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TMCNet: Malaysia to delay construction of new power plants

[July 01, 2009]

Malaysia to delay construction of new power plants

KUALA LUMPUR, Jul 01, 2009 (Xinhua via COMTEX) -- Malaysia would postpone its plan to build new power plants due to the expected decline in demand for electricity in the current economic situation, according to a local newspaper on Wednesday.

The New Straits Times quoted Malaysian Energy, Green Technology and Water Minister Peter Chin Fah Kui as saying that Malaysia's electricity demand growth in 2009 had been revised downward to one percent from the earlier forecast of 4.8 percent in 2008, due to the current economic crisis.

Chin said that Malaysia would have new power plants by 2014 if the electricity demand growth remained at the earlier forecast.

The minister explained that the postponement to build new power plants would bring the ministry's current reserve to a more comfortable level.

He also said that the delay would save about 26 billion ringgit (7.4 billion U.S. dollars) for the country.

Chin said that the Malaysian Government has decided that its fuel mix from a particular fuel source should remain at 25 percent in order to mitigate energy security risks.

Under this policy, Chin said that the government was considering the possibility of increasing the share of hydropower in the mix to some 30 percent from the current 8 percent by 2030, backed by the transfer of the vast hydro potential in Sarawak, East Malaysia to Peninsular Malaysia after 2015.

The minister said that such transfer of electricity was to increase the share of green energy in fuel mix to ensure sustainable energy development in Malaysia.

Chin added that the export plan would stimulate the cables or wires business in exploiting hydropower.

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