33/11 23 25 0 20-22

Chapter 4 Outline Design and Project Cost Preparatory Survey Report


To minimize the energy loss by transmission cable, transmission distance should be as short as possible, usually up to 10km or so between the power plant and the substation. Transmission at higher voltage results in the smaller energy loss, while higher voltage transmission line requires steel towers instead of poles. It is more economical to use 33kV line which is the upper limit voltage to be laid over along public roads with poles. Also, 33kV single circuit can carry power up to about 20MW. Therefore, a substation which can accept power transmission at 33kV should be selected for the project.

To determine the solar generating equipment capacity, it is required to match the capacity with the power demand of surrounding area, and more specifically, TNB sets its policy that it accepts connection of renewable energy power plants up to 85% of the power demand. After considering these conditions, Bukit Keteri (South) and Kangar became the candidates.

However, it was informed by TNP Perlis office that there had been another connection application made for Bukit Keteri (South) and that would fill up their capacity. Therefore, Kangar Substation was selected as the connection point and the capacity of solar power generation equipment was set at 20 MW.

4.1.3 Installation Site

Chuping Valley is located close to Thai border, approximately 25km in the northeast of Kangar City of Perlis State. The coordinates of the location is latitude 6 degrees 36 minutes 17 seconds north, longitude 100 degrees 17 minutes 07 seconds east.

Figure 4-1 Location of Perlis Site

The land is owned by Perlis State Government as redevelopment sites, and whole land secured is 2,339.10 acres. Perlis State Government is aiming to develop this site by inviting green technology industries, and is making a development plan called Chuping Green Valley.

The development priority is given to 1) Solar Energy Generation, 2) Green Manufacturing, and 3) Halal Food Industries. There are two phases for development planned and the first phase is between 2016 to 2020 and the second phase 2021 to 2025.

A plot of 300 acres is allocated for renewable energy sector, and the project is going to use 50 acres for the installation of the solar power generation equipment.

Site



4.1.4 Characteristic of the Surrounding Area

Redevelopment site is located approximately 3km from Padang Besar, a town nearest to the Thai border. It is a flat land and there is no residential or industrial development near around.

There are many sugar canes left after abandoning cultivation. These will have to be removed and cleaned during the construction stage.

Figure 4-2 Current Status of Project Site

Although there is a pond in the vicinity and some agriculture activities are seen around, the solar equipment installation would have no effect on these because there is some distance to these activities. A highway is running next to the planned site and also a power distribution line, as well.

Planned site has gentle slope facing south. There is a risk that run-off of rain water may cause damages to the equipment especially the areas near to the foot of the slope. To avoid this risk, F/S team selected the higher and dryer areas for the installation.

No major issue was found for the installation work as the result of actual site survey.

4.1.5 Necessity of Site Preparation Work

As a result of land measurement research, site preparation work is estimated to be completed by clearing since the land is comparatively gradual.

Although the risk can be considered when installing the solar power plant as follows, we can judge fully clear the situation.

Risk Result of analysis

Flood The installation site is located on upper gradual slope and the risk that accumulates water is low because muddy stream is flowing into the bottom of slope when flooding.

Lightning The lightning is within the assumed range and we will manage it by installing the lightning rod and Surge Protection Device (SPD) to the solar power system.

The topographic map obtained in this study is shown below (See Appendix 3 for details).



Figure 4-3 Topographic Map of the Site

4.2 Outline Design

4.2.1 Outline Design of Power Generation Equipment and related Equipment

(1) System overview

There are two major types of solar power installation, one is roof top installation and the other is land installation. Land installation is selected for this project which is most popular for large scale solar plants. The system size is 16.744MW and detail is as below;

System size 16.744MW Connection 33kV, one circuit Power Inverter 33kW, 456-units Mounting Structure Foundation Concrete footing Mounting Structure Framework made of Zinc-plated single tube Meteorological equipment Radiation meter, Thermometer Data collection weather and power data

(2) System configuration

One block of solar modules is 2MW in capacity. Eight blocks are to be connected to make 16.744MW whole system. There is an equipment storage house at the center of each block and necessary equipment will be installed inside.



System image



System diagram

Block diagram



(3) System equipment list

The system components to be used in the project are listed below (Refer to Appendix 4).

Table 4-2 List of Major Equipment

Product Specification Quantity Photovoltaic module Panasonic VBHN240SJ25

Output : 240W Module efficiency : 19%

69,768 pcs

Power inverter Huawei SUN2000-33kTL Output : 33KW

456 units

Mounting Structure Galvanized single tube 1368 sets Step-up Transformer 2200KVA Step Up TX 0.4/11KV 8 sets Measuring Equipment Radiation, Wind Speed, Outside

Temperature, Module Temperature 1 set

Data Collecting System Performance Monitoring 1 set *Model may change depending on new product development

1) Photovoltaic module

The project will use HITⓇ photovoltaic module made by Panasonic factory in Malaysia. There are various types of photovoltaic modules depending on the type of the semiconductor used. This PV module is the original product developed by Panasonic and the PV cell has a unique hetero-junction structure of thin film amorphous silicon and mono crystal silicon wafer. The conversion efficiency is 19% and also has excellent temperature characteristics. Combined these technology can realize a high amount power generation and maintain for a long time.

Since the manufacturing place is Panasonic factory in Kedah Kulim hi-tech park, this is the best product that can contribute to the local production for local consumption with Japan technology. Output warranty is 25 years by Panasonic and cover the whole project cycle.

The certification that acquires this module is as follows:

Table 4-3 Certification of the Model of PV Module

Certification Date of Issue Issued by IEC61215 Second edition 2005-04 2013/8/22 JET IEC61730-1 First edition 2004-10 2013/8/22 JET IEC61730-2 First edition 2004-10 2013/8/22 JET IEC61701:2011(Salt mist corrosion) 2014/10/30 TUEV

2) Power inverter

Power inverter to be used in this project is the SUN2000 series made by Huawei.

Although generally a large size solar farm uses large capacity inverter units from the economical point of view, it was decided to use larger number of units with smaller capacity because inverter is the most probable faulty component in the system. Main reason why this model was selected is this product has been already used by Panasonic Eco Solutions Malaysia



as their standard system unit, and it is already confirmed the compatibility with Panasonic PV modules.

3) Mounting Structure and Foundation

Mounting structure will be made of galvanized single tubes. This is the most popular material in Malaysia. Installation height should be set to maintain 1m minimum clearance from the ground to prevent submersion during flood.

4.2.2 Estimate of Power Generation Amount

(1) Solar radiation amount

Malaysia is a suitable place for solar power generation thanks to rich solar radiation as shown below. Generally, the northern areas receive higher irradiation than the southern areas.

Table 4-4 Solar Radiation in Malaysian Cities

Region Annual average value (kWh/m2) Region Annual average value (kWh/m2) Kuchung 1,470 Senai 1,629

Bangi 1,487 Kota Baru 1,705 Kuala Lumpur 1,571 Ipoh 1,739 Petaling Jaya 1,571 Taiping 1,768

Seremban 1,572 George Town 1,785 Kuantan 1,601 Bayan Lepas 1,809

Johor Bahru 1,625 Kota Kitabalu 1,900 Source: “Energy Situation in Malaysia: Present and Its Future”, Sustainable Energy and Environment Forum

According to the following solar radiation distribution map of Peninsula Malaysia, Chuping Valley is found to be the area receiving high irradiation. According to the power generation simulation software, the amount of solar radiation at Chuping Valley is 1,806kWh which is one of the best results among all part of Malaysia.



Source: “Monitoring results of Malaysian Building Integrated PV Project in Grid-connected

Photovoltaic system in Malaysia”, Energy and Power 05/2012

Figure 4-4 Solar Radiation Distribution in Malaysia

(2) Power generation amount simulation

Using the industry standard simulation software PVSyst, generated energy was calculated for the Chuping Valley site. Conditions are as follows.

System size 16.744MW PV module 240W HIT module, 69,768-pcs, 17-modules in series, 4104-strings Tilt angle 8 degrees Irradiation 1,805.07kWh/㎡

We use the accumulated climate data from Meteonorm for the intensity of solar radiation based on this estimation. This data includes the climate data for more than 20 years.

As a result, it was found that although there would be a seasonal peak in April, stable power generation could be expected throughout the year.

Site



Figure 4-5 Estimation of Monthly Energy Generated

Annual energy production, after considering the system loss such as cables and inverter, was estimated at 25,067MWh for 50%, 23,930 MWh for 90%, and 23,610 MWh for 95% probability.

Figure 4-6 Probability Distribution of Annual Generated Energy

Power generation forecast for each month for P50 is as follows.



Table 4-5 Monthly Radiation, Temperature and Estimated Generated Energy

In order to make sure the accuracy of this estimation, we also calculate with NASA-SSE for comparison purpose, and we get higher irradiation and higher generation power as a results.

Irradiation 1,812.6kWh/m2

Generation power 25,349MWh

Table 4-6 Monthly Radiation, Temperature and Estimated Generated Energy for NASA-SSE



Based on this comparison, the data with Meteonorm shows the minimum figures therefore we judge that this estimation can be used as a conservative generation plan.

4.2.3 Grid Interconnection

(1) Power System Study (PSS) on Grid connection

1) Power System Study (PSS)

In order to connect solar system to TNB grid and sell the electricity, it is necessary to apply the Utility Scale Solar (USS) and be approved by TNB from 2016. Before the application, it is ruled that commitment of Power System Study (PSS) to TNB based on the ruled fee is necessary. For PSS application, the solar system operator has to submit the application form where Solar system specification and necessary information such as grid interconnection point are described. TNB will take into consideration based on the application and make the report where the solar system can be connected to TNB grid or not, and power system measurements necessary for the grid connection are described.

The solar system operator will apply the USS after taking into consideration the power system measurements described in the report.

Upper mentioned, it is unnecessary for solar system operator to take into consideration the power system study such as system stability, and power system’s technical information and supply & load balance at substation unit are not opened to private companies who want to submit the USS application.

2) Consideration step

PSS’s consideration step is following.

a) Pre-study before PSS application

• By the site survey wit TNB’s local stuff, the candidates of grid connection substation to be inventoried.

• After submitting the inventory to TNB, interview on the previous judge result and the necessary adjustment with TNB to be carried out.

b) PSS application step

• Submission of the PSS application form to TNB • Attendance to the TNB’s meeting and adjustment • Acceptance of PSS report from TNB

AS upper mentioned, the consultation on the candidate of grid connection substation is to be finished practically before the PSS application.

3) Consideration contents

In PSS, the following points will be confirmed.

• Adequacy of grid connection point such as substation • Feasibility of solar system’s generation power transmission • Adequacy of supply & load balance at the substation • Impact estimation on power system (ex. Voltage dynamics in the case of the system fault



• Recommendation of meter and protection relay necessary for grid connection • Recommendation of power system measurements necessary for grid connection

As upper mentioned, in the TNB’s PSS report, the technical judge and necessary measurements on solar system’s TNB grid connection are described. Therefore, the PSS result will be reflected to FIT application of the solar system.

(2) Consideration of grid connection substation in Perlis state’s solar system

1) Selection of candidate substations

Based on the site survey with TNB, the candidate substations of grid connection in Perlis state’s solar system are shown in down table. Estimation points are the distance (km) between the substation and the solar system, and the substation’s load (MW). The distance impacts on the construction cost of the transmission line, power loss and voltage drop. Therefore, the shorter distance is desirable. The substation’s load impacts on the supply & load balance at substation where TNB request that solar system’ s generation power will be smaller than the substation’s load and will not inject into the substation’s upper side system. Therefore, the larger substation’s load is desirable.

Except upper estimation points, it is important to be able to set the feeder equipment of the transmission line in the substation.

After total estimation, it was judged that Kangar substation is the best grid connection point by 33kV 1 circuit transmission line from the solar system (Chuping Valley). By this grid connection point, the PSS application was submitted.

Table 4-7 Candidate Substations and Their Outlines

PMU kV Distance to Solar Farm

(km)

Load (Demand)

(km)

Connected Solar Farm

(MW) Remark

1 Chuping 275/132 15 12 1.5 Approximately 10MW.

2 Bukit Keteri 132/33/11 10 5 Nil Will downgrade. Load will shift to Bukit Keteri South. Feed in not possible due to low load demand.

3 Bukit Keteri South (New) 132/33 14 estimated

18 Nil Able to feed in 10MW.

4 Kangar 132/33/11 23 18/25 Nil Highest load. Able to feed in 20MW.



Figure 4-7 Key Map with Nearest TNB Substation Location

Figure 4-8 Kangar Substation



Figure 4-9 Single Line Diagram for Grid Connection between PV Plant and Kangar Substation

2) Technical consideration

On the power loss and voltage drop, comparative result among 33kV 1 circuit, 33kV 2 circuit and 11kV 2 circuit is shown under table.

33kV 1 circuit is feasible and economical, therefore the PSS application was submitted by this transmission line configuration.

Table 4-8 Power Loss and Voltage Drop due to Transmission

Transmission Line Loss (%) Voltage drop (%) Remark 1 33kV 1circuit 7.2 10.5

PV AC Output:15MW Transmission Line length:23km 2 33kV 2circuit 3.6 5.2

3 11kV 1circuit 32.6 46.4

Calculation formula

Power Loss (Loss) (P / (V × cos θ))2 × R [W] Voltage drop (R × P + X × Q) / V [V]

P: Power (kW), V: Voltage (kV), cos θ: Power factor, R: Resistance (Ω) X: Reactance (Ω), Q: Reactive power (kVar) (= P × tan θ)



On the calculation of transmission line’s impedance which is the base parameter important for the analysis of loss and voltage drop, the method is shown in down fig. Resistance is important parameter for loss analysis, and resistance and reactance is important parameter for voltage drop.

Figure 4-10 Calculation Method of Inductance and Reactance of Transmission Line

Table 4-9 Inductance and Reactance of Transmission Cable

sq (mm2)

R (Ω/km)

X (Ω/km)

Radius (m)

Equivalent Line Distance (m)

Inductance (H/m)

Reactance (Ω/km)

1 80 0.24 0.31 0.0058 0.63 9.9E-07 0.31

2 100 0.19 0.3 0.0065 0.63 9.6E-07 0.30

3 150 0.12 0.29 0.0080 0.63 9.2E-07 0.29

On the consideration of transmission line’s conductor size, when the size becomes larger, the loss will be decreased and the merit on transmission will be increased, but the construction cost will be increased and the demerit will cause. Here, the loss and the construction cost of 33kV 1 circuit transmission line are estimated in the case of the conductor size 80mm2, 100mm2, 150mm2. As the result, when 150mm2 size is adapted instead of 80mm2 size, the larger construction cost can be recovered by 3.8 years. Therefore, the adaptation of 150 mm2 size conductor is desirable.

33kV Transmission Line Inductance & Reactance

　　(Conductor location）

＜Design condition＞ 33kV 3phase

Conductor : OC-W 150 mm2

Radius (r) : 0.008 m D12 D23

Frequency (f) : 50 Hz

Conductor location: D12=0.5 m D31

D23=0.5 m

D31=1.0 m

＜Calculation＞

Equivalent Line Distance

D=3√D12 × D23 × D31 ＝ 3√0.5 × 0.5 × 1.0 ＝ 0.63 m

Inductance

L = ( 1/2 + 2 log D/r ) × 10-7 H/m

= 9.23 × 10-7 H/m

Reactance

X = 2 π f L

= 2900 × 10-7 Ω / m

= 2.90 × 10-1 Ω / km



Table 4-10 Selection of Cable for Transmission Line

T/L Conductor

Size (mm2)

T/L Construction

Cost (k USD)

T/L Construction

Cost Per kW

(USD/kW)

Loss (%)

Generation Energy Income

(USD/kW/year)

Sales Energy Income

(USD/kW/year)

Increased T/L

Construction Cost

(USD/kW)

Increased Income

(USD/kW/year)

Recovery Year (year)

80 2,000 133.3 10.3 219.4 196.8 0 0 -

100 2,250 150.0 8 219.4 201.9 16.7 5.0 3.3

150 2,875 191.7 5.3 219.4 207.8 41.7 11.0 3.8

A B B×(1-A/100) C D C/D

Remark Rough estimation Per 15MW 25.5km

(Max.)

8,760 hour x 0.167 x 0.15 USD/kWh

(3) Result of PSS

Application for PSS was prepared and submitted to TNB on April 16, 2015. The result of the study was returned by TNB, on July 11, 2015 in the form of 25-page report. The report explains the variability of load at the Kangar Substation and the allowable maximum power to be interconnected, referring to the figure below, as follows;

“The trough load at PMU Kangar (Kangar Substation) is assumed to be 17.6 MW for this study. As per TNB’s requirement, 85% of trough load is taken as the maximum amount of power that can be injected into the grid. Hence, 85% of trough load at PMU Kangar is 15 MW.”

POWER SYSTEM STUDY Proposed Interconnection of Solar PV plant At Chuping Valley, Perlis State Government Land, TNB

Figure 4-11 Variability of Load at Kangar Substation



Other technical proposals mentioned in the application were also commented and judged adequate.

The conclusion was that the proposed connection between the Solar PV plant and PMU Kangar is sufficient to carry the 15 MWAC of active power.

There were also conditions set out as follows;

- Automatic Disconnection (anti islanding) shall be equipped;

- The point of synchronization to TNB’s system shall be located on the generator side and accessible by TNB staff;

- RE plant shall be disconnected upon any divergence of operating limits or developer’s internal failure;

- The metering point is at the point of connection;

- During contingency (breakdown or shutdown), the RE source is to be isolated until the normal open point is restored.

- All equipment installed that are to be handed over to TNB must comply to latest TNB specifications with written consent and drawings are duly endorsed;

- Tests and commissioning schedules shall be reported to TNB for his witness;

- Tests and commissioning schedules. TNB would have the option to witness the said tests,

- Electrical drawings are to be endorsed by Professional Engineer (Electrical),

- All photovoltaic system drawings are to be endorsed by ISPQ certified professional;

- Interconnection Operation Manual shall be jointly prepared to address operational boundaries, maintenance boundaries, sequence of operations & protocols, contact persons, etc.

The results of the study were summarized as follows;

- The distribution system is capable of absorbing the 15 MWAC of power exported by the proposed Solar PV plant.

- No voltage violations occur during trough load conditions due to the Solar PV plant interconnection.

- All PV generators shall operate at unity power factor.

- Detail designs at the interface points have to satisfy all the technical requirements for operational integrity, reliability and safety.

- A meter room shall be constructed next to PMU Kangar. The maintenance of the proposed cables between the Solar PV plant and PMU Kangar is under the responsibility of the developer.

- The PMU Kangar building at 33kV shall be extended to accommodate additional control panel and circuit breaker.

A copy of PSS report is attached as Appendix 5.

4.2.4 Transmission Line Equipment

Based on the discussion with TNB and considering the accepting power capability of substation, F/S team decided to connect to Kangar Substation located 23km away from the project site with 33kv transmission line. The F/S team conducted the route survey supported by TNB officer.



(1) Outline of 33kV Transmission Route

The transmission route passes on along the public roads between Chuping Valley site and Kangar Substation. There are segments for which the transmission cables should be buried underground, for undercrossing other transmission lines, railways, and roads.

Table 4-11 and Table 4-12 show the equipment for overhead and underground transmission, respectively.

Table 4-11 33kV Overhead Line Equipment

Route Chuping ~ Kangar

Nominal Voltage 33kV

Circuits 1cct

Location From : Chuping To : Kangar Substation

Total Length 23.7km

Supporting structure Concrete Pole : 522

Conductor OC-W : 150mm2

Ground Wire AW : 22mm2 * OC-W : Out-door Cross-linked Polyethylene Insulated Wire Water Proof * AW : Alumoweld Wire

Table 4-12 33kV Underground Line Equipment

Route Chuping ~ Kangar

Nominal Voltage 33kV

Circuits 1cct

Location From : Chuping To : Kangar Substation

Total Length 1.2km (17 point)

Conductor CVT : 200mm2 * CVT: Out-door Cross-linked Polyethylene Insulated vinyl sheathed Triplex Cable



Figure 4-12 Transmission Route



Figure 4-13 33kV Transmission Underground (UG) Segment (Part 1)

Site

Underground segment

UG UG

UG UG

UG UG

UG

UG



Figure 4-14 33kV Transmission Underground (UG) Segment (Part 2)

UG

UG

UG

UG

UG

UG

UG

UG

UG



(2) Power Sending Capacity and Voltage Drop

The length of underground segments in total is about 1 km. It is less than 5 % of total length of transmission line, and assuming these segments as overhead does not undermine the accuracy of estimation. Therefore, for simplicity of calculation, all length was assumed as overhead, and the voltage drop and power loss were calculated. The results are shown in the table on the right hand side.

(3) Support, Power Line, Ground Line, Insulation

1) Support

Support is designed with concrete poles to be elected within the ROW of public roads. Where horizontal angle is large, additional slanted support poles will be added.

2) Power Line, Cable, Ground Line

Wires and cables were selected for transmission current 420 A as shown below.

Table 4-15 33kV Overhead Line OC-W 150mm2 Cross-section (mm2)

Structure (wire/mm)

Outer diameter

(mm)

Maximum conductor resistance

(Ω/km)

Conductor tensile load

(kN)

Approximate weight

(kg/km)

Allowable current

(A)

150 19/3.2 16.0 0.122 52.9 1,610 500

Table 4-16 33kV Underground Line CVT 200mm2 Cross-section (mm2)

Shape Outer

diameter (mm)


(Ω/km)

Final diameter (mm)

Approximate weight

(kg/km)

Allowable current

(A)

200 Round compressed 17.0 0.093 95.0 10,200 500

Table 4-17 33kV Overhead Ground Line AW 25mm2 Cross-section (mm2)

Structure (wire/mm)

Outer diameter

(mm)


(Ω/km)

Conductor tensile load

(kN)

Approximate weight

(kg/km)

Allowable current

(A)

25 3/3.2 6.9 3.56 3,140 160.3 80

Table 4-13 Voltage Drop

value unit Capacity 15 MW

Voltage Drop 3.4 kV

10.4 %

Power Loss 793.5 kW

5.3 %

Table 4-14 Concrete Poles

length m

diameter cm

design load kgf

Pole 12 19 500

Slanted support 12 19 350



3) Insulation

Insulation selected is ones for high voltage distribution system, and for suspension type a high voltage pin insulator, and for tensile type a high voltage terminal insulator.

Table 4-18 33kV Overhead Line Insulator

type Allowable voltage (kV)

Bending load (kN)

Approximate weight (kg)

pin insulator 35 1.86 1.3

terminal insulator 35 4.70 4.1

(4) Construction Schedule of 33kV Transmission Line

Construction schedule was planned based on the past records, as shown in the table below. Overhead line and underground line will be worked in parallel.

Table 4-19 33kV Transmission Line Construction Schedule

4.2.5 Construction Plan

The construction plan of this project will be decided by the scheduled SPC (Special Purpose Company) as a power producer, with the permission of local authority. From the start of construction until the commercial operation it will take 11 months. Suppose the project starts the construction from October 2016, the commercial operation of system will be after July 2017.

(1) Project Schedule

PESMY will mainly promote the construction for this project for the entire schedule. It will take 2 months for system detail design after the results of TNB power study returned. Procurement



process will start thereafter, followed by transportation of part of relevant equipment. This process will take about 4 months. At the same time as the start of procurement and transportation process, the main construction will be commenced as well. The construction will take about 8 months and the works consist of 7 sub-scopes, such as a) C&S works, b) mounting structure installation, c) low voltage side installation, d) middle voltage side installation, e) monitoring & control, f) cabling infrastructure work, g) grid connection. After the main construction works, there will be the IO (Initial Operation) as well as TNB's test and commissioning, and system performance test. Currently, we forecast the commercial operation from September 2017.

A plan of local people to be employed during the construction is as follows;

♦ management 5 persons ♦ engineers, supervisors 20 persons ♦ skilled workers 40 persons ♦ common workers 200 persons ♦ others (administration etc.) 10 persons.

Table 4-20 Installation Work Schedule

(2) Procurement Plan and Transportation Plan

Procurement Plan

We selected the key equipment based on the factors such as long term reliabilities and the advanced technology. The final decision will be done by the scheduled SPC (Special Purpose Company).

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

e. Monitoring & Control

h. Transmission line

6 Commercial Operation Dateof the Increment (COD)

Initial Operation Date (IOD)

g. Grid Connection

f. Cabling Infrastructure Work (Site to PCC)

Item

1

2

3

5

d. MV Side Installation

c. LV Side Installation

b. Mounting Structure

a. C&S Works

Project Aw ard

Design

Procurement

Construction Works4



However, PESMY will mainly promote the procurement as well as installation.

As for the key equipment, PV modules, we selected the Panasonic solar module from Panasonic Energy Company Malaysia (PECMY) which is being produced in Malaysia. With regard to the inverter, we selected the string type inverter of Huawei based on the project reference in Malaysia. The SPC (Special Purpose Company) will assign the procurement scope to the EPC contractor of this project.

(Huawei) Huawei is a private company and established in Shenzhen on 1987. They are world famous ICT solution provider and have 170,000 employees. 2014 Annual sales is Chinese Yuan 288 Bil (Yen 5,550Bil) which is 20.6% growth ratio with the business of network service for telecommunications carrier, ICT solutions for enterprises and terminals for consumer. They started PV inverter business from 2012 and have more than 500 engineers and acquired more than 100 patents. Currently they have hardware design office in Germany, software development branch in Sweden, product center in Shanghai, and manufacture in Shenzhen. They have already had sales history in more than 140 countries.

Transportation Plan

The key equipment of this project aside from solar modules will be delivered from Panasonic Energy Company Malaysia which is located in Kulim High-Tech Park in Kedah State.

From Kulim High-Tech Park to the project site of Chuping, the distance of in-land transportation is only 176km, which means the delivery scope can be done in one day. The manufacturer of inverters is Huawei, and the shipment will come from Shenzhen port of China to Penang port of Malaysia. There is regular service and it takes 2 weeks between these ports. From Penang port to project site, the well-known Japanese transportation companies like Sankyu and Nippon Express have their presence in this area.



Figure 4-15 Location of PV Module Production Site and Power Plant Site

2hrs 10mins

Chapter 5 Preparatory Survey Report Project Scheme and Financing of the Project


CHAPTER 5

PROJECT SCHEME AND FINANCING OF THE PROJECT

Chapter 5 Preparatory Survey Report Project Scheme and Financing of the Project


Chapter 5 PROJECT SCHEME AND FINANCING OF THE PROJECT

5.1 Business Scheme

The target for renewable energy introduction in Malaysia as of 2010 will be as follows.

Year 2015 985MW Year 2020 2,080MW Year 2030 4,000MW

With respect to the above targets, the 2015 prospect falls significantly behind, introducing only 283MW in total. Among this output, forecast for the actual introduction of solar will be 192MW in spite of the target of 65MW, which is exceeding other renewable energy introduction.

On the other hand, the target for the renewable energy introduction for each country was requested to revise upward during the AMEM (ASEAN Ministers of Energy Meeting) held in 2014. In response to this request, Malaysia’s target for all renewable energy introduction was decided to be 5,500MW which runs the short of 3,500MW at the current situation.

Upon investigation, the Malaysian government concluded that a rapid increase in other technologies such as biomass, biogas and hydro was difficult, and solar technology proved to be the most promising option. As a measure to expand solar adoption, the government decided to introduce Net Energy Metering (NEM) and Utility Scale Solar (USS) in addition to the existing FIT policy.

As a result, while the current FIT system was extended to 2017 as an auxiliary measure, large-scale projects were supposed to migrate to the new USS system at an early stage.

Although this project was evaluated based on the premise of the current FIT, it is now necessary to consider the new USS policy to be the premise as a result of consulting with KeTTHA.

USS is applied to the projects ranging from 1MW to 50MW, for which applicants are reviewed individually. The current FIT applies to projects under 1MW or that are 12kW until 2017.

Although the draft of the USS system was approved but on hold to be published by the Prime Minister's Office in September 2015, the details of its practical adoption were still being studied and discussed, and were not released by the time of this report.

This USS fund is purely come from TNB revenue. Unlike FIT, no collection from the electricity bill and government subsidy will not be provided. However, as it is possible to conclude from the investigation that the selling price from KeTTHA is RM 0.41/w, plus the power purchase bonus rate (RM 0.05/w) applicable to Malaysian-made solar panels, this report is based upon such premise.

We will start the power generating business contracting the official PPA (Power Purchase Agreement) after studying the increase of power purchase selling price between KeTTHA based on the rate published by USS.

Chapter 6 Preparatory Survey Report Environmental and Social Consideration


CHAPTER 6

ENVIRONMENTAL AND SOCIAL CONSIDERATION



Chapter 6 ENVIRONMENTAL AND SOCIAL CONSIDERATION

Overview of the Project Component that causes Environmental and Social Impacts

6.1.1 Project Site

The Project is Solar Power Development Project which is located in Chuping valley in Perlis State at the north of Malaysia. Chuping Valley is included in NCIA, that area is 2,339.1acres. A plot of 300 acres has been allocated for the renewable energy sector and the Proposed Project will take up 50 acres from that (refer to Section 4.1.2). The Project Location is shown in Figure 6-1.

Source: http://www.mapofimages.com/malaysia-map/

http://tourismmalaysia.or.jp/map/index.html

Figure 6-1 Project Site Location

6.1.2 Project Outline

The Project is Photovoltaic Power Generation of 18MW with transmission Line.

Table 6-1 System Overview

Structure Design System size 15 MW Connection 33 kV, One circuit Power Inverter 23 kW, 870 units Mounting Structure Foundation Concrete Footing Mounting Structure Framework made of Zinc-plated single tube Meteorological Equipment Radiation meter, Thermometer Data Collection Weather and power data

Chapter 6 Environmental and Social Consideration Preparatory Survey Report


(1) Solar Farm

The Solar Photovoltaic Farm will be constructed with within the Chuping Valley, that area is 50acres. The coordinates for the Proposed Site is 6o36’17”N and 100o17’07”E. One block of the solar module has a capacity of 2MW. Ten blocks of solar modules will be connected to produce a combined total of 15MW for the whole system. The diagram of the system is shown in Figure 6-2.

Figure 6-2 Conceptual Design of the System

(2) Transmission Line

Transmission line will be developed to connect the Solar Farm to the Kangar substation. During the consultation with Tenaga Nasional Berhad (TNB), Malaysia’s main energy provider, the development should be able to connect to the Kangar Substation at 33kV of voltage. The transmission line route for the Project is a total of 25.9km, which is overhead line 23.7km and underground line 1.2km.



Table 6-2 33kV Overhead Line Equipment

Route Chuping ~ Kangar Nominal Voltage 33kV Circuits 1cct Total Length 23.7km Supporting structure Concrete Pole : 522 Conductor OC-W : 150mm2 Ground Wire AW : 22mm2

Table 6-3 33kV Underground Line Equipment

Route Chuping ~ Kangar Nominal Voltage 33kV Circuits 1cct Total Length 1.2km (17 point) Conductor CVT : 200mm2

The transmission line will pass through the existing roads along the secondary road (FT79, R16, R9, R133, FT179, R175, EARTH BAN, FT186). This route involves villages such as Kampung Kubang Tiga, Kampung Medang Gatal, Kampung Titi Tampang, etc. The planned transmission line route is shown in Figure 6-3, Figure 6-4 and Figure 6-5.



Figure 6-3 Components along the Transmission Line



Figure 6-4 Detailed Transmission Line Route (1)



Figure 6-5 Detailed Transmission Line Route (2)



(3) Access Road

Access road is not newly constructed. The existing roads along the transmission line are planned to be used as an access road.

6.1.3 Installation Work Plan

The construction and the operation of the commercial facility will take up to 9 months. The Schedule is shown in Table 6-4.

Table 6-4 Installation Work Schedule

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52





g. Grid Connection


Item

1

2

3

5




a. C&S Works

Project Aw ard

Design

Procurement

Construction Works4



Environmental and Social Baseline

6.2.1 Natural Environment

(1) Climate

The weather in the state of Perlis is normally warm and wet, is actually controlled by the yearly fluctuations in position of the Inter Tropical Convergence Zone since it follows the obvious movement of the sun north and south of the equator. This results in two distinct rainy periods, and a prolonged drought period. It experiences a Monsoon Tropical climate and "Winter Winds" (East Coast Wind from Teluk Siam) (Dano Umar et.al., 2012). Generally, Chuping is categorized as one of the driest region in Malaysia. The highest temperature recorded in Malaysia was recorded at Chuping on 9th April 1998 with 40.1˚C (www.met.gov.my).

The Chuping meteorological station is located approximately 13.5 km from the Project site. The observed data from 2003 to 2013 this station is shown below.

Figure 6-6 Distance from Chuping Meteorological Station to the Project Site

(2) Rainfall

The mean annual rainfall is 2,002.8mm, and mean monthly rainfall is 166.9mm. From September to November has most rainfall, which is from 213.99 to 253.11mm. The dry season is from January to February, which has little rainfall with 48.8mm to 73.6mm. The mean rainfall days are 160 in a year.



Table 6-5 Summary of Meteorological Data (2003-2013)

Summary of Meteorological Data

Total (average) rainfalls per year (over 11-year period) 2002.8 mm

Average total rainfalls per month 166.9 mm

The least (average) rainfalls per month 48.8 mm (January)

The highest (average) rainfalls per month 253.1 mm (October)

Average total number of rain days per year ~166 days

Average number of rain days per month ~3 days

Figure 6-7 Average Monthly Rainfall over 11 Years Period (2003 to 2013)

(3) Temperature

The average 24 hour mean monthly temperature is generally high and ranges from about 26.5°C to 28.1°C. The variation is very small. Low daytime temperature and high night-time temperatures coincide with rainy season, whereas cool nights are often experienced during the dry weather.

48.873.6

190.3 187.1

146.1 152.

187.1 186.6

233.7253.1

213.9

130.4

0.0

75.0

150.0

225.0

300.0

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Mili

met

ers,

mm

Monthly Rainfall



Figure 6-8 Average 24-hour Mean Temperature from Year 2003 to 2013

(4) Wind

Based on the observed data from the year 2003 to 2013, the region experienced calm conditions 24.4% of the time with wind speed of less than 0.3m/s. The dominant wind direction is identified to be from the north direction. The percentage of Annual Wind Rose Summary is presented in Figure 6-9. The percentage frequencies of occurrence for concurrent wind direction (degrees) and speed (m/s) within specified ranges (%) is presented in Table 6-6 and Table 6-7 respectively.

Figure 6-9 Wind Rose Summary of Chuping from Year 2003 to 2013

27.1

27.9 28. 28.127.9

27.5

27. 27.1

26.8 26.7 26.726.5

25.5

26.3

27.0

27.8

28.5

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Cel

cius

(˚̊C

)

Monthly Mean Temperature

N

S

W E



Table 6-6 Percentage Frequencies of Occurrence for Concurrent Wind Direction (degrees) and Speed (m/s) within Specified Ranges (%)

Direction 0.3-1.5

1.6-3.3

3.4-5.4

5.5-7.9

8.0-10.7 >10.7 Total Mean

Speed Calm 24.4

Variable 0 0 0 0 0 0 0 N 8.9 10.1 0.7 0 0 0 19.7 1.7

NE 9.1 8.2 0.3 0 0 0 17.7 1.6 E 4.6 1.9 0.2 0 0 0 6.7 1.3

SE 4.2 0.5 0 0 0 0 4.7 0.9 S 3.4 1.2 0 0 0 0 4.6 1.2

SW 3.5 4.3 0.1 0 0 0 7.9 1.7 W 4.2 4.1 0.2 0 0 0 8.5 1.6

NW 4 1.4 0 0 0 0 5.5 1.2

Table 6-7 Record for Maximum Surface Wind Speed from the Year 2003 to 2013

Year

Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2003 Dir. 090 360 190 010 290 310 230 Def. 250 360 010 Def. Speed 14 17.8 14.6 15.9 13.9 10.1 13.1 11.4 10.9 11.5

2004 Dir. 060 010 110 150 310 270 310 300 340 050 050 060 Speed 14.4 12.6 13 12 13.2 13.5 13.6 13.7 10.6 12.5 11.9 14.4

2005 Dir. 050 080 060 090 170 240 250 210 240 300 070 240 Speed 13.2 13 12.2 10.8 9.2 11.4 11.1 8.8 13.5 10.3 9.9 13.5

2006 Dir. 120 040 140 040 330 340 260 290 260 340 120 290 Speed 11.7 12.2 11 12 10.8 10.4 8.8 14.1 9.4 9.3 10.1 14.1

2007 Dir. 360 030 120 040 Def. 280 220 Def. 310 290 010 Def. Speed 11.9 10.7 10.2 10 10.7 12.4 11.7 15.1 8.3

2008 Dir. 360 020 020 150 290 310 220 300 280 280 360 280 Speed 9.2 10.4 10.4 10.2 10 10.7 9.8 8.2 11.4 10.6 9.1 11.4

2009 Dir. 050 080 080 170 290 290 270 270 280 350 040 280 Speed 11 14 14 11 10.6 10.4 10.4 11 16.6 9.8 10 16.6

2010 Dir. 350 090 090 030 040 200 300 300 080 Def. 170 Def. Speed 10.2 13.6 13.6 14.3 10.2 8.7 11.3 9.6 17.6 9.8

2011 Dir. 090 110 110 340 280 300 Def. 300 310 Def. 360 Def. Speed 12 10.5 10.5 11.3 7.8 14.9 11.2 10.9 11.4

2012 Dir. 320 020 020 280 280 280 290 310 280 Def. 210 Def. Speed 11.4 9.4 9.4 11.8 11 11.5 13.3 10.4 11.7 10.2

2013 Dir. 020 100 100 270 010 230 300 220 320 280 010 100 Speed 10.4 12.3 12.3 10.7 11.5 9.9 9 10.9 9.4 10.6 11.8 123

(5) Topography

The topography of the Project Site is relatively flat and low lying. The site is located on undulating land at between 70 – 90m above Mean Sea Level (MSL).

(6) Geology

From the geological formation, it can be seen that the areas in the surrounding region of site is of



the Carboniferous and Permian sedimentary rock type. The main characteristic is it is of the phyllite, slate, shale and sandstone. The dominant soil type in the area is of the Harimau-Tampoi soil type. The geology map is shown in Figure 6-10, the soil type map in Figure 6-11.

Source: Jabatan Ukur dan Pemetaan Malaysia, 1985

Figure 6-10 Geological Map of Peninsular Malaysia

Project Site Location



Source: Department of Agricultural Malaysia

Figure 6-11 Soil Type Map of Perlis

(7) Hydrology

In terms of hydrology, there is no water body found within the site. However, at the south of the Project site, there is one river that flows downwards at the southern boundary of the Project site. The river is one of the tributaries of the Jerneh River. The location of the river is about less than 1km to the Project site area. The Project Site area is within the catchment area of the Jerneh River. However, the transmission line passes through a few rivers besides the Jerneh River, which are the Ngolang and Terusan Jejawi. Terusan Jejawi River is a tributary of the Jejawi River which runs to the south of the transmission line, near to the Kangar power station. The water in the Jerneh River is used for irrigation of paddy field (see Figure 6-4, Figure 6-5).

(8) Protected Area

In the geographic map, the Project site is included in Rimba Mas Mas Forest Reserve (see Figure 6-4, Figure 6-5).

However, the protected are is located in the developed area (see Figure 6-12). The nearest protected area to the Project site is the Timah-Tasoh Dam. The Dam supplies water to the people of Perlis as well as prevents any occurrence of flood. It is suitable for fish breeding and other aquaculture projects. It is also a sanctuary for migratory birds.



Source: http://www.fairwood.jp/forest/world/maps/Malay_pm.html

Figure 6-12 Protected Area Map



Figure 6-13 Forest Type Map

Figure 6-14 Distance from Project Site to Timah-Tasoh Dam



(9) Ecology

The Project site had been used as the sugar cane field before development of Chuping Green Valley. At present, almost of the land has been abandoned, and the part of that has been used to be the cultivated land such as a sugar cane field etc. The rubber plantation covers around the Project site, and there are the rubber plantation and settlement along the transmission line. There is no important ecology around the Project site.

Timah Tasoh Reservoir which is located approximately 6km from the Project site is the shallow man-made lake with about 17km2. It supports a variety of aquatic birds from the Little Grebe and Common Moorhen to Lesser Whistling – Duck (Dendrocygna javanica) and Cotton Pygmy Goose (Nettapus coromandelianus). Cinnamon and Yellow Bitterns (Lxobrychus cinnamomeus, L. sinensis) frequently appear at the water’s edge. A variety of Egrets and Garganey (Anas querauedula) are found here during the winter months. (Source: A field guide to Birds of Peninsular Malaysia and Singapore, 2012)

6.2.2 Social Environment

(1) Socio-Economic

The socio-economic study covers the Project site which located in the Sub-District of Chuping of Perlis state.

Perlis is the smallest state in Malaysia with total area of 821km2. It is situated at the northern part of the west coast Peninsular Malaysia. Perlis is bordered by Thailand at the northern border and state of Kedah at the southern border. The economic activity of Perlis is predominantly agricultural, which takes up to 63% of the total land use, while forestry and fishing are the other important activities. Rice, rubber and sugar cane are extensively cultivated while fruit production, especially mango and watermelon is also significant.



Source: Jabatan Perangkaan Malaysia, 2010

Figure 6-15 Project Site Location within the Perlis State

(2) Population

The number of population size in Sub-district of Chuping and Perlis state were 12,779 and 225,630 respectively. The gender distribution in Perlis state is comprised of 111,199 male (49%) and 114,431 female (51%) and in Sub-district of Chuping had 6,580 male (51%) and 6,199 female (49%).



Table 6-8 Population of Perlis state, Sub-district of Chuping, 2010 Male Female Total

Num. % Num. % Num.

Perlis State 111,199 49 114,431 51 225,630

Chuping Sub-District 6,580 51 6,199 49 12,779

(3) Ethnic Group

Malay is counted more than 80% in Perlis state and Chuping Sub-district.

Table 6-9 Ethnic Composition of Perlis state, Sub-district of Chuping, 2010

Malay Bumiputera Chinese Indian Others Num. % Num. % Num. % Num. % Num. %

Perlis State 193,641 88.0% 943 0.4% 17,522 8.0% 2,675 1.2% 5,329 2.4% Chuping

Sub-District 10,434 84.0% 99 0.8% 126 1.0% 46 0.4% 1,719 13.8%

(4) Ethnic Minority/ Indigenous People

In and around the Project site, there are not ethnic minority or indigenous people.

Ethnic minorities in Malaysia are called non-Bumiputera which mainly consist of Chinese and Indian. Chinese ethnic makes up 24.6% of the population while the Indian community comprises of 7.1% of the total population. Majority of Malaysian are Bumiputera with 50.4% population.

Indigeneous people are devided into three tribes which are called Negrito, Jahai and Proto-Malay with each tribe devided into a few sub-tribes. Each tribe has their own language and custom. Negrito tribes mostly reside in the northern region of Peninsular Malaysia while the Senoi people inhabited the slopes of Titiwangsa namely in the rural parts of Perak, Kelantan and Pahang. The Proto-Malay people lived mainly in the southern region of peninsular Malaysia. Most of them reside in Johor.

(5) Land Use

The project site has been covered with shrub and grassland, a part of that is sugar cane field. The rubber and banana plantation has been covered around the site. The nearest human settlements are about 3km away from Project site which is Kampung Kubang Tiga.



Figure 6-16 Project Site and the 3km Radius Surrounding

Table 6-10 Land Use Surrounding the Proposed Site

Distance from Proposed Project Site (approximate)

Direction Description of Land Use

0-1 km - -

1-2 km South West Rubber And Banana Plantation Area

2-3 km - -

3-4 km South West Kampung Kubang Tiga

4-5 km South West Construction Site of Sanitary Landfill

5-6 km South West Rubber Plantation area

Kampung Ayer Timbul

6-7 km South West UPP Chuping

Timah-Tasoh Dam

Kampung Bukit Jerneh

7-8 km South West Sungai Jerneh Bridge

8-9 km South West Kampung Padang Malau

> 9km South West Dewan Sri Aneh

Bukit Keteri *Kampung means Village, Sungai means River

Rubber and Banana Plantation Area



Figure 6-17 Current Site

(6) Land Acquisition and Resettlement

The land of Chuping Valley had been owned by Felda Global Nature Ltd., that had been sugar cane field. Cash compensation had been conduted along with development of Chuping Valley, at present the land belongs to Perlis state. Therefore there will be no used for resettlement or compensation to privte entities.

Chuping Valley is at the stage that is attracting businesses, the cultivation for local residents is admitted until the operator is determined. Therefore, currently the Project site has places that are used to cane fields and the like.

(7) Cultural Heritage

There is not any historical or cultural heritage building in and around the Project site.



System and Organization related to Environmental and Social Consideration in Malaysia

6.3.1 Legal Framework related to Environmental and Social Consideration

The laws and regulations related to Environmental and Social Consideration in Malaysia are shown in Table 6-11.

Table 6-11 Laws and Regulations

No. Law and Regulation Year

1 Environmental Quality Act 1974; amendment 1985

2 Environmental Quality (Licensing) Regulations 1977

3 Environmental Quality (Clean Air) Regulations 1978: amendment 2000

4 Environmental Quality (Compound of Offences) Rules 1978

5 Environmental Quality (Sewage Effluents) Regulations 2009

6 Environmental Quality (Industrial Effluents) Regulations 2009

7 Environmental Quality (Motor Vehicle Noise) Regulations 1987

8 Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987; amendment 1995

9 Environmental Quality (Scheduled Waste) Regulations 2005

10 Environmental Quality (Control of Emission from Diesel Engines) Regulations 1995

11 Environmental Quality (Control of Emission from Petrol Engines) Regulations 1995

12 Environmental Quality (Compounding of Offences) (Open Burning) Rules 2000

13 Factories and Machinery (Noise Exposure) Regulations 1989

14 Factories and Machinery (Safety, Health and Welfare) Regulations 1970

15 Guidelines for Prevention and Control of Soil Erosion and Siltation Malaysia 1996

16 Urban Stormwater Management Manual 2000

6.3.2 Organization related to Environmental and Social Consideration

Environmental issues are handled in each level of federal, state, and local authorities. Ministry of Natural Resources and Environment (MONRE) was established in 2004. The Department of Environment (DOE) in MONRE is the main leading organization of environmental issues, EIA and EMP, the Department of Irrigation and Drainage (DID) has the important role to give permission on soil erosion and sedimentation control in construction works.



Table 6-12 Organizations of the MONRE

No. Department and Institute 1 Forestry Department Peninsular Malaysia 2 Forest Research Institute Malaysia 3 Minerals and Geosciences Department Malaysia 4 Department of Environment (DOE) 5 Department of Wildlife & National Parks Peninsular Malaysia 6 Department of Irrigation and Drainage (DID) 7 National Hydraulic Research Institute of Malaysia 8 Department of Director General of Lands and Mines 9 Department of Survey & Mapping Malaysia

10 National Institute of Land and Survey Source: Ministry of Natural Resources and Environment

6.3.3 EIA System in Malaysia

The Environmental Quality Act 1974 and amendment 1985 regulates to submit EIA to DOE. The activities required EIA are prescribed in the Order (1987) of this act. For non-prescribed activities, Preliminary Site Assessment (Penilaian Awal Tapak: PAT) is required to evaluate site suitability (Environmental Requirements: A Guide for Investors, Department of Environment Malaysia, 2010). EIA has two procedures. Preliminary EIA is required to submit to DOE of State for small impact activities, whereas detailed EIA is required to submit to federal DOE for significant impact activities. There is the case that is required Detailed EIA after review Preliminary EIA. Environmental Management Plan (EMP) is prepared after approval of EIA. PAT, EIA and EMP are prepared by consultant registered to DOE. Under construction and during operation, EIA Audit is carried out to confirm whether the activity is conducted in line with the Environmental Quality Act 1974 and related regulations. Environmental Audit report is prepared by third party. The EIA procedure is shown in Figure 6-18.

Photovoltaic power generation is not prescribed in the order. Therefore, the Project is not assumed to be required EIA.

It takes 2 to 3 weeks to take the approval after submission PAT to DOE. DOE issued AS PAT 1-12 Form to describe required matters as follows.

Type of application

Introduction

Information on applicant / consultant

Information on the proposed project site Site location: territory / district / state Site coordinate Site location plan (attach): size, boundary of the site including transmission line Project layout plan (attach)

Information on proposed project Upper level project, relevant guideline, and so on



Declaration by applicant

Comments from relevant agencies Federal Department of Town and Country Planning (If related to the State Structure Plan or other plans) Department of Town and Country Planning (If related to the State Structure Plan or other plans)

Application checklist

Figure 6-18 EIA Procedure in Malaysia



Comparative Study on Alternatives

6.4.1 Comparison of Site Location

The Project sites are compared with Perlis, Perak and Kedah state where were proposed by Malaysian government as a candidate site. The candidate site of Kedah is private land and adjacent to the river, so land acquisition and landfill are required to use as a photovoltaic power station. In addition, nearest existing substation does not have enough acceptable capacity. The candidate site of Kedah is located in the undeveloped land, so it requires infrastructure buildings such as a bridge. Therefore, Perlis site is selected as the Project site from the side of economy and environment.

Table 6-13 Comparison with Site Location Candidate Site Perlis Perak Kedah Project Outline

Output 22MW 20MW Length of Transmission Line

24km

Environment Social Environment

Chuping Valley belongs to Perlis state, so land acquisition is not required.

Land acquisition is required due to private land.

Land acquisition is required due to private land.

Natural Environment

The land was used as a sugar cane field, so impact on natural environment is not assumed.

The land is used as a palm plantation, so impact on natural environment is not assumed.

Economy The length of transmission line is long, but land acquisition and landfill are not required.

The land is adjacent to the river, so landfill is required. The nearest existing substation does not have enough acceptable capacity, so new substation is necessary.

The land is undeveloped, so it requires infrastructure buildings such as a bridge.

Evaluation Environment ○ △ × Economy △ × ×

Comprehensive Evaluation ○ × ×

6.4.2 Zero Option

There is no impact in the case that the Project is not conducted. However, the Project is development of the photovoltaic power generation that impact is small. If zero option is selected, the power supply by the renewable energy with small impact cannot be received and it does not contribute to the local economy development.



Scoping and TOR of Environmental and Social Consideration Study

6.5.1 Scoping

After a few field study and secondary data gathered, scoping list was done and the result is shown in Table 6-14 below.

Table 6-14 Scoping

Category No Environmental Item

Evaluation Evaluation reason Before/ under

construction Operation

Pollution Control

1 Air Pollution B- D Under construction: Impact on air quality is expected by dust and emission due to operation of construction vehicles. But the scale of the work is small and affected area is limited. Operation: Works which cause air pollution are not expected.

2 Water Quality B- D Under construction: There is a possibility of water pollution by waste water from construction works. Operation: Works which cause degradation of water quality are not expected.

3 Waste B- D Under construction: Occurrence of construction

waste and waste soil are expected. Operation: Occurrence of waste is not expected.

4 Soil Pollution D D Works which cause soil pollution are not expected.

5 Noise and Vibration B- D Under construction: Noise from heavy equipment and vehicles are expected. Operation: Noise and vibration under operation of solar power is not expected.

6 Land Subsidence D D Works which cause land subsidence are not expected.

7 Odor D D Works which cause odor are not expected.

8 Bottom Sediment D D Works which cause bottom sediment are not expected.

Natural environment

9 Protected Area D D There is no protected area in the Project area and its surrounding.

10 Ecosystem D D The land for photovoltaic power station was used for sugar cane field, therefore there is little possibility that affected on ecology.

11 Hydrology D D Works which impact on hydrology are not expected.

12 Topography and Geology D D Works which affect topography and geology are not expected.

Social environment

13 Land Acquisition/ Resettlement

D D Land acquisition and resettlement do not cause because the land is owned by Perlis State Government.

14 Poverty D D The impact on poverty is not expected. 15 Ethnic minority and

indigenous people D D There is no ethnic minority and indigenous people

in the Project area and its surrounding. 16 Local economy,

employment and livelihood

D D The impact on local employment is expected.




Evaluation Evaluation reason Before/ under

construction Operation

Social environment

17 Land use and Use of natural resource

D D The impact on land use and use of natural resource is not expected.

18 Water use D D The impact on water use is not expected. 19 Existing social

infrastructure and service D D The impact on the existing social infrastructure and

service is not expected. 20 Social institutions and

social organization such as decision- making body

D D The impact on social institutions and social organization such as decision-making body is not expected.

21 Uneven distribution of benefits and damages

D D The impact on uneven distribution of benefits and damages is not expected.

22 Conflict of interest in the region

D D Regional conflict of interest is not expected.

23 Cultural heritage D D There is no cultural heritage in the Project area and its surrounding.

24 Landscape D D There is no landscape resource in the Project area and its surrounding.

25 Gender D D The impact on gender is not expected. 26 Children’s rights D D There is no element that infringes on children’s

rights. 27 Infection, HIV/AIDS D D The spreading of infection is not expected, because

the influx of construction workers is very small. 28 Working condition

(including working safety)

B- D Under construction: It is necessary to consider working condition of construction workers. Operation: Works which impact on working condition are not expected.

Others

29 Accidents B- D Under construction: It is necessary to consider the possibility of occurring accidents such as a traffic accident. Operation: Works which cause an accident are not expected.

30

Impact of cross-border, and climate change

D D The impact across the border and climate change are not expected, because the Project is the photovoltaic power generation development and its scale is small.

A+/-: Significant positive/negative impact is expected. B+/-: Positive/negative impact is expected to some extent C+/-: Extent of positive/negative impact is unknown. (A further examination is needed, and the impact could be clarified as the

study progresses) D: No impact is expected

6.5.2 TOR

Based on the scoping results, the environmental and social consideration survey on affected items was conducted in line with TOR.



Table 6-15 TOR

Impact Item Survey Item Method

Air Quality Environmental standards Current air quality

Study of exiting documents Air quality analysis

Water Quality Environmental standards Current water quality

Study of exiting documents Water quality analysis

Waste Treatment method of construction waste Study of exiting documents

Noise / Vibration Environmental standard Current noise

Study of exiting documents Noise analysis

Working Condition Measure for working safety Study of exiting documents

Accident Measure for traffic accident under construction Study of exiting documents

Stakeholder Consultation (SHM)

Collecting opinions from relevant authorities and affected communities

Organization of the stakeholder consultation

6.5.3 Methods of Site Survey

The Site Survey for air and water quality, noise level was carried out. The measurement sites and items are shown in Table 6-16.

Table 6-16 Measurement Items and Sites for Air and Water Quality, Noise Level

Impact Item Measurement Items Measurement Site

Air Quality ① TSP, PM10, SO2, NO2, CO, Pb, Hydrocarbon

② Photovoltaic Power Station (2 points: A1, A2) ③ Transmission Line Route (8 points: A1~A8)

Water Quality ① pH, DO, Turbidity, BOD5, COD, TSS, E.Coli, NH3-N , Oil & Grease

② Photovoltaic Power Plant (Jerneh River) (5 points: W1~W5) ③ Transmission Line Rout (12 points: W1~W12)

Noise ① LAeq, LA10, LA90, LAmin, LAmax ② Photovoltaic Power Station (2 points: A1, A2) ③ Transmission Line Route (8 points: A1 ~ A8)



Figure 6-19 Location of Measurement Sites for Air and Water Quality, Noise Level

Result of Environmental and Social Consideration Survey

The result of the environmental and social consideration survey based on TOR was shown in Table 6-17.

Table 6-17 Result of the Environmental and Social Consideration Survey

Survey Item Survey Result Air Quality The environmental standard of air quality in Malaysia is shown below;

Parameters Unit Recommended Limit

Total Suspended Particulate µg/m3 260 Particulate Matter (PM10) µg/m3 150

Nitrogen Dioxide, NOx µg/m3 320 Sulphur Dioxide (SOx) µg/m3 105 Carbon Monoxide (CO) ppm 9

Lead, Pb µg/m3 1.5 Hydrocarbon µg/m3 NA

Source: Environmental Quality Regulations, DOE, 2014 All items of air quality are below the environmental standard around the photovoltaic power station and

along the transmission line route.



Survey Item Survey Result

Air Quality Analysis Result (Photovoltaic Power Station) Item Unit Measured Value (Mean)

A1 A2 TSP µg/m3 72 68

PM 10 µg/m3 50 46 Sulfur Dioxide µg/m3 ND(<5) ND(<5)

Nitrogen Dioxide µg/m3 ND(<2) ND(<2) Carbon Monoxide ppm ND(2) ND(2)

Lead µg/m3 ND(<0.01) ND(<0.01) Hydrocarbon µg/m3 ND(<5) ND(<5)

Air Quality Analysis Result (Transmission Line)

Item Measured Value (Mean) A1 A2 A3 A4 A5 A6 A7 A8

TSP 76 74 72 68 70 68 69 66 PM 10 55 50 49 47 48 46 47 42

Sulfur Dioxide ND(<5) ditto ditto ditto ditto ditto ditto ditto Nitrogen Dioxide ND(<2) ditto ditto ditto ditto ditto ditto ditto Carbon Monoxide ND(2) ditto ditto ditto ditto ditto ditto ditto

Lead ND(<0.01) ditto ditto ditto ditto ditto ditto ditto Hydrocarbon ND(<5) ditto ditto ditto ditto ditto ditto ditto

Water Quality The environmental standard of water quality in Malaysia is shown below;

Parameters Unit *Class IIA

pH - 6.0-9.0 Dissolved Oxygen (DO) mg/L 5.0-7.0

Turbidity NTU 50.0 BOD5 at 20o mg/L 3.0

COD mg/L 25.0 Total Suspended Solids mg/L 50.0

E.Coli CFU/100ml 100.0 Ammoniacal Nitrogen mg/L 0.3

Oil and Grease mg/L 0.04 Source: Interim National Water Quality Standards for Malaysia, DOE, 1993

The BOD and COD were beyond the environmental standard in W4 of the Jerneh River flowing near the

photovoltaic power station. The turbidity and TSS of W4 relatively indicated a high value. The BOD was beyond the environmental standard at all locations.

Water Quality Analysis Result (Photovoltaic Power Station) Item Measured Value (Mean)

W1 W2 W3 W4 W5 Temp (°C) 30.9 31.8 31.1 31.9 30.8

pH 6.20 6.50 6.60 6.40 6.20 DO 5.5 5.95 6.15 6.05 5.80

Turbidity 13 11 31 45 33 BOD5 6 4 4 9 4 COD 24 16 16 33 16 TSS 5 4 29 41 27

E.Coli 10 18 18 13 41 NH3-N ND(<0.01) ND(<0.01) 0.30 0.26 ND(<0.01)

Oil and Grease ND(<1) ND(<1) ND(<1) ND(<1) ND(<1)

The BOD was beyond the environmental standard at 10 sites from W3 to W12 along the transmission line.

Water Quality Analysis Result (Transmission Line)



Survey Item Survey Result Item Measured Value (Mean)

W1 W2 W3 W4 W5 W6 Temp 30.9 31.5 31.5 31.6 30.9 31.8

pH 6.50 6.60 6.50 6.10 6.40 6.30 DO 6.15 5.90 6.00 5.75 5.90 5.80

Turbidity 11 10 26 26 22 20 BOD5 2 2 6 6 4 4 COD 8 8 24 24 16 16 TSS 5 4 14 15 15 14

E.Coli 8 6 11 13 14 12 NH3-N ND(<0.01) ditto ditto ditto ditto ditto

Oil and Grease ND(<1) ditto ditto ditto ditto ditto Item Measured Value (Mean)

W7 W8 W9 W10 W11 W12 Temp 30.8 30.8 31.1 30.8 31.4 30.8

pH 6.45 6.40 6.55 6.60 6.50 6.40 DO 5.80 5.90 6.15 6.20 6.05 5.80

Turbidity 9 10 13 11 12 12 BOD5 4 6 4 6 4 6 COD 16 24 16 24 16 24 TSS 4 5 4 5 4 5

E.Coli 6 11 10 12 9 15 NH3-N ND(<0.01) ditto ditto ditto ditto ditto

Oil and Grease ND(<1) ditto ditto ditto ditto ditto

Waste Environmental Quality Act (1974) and Local Government Act (1976) regulate the basic system of waste and recycle. In the Environmental Quality (Scheduled Waste) Regulations (1989; Amendment 2005), it prescribes type, disposal process and responsible party.

The occurrence of municipal waste such as construction waste and soils is expected by construction works of the Project. Others are grass and trees occurred by land clearing, which are unregulated wastes.

Municipal Waste General construction spoil such as cement and rock should be recycled on site as much as possible. Unsalvageable construction spoil should be stockpiled at a designated site and reviewed to be sold to

salvage yard operators or other contractors. Alternatively, arrangement can be made with registered private contractors or the local authority to carry out regular collection for off-site disposal.

Unregulated Waste The grass and trees will first be lest to dry at the site, and later transported. Burning of vegetative

residues should not be carried out in the site premises. The removal and transportation of the biomass must be undertaken by a licensed waste contractor.

Noise The environmental standard of noise level in Malaysia is shown below; Receiving Land Use Recommended Limit

Suburban Residential (Medium Density) Areas, Public Spaces, Parks, Recreational Parks

Day time (7.00am – 10.00 pm)

55 dBA

Night time (10.00pm – 7.00 am)

45 dBA

Source: Planning Guidelines for Environmental Noise Limits and Control, DOE, 2007

The noise level was beyond the environmental standard at most of the sites around the photovoltaic power station and along the transmission line.



Survey Item Survey Result Noise Level Analysis Result (Photovoltaic Power Station)

Item Measured Value Mean) N1 N2

Day time Night time Day time Night time LAeq 58.9 47.4 57.2 46.6 LA10 62.4 50.1 60.3 49.3 LA90 56.3 45.7 54.9 44.2

LAmin 42.3 36.8 40.9 35.9 LAmax 95.2 86.8 92.1 84.1

Noise Level Analysis Result (Transmission Line)

Item Measured Value (Mean) N1 N2 N3 N4

Day time

Night time

Day time

Night time

Day time

Night time

Day time

Night time

LAeq 58.3 47.3 59.2 48.2 57.4 47.2 59.3 47.3 LA10 60.8 49.6 61.9 50.6 59.3 49.4 61.4 49.3 LA90 56.8 45.2 57.6 46.7 55.1 45.4 57.4 45.1

LAmin 42.6 36.2 43.2 36.1 43.5 33.7 43.9 37.6 LAmax 85.9 75.8 86.2 73.5 84.7 74.9 88.3 77.6

Item Measured Value (Mean) N5 N6 N7 N8

Day time

Night time

Day time

Night time

Day time

Night time

Day time

Night time

LAeq 57.3 42.1 53.1 46.9 54.8 43.2 59.2 48.5 LA10 63.2 48.4 57.0 48.2 55.8 46.2 65.1 49.8 LA90 54.0 44.7 53.2 43.4 52.5 44.1 56.9 45.3

LAmin 42.8 37.7 42.5 37.1 43.5 35.6 44.6 39. LAmax 96.1 86.3 93.8 83.3 93.1 89.4 98.5 88.0

Working

Condition As a law on the working safety and health, the Occupational Safety and Health Act was enacted in 1994.

This act requires the aggressive involvement of the project proponent, workers, and working safety experts in order to ensure safety and health at the workplace.

Malaysian standard enacted in 2003 has a function as a reference standard to observe the Occupational Safety and Health Act.

Accident In Malaysia, installation of traffic sign under construction is not defined.

Environmental Impact Assessment

The impact on the environment was assessed based on the result of the environmental and social consideration survey.



Table 6-18 Environmental Impact Assessment


Scoping Evaluation Evaluation reason Before/under

construction Operation Before/under construction Operation

Pollution Control

1 Air Pollution B- D B- N/A Under construction: Impact on air quality is expected by dust and emission due to operation of construction vehicles. But the scale of the work is small and affected area is limited.

2 Water Quality B- D B- N/A Under construction: There is a

possibility of water pollution by waste water from construction works.

3 Waste B- D B- N/A Under construction: Occurrence of

construction waste and waste soil are expected.

4 Soil Pollution D D N/A N/A

5 Noise and Vibration B- D B- N/A Under construction: Noise from heavy equipment and vehicles are expected.

6 Land Subsidence D D N/A N/A 7 Odor D D N/A N/A 8 Bottom Sediment D D N/A N/A

Natural Env.

9 Protected Area D D N/A N/A 10 Ecosystem D D N/A N/A 11 Hydrology D D N/A N/A 12 Topography and Geology D D N/A N/A

Social Env.

13 Land Acquisition/ Resettlement

D D N/A N/A

14 Poverty D D N/A N/A 15 Ethnic minority and

indigenous people D D N/A N/A

16 Local economy, employment and livelihood

D D N/A N/A

17 Land use and Use of natural resource

D D N/A N/A

18 Water use D D N/A N/A 19 Existing social infrastructure

and service D D N/A N/A

20 Social institutions and social organization such as decision- making body

D D N/A N/A

21 Uneven distribution of benefits and damages

D D N/A N/A

22 Conflict of interest in the region

D D N/A N/A

23 Cultural heritage D D N/A N/A 24 Landscape D D N/A N/A 25 Gender D D N/A N/A 26 Children’s rights D D N/A N/A 27 Infection, HIV/AIDS D D N/A N/A 28 Working condition (including

working safety) B- D B- N/A Under construction: It is necessary to

consider working condition of construction workers.

Others

29 Accidents B- D B- N/A Under construction: It is necessary to consider the possibility of occurring accidents such as a traffic accident.

30 Impact of cross-border, and climate change

D D N/A N/A

A+/-: Significant positive/negative impact is expected. B+/-: Positive/negative impact is expected to some extent C+/-: Extent of positive/negative impact is unknown. (A further examination is needed, and the impact could be clarified as the

study progresses) D: No impact is expected



Mitigation Measures and Cost

6.8.1 Mitigation Measures

The mitigation measures were reviewed on the negative impact items.

Table 6-19 Mitigation Measure

No. Impacts Mitigation Measures Implementing Organization

Responsible Organization

1 Air pollution Preventing diffusion of dust by water spray Strict compliance with speed restriction (30km/h) for all

vehicles operating within the construction site.

DCC PESMY

2 Water pollution

Prevention measure of suspended solid and turbidity such as a silt fence

Rapid compaction of the construction surface

DCC PESMY

3 Waste Appropriate treatment of waste DCC PESMY

5 Noise/ vibration

Use of low noise machines and vehicles Explanation of the work schedule to local people Restrictions of the construction time

DCC PESMY

28 Working condition

Preparation and compliance of Safety Management Plan (SMP)

Wearing of basic safety equipment such as safety shoes, gloves and helmet

DCC PESMY

29 Accident Installation of warning signs DCC PESMY

6.8.2 Cost for Mitigation Measures

The cost for mitigation measures is included in the construction cost.

Monitoring Plan

6.9.1 Implementing Organization

The implementation organization is shown in Table 6-20. EMP is prepared based on Environmental Policy, Legislative Requirement and EIA. Environmental Management Unit (EMU) is responsible for EMP and aims the effective management program. PESMY is responsible for entire of the Project. Design and Construction Contractor (DCC) will prepare and carry out Environment and Safety Management Plan (ESMP).



Table 6-20 Environmental Management Responsibilities

Organization Responsibilities PESMY PESMY is responsible for the implementation, management and supervision

of the Project, including EMP requirement. PESMY approves the monitoring result. PESMY receives all complains and grievances which arise under

construction and during operation. Environmental

Consultant The consultant prepares EMP. The consultant confirms ESMP prepared by DCC. The consultant supervises monitoring implemented by DCC. The consultant reports the monitoring result to DOE.

DCC DCC prepares the final design based on EMP. DCC prepares and carry out ESMP.

EMU EMU supervise the environmental management program.

6.9.2 Monitoring Plan

Monitoring plan is prepared to confirm the effect of mitigation measures as follows;

Table 6-21 Monitoring Plan

Item Monitoring Parameter Location Frequency Implementation

Organization Responsible Organization

Construction Phase Air Quality TSP

PM10 Sulfur Dioxide Nitrogen Dioxide Carbon Monoxide Lead Hydrocarbon

Photovoltaic power station: 2 sites Transmission line route: 8 sites

Quarterly DCC PESMY

Water Pollution

pH DO Turbidity BOD5 COD TSS E. Coli NH3-N Oil and Grease

Photovoltaic power station: 5 sites Transmission line route: 12 sites

Monthly DCC PESMY

Waste Municipal Waste Unregulated Waste

In the construction site and the field office

Weekly Monthly

DCC PESMY

Noise LAeq LA10 LA90 LAmin LAmax

Same as air quality Quarterly DCC PESMY

Working Condition

Patrol for worker’s condition

In the construction site Twice under construction DCC PESMY

Accident Patrol for traffic condition

Around the construction site Under transportation of materials of photovoltaic power: Weekly Others: Monthly

DCC PESMY



Stakeholder Meeting

The stakeholder meeting was held on 6th August, 2015. Outline of the Project and assumed impacts were explained to stakeholders, and then discussion was continued.

6.10.1 Attendance

The number of attendance was 15 including NCIA(Northern Corridor Implementation Authority), UPEN (Unit Perancang Ekonomi Negeri – State Economy Planning Unit), MPK (Majlis Perbandaran Kangar – Kangar Municipal Council), JPBD Perlis (Jabatan Perancang Bandar dan Desa –Town and Country Planning Department), DOE (Department of Environment, DOE), JPS (Jabatan Pengairan dan Saliran – Drainage and Irrigation Department), JKR (Jabatan Pengairan dan Saliran – Drainage and Irrigation Department), PESMY and consultant.

6.10.2 Jabatan Kerja Raya – Public Works Department, Subject of Discussion

The main opinions from stakeholders are shown in Table 6-22.

Table 6-22 Main Opinions from Stakeholders

Organization Main Opinion

NCIA The Project is important as a kick-off to Chuping Valley Development. UPEN Technical meeting is proposed to be done with PESMY.

Land tenant issue will be clarified during the technical meeting. JPS There are no discharge to Timah Tasoh Dam from the Project site and it is included in the

different catchment. The Jerneh River is a main water supply for paddy field in Perlis state. The details of the transmission line should to be submitted in order to identify sensitive

structures along the route. JPBD No issue MPK PESMY should get all the plans ready and have a presentation with MPK for the

engagement policy meeting chaired by YDP. DOE Before the submission of PAT, the consultant must check with the municipal council and

NCIA regarding the latest sitting and zoning for the area. PESMY must consider waste generated from the Project site.

JKR The transmission line must be submitted to the road department of JKR Kangar.

The minutes of the stakeholder meeting is attached at Appendix 6. The monitoring form and the environmental checklist are attached at Appendix 7 and Appendix 8.



Figure 6-20 Stakeholder Meeting on 6th August, 2015

Chapter 7 Preparatory Survey Report Project Execution Plan


CHAPTER 7

PROJECT EXECUTION PLAN

Chapter 7 Preparatory Survey Report Project Execution Plan


Chapter 7 PROJECT EXECUTION PLAN

Schedule

Due to the adjustment between Perlis government and KeTTHA, this investigation is prolonged for another half year. It is expected to start from 2017 according to the schedule blow.

Calendar year 2014 2015 2016 2017 2042

(1) Feasibility study

(2) Contract preparation

(3) Construction

(4) Operation

Construction Schedule of Solar Power Plant

When each procedure is completed, construction of solar power plant and grid connection will be implemented in 10 months on following schedule, and commercial operation is possible from 11th month after test drive.

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52Item

1

2

3

5




a. C&S Works

Project Aw ard

Design

Procurement

Construction Works4



g. Grid Connection




Preparatory Survey Report Appendices


APPENDICES

Appendix 1 : Memorandum of Understanding between the Northern Corridor Implementation Authority and Panasonic Eco Solutions (M) Sdn. Bhd.

Appendix 2 : Sample of License for Generation and Supply of Electricity Appendix 3 : Topographic Map of the Site Appendix 4 : Specifications of Photovoltaic Module Appendix 5 : PSS Report Appendix 6 : Minutes of the Stakeholder Meeting Appendix 7 : Monitoring Form Appendix 8 : Environmental Checklists



APPENDIX 1

MEMORANDUM OF UNDERSTANDING BETWEEN THE NORTHERN CORRIDOR IMPLEMENTATION AUTHORITY

AND PANASONIC ECO SOLUTIONS (M) SDN. BHD.



APPENDIX 2

SAMPLE OF LICENSE FOR GENERATION AND SUPPLY OF ELECTRICITY

ELECTRICITY SUPPLY ACT 1990

LICENCE FOR GENERATION AND SUPPLY OF ELECTRICITY

PART I - GRANT OF LICENCE

1. The Energy Commission with the approval of the Minister of Energy, Green

Technology and Water, in exercise of the powers conferred on him by section 9 of the

Electricity Supply Act, 1990 (hereinafter referred to as "the A~

~rcisable by him for that purpose, hereby grants to -

- · a comi:>an incorporated under the Com anies Act 1965, havin its

referred to as "the Licensee"), a licence for the period specified in paragraph 4,

subject to the terms in this Part and Conditions set out in Part Ill of this Licence

(hereinafter referred to as "the Conditions"), the Act and to any Regulations made or

which may be made under the Act and to revocation as provided for in Part IV, to use,

work or operate or permit to be used, worked or operated any generation installation

and its associated facilities, any transmission and/or interconnection facilities, to be

constructed b or for the Licensee at

(hereinafter referred to

as the "Power Station"), and to supply energy to (e.g. Tenaga Nasional Berhad), a

1965, havin

referred to as "TNB") and/or to any other person approved by the Energy Commission.

2. The Licence may extend to authorising the Licensee to do all or any of the acts

specified hereinafter, particularly, to lay, place, carry on or maintain transmission

lines, cables or wires related to power station, in accordance with the provisions of the

Act.

3. The granting of this Licence does not remove any obligation of the Licensee to comply

with any provision of any other written law or to obtain any other licence that is

required under any other written law for the time being in force.

39

4. This Licence shall come into force from the date of issuance of the Licence, and shall

expire after the completion date referred to in paragraph 2 of

Condition 5 but, without prejudice to Part IV of this Licence, shall be subject to revocation.

Dated :

( DATUK IR AHMAD FAUZI BIN HASAN) Chief Executive Officer

Energy Commission

40

PART II - INTERPRETATION AND CONSTRUCTION

1. Unless the contrary intention appears, words and expressions used in the Conditions

shall be construed as if they were an Act of Parliament and the Interpretation Acts

1948 and 1967 applied to them, and references to an enactment shall include any

statutory modification or re-enactment thereof after the date when this Licence comes

into force.

2. Nothing in this Licence shall in any way affect the powers of the Energy Commission

under the Act and any purported detraction or derogation of such powers shall have no

force or effect.

3. Any word or expression defined for the purpose of Part I of the Act shall, unless the

contrary intention appears, have the same meaning when used in the Conditions.

4. Where a time limit is stipulated, the Licensee shall comply with the obligation within the

time limit and that obligation shall be deemed to continue after that time limit if the

Licensee fails to comply with that obligation within that time limit. However, the Energy

Commission may, after an application by the Licensee, extend the time limit as he

deems fit.

5. Any reference to a numbered Condition is a reference to the Condition bearing that

number in this Licence and any reference to a numbered paragraph is a reference to

the paragraph bearing that number in the Condition in which the reference occurs.

6. In construing the Conditions, the heading or title of any Condition shall be disregarded.

7. Any reference to "person" in this Licence, shall be deemed to include natural and legal

person.

8. Words and expressions importing the masculine gender include females.

9. Words and expressions in the singular include the plural, and words and expressions

in the plural include the singular.

41

10. In this Licence, unless the context otherwise requires:

"Act" means the Electricity Supply Act, 1990 [Act 447], as it may

from time to time be amended, extended, modified or re

enacted;

"affiliate" in relation to the Licensee means any holding company or

subsidiary of the Licensee or any subsidiary of a holding

company of the Licensee, related to the Licensee's core

business of generation and supply of electricity within the

meaning of the Companies Act 1965;

"Commission" means the Energy Commission established under the

Energy Commission Act 2001;

"Director General of Environmental " means the Director General of Environmental appointed

under section 3 of the Environmental Quality Act 197 4, and

includes his Deputy or officer authorised by him;

"disposal"

"Financial Year''

"Grid System"

"Grid System Operator"

includes any sale, gift, lease, licence, loan, mortgage, charge

or the grant of any encumbrance or the permitting of any

encumbrance to subsist or any other disposition to a third

party, including the affiliate;

bears the meaning given in paragraph 1 of Condition 18;

means the transmission grid system in Peninsular

Malaysia operated by the Grid System Operator referred to

in the Malaysian Grid Code;

means any person or a unit, department or division forming

part of TNB who is authorized by the Commission or as

provided for under the Act responsible for operational

planning, dispatch and control of the Grid System and any

other function as may be prescribed;

42

"Minister"

"Power Purchase Agreement"

'Power Station"

"Subsidiary Legislation"

"related undertaking"

"relevant assets"

"Single Buyer''

"TNB"

means the Minister for the time being charged with the

responsibility for matters relating to the generation,

transmission, distribution and supply of electricity;

means an agreement made or to be made between the

Licensee and TNB for the purpose of supplying and selling

electricity to TNB, as the same may be amended, modified

or novated from time to time;

means combined cycle power generating station, including

its associated facilities;

means the Electricity Regulations 1994 and any

Regulations, rule, order, notification, by law or other

instrument made or which may be made under the Act, as

it may from time to time be amended, extended, modified

or re-enacted;

means any undertaking in which the Licensee has

participating interest;

means any asset for the time being forming part of the

Licensee's generation business, and any beneficial interest

in land upon which the foregoing is situated;

means any person or a unit, department or division forming

part of TNB who is authorized by the Commission or as

provided for under the Act responsible for the management

of procurement of electricity and related services which

includes planning, scheduling, procuring and settlement, and

any function as may be prescribed;

means Tenaga Nasional Berhad., a limited company

incorporated under the Companies Act, 1965, having its

registered office at Pejabat Setiausaha Syarikat, Tingkat 2,

lbu Pejabat Tenaga Nasional Berhad, No. 129, Jalan

Bangsar, 59200 Kuala Lumpur including its successors in

title or permitted assigns;

43

CONDITION 1

CONDITION 2

PART Ill -CONDITIONS OF THE LICENCE

OBLIGATIONS OF THE LICENSEE

1. The Licensee is to finance, construct, complete, own, operate

and maintain the gas fired combined cycle Power Station with

a maximum licenced capacity of - MW at -

and any transmission and I or

interconnection facilities as shown in the Location/ Site Plan

attached as Annex A, in order to supply electricity to or for the

use of TNB, provided that the Commission may, with the

approval of the Minister in writing, permit the Licensee to

supply electricity to any other person.

2. The Licensee shall take all necessary measures to ensure the

safety, reliability, availability and efficiency of the Power

Station are maintained throughout the period of this Licence in

accordance with prudent utility practices and in conformity

with the Conditions of the Licence, the Act and the

Regulations made thereunder or such other standards or

requirements determined by the Commission.

NOTIFICATION OF THE ROUTE OF THE TRANSMISSION AND/ OR INTERCONNECTION FACILITIES

1. The Licensee shall notify the Commission the route of the

interconnection facilities if any subsequent modification or

extension is required to be constructed by the Licensee in

order to supply electricity.

2. The Licensee shall, within three (3) months after this Licence

enters into force, submit to the Commission a map and

schematic diagram showing the route and the main

components of the subsequent modification or extension to

transmission and/or interconnection facilities.

44

CONDITION 3

CONDITION 4

QUALIY ASSURANCE, INSPECTION AND PERFORMANCE TESTS FOR INSTALLATION

With reasonable notice, the Commission may conduct or cause to

be conducted by any competent independent engineer authorized

by the Commission any quality assurance inspections and

performance tests on any installation if it deemed just, fit and

necessary. All costs, expenses and incidental incurred by the

Commission or any other person appointed or authorized by the

Commission for the said inspections and tests shall be borne by the

Licensee.

CONSTRUCTION REQUIREMENTS AND GENERAL

SUPERVISION FOR NEW INSTALLATIONS

1. All designs, plans, specifications and details for modification

of the installation shall be prepared, approved or certified by

suitably qualified engineer(s) registered as professional

engineer(s) with Board of Engineers, Malaysia (hereinafter

referred to as "the Plans and Specifications").

2. The Licensee, its contractors, subcontractors, servants,

agents or workmen shall at all times comply with such

written direction given by the Commission or any person

duly authorized by the Commission pertaining to any

matters concerning the construction, installation, testing,

commissioning, operation and maintenance, safety and

efficiency of the installations.

3. The Licensee shall set up its own quality control and quality

assurance team consisting of suitably qualified personnel to

ensure that any modification works which may include

installation, construction, testing and commissioning of the

installation, the material used and the equipment are in

accordance with prudent engineering practices and of

quality and standard as stipulated in the approved Plans

and Specifications and in compliance with the relevant laws.

45

CONDITION 5 INSTALLATION CAPACITY, BUILD UP PERIOD,

COMMISSIONING AND DATE OF COMPLETION

1. The Licensee shall ensure that the Power Station shall have

a nominal capacity of - MW, which shall be the

maximum licenced capacity of the installation.

2. The Power Station and the associated facilities shall be

completed, successfully commissioned and ready to supply

electricity not later than or within such

extended period as the Commission may allow in writing in

order to supply electricity.

3. A generating unit shall be regarded as completed and ready

to supply electricity upon the Licensee certifies that the

same has been duly constructed, installed, set, calibrated

and tested in accordance with the Plans and Specifications

referred to in Condition 4 above and with the provisions of

the other Conditions of this Licence, and in compliance with

all statutory requirements.

4. The Licensee shall ensure that the dependable capacity and

availability of energy under the Power Purchase Agreement

is met at all times and that the operations of the Power

Station are to continue uninterrupted notwithstanding

arbitration, contractual or industrial dispute which the

Licensee may be engaged in, unless it is prevented from

doing so by complying with regulatory requirements or the

malfunction or failure of any equipment or installation

beyond his control, or as result of fire, flood, drought,

landslide, earthquake, explosion, accident, industrial

disturbance on national level, emergency, riot, civil

disturbance, war, or any other similar event not within the

control of the Licensee.

5. If the Power Station is unable to fulfil its obligations under

paragraph 1 above permanently, the Licensee shall take all

necessary measures to restore performance of the Power

Station to the required level. Any modification,

refurbishment or renewal of the Power Station and the

associated facilities shall be notified to the Commission

within a reasonable time of not less than 3 months in

46

CONDITION 6

CONDITION 7

advance, who upon consultation with the Grid System

Operator, may allow in writing for such modification,

refurbishment or renewal works.

VOLTAGE, FREQUENCY AND QUALITY OF SUPPLY

The voltage, frequency and quality of electricity supplied shall be kept

within a range specified in the Regulations and Grid Code or as

determined by the Commission.

ASSET MANAGEMENT

1. For its licensed business activities, the Licensee shall establish a five years implementation plan after the Commercial Operation Date, or such timeline to be agreed with the Commission, to develop an asset management system which organizes around true lifecycle asset management processes in order to ensure effective asset performance management and continual improvement throughout the asset life.

2. For the purpose of paragraph 1 above, reference may be made to appropriate asset management standard, which outline systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.

3. The Licencee shall submit to the Commission:

i) its implementation plan within 6 months after Commercial Operation Date; and

ii) subsequently, submit an annual asset management performance report based on the implementation plan outlining the activities in the previous year.

4. Once the asset management system is already in place and in compliance to asset management standard or practices as agreed with the Commission, the Licensee shall submit to the Commission an annual asset performance report throughout the asset life.

47

CONDITION 8

CONDITION 9

COMPLIANCE WITH SINGLE BUYER RULES, MALAYSIA GRID

CODE AND INSTRUCTIONS OF GRID SYSTEM OPERATOR

1 . The Licensee shall comply with the provisions of the Single

Buyer Rules and Grid Code as it may be amended, extended

or modified by the Commission and in accordance with such

directive and ruling made from time to time by the

Commission.

2. The Licensee shall at all times comply with the instructions,

directives and guidelines of the Grid System Operator referred

to in the Grid Code to ensure the safety, stability and reliability

of the grid system.

COMPLIANCE

MEASURES

WITH ENVIRONMENTAL PROTECTION

1. The Licensee shall throughout the period of this Licence,

observe and comply with the provisions of any written law for

the time being in force in relation to environmental protection

and to mitigating any adverse impact which the Power Station

may have on the environment.

2. The Licensee shall comply with and implement all measures,

conditions and requirements imposed by the Director General

of Environmental and/or other relevant authorities, in

accordance to the approved environmental impact

assessment report (EIA Report), for the construction and

operation of the Power Station, and for the protection of the

environment throughout the period of this Licence.

3. The Licensee shall submit to the Director General of

Environmental and/or other relevant authorities from time to

time or on such periodical intervals as may be directed by him

and/or other relevant authorities, a report on all the

environmental requirement protection measures and

requirements undertaken by the Licensee.

48

CONDITION 10

CONDITION 11

OBLIGATION ON GOVERNMENT POLICIES AND

CONTRIBUTION TO FUND

1. The Licensee shall, in the general conduct of its business and

the operation of the Power Station, comply with the policies of

the Government on electricity production or usage and

distribution thereto.

2. The Licensee shall at all times take cognisance of the

Government's policies in particular Bumiputera equity

participation, the transfer of technology and expertise to

Malaysian, the employment of local personnel, contractors

and services and the use of local materials and products.

3. The Licensee shall comply with the Government requirement

for any player in the electricity supply industry to contribute to

any fund established for the electricity supply industry.

4. The Licensee shall inform the Commission at regular intervals

on the status of paragraph 2 and 3 above.

STEP IN RIGHT

1. Notwithstanding any contractual obligations of the Licensee, in

the event this Licence is suspended upon breach of any of

the Conditions of this Licence and without prejudice to any

other right or remedy of Licensee, the Commission shall issue

a 90 days notice to step in, solely for the purpose of

exercising its duties and functions prescribed under the Act

and the Regulations made thereunder.

2. In exercising the step-in right under this Condition:

(a) the Commission, with the approval of the Minister,

may appoint any other person to carry out, discharge,

assume or perform any of the obligations, duties and

responsibilities imposed under this Licence on the

Licensee, and to receive such payments, benefits or

privileges which the Licensee is entitled under this

Licence to receive or to enjoy;

49

CONDITION 12

CONDITION 13

(b) the Licensee shall not be entitled to any payment or

compensation from the Government or the

Commission for any loss or damage that may have

occurred, incurred or suffered by the Licensee; and

(c) the Licensee, its agents, servants or workmen shall

render all necessary assistance and cooperation to

any such person appointed by the Commission.

RIGHT OF ENTRY

The Commission, or any other person duly authorised by the

Commission shall be entitled to enter any premises or land in or upon

which the Power Station is installed or in the course of being installed

and may examine, test, survey or take measurement of the Power

Station and inspect any record and document kept by the Licensee

pertaining thereto, to ensure compliance with the Conditions of this

Licence.

REGULATORY COMPLIANCE AUDIT

1. As and when directed by the Commission, the Licensee

shall carry out;

(a) at intervals of not more than four years or otherwise as

determined by the Commission, a management and

engineering audit to ensure that engineering and

management practices of the Licensee will enable

them to fulfill all of their Licence obligations; and

(b) a regulatory audit to ascertain the extent of compliance with:

i. specific performance standard established by

the Commission;

ii. regulatory implementation guidelines; and

iii. safety and health management, pursuant to

Condition 22.

50

CONDITION 14

2. The Licensee shall submit to the Commission:

(a) the terms of reference of the audit and any

subsequent revision, for Commission concurrence;

and

(b) the list of names of the consultants who will carry out

the audit for Commission concurrence and shall

consider any representation made by the Commission

regarding the selection of the consultants.

3. Notwithstanding paragraph 1 above, the Commission may

appoint a consultant of its choice to conduct the audit,

whereby,

(a) the cost of such audit and consultant shall be borne by

the Licensee;

(b) the appointed consultant shall report to the

Commission during the audit; and

(c) the Licensee shall provide the necessary cooperation

and assistance required for such audit.

4. The Licensee shall ensure that the information provided is

accurate and credible with respect to the Licensee

compliance with their Licence conditions and the

information is of a quality which is suitable for regulatory

purposes including public reporting, comparative analysis

and reporting and setting of future performance standard.

PERFORMANCE MONITORING

1. The Licensee shall submit to the Commission on monthly

interval, information on the maximum daily load, electricity

sold per month, overall plant efficiency and performance,

quantity and type of fuel used per month, accidents,

breakdown of major plants or equipment, forced and

mandatory outages and schedule of maintenance and

overhaul programme.

51

CONDITION 15

2. Notwithstanding paragraph 1 above, the Licensee shall

furnish to the Commission in such manner and at such times

as the Commission may reasonable require, such

documents, accounts, estimates, returns, reports and other

information as the Commission may consider necessary in

the light of the Conditions or as the Commission may require

for the purpose of performing the duties and functions

assigned to the Commission under the Act or any

Regulations made thereunder.

3. Without prejudice to paragraph 1 and 2 above, the Licensee

shall submit to the Commission the following information:

(a) within three (3) months after this Licence enters into

force, a copy of the Power Purchase Agreement, Gas

Supply Agreement and Land Lease Agreement (if any)

and any subsequent amendment, modification,

rectification or novation of the said agreement; and

(b) within six (6) months after this Licence enters into force,

details of financial arrangements and construction

programmes of the Power Station and subsequently

submission of reports at regular intervals on the status

and progress of the said Power Station during its stages

of construction.

REQUIREMENT TO FURNISH INFORMATION

1. The Licensee shall procure and furnish to the Commission,

in such form and at such time as the Commission may

require, such information as the Commission may consider

relevant in the light of the Conditions or as it may require for

the purpose of performing the functions assigned to it under

the Act or the Regulations made thereunder.

2. The power of the Commission to call for information under

paragraph 1 is without prejudice to the power of the

Commission to call for the information under or pursuant to

any other Condition of this Licence or under or pursuant to

the Act or the Regulations.

52

CONDITION 16

CONDITION 17

3. In this Condition, "information" means oral or written and

shall include, without limitation, any books, documents,

records, accounts (statutory or otherwise), estimates,

returns or reports of any description (whether or not in

electronic or any other format, or prepared specifically at the

request of the Commission) requested by the Commission

and any explanations (oral or written) in relation to such

information as may be requested by the Commission.

4. The Commission may publish any information provided to

the Commission under this Licence. In exercising its

discretion under this Condition, the Commission shall have

regard to the need to protect confidential information.

BUSINESS UNDERTAKINGS

1. The Licensee shall ensure that all the times during the period

of this Licence, its sole business shall be the generation and

supply of electricity.

2. The Licensee shall not undertake any other business without

the prior written approval of the Minister, provided such

approval shall not be unreasonably refused.

3. The authorised and paid up capital of the Licensee shall be

determined by its shareholders and approved by the

Commission and no alteration thereto shall be made without

prior notification in writing to the Commission.

REFINANCING ACTIVITIES

1. The Licensee shall notify the Commission as soon as

practicable of its intention to raise any new debt or refinance

its existing debt, for the purpose of continuing the operation of

the power plant.

2. The Licensee shall not carry out such financing or refinancing

activities without the prior written approval of the Commission,

provided such approval shall not be unreasonably refused, if

the Commission is satisfied that:

53

CONDITION 18

(a) the financing or refinancing is provided for under the

Power Purchase Agreement or for the purpose of

reducing the cost of financing as agreed in the Power

Purchase Agreement;

(b) the financing or refinancing activities will not in any

way jeopardise the ability of the Licensee financially

to continue fulfilling its obligations under this Licence.

SEPARATE ACCOUNT FOR BUSINESS UNDER THE LICENCE

1. The Financial Year of the Licensee shall run from such date

as declare by the Licensee to be in line with its audited

annual account.

2. The Licensee shall keep or cause to be kept such accounting

records in respect of its business under the Licence required

under the Companies Act 1965, so that the revenues, costs,

assets, liabilities and reserves and provisions of, or

reasonably attributable to the business under the Licence are

separately identifiable in the books of the Licensee from those

of other business in which the Licensee may be engaged.

3. The Licensee shall prepare in respect of each Financial Year,

accounting statements comprising of a profit and loss

account, a balance sheet and a statement of source and

application of funds in respect of the business under the

Licence. Such account shall be audited by an approved

Auditor appointed by the Licensee, who shall prepare a report

stating their opinion on those account and accounting

statements.

4. The Licensee shall deliver to the Commission a copy of the

account referred to in paragraphs 3 above as soon as

reasonably practicable, and in any event not later than three

months after the end of each Financial Year.

5. Not withstanding its audited annual account as mentioned in

paragraph 3 above, the Licensee shall, whenever notified by

the Commission, in its internal accounting, keep or cause to

be kept details of its Business which when requested from

time to time by the Commission, shall be delivered to the

54

CONDITION 19

CONDITION 20

Commission in the form and within reasonable time specified

by the Commission. Such accounting details may be in

accordance with:

(a) regulatory accounting guideline as may be issued by

the Commission from time to time; and

(b) any directions as are reasonable and appropriate for

the purposes of this Condition as the Commission

may, from time to time, notify to the Licensee.

RESTRICTION OF CHANGES IN SHAREHOLDINGS

1. As at the date of issuance of this Licence, the shareholders

and the shareholding structure of the Licensee shall be in

accordance to declaration by the Licensee as per the

submission for the issuance of Licence.

2. The Licensee hereby undertakes to the Government that the

present shareholders and shareholding structure as set out

in paragraph 1 remain the same throughout the period of the

licence. Any changes to the shareholders and the

shareholding structure shall be subject to the prior written

approval of the Minister.

3. Notwithstanding paragraph 2 and subject to the prior written

approval of the Minister, and the approval of all relevant

authorit!es, the Licensee may apply for its shares to be

listed and quoted on the official list of the Kuala Lumpur

Stock Exchange (KLSE).

LICENCE IS NON TRANSFERABLE, NON-ASSIGNABLE, ETC

1. The Licensee shall not assign, transfer, sublet or otherwise

dispose of its rights, duties, liabilities, obligations and

privileges or part thereof under the terms and Conditions of

this Licence except with the prior written approval of the

Minister.

55

CONDITION 21

CONIDTION 22

2. The Licence shall not be transferred, charged, pledged or

otherwise encumbered without prior written approval of the

Minister.

3. The creation of any charge, mortgages, pledged, lien or

other securities over the land used for the Power Station is

prohibited without express written consent of the Minister.

4. Any such approval or consent shall be subject to such terms

and conditions as the Minister in his absolute discretion may

impose.

ACQUISITION AND DISPOSAL OF RELEVANT ASSETS

1. The Licensee shall notify the Commission not less than

three (3) months prior written notice of its intention to

acquire any relevant asset, dispose of or relinquish control

over any relevant asset, with a value in excess of RM 50

million, together with such further information as the

Commission may request, relating to such asset or the

circumstances of such intended acquisition, disposal or

relinquishment of control, including the acquisition and

disposal procedures of the Licensee.

2. For purposes of paragraph 1 above, "relinquishment of

control" includes the transfer of any operational control of

the asset with or without a transfer of any legal or beneficial

interests in the relevant asset.

3. The Licensee shall prepare and maintain a register of all

relevant assets, and when requested shall provide to the

Commission with such register.

SAFETY AND HEAL TH MANAGEMENT

1. In carrying out its business activities, the Licensee shall

establish a safety and health management system to

ensure effective safety and health management and

continual improvement of all reasonable measures to be

taken by the Licensee to protect person and property from

injury and damage that may be caused by the Licensee's

installations, and practices or operation of the Licensee.

56

CONIDTION 23

CONIDTION 24

CONIDTION 25

2. The Licensee shall submit annually to the Commission, a

safety assessment and performance report focusing on, but

not limited to the following:

(a) safety incidents during the previous financial year;

(b) remedial step or measures taken to avoid similar incidents;

(c) safety and health management plan in place;

(d) competency of personnel;

(e) safety of installations and mitigation or remedial plan; and

(f) safety related issues that need to be addressed.

NO RIGHT TO EXTENSION

Nothing in this Licence shall be deemed to entitle the Licensee, as

of right to an extension of the period of this Licence or to renewal

thereof, provided that the Commission in consultation with the

Minister may extend the period of this Licence upon such terms and

conditions as the Commission may deem fit to impose.

INSURANCE

The Licensee shall, throughout the period of this Licence, reasonably

insure or keep insured the Power Station against any possible risks

and to pay the premiums necessary for that purpose and whenever

required by Commission, to produce on demand a true copy of the

policy of insurance and requisite evidence of payment of the

premiums and other fees and duties for the said policy.

PAYMENT OF FEES

The Licensee shall, at the times stated hereunder, pay to the

Commission the amount of fees as provided for in the Regulations

currently in force:

(a) on the issuance of the Licence; and

(b) thereafter, an annual fee when due.

57

CONIDTION 26

CONIDTION 27

CHANGE IN LAW AND REVIEW OF LICENCE

1. The Commission, with the approval of the Minister may add

to, vary or revoke any of terms and Conditions in this Licence

whenever it appears necessary or expedient for the purpose

of extending Part I of the Licence or meeting the technical,

safety and efficiency requirements applied generally to the

electricity supply industry in Malaysia.

2. If a new Act or amendment to the Act is enacted, to the

extent that necessitate redefining, reorganisation or changes

to the business activities of the Licensee specified in the

Licence, or changes to the structure of the electricity supply

industry, the Licence may be reviewed, amended, modified or

reissued to reflect such redefining, reorganisation or changes.

SUSPENSION OF LICENCE

1. If the Licensee has failed to comply with any directive or

order or notice given in writing by the Commission pursuant

to Conditions of this Licence or the provision of the Act or if

the Licensee has failed to comply with or is in breach of any

Condition of this Licence, the Commission may, upon

service of written notice to the Licensee request the

Licensee to remedy the breach within 90 days.

2. If the breach has not been remedied within the stipulated

period, the Commission may, with the approval of the

Minister, suspend the Licence and exercise its duties and

functions pursuant to Condition 11.

3. In exercising the right under paragraph 2 above, the period

of any suspension imposed shall be determined by the

Commission , provided always that where the suspension is

as a result of the breach of any Conditions of this Licence,

the suspension shall cease as soon as the breach has been

remedied by the Licensee and the Commission shall certify

the same.

58

PART IV - REVOCATION

1. Notwithstanding paragraph 4 of Part I of this Licence, if the Licensee constitute any

of the following circumstances:

(a) upon breach of any of the Conditions imposed in this Licence;

(b) if the Licensee ceases to work or operate and maintain the installation;

(c) if the Power Purchase Agreement is revoked and terminated by TNB;

(d) if any amount payable under Condition 25 is unpaid after it has become due

whether notice in writing has been given to the Licensee or not;

(e) if a receiver or liquidator has been appointed for the Licensee; and

(f) if any action was taken for voluntary winding up or dissolution of the

Licensee's company or any order pursuant to the Companies Act 1965 is

made for the compulsory winding up the Licensee company.

the Commission may allow the Licensee to remedy the non-compliance within 90

days from the date the Licensee received the notice of non-compliance from the

Commission. If the non-compliance still persists or cannot be remedied within the

time stipulated above, the Commission shall have the full right to revoke the Licence

by giving 30 days notice of revocation in writing to the Licensee at its registered

office.

2. Where this Licence is revoked pursuant to paragraph 1 above, the Licensee shall

not be entitled to any payment of compensation whatsoever from the Government

or the Commission for any loss or damage that may have occurred incurred or

suffered by him.

3. The determination of this Licence under this Part shall not prejudice or affect the

right of the Government or the Commission to recover any sum due there under of

any breach, non-performance of any of the Conditions on the part of the Licensee

therein contained.

4. Any notice which is required to be given to the Licensee under paragraph 1 above,

shall be deemed to have been given if sent by hand or pre-paid post or by facsimile

to the Licensee's registered address as lodged in the Registry of Companies.

59

ANNEX A

LICENSEE'S AREA OF SUPPLY

The Licensee's area of supply shall comprise the area within the boundary of

60



APPENDIX 3

TOPOGRAPHIC MAP OF THE SITE



APPENDIX 4

SPECIFICATIONS OF PHOTOVOLTAIC MODULE

Data Released

SPECIFICATIONS

OF

PHOTOVOLTAIC MODULE

Model Number：　VBHN240SJ25

Oct. 25, 2013

VBHN240SJ25131025

SANYO Electric Co., Ltd.

Scope

This Specification is applicable for photovoltaic module VBHN240SJ25.

2. Specifications

(1) Type of Solar Cells

HIT Solar Cell

(The HIT solar cell is a hybrid composed of a single-crystal silicon wafer

surrounded by layers of thin amorphous silicon.)

HIT=Heterojunction with Intrinsic Thin-Layer

(2) Module structure

Superstrate type.

The basic construction consists of laminated assembly of individual solar

cells and interconnecting ribbons encapsulated within an insulating material.

This encapsulated assembly is sandwiched between tempered, transparent

front surface (glass) and insulating back sheet.

(3) Operating conditions

1) Ambient temperature: -20°C to +40°C

2) Relative humidity: 45% to 95%

(4) Certification

VBHN240SJ25Module certified by JET (ID Number: PV05-53203-1041)

and it complies with the requirements of IEC61215, IEC61730-1,

IEC61730-2 and the CE mark.

Title SPECIFICATIONS OF PHOTOVOLTAIC MODULE 1

Document

NumberVBHN240SJ25131025 SANYO Electric Co., Ltd.

Page

(5) Electrical specifications

1) Characteristics

Maximum power (Pmax) 240 W

Open circuit voltage (Voc) 52.4 V

Short circuit current (Isc) 5.85 A

Maximum power voltage (Vpmax) 43.6 V

Maximum power current (Ipmax) 5.51 A

Max. system open circuit voltage 1000 V

Max. overcurrent protection rating 15 A

*Electrical specifications are measured under Standard Test Conditions.

Irradiance of 1000W/㎡, AM 1.5, 25℃ cell temperature

2) I-V characteristics (Reference)

Fig. 1 shows I-V characteristics of VBHN240SJ25 at various cell temperatures.

Fig. 2 shows I-V characteristics of VBHN240SJ25 at various irradiance levels.

(6) Mechanical specifications

The Module mounted at 4 points in a manner which is recommended in

the attached drawing offers load capacity as follows,

Load capacity (wind) 2400 Pa

Load capacity (snow) 2400 Pa

(7) Dimensions

Length 1580 mm inch

Width 798 mm inch

Depth 35 mm inch

Weight 15 kg lb

+ 960 mm inch

- 960 mm inch

Connectors P51-5H/R51-5

62.20

31.42

90% or more

(Reference)

(Reference)

Document


+10%, -5%

1.38

33.0

Cable length37.80

37.80

±10%


Inspection

The following inspections are performed for all products.

(1) Exterior

(2) Dielectric voltage-withstand test

(3) Voltage, current and power measurement test

4. Marking

The label specifies the following information.

(1) Manufacturers name , model number, and nominal electrical specifications at

STC including:

1) Maximum power (Pmax)

2) Open circuit voltage (Voc)

3) Short circuit current (Isc)

4) Maximum power voltage (Vmp)

5) Maximum power current (Imp)

(2) Maximum system voltage

(3) Maximum over-current protection rating

(4) Minimum Pmax

(5) Date of manufacture (YM) (ex. 1304 means Apr. 2013)

(6) Serial number

(7) Application class of product

(8) Other

5. Other

Mounting angle of module：

Water stains might be caused when rain water remains on the glass surface

for a long time. To avoid water stains, Panasonic recommends to install panels

at slope steeper than the water gradient.

*As part of our policy of continuous improvement SANYO reserves the right

to change products specification at any time without prior notice.

Document



Page

Fig. 1

Dependence of I-V Characteristics on Temperature (Reference)

Model No.: VBHN240SJ25

ＡＭ-1.5，1000W/㎡

4Title SPECIFICATIONS OF PHOTOVOLTAIC MODULE

4.00

5.00

6.00

7.00

t[Ａ

]

0℃

25℃

50℃

75℃

0℃, 25℃, 50℃, 75℃：Cell temperature

Document

NumberSANYO Electric Co., Ltd.VBHN240SJ25131025

0.00

1.00

2.00

3.00

4.00

0 10 20 30 40 50 60

Cu

rren

t[Ａ

]

Voltage[Ｖ]

Page

Fig. 2

Dependence of I – V Characteristics on Irradiance (Reference)

Model No.: VBHN240SJ25

Cell temperature : 25℃


3.00

4.00

5.00

6.00

7.00

Cu

rren

t[Ａ

]

600Ｗ/㎡

800W/㎡

1000W/㎡

SANYO Electric Co., Ltd.DocumentNumber VBHN240SJ25131025

0.00

1.00

2.00

3.00

0 10 20 30 40 50 60

Cu

rre

Voltage[Ｖ]

200Ｗ/㎡

400Ｗ/㎡



APPENDIX 5

PSS REPORT

POWER SYSTEM STUDY

Proposed Interconnection of Solar PV plant At Chuping Valley, Perlis State Government Land

Applicant: Panasonic Eco Solutions Malaysia Sdn. Bhd.

(APPROVED SOLAR PV GENERATING PLANT IS 15 MWAC)

APPLICATION NUMBER: RE/PSS/0645

REPORT PREPARED BY: Universiti Tenaga Nasional

REPORT DATE: 11th July 2015

POWER SYSTEM STUDY




APPLICATION NUMBER: RE/PSS/0645

REPORT NUMBER: UNITEN/PSS/0645

Disediakan Oleh

:

................................................ Prof. Ir. Dr. Vigna Kumaran, Professor, Universiti Tenaga Nasional

CONTENTS

Executive Summary 1.0 Objectives ……………………………………………………………………………….……. 1 2.0 Background ……………………………………………………………………………………. 1 3.0 Scope of study & analysis …………………………………………………………………… 1 4.0 Methodology …………………………………………………………………………………… 1 5.0 Proposed RE plant …………………………………………………………………………… 2 6.0 TNB’s system in vicinity ……………………………………………………………………… 3 7.0 Interconnection options & analysis …………………………………………………………. 5 8.0 Summary results & findings …………………………………………………………………. 9 9.0 Operational requirements, protection and control …………………………………………. 9 10.0 Other technical requirements for compliance by RE developer…………………………... 11 11.0 Conclusion ……………………………………………………………………………………… 11 12.0 Recommendations ……………………………………………………………………………. 11

POWER SYSTEM STUDY




EXECUTIVE SUMMARY TNB received application to carry out Power System Study (PSS) from Panasonic Eco Solutions Malaysia Sdn. Bhd. The proposal is for interconnection of solar PV plant. The application is in pursuant to requirement for application of Feed-in Tariff (FiT). Power system study (PSS) has been conducted to determine the technical feasibility of the proposed interconnection. Results of the study indicate that 15MWAC, or equivalent in DC of solar PV is technically feasible from the perspective of load flow and fault level. For this study, the Solar PV is assumed to be 15MWAC and this value will be used throughout the report. The findings are based on information provided by the applicant at the time of submission. Any change to the major parameter would require another PSS to be carried out at developer’s cost.

.

POWER SYSTEM STUDY: Proposed Interconnection of 15 MWAC of Solar PV At Chuping Valley, Perlis State Government Land


Page 1

REPORT NUMBER: RE/PSS/0645 Objective: 1.0 This report is prepared in accordance to Technical & Operation Rules of Renewable Energy Act 2011.

The report is to present the findings of proposed interconnection of the RE plant as below:

15 MWAC Solar PV plant at Chuping Valley, Perlis State Government Land.

Background: 2.0 The proposed 15 MWAC of Solar PV plant is identified to be commissioned at Chuping Valley, Perlis State

Government Land.

The closest PMU to the site is PMU Kangar at 33 kV. The closest connection point to the site is PMU Kangar at 33 kV.

The 15 MWAC Solar PV plant will be connected to the PMU Kangar via a 25 km single circuit connection of ABC 240 mm2 at 33 kV.

(Note: developer shall change the cable size as per the advice of their electrical consultant)

Scope of study and analysis 3.0 The scope of study and assessment include the followings:

(i) Assessment of the technical impact of interconnection of RE plant in terms of: - Voltage profile - System Adequacy - System Losses - Fault level - Existing operational constraints

(ii) Optimal point of common coupling or interconnection of the two systems. (iii) Design of interface point or interconnection schemes and the necessary upgrading works as

well as associated costs. Methodology: 4.0 Step 1: Data updating of RE plant

Step 2: Data updating on distribution system Step 3: Network modeling and analysis

Identify options for interconnection point System modeling of existing and future system for the medium term Assess network performance without and with RE Identify system reinforcement or upgrading for interconnection

Step 4: Finalize interconnection point and interconnection scheme Step 5: Define system reinforcement needs & related costs

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Page 2

Proposed RE Power Plant 5.0 The proposed Solar PV plant details as below:

Location Chuping Valley, Perlis State Government Land.

Developer Panasonic Eco Solutions Malaysia Sdn. Bhd. Address: Level 2, Wisma Panasonic, Lot 10, Jalan 13/2, 46200 Petaling Jaya, Selangor

RE source Solar PV

Output capacity 15MWAC

Interconnection voltage 33 kV

Expected commissioning date

2015

TNB area TNB Perlis Contact: 1) Pn. Rabihah Binti Abu Bakar [email protected]



Page 3

Figure 1: Map of the proposed PV site

TNB's System in Vicinity 6.0 The proposed solar PV plant is situated at Chuping Valley, Perlis State Government Land. The local

system is supplied from PMU Kangar 132/33 kV (2 x 45 MVA)

Load at PMU Kangar for June 2015 are as below.



Page 4

The bus section at PMU Kangar 33 kV side is closed.

0

2

4

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T1 Loading (MW) 11am - 3pm

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T2 Loading (MW) 11am - 3pm



Page 5

PMU Trough Load = 17.6 MW PMU Peak Load = 26.88 MW

The trough load at PMU Kangar is assumed to be 17.6 MW for this study. As per TNB’s requirement, 85% of trough load is taken as the maximum amount of power that can be injected into the grid. Hence, 85% of trough load at PMU Kangar is 15 MW. Interconnection options & analysis 7.0 Interconnection to TNB’s network has to satisfy TNB and project proponent mutually. For TNB, safety,

technical and operational requirements must be met to ensure system reliability and workmen safety. For developer, cost and operational optimization are crucial to ensure viable commercial terms.

Connection options stipulated in RE Act are as below:

Figure 1: Connection voltage options based on proposed feed-in capacity

0

5

10

15

20

25

301

1:0

01

4:3

01

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Total Loading (MW) 11am - 3pm



Page 6

7.1 Possible connection points to TNB system. Solar PV plant capacity of 15 MWAC can be connected at 33 kV. Possible connection points are as below:

Options Site Location Interconnection point * Interconnection Voltage

Distance of TNB system to RE plant

1 Solar PV plant

At 33 kV PMU Kangar 33 kV 25 km

2 - - - -

Option 1 is selected for the solar PV site based on the distance of TNB system to RE plant.

The single-line diagram for the proposed interconnection for the 15 MWAC Solar PV plant to TNB distribution network

is shown in Figure 2.

Figure 2: Interconnection scheme from RE plant to TNB



Page 7

7.2 Nearby approved/studied RE connection(s) to TNB system

There is currently no approved RE plants connected to PMU Kangar. 7.3 Analysis of each interconnection option

Load model used for the analysis is based on 24 hour trough load. The analysis is carried out using DIgSILENT Power Factory 15.1 software.

a) Voltage Load flow studies are performed on the system to assess the impact of on the voltage at the sub-stations involved, with and without the proposed solar PV plant.

Table 1: Voltage readings at selected buses

Bus

Name

Nominal

Bus

Voltage

(kV)

3-Phase Voltage (kV)

WITHOUT RE PLANT

3-Phase Voltage (kV)

WITH THE PROPOSED 15 MWAC

SOLAR PV PLANT

Trough Load Peak Load Trough Load Peak Load

PMU Kangar

132kV 132 132.00 132.000 132.000 132.000

PMU Kangar

33kV 33 33.88 33.88 33.87 33.87

Bus 33kV at

site 33 - - 35.59 35.58

Bus 11kV at

site 11 - - 11.88 11.88

Findings: The voltage at PMU Kangar did not exceed the ±5% limit. No significant steady-state voltage variation is observed as a result of solar PV plant connection.

b) Summary of Losses Losses level is compared based on overall simulated network with and without the solar PV connection.



Page 8

Table 2: Loss levels with and without the solar PV connection

Losses

TROUGH LOAD

Without Solar PV Plant interconnection

With Solar PV Plant (15 MWAC)

P (kW) Q (kVAr) P (kW) Q (kVAr)

Connection to PMU Kangar at 33 kV, with 25 km 33kV ABC OH 240 mm2 cable

- - 700 - 3940

33/11 kV transformer loss for solar PV site

- - 86.6 866

11/0.4 kV transformer loss for solar PV site

- - 67 670

c) Short circuit Short circuit analysis indicates that all nodes are within the equipment short time rating as specified by TNB, hence complying TNB’s circuit breaker duty capability. Simulation is based on fault current at source; PMU Kangar 132 kV at 15.22 kA Fault level data at the 132 kV bus at PMU Kangar was obtained from TNB Transmission and shown in Table 3. These values were used in DIgSILENT to calculate the source impedance as well as the downstream distribution buses short circuit values. Table 3: Fault level data at 132 kV buses

Bus no PMU

2018 fault level

kA

61137 KGAR132 15.22

The detailed results of short-circuit simulations are shown in Appendix 2. Table 4 summarizes the fault currents at selected busses for both operating conditions with and without fault current contribution from the proposed Solar PV plant.



Page 9

Table 4: Short Circuit Current at Selected Buses

Bus

Name

Bus

Voltage

(kV)

3-Phase Fault Current

(kA)

WITHOUT RE PLANTS

3-Phase Fault Current (kA)

WITH THE PROPOSED 15

MWAC SOLAR PV PLANT

Trough Load Trough Load

PMU Kangar 132kV 132 15.21 15.28

PMU Kangar 33kV 33 8.65 8.93

Bus 33kV at site 33 - 3.49

Bus 11kV at site 11 - 6.60

Findings: Fault currents at PMU Kangar 33 kV are within the 25 kA limit. Connection of Solar PV source will increase the fault current. However, it is within limits. d) Operational constraint Findings: Currently, there is no operational constraint in the network.

Summary results & findings 8.0 In summary, compliance to requirements for options evaluated in item 6.0 is provided below:

Analysis Options

1

Voltage profile Comply

System adequacy Comply

System losses Minimum, Lower losses

Short circuit Comply

In summary, the proposed Solar PV interconnection is technically feasible.

Operational requirements, protection and control 9.0 In addition to the main scope of works mentioned in item 7.1, there are other requirements that must be

provided.



Page 10

a. Automatic Disconnection (anti islanding)

RE Plant is to be automatically electrically disconnected from all TNB’s system following any fault on TNB’s distribution system (loss of mains). This is to ensure operational safety due to risk of back-energisation and out-of-phase switching by TNB.

As such, the RE power plant has to be equipped with appropriate protection schemes to detect loss of supply. Inverter units have to be able to isolate themselves within 2 seconds. Scheme of protection and settings need to be submitted to TNB for review and approval.

b. Synchronization point and procedure

The point of synchronization to TNB’s system shall be located on the generator side. TNB shall not have any facility for synchronizing with the RE plant operating in an islanded mode. Appropriate interlocking scheme is to be put in place to ensure that operation of PCC could be done safely. Following a system failure, re-synchronizing by RE to TNB’s system shall only proceed once the system is restored to the normal state. Reconnection shall only be done after TNB supply is stabilized. The inverter units are to be reconnected after 5 minutes of TNB network restored. c. Protection at network interface

RE plant shall be disconnected upon any divergence of operating limits or developer’s internal failure. Adequate protection relays are to be made available by the RE developer as required by TNB. The proposed protection scheme and setting from the RE plant to TNB substations shall be submitted for review and approval by TNB. This is to ensure proper coordination and integrity of the overall protection system at the interface points.

d. Metering point and systems

The metering point is at the point of connection. Energy meters used are of RMR capable. Details and full scope of the metering scheme is not part of this report. e. Operation during contingency

The scope of this report is based on the proposed normal open point. Operation of RE source at other open point requires separate study. Therefore, during contingency (breakdown or shutdown), the RE source is to be isolated until the normal open point is restored.

Other technical requirements for compliance by RE developer 10.0 Other general requirements to be in compliance by the RE developer and to be submitted to TNB for

review and approval shall include as follows



Page 11

i. Dedicated meter panel at the point of connection. Uninterrupted access for TNB operation

personnel, ii. All equipment installed that are to be handed over to TNB must comply to latest TNB

specifications with written consent and drawings are duly endorsed, iii. Disconnect switch accessible to TNB operation personnel, iv. Tests and commissioning schedules. TNB would have the option to witness the said tests, v. All electrical drawings are to be endorsed by Professional Engineer (Electrical), vi. All photovoltaic system drawings are to be endorsed by ISPQ certified professional, vii. Interconnection Operation Manual shall be jointly prepared to address operational boundaries,

maintenance boundaries, sequence of operations & protocols, contact persons etc Conclusion 11.0 The study and analysis indicate that interconnecting the 15 MWAC of Solar PV plant to TNB's 33 kV

PMU Kangar, in Chuping Valley, Perlis State Government Land is technically feasible. The findings are based on information provided by the applicant at the time of submission. Any change to the major parameter would require another PSS to be carried out at developer’s cost. The proposed connection between the Solar PV plant and PMU Kangar is sufficient to carry the 15

MWAC of active power.

The distribution system is capable of absorbing the 15 MWAC of power exported by the proposed Solar PV plant.

No voltage violations occur during trough load conditions due to the Solar PV plant interconnection.

All PV generators shall operate at unity power factor.

Detail designs at the interface points have to satisfy all the technical requirements for operational

integrity, reliability and safety.

A meter room shall be constructed next to PMU Kangar. The maintenance of the proposed cables between the Solar PV plant and PMU Kangar is under the responsibility of the developer.

The PMU Kangar building at 33kV shall be extended to accommodate additional control panel and

circuit breaker. Recommendation 12.0 It is hereby recommended that the 15 MWAC Solar PV plant proposed by Panasonic Eco Solutions

Malaysia Sdn. Bhd. be approved for interconnection to TNB’s 33 kV network as per the proposed interconnection scheme mentioned in Figure 2.

11th July 2015

nishidams


nishidams


nishidams


nishidams


nishidams


nishidams


nishidams


nishidams


nishidams


nishidams


nishidams




Page 12

Appendices: Appendix 1 DIgSILENT System Models Appendix 2 Results of System Studies Appendix 3 Site Photos

PO

WE

R S

YS

TE

M S

TU

DY

: Prop

osed Interconnection of 15 MW

AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 13

Appendix 1

SINGLE LINE DIAGRAM

METER

25km ABC 240mm2

KGAR33 L

Site 11kV

Lv.10Lv.9Lv.8

Site 11kV R

Lv.7Lv.4Lv.3Lv.2Lv.1

Site 11kV L

PPU_SHRB_R33kV PPU_SHRB_M33kVPPU_KODG_M33kV PPU_KODG_R33kVPPU_SMPT_R33kV PPU_SMPT_M33kV

Lv.6Lv.5

Site 33kV

KGAR132

KGAR33 R

Blk. 10Blk. 9Blk. 8

Lv

. T

x.

10

T1

1T

0.4

M2

.2

Lv

. T

x. 9

T1

1T

0.4

M2

.2

Lv

. T

x. 8

T1

1T

0.4

M2

.2

Blk. 7

Lv

. T

x. 7

T1

1T

0.4

M2

.2

Blk. 4

Lv

. T

x. 4

T1

1T

0.4

M2

.2

Blk. 3Blk. 2Blk. 1

Lv

. T

x. 3

T1

1T

0.4

M2

.2

Lv

. T

x. 2

T1

1T

0.4

M2

.2

Lv

. T

x. 1

T1

1T

0.4

M2

.2

General L..General L..


Breaker/S..

Lin

e4

A33A

B..



Breaker/S..Breaker/S..



Breaker/S.. Lin

e3

OH

33W

OLF

Lin

e8

OH

33W

OLF

Blk. 6Blk. 5

Lv

. T

x. 6

T1

1T

0.4

M2

.2

Lv

. T

x. 5

T1

1T

0.4

M2

.2

Line 11kV RA11UG500X

Line 11kV LA11UG500X

Site

Tx

.T3

3T11

M22

Lin

e 3

3k

VA

33A

BC

240XLin

e1

8O

H33

WO

LFL

ine

5A33

UG

185X

Breaker/S..

Lin

e1

7O

H33

WO

LFL

ine

1O

H33

WO

LF

Tx

2T

13

2T

33

M4

5 D

yn

11

Tx

1T

13

2T

33

M4

5 D

yn

11

External ..

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 14

Appendix 2.1

LOAD FLOW ANALYSIS (TROUGH LOAD)WITHOUT ANY RE PLANTS

METER

25km ABC 240mm2

KGAR33 L33.88 kV

Site 11kV

11.33 kV

Lv.10

Lv.9

Lv.8

0.00 kV

Site 11kV R11.33 kV

Lv.7

0.00 kV

Lv.4

0.00 kV

Lv.3

0.00 kV

Lv.2

0.00 kV

Lv.1

0.00 kV

Site 11kV L

11.33 kV

PPU_SHRB_R33kV

32.95 ..

PPU_SHRB_M33kV

32.95 ..

PPU_KODG_M33kV

0.00 kV

PPU_KODG_R33kV

33.54 ..

PPU_SMPT_R33kV

33.42 ..

PPU_SMPT_M33kV

33.42 ..

Lv.6

0.00 kV

Lv.5

0.00 kV

Site 33kV34.00 kV

KGAR132132.00 kV

KGAR33 R

33.88 kV

Blk. 10

Blk. 9

Blk. 80.0

0.00 MW0.00 Mvar

Lv

. T

x.

10

Lv

. T

x.

9

Lv

. T

x.

80

.0L

v.

Tx

. 8

0.0

0.00 MW0.00 Mvar

Blk. 70.0

0.00 MW0.00 Mvar

Lv

. T

x.

70

.0L

v.

Tx

. 7

0.0

0.00 MW0.00 Mvar

Blk. 40.0

0.00 MW0.00 Mvar

Lv

. T

x.

40

.0L

v.

Tx

. 4

0.0

0.00 MW0.00 Mvar

Blk. 30.0

0.00 MW0.00 Mvar

Blk. 20.0

0.00 MW0.00 Mvar

Blk. 10.0

0.00 MW0.00 Mvar

Lv

. T

x.

30

.0L

v.

Tx

. 3

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

20

.0L

v.

Tx

. 2

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

10

.0L

v.

Tx

. 1

0.0

0.00 MW0.00 Mvar

General L..

General L..

Breaker/S..0.0

Lin

e4

77

.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

3.4

Lin

e8

7.3

Blk. 60.0

0.00 MW0.00 Mvar

Blk. 50.0

0.00 MW0.00 Mvar

Lv

. T

x.

60

.0L

v.

Tx

. 6

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

50

.0L

v.

Tx

. 5

0.0

0.00 MW0.00 Mvar

Line 11kV R0.0

0.00 MW-0.00 Mvar0.00 MW

-0.00 Mvar0.01 %

Line 11kV L0.0

0.00 MW-0.00 Mvar0.00 MW

-0.00 Mvar0.01 %

Site

Tx

.0

.0

0.00 MW-0.01 Mvar

Lin

e 3

3k

V1

9.0

0.01 MW-4.09 Mvar0.01 MW

-4.08 Mvar19.03 %

Lin

e1

87

.3L

ine

52

2.1

3.84 MW1.86 Mvar0.00 MW

-0.01 Mvar22.05 %

Breaker/S..0.0

Lin

e1

73

.4L

ine

13

.4

1.81 MW0.83 Mvar0.00 MW

-0.00 Mvar3.41 %

Tx

22

0.0

8.74 MW2.21 Mvar

8.74 MW2.21 Mvar

Tx

12

0.0

8.74 MW2.21 Mvar

8.74 MW2.21 Mvar

External ..

17.47 MW4.41 Mvar0.00 MW

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 15

Appendix 2.2

LOAD FLOW ANALYSIS (TROUGH LOAD)WITH THE PROPOSED SOLAR PV PLANT

METER

25km ABC 240mm2

KGAR33 L33.88 kV

Site 11kV

11.88 kV

Lv.10

Lv.9

Lv.8

0.43 kV

Site 11kV R11.88 kV

Lv.7

0.43 kV

Lv.4

0.43 kV

Lv.3

0.43 kV

Lv.2

0.43 kV

Lv.1

0.43 kV

Site 11kV L

11.89 kV

PPU_SHRB_R33kV

32.95 ..

PPU_SHRB_M33kV

32.95 ..

PPU_KODG_M33kV

0.00 kV

PPU_KODG_R33kV

33.54 ..

PPU_SMPT_R33kV

33.42 ..

PPU_SMPT_M33kV

33.42 ..

Lv.6

0.43 kV

Lv.5

0.43 kV

Site 33kV35.59 kV

KGAR132132.00 kV

KGAR33 R

33.88 kV

Blk. 10

Blk. 9

Blk. 845.5

1.00 MW0.00 Mvar

Lv

. T

x.

10

Lv

. T

x. 9

Lv

. T

x. 8

42

.0

-1.00 MW0.02 Mvar

Blk. 790.9

2.00 MW0.00 Mvar

Lv

. T

x. 7

83

.9

-1.99 MW0.09 Mvar

Blk. 490.9

2.00 MW0.00 Mvar

Lv

. T

x. 4

83

.8

-1.99 MW0.09 Mvar

Blk. 390.9

2.00 MW0.00 Mvar

Blk. 290.9

2.00 MW0.00 Mvar

Blk. 190.9

2.00 MW0.00 Mvar

Lv

. T

x. 3

83

.8

-1.99 MW0.09 Mvar

Lv

. T

x. 2

83

.8

-1.99 MW0.09 Mvar

Lv

. T

x. 1

83

.8

-1.99 MW0.09 Mvar

General L..

General L..

Breaker/S..0.0

Lin

e4

77

.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

3.4

Lin

e8

7.3

Blk. 690.9

2.00 MW0.00 Mvar

Blk. 590.9

2.00 MW0.00 Mvar

Lv

. T

x. 6

83

.9

-1.99 MW0.09 Mvar

Lv

. T

x. 5

83

.8

-1.99 MW0.09 Mvar

Line 11kV R24.2

-4.98 MW0.21 Mvar0.00 MW

-0.00 Mvar24.21 %

Line 11kV L48.4

-9.95 MW0.47 Mvar0.01 MW0.00 Mvar48.40 %

Site

Tx

.6

2.9

-14.84 MW1.54 Mvar

Lin

e 3

3k

V6

6.8

-14.14 MW-2.40 Mvar0.70 MW

-3.94 Mvar66.77 %

Lin

e1

87

.3L

ine

52

2.1

3.84 MW1.86 Mvar0.00 MW

-0.01 Mvar22.05 %

Breaker/S..0.0

Lin

e1

73

.4L

ine

13

.4

1.81 MW0.83 Mvar0.00 MW

-0.00 Mvar3.41 %

Tx

27

.2

1.63 MW2.81 Mvar

1.63 MW2.81 Mvar

Tx

17

.2

1.63 MW2.81 Mvar

1.63 MW2.81 Mvar

External ..

3.27 MW5.63 Mvar0.00 MW

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 16

Appendix 2.3

SHORT CIRCUIT ANALYSIS (TROUGH LOAD)WITHOUT ANY SOLAR PV PLANT

METER

25km ABC 240mm2

KGAR33 L8.65 kA

Site 11kV

5.68 kA

Lv.10

Lv.9

Lv.8

0.00.000.0

Site 11kV R5.62 kA

Lv.7

0.00.000.0

Lv.4

0.00.000.0

Lv.3

0.00.000.0

Lv.2

0.00.000.0

Lv.1

0.00.000.0

Site 11kV L

5.62 kA

PPU_SHRB_R33kV

5.01 kA

PPU_SHRB_M33kV

5.01 kA

PPU_KODG_M33kV

0.00.000.0

PPU_KODG_R33kV

2.09 kA

PPU_SMPT_R33kV

2.92 kA

PPU_SMPT_M33kV

2.92 kA

Lv.6

0.00.000.0

Lv.5

0.00.000.0

Site 33kV3.22 kA

KGAR13215.21 kA

KGAR33 R

8.65 kA

Blk. 10

Blk. 9

Blk. 8

0.00 kA

Lv

. T

x. 1

0

Lv

. T

x. 9

Lv

. T

x. 8

L

v. T

x. 8

0.00 kA

Blk. 7

0.00 kAL

v. T

x. 7

L

v. T

x. 7

0.00 kA

Blk. 4

0.00 kA

Lv

. T

x. 4

L

v. T

x. 4

0.00 kA

Blk. 3

0.00 kA

Blk. 2

0.00 kA

Blk. 1

0.00 kA

Lv

. T

x. 3

L

v. T

x. 3

0.00 kA

Lv

. T

x. 2

L

v. T

x. 2

0.00 kA

Lv

. T

x. 1

L

v. T

x. 1

0.00 kA

General L..

General L..

Breaker/S..0.0

Lin

e4

0.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

0.0

Lin

e8

0.0

Blk. 6

0.00 kA

Blk. 5

0.00 kA

Lv

. T

x. 6

L

v. T

x. 6

0.00 kA

Lv

. T

x. 5

L

v. T

x. 5

0.00 kA

Line 11kV R0.0

0.00 kA

Line 11kV L0.0

0.00 kA

Site

Tx

.

0.00 kA

Lin

e 3

3k

V0

.0

0.00 kA

Lin

e1

80

.0L

ine

50

.0

0.00 kA

Breaker/S..0.0

Lin

e1

70

.0L

ine

10

.0

0.00 kA

Tx

2

0.00 kA

0.00 kA

Tx

1

0.00 kA

0.00 kA

External ..

15.21 kA

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 17

Appendix 2.4

SHORT CIRCUIT ANALYSIS (TROUGH LOAD)WITH THE PROPOSED SOLAR PV PLANT

METER

25km ABC 240mm2

KGAR33 L8.93 kA

Site 11kV

6.60 kA

Lv.10

Lv.9

Lv.8

45.29 kA

Site 11kV R6.53 kA

Lv.7

46.95 kA

Lv.4

46.96 kA

Lv.3

46.96 kA

Lv.2

46.96 kA

Lv.1

46.96 kA

Site 11kV L

6.54 kA

PPU_SHRB_R33kV

5.12 kA

PPU_SHRB_M33kV

5.12 kA

PPU_KODG_M33kV

0.00.000.0

PPU_KODG_R33kV

2.10 kA

PPU_SMPT_R33kV

2.95 kA

PPU_SMPT_M33kV

2.95 kA

Lv.6

46.95 kA

Lv.5

46.96 kA

Site 33kV3.49 kA

KGAR13215.28 kA

KGAR33 R

8.93 kA

Blk. 10

Blk. 9

Blk. 8

1.82 kA

Lv

. T

x.

10

Lv

. T

x. 9

Lv

. T

x. 8

0.06 kA

Blk. 7

3.63 kAL

v. T

x. 7

0.12 kA

Blk. 4

3.63 kA

Lv

. T

x. 4

0.12 kA

Blk. 3

3.63 kA

Blk. 2

3.63 kA

Blk. 1

3.63 kA

Lv

. T

x. 3

0.12 kA

Lv

. T

x. 2

0.12 kA

Lv

. T

x. 1

0.12 kA

General L..

General L..

Breaker/S..0.0

Lin

e4

0.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

0.0

Lin

e8

0.0

Blk. 6

3.63 kA

Blk. 5

3.63 kA

Lv

. T

x. 6

0.12 kA

Lv

. T

x. 5

0.12 kA

Line 11kV R0.0

0.31 kA

Line 11kV L0.0

0.62 kA

Site

Tx

.

0.29 kA

Lin

e 3

3k

V0

.0

0.29 kA

Lin

e1

80

.0L

ine

50

.0

0.00 kA

Breaker/S..0.0

Lin

e1

70

.0L

ine

10

.0

0.00 kA

Tx

2

0.04 kA

0.04 kA

Tx

1

0.04 kA

0.04 kA

External ..

15.21 kA

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 18

Appendix 2.5

LOAD FLOW ANALYSIS (PEAK LOAD)WITHOUT ANY RE PLANTS

METER

25km ABC 240mm2

KGAR33 L33.87 kV

Site 11kV

11.33 kV

Lv.10

Lv.9

Lv.8

0.00 kV

Site 11kV R11.33 kV

Lv.7

0.00 kV

Lv.4

0.00 kV

Lv.3

0.00 kV

Lv.2

0.00 kV

Lv.1

0.00 kV

Site 11kV L

11.33 kV

PPU_SHRB_R33kV

32.45 ..

PPU_SHRB_M33kV

32.45 ..

PPU_KODG_M33kV

0.00 kV

PPU_KODG_R33kV

33.36 ..

PPU_SMPT_R33kV

33.18 ..

PPU_SMPT_M33kV

33.18 ..

Lv.6

0.00 kV

Lv.5

0.00 kV

Site 33kV33.99 kV

KGAR132132.00 kV

KGAR33 R

33.87 kV

Blk. 10

Blk. 9

Blk. 80.0

0.00 MW0.00 Mvar

Lv

. T

x.

10

Lv

. T

x.

9

Lv

. T

x.

80

.0L

v.

Tx

. 8

0.0

0.00 MW0.00 Mvar

Blk. 70.0

0.00 MW0.00 Mvar

Lv

. T

x.

70

.0L

v.

Tx

. 7

0.0

0.00 MW0.00 Mvar

Blk. 40.0

0.00 MW0.00 Mvar

Lv

. T

x.

40

.0L

v.

Tx

. 4

0.0

0.00 MW0.00 Mvar

Blk. 30.0

0.00 MW0.00 Mvar

Blk. 20.0

0.00 MW0.00 Mvar

Blk. 10.0

0.00 MW0.00 Mvar

Lv

. T

x.

30

.0L

v.

Tx

. 3

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

20

.0L

v.

Tx

. 2

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

10

.0L

v.

Tx

. 1

0.0

0.00 MW0.00 Mvar

General L..

General L..

Breaker/S..0.0

Lin

e4

118.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

5.2

Lin

e8

11

.1

Blk. 60.0

0.00 MW0.00 Mvar

Blk. 50.0

0.00 MW0.00 Mvar

Lv

. T

x.

60

.0L

v.

Tx

. 6

0.0

0.00 MW0.00 Mvar

Lv

. T

x.

50

.0L

v.

Tx

. 5

0.0

0.00 MW0.00 Mvar

Line 11kV R0.0

0.00 MW-0.00 Mvar0.00 MW

-0.00 Mvar0.01 %

Line 11kV L0.0

0.00 MW-0.00 Mvar0.00 MW

-0.00 Mvar0.01 %

Site

Tx

.0

.0

0.00 MW-0.01 Mvar

Lin

e 3

3k

V1

9.0

0.01 MW-4.09 Mvar0.01 MW

-4.08 Mvar19.03 %

Lin

e1

81

1.1

Lin

e5

33

.5

5.82 MW2.88 Mvar0.00 MW

-0.01 Mvar33.55 %

Breaker/S..0.0

Lin

e1

75

.2L

ine

15

.2

2.74 MW1.31 Mvar0.00 MW

-0.00 Mvar5.19 %

Tx

23

1.6

13.36 MW4.82 Mvar

13.36 MW4.82 Mvar

Tx

13

1.6

13.36 MW4.82 Mvar

13.36 MW4.82 Mvar

External ..

26.73 MW9.65 Mvar0.00 MW

DIg

SIL

EN

T

PO

WE

R S

YS

TE

M S

TU

DY

: Prop


AC of S

olar PV

A

t Chuping V

alley, Perlis S

tate Governm

ent Land

Applicant: P

anasonic Eco S

olutions Malaysia S

dn. Bhd.

Page 19

Appendix 2.6

LOAD FLOW ANALYSIS (PEAK LOAD)WITH THE PROPOSED SOLAR PV PLANT

METER

25km ABC 240mm2

KGAR33 L33.87 kV

Site 11kV

11.88 kV

Lv.10

Lv.9

Lv.8

0.43 kV

Site 11kV R11.88 kV

Lv.7

0.43 kV

Lv.4

0.43 kV

Lv.3

0.43 kV

Lv.2

0.43 kV

Lv.1

0.43 kV

Site 11kV L

11.88 kV

PPU_SHRB_R33kV

32.45 ..

PPU_SHRB_M33kV

32.45 ..

PPU_KODG_M33kV

0.00 kV

PPU_KODG_R33kV

33.36 ..

PPU_SMPT_R33kV

33.18 ..

PPU_SMPT_M33kV

33.18 ..

Lv.6

0.43 kV

Lv.5

0.43 kV

Site 33kV35.58 kV

KGAR132132.00 kV

KGAR33 R

33.87 kV

Blk. 10

Blk. 9

Blk. 845.5

1.00 MW0.00 Mvar

Lv

. T

x. 1

0

Lv

. T

x. 9

Lv

. T

x. 8

42

.0

-1.00 MW0.02 Mvar

Blk. 790.9

2.00 MW0.00 Mvar

Lv

. T

x. 7

83

.9

-1.99 MW0.09 Mvar

Blk. 490.9

2.00 MW0.00 Mvar

Lv

. T

x. 4

83

.8

-1.99 MW0.09 Mvar

Blk. 390.9

2.00 MW0.00 Mvar

Blk. 290.9

2.00 MW0.00 Mvar

Blk. 190.9

2.00 MW0.00 Mvar

Lv

. T

x. 3

83

.8

-1.99 MW0.09 Mvar

Lv

. T

x. 2

83

.8

-1.99 MW0.09 Mvar

Lv

. T

x. 1

83

.8

-1.99 MW0.09 Mvar

General L..

General L..

Breaker/S..0.0

Lin

e4

118.0

General L..

General L..

Breaker/S..0.0

Breaker/S..0.0

General L..

General L..

Breaker/S..0.0

Lin

e3

5.2

Lin

e8

11

.1

Blk. 690.9

2.00 MW0.00 Mvar

Blk. 590.9

2.00 MW0.00 Mvar

Lv

. T

x. 6

83

.9

-1.99 MW0.09 Mvar

Lv

. T

x. 5

83

.8-1.99 MW0.09 Mvar

Line 11kV R24.2

-4.98 MW0.21 Mvar0.00 MW

-0.00 Mvar24.22 %

Line 11kV L48.4

-9.95 MW0.47 Mvar0.01 MW0.00 Mvar48.41 %

Site

Tx

.6

2.9

-14.84 MW1.54 Mvar

Lin

e 3

3k

V6

6.8

-14.14 MW-2.40 Mvar0.70 MW

-3.94 Mvar66.78 %

Lin

e1

81

1.1

Lin

e5

33

.5

5.82 MW2.88 Mvar0.00 MW

-0.01 Mvar33.55 %

Breaker/S..0.0

Lin

e1

75

.2L

ine

15

.2

2.74 MW1.31 Mvar0.00 MW

-0.00 Mvar5.19 %

Tx

21

8.1

6.24 MW5.21 Mvar

6.24 MW5.21 Mvar

Tx

11

8.1

6.24 MW5.21 Mvar

6.24 MW5.21 Mvar

External ..

12.47 MW10.43 Mvar0.00 MW

DIg

SIL

EN

T



Page 20

Appendix 3

Figure 3: Part of PMU Kangar that shall be extended

Figure 4: 33kV Control Panel in PMU Kangar



Page 21

Figure 5: The wall needs to be extended for additional control panel

Figure 6: The proposed solar PV site



APPENDIX 6

MINUTES OF THE STAKEHOLDER MEETING

Appendix 6 : Minutes of the Stakeholder Meeting Venue Bendahara III, Putra Palace Hotel, Perlis, Malaysia

Date 06 August 2015

Time 10:00 am - 12:00 am

Attendance

No.1 Mohd. Mushar Tajuddin Jabatan Kerja Raya – Public Works Department, JKR

No.2 Abdul Razak B Hassan Jabatan Pengairan dan Saliran – Drainage and Irrigation Department, JPS

No.3 Noorasmawati Bt Ariffin Department of Environment, DOE

No.4 Ku Nur Aina Bt Mohd Ali Khan Jabatan Perancang Bandar dan Desa –Town and Country Planning Department, JPBD Perlis

No.5 Eida Nur Eilham Razak Jabatan Perancang Bandar dan Desa –Town and Country Planning Department, JPBD Perlis

No.6 Norul Najwa Bt Ali Majlis Perbandaran Kangar – Kangar Municipal Council, MPK

No.7 Muhammad Faridzul Bin Lin Unit Perancang Ekonomi Negeri – State Economy Planning Unit, UPEN

No.8 Muhamad Rizal B. Mohd Merican Northern Corridor Implementation Authority, NCIA

No.9 Syed Zareef Syed Hamzah Northern Corridor Implementation Authority, NCIA

No.10 Joel Lawrence Jayasunthar Asian Environmental Solutions Sdn. Bhd

No.11 Farhana Haris Asian Environmental Solutions Sdn. Bhd

No.12 Azian Nozmi Asian Environmental Solutions Sdn. Bhd

No.13 Yanagi Kaisei Panasonic Eco Solutions Malaysia

No.14 Kenny Ng Han Tiong Panasonic Eco Solutions Malaysia

No.15 Oishi Yoshiko NEWJEC Inc.

Authority Matter

NCIA They stated that this is a good project as it will be a kick-start to Chuping Valley Development. NCIA has no issue regarding this project as it will open more doors to investors to invest in Perlis.

UPEN Technical meeting is proposed to be done with PESMY on August 2015. Date to be confirmed. UPEN stated that the Feasibility Study Report will be presented in the technical committee and

if everything is clear, it will proceed to the State EXCO before continuing with the project. Land acquisition issue will be clarified during the technical meeting.

JPS JPS stated that there will be no discharge to Timah Tasoh from the Project site as it is in different catchment. However, if necessary the site need silt trap to cater to the silt and runoff but the decision will be made by MPK either the site will need silt trap or not.

JPS reminded that the transition line must not obstruct the rivers during the construction. JPS reminded that the transition line must not obstruct the rivers during the construction. JPS needed details of the transmission line to identify sensitive structures along the line and

informed that Sungai Jerneh is a main water supply to Perlis paddy plantation. JPS also informed that there is no proper roadside drain at Chuping Valley, thus the Proposed

Project will upgrade the drainage system at Chuping Valley.

JPBD JPBD has no issue regarding the Proposed Project. JPBD informed that map for the location for the villages along the transmission line can be

obtained from Unit Pentadbiran Daerah (Local Administrative Unit).

MPK MPK stated that the Project Proponent should get all the plans ready and have a presentation with MPK for the engagement policy meeting chaired by YDP. All plans should be submitted by the appointed engineering consultant.

DOE DOE stressed that the location of proposed Project must be compatible with the siting and zoning of the area before the submission of PAT. AESSB will check with the Municipal Council and NCIA regarding the latest siting and zoning for the area.

DOE was concerned about the waste that will be generated from the proposed project.

JKR JKR informed that the proposed transmission line to be submitted to Road Department at JKR Kangar.

All over-ground and underground cable must be determined.



APPENDIX 7

MONITORING FORM

Appendix 7 : Monitoring Form

A7 - 1

Monitoring Form for Air Quality

a) Type of Work:

b) Monitoring Frequency: □ 1st / □ 2nd / □ 3 rd / □ 4 th

c) Monitoring Period: From Date Month Year

To Date Month Year

Photovoltaic Power Station

Location Item Unit Malaysian Standard

Base Date 10-11/08/2015

Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

A1 TSP µg/m3 260 72 PM10 µg/m3 150 50 SO2 µg/m3 320 ND(<5) NO2 µg/m3 105 ND(<2) CO ppm 9 ND(2)

Lead µg/m3 1.5 ND(<0.01) HC µg/m3 NA ND(<5)



Transmission Line


Base Date 10-11/08/2015

Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /







A7 - 2


Base Date 10-11/08/2015

Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

A3 Lead µg/m3 1.5 ND(<0.01) HC µg/m3 NA ND(<5)












A7 - 3

Monitoring Form for Water Quality

a) Type of Work:

b) Monitoring Frequency: □ 1st / □ 2nd / □ 3 rd / □ 4 th


To Date Month Year

Photovoltaic Power Station


Base Date 12/08/2015

Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

W1

Temp °C - 30.9 pH - 6.0-9.0 6.20 DO mg/L 5.0-7.0 5.5

Turbidity NTU 50.0 13 BOD5 mg/L 3.0 6 COD mg/L 25.0 24 TSS mg/L 50.0 5

E.Coli CFU/100ml 100.0 10 NH3-N mg/L 0.3 ND(<0.01)

Oil and Grease mg/L 0.04 ND(<1)

W2

Temp °C - 31.8 pH - 6.0-9.0 6.50 DO mg/L 5.0-7.0 5.95




W3

Temp °C - 31.1 pH - 6.0-9.0 6.60 DO mg/L 5.0-7.0 6.15


E.Coli CFU/100ml 100.0 18 NH3-N mg/L 0.3 0.30


W4

Temp °C - 31.9 pH - 6.0-9.0 6.40 DO mg/L 5.0-7.0 6.05


E.Coli CFU/100ml 100.0 13


A7 - 4



Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

W4 NH3-N mg/L 0.3 0.26


W5

Temp °C - 30.8 pH - 6.0-9.0 6.20 DO mg/L 5.0-7.0 5.80




Transmission Line



Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

W1

Temp °C - 30.9 pH - 6.0-9.0 6.50 DO mg/L 5.0-7.0 6.15




W2

Temp °C - 31.5 pH - 6.0-9.0 6.60 DO mg/L 5.0-7.0 5.90




W3

Temp °C - 31.5 pH - 6.0-9.0 6.50 DO mg/L 5.0-7.0 6.00




W4 Temp °C - 31.6

pH - 6.0-9.0 6.10


A7 - 5



Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

DO mg/L 5.0-7.0 5.75 Turbidity NTU 50.0 26

W4

BOD5 mg/L 3.0 6 COD mg/L 25.0 24 TSS mg/L 50.0 15



W5

Temp °C - 30.9 pH - 6.0-9.0 6.40 DO mg/L 5.0-7.0 5.90




W6

Temp °C - 31.8 pH - 6.0-9.0 6.30 DO mg/L 5.0-7.0 5.80




W7

Temp °C - 30.8 pH - 6.0-9.0 6.45 DO mg/L 5.0-7.0 5.80


E.Coli CFU/100ml 100.0 6

W7 NH3-N mg/L 0.3 ND(<0.01)


W8

Temp °C - 30.8 pH - 6.0-9.0 6.40 DO mg/L 5.0-7.0 5.90



Oil and Grease mg/L 0.04 ND(<1) W9 Temp °C - 31.1


A7 - 6



Date 1 / /

Date 2 / /

Date 3 / /

Date 4 / /

pH - 6.0-9.0 6.55 DO mg/L 5.0-7.0 6.15

W9




W10

Temp °C - 30.8 pH - 6.0-9.0 6.60 DO mg/L 5.0-7.0 6.20




W11

Temp °C - 31.4 pH - 6.0-9.0 6.50 DO mg/L 5.0-7.0 6.05




W12 Temp °C - 30.8

pH - 6.0-9.0 6.40 DO mg/L 5.0-7.0 5.80

W12





A7 - 7

Monitoring Form for Waste Management

a) Detailed Location:

b) Type of Work:


To Date Month Year

No. Type of waste Volume (Unit) Detail Treatment Measure Remark

1 Construction soil (ton)

2 Concrete (ton)

3

4

5



APPENDIX 8

ENVIRONMENTAL CHECKLISTS

Appendix 8： Environmental Checklists

A8 - 1

Photovoltaic Power Plant

Category Environmental Item Main Check Items Yes: Y

No: N

Confirmation of Environmental Considerations

(Reasons, Mitigation Measures)

1 Permits and Explanation

(1) EIA and Environmental Permits

(a) Have EIA reports been already prepared in official process?

(b) Have EIA reports been approved by authorities of the host country's government?

(c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied?

(d) In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government?

(a)N (b)N/A (c)N/A (d)N/A

(a) EIA and IEE are not required in Malaysian System.

(b) N/A

(c) N/A

(d) N/A

(2) Explanation to the Local Stakeholders

(a) Have contents of the project and the potential impacts been adequately explained to the Local stakeholders based on appropriate procedures, including information disclosure? Is understanding obtained from the Local stakeholders?

(b) Have the comment from the stakeholders (such as local residents) been reflected to the project design?

(a)Y (b)Y

(a) The stakeholder meeting was held on 6th August 2015.

(b) The opinions from stakeholders were included in the monitoring plan.

(3) Examination of Alternatives

(a) Have alternative plans of the project been examined with social and environmental considerations?

(a)Y (a) The comparative study was conducted on the project sites and zero-option.

2 Pollution Control

(1) Air Quality

(a) Do air pollutants, (such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust) emitted from the proposed infrastructure facilities and ancillary facilities comply with the country's emission standards and ambient air quality standards? Are any mitigating measures taken?

(b) Are electric and heat source at accommodation used fuel which emission factor is low?

(a)Y (b)N

(a) The air pollutants are not expected to arise from the photovoltaic power plant.

(b) The electric and heat source are supplied from the photovoltaic power plant.

(2) Water Quality

(a) Do effluents or leachates from various facilities, such as infrastructure facilities and the ancillary facilities comply with the country's effluent standards and ambient water quality standards?

(a)Y (a) The discharged water from the photovoltaic power plant is very less.

(3) Wastes

(a) Are wastes from the infrastructure facilities and ancillary facilities properly treated and disposed of in accordance with the country's regulations?

(a)Y (a) The wastes from the photovoltaic power plant are general and very less.

(4) Soil Contamination

(a) Are adequate measures taken to prevent contamination of soil and groundwater by the effluents or leachates from the infrastructure facilities and the ancillary facilities?

(a)Y (a) The discharged water from the photovoltaic power plant is very less.

(5) Noise and Vibration

(a) Do noise and vibrations comply with the country's standards?

(a)Y (a) The photovoltaic power plant is not expected to arise the noise and vibrations.

2 Pollution Control

(6) Subsidence

(a) In the case of extraction of a large volume of groundwater, is there a possibility that the extraction of groundwater will cause subsidence?

(a)N (a) The extraction of groundwater is not planned.

(7) Odor (a) Are there any odor sources? Are adequate odor control measures taken?

(a)N (a) There is not any odor source.


A8 - 2


No: N



3 Natural

Environment

(1) Protected Areas

(a) Is the project site or discharge area located in protected areas designated by the country's laws or international treaties and conventions? Is there a possibility that the project will affect the protected areas?

(a)N (a) The project site is not included in the protected areas.

(2) Ecosystem

(a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)?

(b) Does the project site encompass the protected habitats of endangered species designated by the country's laws or international treaties and conventions?

(c) Is there a possibility that changes in localized micro-meteorological conditions, such as solar radiation, temperature, and humidity due to a large-scale timber harvesting will affect the surrounding vegetation?

(d) Is there a possibility that the amount of water (e.g., surface water, groundwater) used by the project will adversely affect aquatic environments, such as rivers? Are adequate measures taken to reduce the impacts on aquatic environments, such as aquatic organisms?

(a)N (b)N (c)N (d)N

(a) The project site is not included primeval forests, tropical rain forests ecologically valuable habitats.

(b) The project site is not included the habitats of endangered species.

(c) The project is not expected to affect the ecosystem.

(d) The project is not expected to affect aquatic environments, because the water use is very less at the photovoltaic power plant.

(3) Hydrology (a) Is there a possibility that hydrologic changes

due to the project will adversely affect surface water and groundwater flows?

(a)N (a) The project is not expected to be occurred the hydrologic changes/

(4) Topography and Geology

(a) Is there a possibility the project will cause large-scale alteration of the topographic features and geologic structures in the project site and surrounding areas?

(a)N (a) The project is not expected to alter the topographic features and geologic structures, because the land of the project site is mostly flat.

4 Social

Environment

(1) Resettlement

(a) Is involuntary resettlement caused by project implementation? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement?

(b) Is adequate explanation on compensation and resettlement assistance given to affected people prior to resettlement?

(c) Is the resettlement plan, including compensation with full replacement costs, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement?

(d) Is the compensations going to be paid prior to the resettlement?

(e) Is the compensation policies prepared in document?

(f) Does the resettlement plan pay particular attention to vulnerable groups or people, including women, children, the elderly, people below the poverty line, ethnic minorities, and indigenous peoples?

(g) Are agreements with the affected people obtained prior to resettlement?

(h) Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan?

(a)N (b)N/A (c)N/A (d)N/A (e)N/A (f)N/A (g)N/A (h)N/A

(a) The involuntary resettlement is not expected to be caused by the project.

(b) N/A

(c) N/A

(d) N/A

(e) N/A

(f) N/A

(g) N/A

(h) N/A


A8 - 3


No: N



4 Social

Environment

(1) Resettlement

(i) Are any plans developed to monitor the impacts of resettlement?

(j) Is the grievance redress mechanism established?

(i)N/A (j)N/A

(i) N/A

(j) N/A

4 Social Environment

(2) Living and Livelihood

(a) Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary?

(a)N (a) The project is not expected to be affect the living conditions of inhabitants.

(3) Heritage

(a) Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage? Are adequate measures considered to protect these sites in accordance with the country's laws?

(a)N (a) There are not any important heritages in and around the project site.

(4) Landscape

(a) Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

(b) Is there a possibility that landscape is spoiled by construction of high-rise buildings such as huge hotels?

(a)N (b)N

(a) There are not any landscape resources in and around the project site.

(b) The project is not planned to construct buildings which spoile landscape.

(5) Ethnic Minorities and Indigenous Peoples

(a) Are considerations given to reduce impacts on the culture and lifestyle of ethnic minorities and indigenous peoples?

(b) Are all of the rights of ethnic minorities and indigenous peoples in relation to land and resources respected?

(a)N (b)N/A

(a) There are not any ethnic minorities and indigenous people in and around the project site.

(b) N/A

(6) Working Conditions

(a) Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project?

(b) Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials?

(c) Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public health) for workers etc.?

(d) Are appropriate measures taken to ensure that security guards involved in the project not to violate safety of other individuals involved, or local residents?

(a)Y (b)Y (c)Y (d)Y

(a) The PESMY observes the Malaysian laws related to the working condition such as the employment act (1955).

(b) The PESMY ensures the wear of the basic safety gear to the contractor.

(c) The PESMY ensures the establishment and practice of the safety and health program.

(d) Ditto

5 Others (1) Impacts during Construction

(a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)?

(b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts?

(c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

(a)Y (b)N (c)Y

(a) The mitigation measures are proposed for dust, turbid water, wastes and noise (such as water spray, silt fence, adequate waste treatment and use noise- reducing machineries)

(b) The construction works of the project are not expected to affect the natural environment.

(c) The construction works of the project are not expected affect the social environment, however, the caution signs will be set to prevent traffic accidents.


A8 - 4


No: N



5 Others (2) Monitoring

(a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts?

(b) What are the items, methods and frequencies of the monitoring program?

(c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)?

(d) Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

(a)Y (b)Y (c)Y (d)N

(a) The monitoring is planned on air quality, water quality, waste management, noise, working conditions and accidents.

(b) The air quality and noise will be monitored quarterly, the water quality will be monitored monthly. The waste management, working conditions and accidents will be monitored by the patrol.

(c) The PESMY shall assign the environmental consultant registered by MOE to prepare the environmental management plan. Then the environmental consultant will combine the results from the third party and submit the report to DOE.

(d) At present, the format and the frequency of the report are not provided from regulatory authorities.

6 Note

Reference to Checklist of Other Sectors

(a) Where necessary, pertinent items described in the Roads, Railways and Bridges checklist should also be checked (e.g., projects including access roads to the infrastructure facilities).

(b) For projects, such as installation of telecommunication cables, power line towers, and submarine cables, where necessary, pertinent items described in the Power Transmission and Distribution Lines checklists should also be checked.

(a)N (b)Y

(a) The access road is not planned to construct, because the exiting road will be used for transporting materials.

(b) The checklist was also prepared for the transmission line.

Note on Using Environmental Checklist

(a) If necessary, the impacts to transboundary or global issues should be confirmed (e.g., the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming).

(a)N (a) The project is not expected to affect transboundary or global issues, because the scale of the project is small.


A8 - 5

Transmission Line


No: N



1 Permits and

Explanation

(1) EIA and Environmental Permits

(a) Have EIA reports been already prepared in official process?

(b) Have EIA reports been approved by authorities of the host country's government?

(c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied?

(d) In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government?

(a)N (b)N/A (c)N/A (d)N/A

(a) EIA and IEE are not required in Malaysian System.

(b) N/A

(c) N/A

(d) N/A

(2) Explanation to the Local Stakeholders

(a) Have contents of the project and the potential impacts been adequately explained to the Local stakeholders based on appropriate procedures, including information disclosure? Is understanding obtained from the Local stakeholders?

(b) Have the comment from the stakeholders (such as local residents) been reflected to the project design?

(a)Y (b)Y

(a) The stakeholder meeting was held on 6th August 2015.

(b) The opinions from stakeholders were included in the monitoring plan.

(3) Examination of Alternatives

(a) Have alternative plans of the project been examined with social and environmental considerations?

(a)Y (a) The comparative study was conducted on the project sites and zero-option.

2 Pollution Control

(1) Water Quality

(a) Is there any possibility that soil runoff from the bare lands resulting from earthmoving activities, such as cutting and filling will cause water quality degradation in downstream water areas? If the water quality degradation is anticipated, are adequate measures considered?

(a)N (a) The cutting and filling are not planned on the Project, because the transmission line will be constructed by concrete poles.

3 Natural Environment

(1) Protected Areas

(a) Is the project site located in protected areas designated by the country’s laws or international treaties and conventions? Is there a possibility that the project will affect the protected areas?

(a)N (a) The project site is not included in the protected areas.

(2) Ecosystem

(a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)?

(b) Does the project site encompass the protected habitats of endangered species designated by the country ’ s laws or international treaties and conventions?

(c) If significant ecological impacts are anticipated, are adequate protection measures taken to reduce the impacts on the ecosystem?

(d) Are adequate measures taken to prevent disruption of migration routes and habitat fragmentation of wildlife and livestock?

(e) Is there any possibility that the project will cause the negative impacts, such as destruction of forest, poaching, desertification, reduction in wetland areas, and disturbance of ecosystem due to introduction of exotic (non-native invasive) species and pests? Are adequate measures for preventing such impacts considered?

(a)N (b)N (c)N (d)N (e)N

(a) The project site is not included primeval forests, tropical rain forests ecologically valuable habitats.

(b) The project site is not included the habitats of endangered species.

(c) The project is not expected to affect the ecosystem.

(d) The project is not expected to prevent disruption of migration routes and habitat fragmentation of wildlife and livestock.

(e)(f) The project is not expected to disturb the forest, because the transmission line will be constructed along the existing road.


A8 - 6


No: N



3 Natural Environment

(2) Ecosystem

(f) In cases where the project site is located in undeveloped areas, is there any possibility that the new development will result in extensive loss of natural environments?

(f)N

(3) Topography and Geology

(a) Is there any soft ground on the route of power transmission and distribution lines that may cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides, where needed?

(b) Is there any possibility that civil works, such as cutting and filling will cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides?

(c) Is there a possibility that soil runoff will result from cut and fill areas, waste soil disposal sites, and borrow sites? Are adequate measures taken to prevent soil runoff?

(a)N (b)N (c)N

(a) There is not any soft ground on the transmission line route.

(b)(c) The cutting and filling are not planned on the Project, because the transmission line will be constructed by concrete poles.


(1) Resettlement

(a) Is involuntary resettlement caused by project implementation? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement?

(b) Is adequate explanation on compensation and resettlement assistance given to affected people prior to resettlement?

(c) Is the resettlement plan, including compensation with full replacement costs, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement?

(d) Are the compensations going to be paid prior to the resettlement?

(e) Are the compensation policies prepared in document?

(f) Does the resettlement plan pay particular attention to vulnerable groups or people, including women, children, the elderly, people below the poverty line, ethnic minorities, and indigenous peoples?

(g) Are agreements with the affected people obtained prior to resettlement?

(h) Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan?

(i) Are any plans developed to monitor the impacts of resettlement?

(j) Is the grievance redress mechanism established?

(a)N (b)N/A (c)N/A (d)N/A (e)N/A (f)N/A (g)N/A (h)N/A (i)N/A (j)N/A

(a) The involuntary resettlement is not expected to be caused by the project.

(b) N/A

(c) N/A

(d) N/A

(e) N/A

(f) N/A

(g) N/A

(h) N/A

(i) N/A

(j) N/A


(a) Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary?

(b) Is there a possibility that diseases, including infectious diseases, such as HIV will be brought due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary?

(a)N (b)N

(a) The project is not expected to be affect the living conditions of inhabitants.

(b) The project is not expected to be brought infectious diseases, because there is little immigration of workers.


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No: N





(c) Is there any possibility that installation of structures, such as power line towers will cause a radio interference? If any significant radio interference is anticipated, are adequate measures considered?

(d) Are the compensations for transmission wires given in accordance with the domestic law?

(c)N (d)N

(c) The project is not expected to cause the radio interference, because the transmission line will be constructed by the concrete poles.

(d) The project is not required compensations for transmission wires, because the transmission line will be constructed along the existing transmission line in the right of way of the roads.

(3) Heritage

(a) Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage? Are adequate measures considered to protect these sites in accordance with the country’s laws?

(a)N (a) There are not any important heritages in and around the project site.

(4) Landscape (a) Is there a possibility that the project will

adversely affect the local landscape? Are necessary measures taken?

(a)N (a) There are not any landscape resources in and around the project site.

(5) Ethnic Minorities and Indigenous Peoples

(a) Are considerations given to reduce impacts on the culture and lifestyle of ethnic minorities and indigenous peoples?

(b) Are all of the rights of ethnic minorities and indigenous peoples in relation to land and resources respected?

(a)N (b)N/A

(a) There are not any ethnic minorities and indigenous people in and around the project site.

(b) N/A

(6) Working Conditions

(a) Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project?

(b) Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials?

(c) Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public health) for workers etc.?

(d) Are appropriate measures taken to ensure that security guards involved in the project not to violate safety of other individuals involved, or local residents?

(a)Y (b)Y (c)Y (d)Y

(a) The PESMY observes the Malaysian laws related to the working condition such as the employment act (1955).

(b) The PESMY ensures the wear of the basic safety gear to the contractor.

(c)(d) The PESMY ensures the establishment and practice of the safety and health program.

5 Others (1) Impacts during Construction

(a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)?

(b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts?

(c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

(a)Y (b)N (c)Y

(a) The mitigation measures are proposed for dust, turbid water, wastes and noise (such as water spray, silt fence, adequate waste treatment and use noise-reducing machineries)

(b) The construction works of the project are not expected to affect the natural environment.

(c) The construction works of the project are not expected affect the social environment, however, the caution signs will be set to prevent traffic accidents.


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No: N



(2) Monitoring

(a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts?

(b) What are the items, methods and frequencies of the monitoring program?

(c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)?

(d) Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

(a)Y (b)Y (c)Y (d)N

(a) The monitoring is planned on air quality, water quality, waste management, noise, working conditions and accidents.

(b) The air quality and noise will be monitored quarterly, the water quality will be monitored monthly. The waste management, working conditions and accidents will be monitored by the patrol.

(c) The PESMY shall assign the environmental consultant registered by MOE to prepare the environmental management plan. Then the environmental consultant will combine the results from the third party and submit the report to DOE.

(d) At present, the format and the frequency of the report are not provided from regulatory authorities.

6 Note

Reference to Checklist of Other Sectors

(a) Where necessary, pertinent items described in the Road checklist should also be checked (e.g., projects including installation of electric transmission lines and/or electric distribution facilities).

(a)N (a) The access road is not planned to construct, because the exiting road will be used for transporting materials.

Note on Using Environmental Checklist

(a) If necessary, the impacts to transboundary or global issues should be confirmed, (e.g., the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming).

(a)N (a) The project is not expected to affect transboundary or global issues, because the scale of the project is small.

PREPARATORY SURVEY REPORT P G E P M (PPP I P ...Malaysia PREPARATORY SURVEY REPORT FOR PHOTOVOLTAIC...

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